Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 28, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | PBPB | |
Entity Registrant Name | Potbelly Corporation | |
Entity Central Index Key | 1,195,734 | |
Current Fiscal Year End Date | --12-30 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Common Stock, Shares Outstanding | 24,844,824 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 26,711 | $ 25,530 |
Accounts receivable, net of allowances of $124 and $129 as of September 30, 2018 and December 31, 2017, respectively | 5,353 | 5,087 |
Inventories | 3,459 | 3,525 |
Prepaid expenses and other current assets | 10,980 | 11,061 |
Total current assets | 46,503 | 45,203 |
Property and equipment, net | 94,237 | 103,859 |
Indefinite-lived intangible assets | 3,404 | 3,404 |
Goodwill | 2,222 | 2,222 |
Deferred income taxes, noncurrent | 12,612 | 11,202 |
Deferred expenses, net and other assets | 7,064 | 4,840 |
Total assets | 166,042 | 170,730 |
Current liabilities | ||
Accounts payable | 3,380 | 3,903 |
Accrued expenses | 23,597 | 23,273 |
Accrued income taxes | 176 | |
Total current liabilities | 26,977 | 27,352 |
Deferred rent and landlord allowances | 22,998 | 22,987 |
Other long-term liabilities | 5,983 | 3,153 |
Total liabilities | 55,958 | 53,492 |
Stockholders’ equity | ||
Common stock, $0.01 par value—authorized 200,000,000 shares; outstanding 25,102,339 and 24,999,688 shares as of September 30, 2018 and December 31, 2017, respectively | 329 | 318 |
Additional paid-in-capital | 432,329 | 421,657 |
Treasury stock, held at cost, 7,804,519 and 6,831,508 shares as of September 30, 2018, and December 31, 2017, respectively | (97,792) | (85,262) |
Accumulated deficit | (225,195) | (219,990) |
Total stockholders’ equity | 109,671 | 116,723 |
Non-controlling interest | 413 | 515 |
Total stockholders' equity | 110,084 | 117,238 |
Total liabilities and equity | $ 166,042 | $ 170,730 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Allowances on accounts receivable | $ 124 | $ 129 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, authorized | 200,000,000 | 200,000,000 |
Common stock, outstanding | 25,102,339 | 24,999,688 |
Treasury stock, shares | 7,804,519 | 6,831,508 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 24, 2017 | Sep. 30, 2018 | Sep. 24, 2017 | |
Revenues | ||||
Total revenues | $ 106,996 | $ 106,127 | $ 320,260 | $ 315,962 |
Sandwich shop operating expenses | ||||
Cost of goods sold, excluding depreciation | 28,455 | 28,405 | 83,730 | 83,703 |
Labor and related expenses | 32,376 | 31,187 | 96,367 | 93,213 |
Occupancy expenses | 15,076 | 14,354 | 44,787 | 42,792 |
Other operating expenses | 13,357 | 12,464 | 38,650 | 36,349 |
General and administrative expenses | 10,087 | 12,104 | 35,715 | 33,375 |
Depreciation expense | 5,847 | 6,315 | 17,531 | 18,960 |
Pre-opening costs | 109 | 336 | 245 | 955 |
Impairment and loss on disposal of property and equipment | 4,386 | 1,536 | 8,467 | 5,762 |
Total expenses | 109,693 | 106,701 | 325,492 | 315,109 |
Income (loss) from operations | (2,697) | (574) | (5,232) | 853 |
Interest expense | 54 | 32 | 109 | 101 |
Income (loss) before income taxes | (2,751) | (606) | (5,341) | 752 |
Income tax expense (benefit) | (909) | (487) | (1,111) | 252 |
Net income (loss) | (1,842) | (119) | (4,230) | 500 |
Net income attributable to non-controlling interest | 119 | 121 | 285 | 195 |
Net income (loss) attributable to Potbelly Corporation | $ (1,961) | $ (240) | $ (4,515) | $ 305 |
Net income (loss) per common share attributable to common stockholders: | ||||
Basic | $ (0.08) | $ (0.01) | $ (0.18) | $ 0.01 |
Diluted | $ (0.08) | $ (0.01) | $ (0.18) | $ 0.01 |
Weighted average shares outstanding: | ||||
Basic | 25,369,281 | 24,959,023 | 25,355,174 | 25,030,951 |
Diluted | 25,369,281 | 24,959,023 | 25,355,174 | 25,857,083 |
Product [Member] | ||||
Revenues | ||||
Total revenues | $ 106,238 | $ 105,327 | $ 317,866 | $ 313,568 |
Franchise Royalties And Fees [Member] | ||||
Revenues | ||||
Total revenues | $ 758 | $ 800 | $ 2,394 | $ 2,394 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Treasury Stock [Member] | Warrants [Member] | Additional Paid-in-Capital [Member] | Accumulated Deficit [Member] | Non-Controlling Interest [Member] |
Beginning balance at Dec. 25, 2016 | $ 124,236 | $ 309 | $ (72,321) | $ 909 | $ 407,622 | $ (213,034) | $ 751 |
Beginning balance, common shares at Dec. 25, 2016 | 25,139,127 | ||||||
Net income (loss) | 500 | 305 | 195 | ||||
Stock-based compensation plans | 1,181 | $ 2 | 1,179 | ||||
Stock-based compensation plans, shares | 168,930 | ||||||
Exercise of stock warrants | 1,972 | $ 2 | $ (909) | 2,879 | |||
Exercise of stock warrants, shares | 241,704 | ||||||
Repurchases of common stock | (8,853) | (8,853) | |||||
Repurchases of common stock, shares | (745,496) | ||||||
Distributions to non- controlling interest | (354) | (354) | |||||
Contributions from non- controlling interest | 11 | 11 | |||||
Amortization of stock-based compensation | 3,263 | 3,263 | |||||
Ending balance at Sep. 24, 2017 | 121,956 | $ 313 | (81,174) | 414,943 | (212,729) | 603 | |
Ending balance, common shares at Sep. 24, 2017 | 24,804,265 | ||||||
Beginning balance at Dec. 31, 2017 | $ 117,238 | $ 318 | (85,262) | 421,657 | (219,990) | 515 | |
Beginning balance, common shares at Dec. 31, 2017 | 24,999,688 | 24,999,688 | |||||
Cumulative impact of Topic 606 at 1/1/2018 | $ (690) | (690) | |||||
Net income (loss) | (4,230) | (4,515) | 285 | ||||
Stock-based compensation plans | $ 8,167 | $ 11 | 8,156 | ||||
Stock-based compensation plans, shares | 1,075,662 | ||||||
Exercise of stock warrants, shares | 984,000 | ||||||
Repurchases of common stock | $ (12,414) | (12,414) | |||||
Repurchases of common stock, shares | (964,240) | ||||||
Distributions to non- controlling interest | (407) | (407) | |||||
Treasury shares used for stock-based plans | (116) | (116) | |||||
Treasury shares used for stock-based plans, shares | (8,771) | ||||||
Contributions from non- controlling interest | 20 | 20 | |||||
Amortization of stock-based compensation | 2,516 | 2,516 | |||||
Ending balance at Sep. 30, 2018 | $ 110,084 | $ 329 | $ (97,792) | $ 432,329 | $ (225,195) | $ 413 | |
Ending balance, common shares at Sep. 30, 2018 | 25,102,339 | 25,102,339 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 24, 2017 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (4,230) | $ 500 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 17,531 | 18,960 |
Deferred income tax | (98) | |
Deferred rent and landlord allowances | 12 | 1,924 |
Amortization of stock compensation expense | 2,516 | 3,263 |
Excess tax deficiency from stock-based compensation | 651 | 292 |
Asset impairment, store closure and disposal of property and equipment | 8,666 | 5,922 |
Amortization of debt issuance costs | 28 | 28 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (516) | (1,422) |
Inventories | 65 | 54 |
Prepaid expenses and other assets | (2,015) | (2,650) |
Accounts payable | (201) | 699 |
Accrued and other liabilities | 244 | 798 |
Net cash provided by operating activities: | 22,653 | 28,368 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (16,722) | (23,526) |
Net cash used in investing activities: | (16,722) | (23,526) |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options | 8,167 | 1,181 |
Proceeds from exercise of stock warrants | 1,972 | |
Employee taxes on certain stock-based payment arrangements | (116) | |
Treasury stock repurchases | (12,414) | (8,853) |
Contributions from non-controlling interest | 20 | 11 |
Distributions to non-controlling interest | (407) | (354) |
Net cash used in financing activities: | (4,750) | (6,043) |
Net increase (decrease) in cash and cash equivalents | 1,181 | (1,201) |
Cash and cash equivalents at beginning of period | 25,530 | 23,379 |
Cash and cash equivalents at end of period | 26,711 | 22,178 |
Supplemental cash flow information: | ||
Income taxes paid | 249 | 3,346 |
Interest paid | 85 | 73 |
Supplemental non-cash investing and financing activities: | ||
Unpaid liability for purchases of property and equipment | $ 1,178 | $ 2,752 |
Organization and Other Matters
Organization and Other Matters | 9 Months Ended |
Sep. 30, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Other Matters | (1) Organization and Other Matters Business Potbelly Corporation (the “Company” or “Potbelly”), through its wholly owned subsidiaries, owns or operates more than 400 company-owned shops in the United States. Additionally, Potbelly franchisees operate more than 50 shops domestically, in the Middle East, Canada and India. Basis of Presentation The unaudited condensed consolidated financial statements and notes herein should be read in conjunction with the audited consolidated financial statements of Potbelly Corporation and its subsidiaries and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. The unaudited condensed consolidated financial statements included herein have been prepared by the Company without audit, pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to the SEC rules and regulations. In the opinion of management, all adjustments, which are of a normal and recurring nature (except as otherwise noted), that are necessary to present fairly the Company’s financial position as of September 30, 2018 and December 31, 2017, its statement of operations for the 13 and 39 weeks ended September 30, 2018 and September 24, 2017 and its statement of cash flows for the 39 weeks ended September 30, 2018 and September 24, 2017 have been included. The consolidated statements of operations for the interim periods presented herein are not necessarily indicative of the results to be expected for the full year. The Company does not have any components of other comprehensive income recorded within its consolidated financial statements and therefore, does not separately present a statement of comprehensive income in its condensed consolidated financial statements. Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of Potbelly Corporation; its wholly owned subsidiary, Potbelly Illinois, Inc. (“PII”); PII’s wholly owned subsidiaries, Potbelly Franchising, LLC and Potbelly Sandwich Works, LLC (“LLC”); seven of LLC’s wholly owned subsidiaries and LLC’s seven joint ventures, collectively, the “Company.” All intercompany balances and transactions have been eliminated in consolidation. For consolidated joint ventures, non-controlling interest represents a non-controlling partner’s share of the assets, liabilities and operations related to the seven joint venture investments. The Company has ownership interests ranging from 51-80% in these consolidated joint ventures. Fiscal Year The Company uses a 52/53-week fiscal year that ends on the last Sunday of the calendar period. Approximately every five or six years a 53rd week is added. Fiscal year 2018 consists of 52 weeks and 2017 consisted of 53 weeks. The fiscal quarters ended September 30, 2018 and September 24, 2017 each consisted of 13 weeks. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and the disclosure of contingent assets and liabilities. Significant estimates include amounts for long-lived assets and income taxes. Actual results could differ from those estimates. Recent Accounting Pronouncements I n May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, “Revenue from Contracts with Customers.” The pronouncement was issued to clarify the principles for recognizing revenue and to develop a common revenue standard and disclosure requirements for U.S. GAAP and International Financial Reporting Standards (IFRS). In addition, the FASB issued ASU 2016-08, ASU 2016-10 and ASU 2016-12 in March 2016, April 2016 and May 2016, respectively, to help provide interpretive clarifications on the new guidance in Accounting Standards Codification (ASC) Topic 606. Potbelly adopted the standard effective January 1, 2018 using the modified retrospective method applied to contracts that were not completed as of the date of adoption. The adoption does not have a material impact on sandwich shop sales, but impacted the recognition of franchise revenue and gift card breakage. Potbelly licenses intellectual property and trademarks to franchisees through franchise arrangements. As part of these agreements, Potbelly receives an initial franchise fee payment, which historically was recognized as revenue when the shop opened. Effective for the annual period beginning January 1, 2018, initial franchise fees are recognized as revenue over the contractual term. Potbelly sells gift cards to customers and records the sale as a liability. The liability is released once the card is redeemed. Historically, a portion of these gift card sales were not redeemed by the customer (“breakage”) and Potbelly would recognize breakage two years after the period of sale. Effective for the annual period beginning January 1, 2018, expected breakage is recognized as customers redeem the gift cards. Upon adoption of the standard, Potbelly’s accumulated deficit increased by $0.7 million (net of tax). The franchise revenue adjustment impacted accrued expenses, other long-term liabilities and deferred income taxes. The breakage adjustment impacted accrued expenses and deferred income taxes. For the 13 weeks ended September 30, 2018, revenue recognized was $0.1 million higher than it would have been under the previous methodology, and for the 39 weeks ended September 30, 2018, revenue recognized was $0.3 million higher than it would have been under the previous methodology. In February 2016, the FASB issued ASU No. 2016-02, “Leases,” which will replace the existing guidance in ASC 840, “Leases.” The pronouncement requires a dual approach for lessee accounting under which a lessee would account for leases as finance leases or operating leases. Both finance leases and operating leases will result in the lessee recognizing a right-of-use asset and a corresponding lease liability. For finance leases, the lessee would recognize interest expense and amortization of the right-of-use asset, while for operating leases, the lessee would recognize a straight-line total lease expense. The pronouncement is effective for fiscal years beginning after December 15, 2018, including annual and interim periods thereafter. In July 2018, the FASB issued Accounting Standards Update No. 2018-11 “Leases (Topic 842): Targeted Improvements” (“ASU 2018-11”), which permits companies to initially apply the new leases standard at the date of adoption and not restate periods prior to adoption. The Company plans to adopt ASU 2018-11. The Company is currently evaluating the impact of ASU 2016-02 and anticipates it will be able to complete its analysis of all potential impacts of the standard, implement any system and process changes that might be necessary and educate the appropriate employees with respect to the new standard in order to effectively adopt the standard beginning in the first quarter of 2019. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | (2) Revenue Potbelly primarily earns revenue at a point in time through sales at our sandwich shop locations and records such revenue net of sales-related taxes collected from customers. The payment on these sales is due at the time of the customer’s purchase. The Company also receives royalties from franchisees on their respective sales, which are recognized at the point in time the sale is made and invoiced weekly. Potbelly also records revenue from sales over time related to upfront franchise fees, gift card redemptions and breakage. For the 39 weeks ended September 30, 2018, revenue recognized from all revenue sources on point in time sales was $319.8 million, and revenue recognized from sales over time was $0.5 million. Franchise Revenue Potbelly licenses intellectual property and trademarks to franchisees through franchise agreements. As part of these franchise agreements, Potbelly receives an upfront payment from the franchisee, which the Company recognizes over the term of the franchise agreement. The Company records a contract liability for the unearned portion of the upfront franchise payments. Gift Card Redemptions / Breakage Revenue Potbelly sells gift cards to customers, records the sale as a contract liability and recognizes the associated revenue as the gift card is redeemed. A portion of these gift cards are not redeemed by the customer, which is recognized by the Company as revenue as a percentage of customers gift card redemptions. The expected breakage amount recognized is determined by a historical data analysis on gift card redemption patterns. Contract Liabilities As described above, the Company records current and noncurrent contract liabilities for upfront franchise fees as well as gift cards. There are no other contract liabilities or contract assets recorded by the Company. The opening and closing balances of the Company’s current and noncurrent contract liabilities from contracts with customers were as follows: Current Contract Liability Noncurrent Contract Liability (Thousands) (Thousands) Beginning balance as of January 1, 2018 $ (2,325 ) $ (2,144 ) Ending balance as of September 30, 2018 (1,375 ) (1,809 ) Decrease in contract liability $ (950 ) $ (335 ) The aggregate value of remaining performance obligations on outstanding contracts was $3.2 million as of September 30, 2018. The decrease in the liability during the 39 weeks ended September 30, 2018 was a result of gift card redemptions offset by purchases of new gift cards and recognition of franchise fees. The Company expects to recognize revenue related to contract liabilities as follows (in thousands), which may vary based upon franchise activity as well as gift card redemption patterns: Years Ending Amount 2018 $ 692 2019 752 2020 212 2021 206 2022 199 Thereafter 1,123 Total revenue recognized $ 3,184 For the 13 and 39 weeks ended September 30, 2018, the amount of revenue recognized related to the January 1, 2018 liability ending balance was $0.3 million and $1.8 million, respectively. This revenue related to the recognition of gift card redemptions and upfront franchise fees. For the 39 weeks ended September 30, 2018, the Company did not recognize any revenue from obligations satisfied (or partially satisfied) in prior periods. |
Fair Value Measurement
Fair Value Measurement | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | (3) Fair Value Measurement The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and all other current liabilities approximate fair values due to the short maturities of these balances. The Company assesses potential impairments to its long-lived assets, which includes property and equipment, on a quarterly basis or whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. Shop-level assets are grouped at the individual shop-level for the purpose of the impairment assessment. Recoverability of an asset is measured by a comparison of the carrying amount of an asset to its estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of the asset group exceeds its estimated undiscounted future cash flows, an impairment charge is recognized as the amount by which the carrying amount of the asset exceeds the fair value of the asset. The fair value of the shop assets was determined using the discounted future cash flow method of anticipated cash flows through the shop’s lease-end date using fair value measurement inputs classified as Level 3. Level 3 inputs are derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. After performing a periodic review of the Company’s shops during the 13 weeks and 39 weeks ended September 30, 2018, it was determined that indicators of impairment were present for certain shops as a result of continued underperformance. The Company performed an impairment analysis related to these shops and recorded an impairment charge of $4.4 million and $8.5 million for the 13 and 39 weeks ended September 30, 2018, respectively. The Company recorded an impairment charge of $1.5 million and $5.8 million for the 13 and 39 weeks ended September 24, 2017, respectively. Included within the impairment charge for the 13 and 39 weeks ended September 24, 2017, impairment charges of $0.7 million were recorded in relation to Hurricane Harvey, with insurance recoveries of $0.7 million also recorded within the same caption. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | (4) Earnings (Loss) Per Share Basic and diluted income per common share attributable to common stockholders were calculated using the weighted average number of common shares outstanding for the period. Diluted income per common share attributable to common stockholders is computed by dividing the income allocated to common stockholders by the weighted average number of fully diluted common shares outstanding. In periods of a net loss, no potential common shares are included in diluted shares outstanding as the effect is anti-dilutive. For the 13 and 39 weeks ended September 30, 2018, the Company had a loss per share, and therefore shares were excluded for potential stock option exercises. The following table summarizes the earnings (loss) per share calculation: For the 13 Weeks Ended For the 39 Weeks Ended September 30, September 24, September 30, September 24, 2018 2017 2018 2017 Net income (loss) attributable to Potbelly Corporation $ (1,961 ) $ (240 ) $ (4,515 ) $ 305 Weighted average common shares outstanding-basic 25,369,281 24,959,023 25,355,174 25,030,951 Plus: Effect of potential stock options exercise — — — 770,965 Plus: Effect of potential warrant exercise — — — 55,167 Weighted average common shares outstanding-diluted 25,369,281 24,959,023 25,355,174 25,857,083 Income (loss) per share available to common stockholders-basic $ (0.08 ) $ (0.01 ) $ (0.18 ) $ 0.01 Income (loss) per share available to common stockholders-diluted $ (0.08 ) $ (0.01 ) $ (0.18 ) $ 0.01 Potentially dilutive shares that are considered anti-dilutive: Common share options 2,050,503 4,012,073 2,569,808 1,151,317 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (5) Income Taxes In accordance with ASC 740, each interim period is considered an integral part of the annual period and tax expense or benefit is measured using an estimated annual effective tax rate. An enterprise is required, at the end of each interim reporting period, to make its best estimate of the annual effective tax rate for the full fiscal year and use that rate to provide for income taxes on a current year-to-date basis. However, when a reliable estimate of the annual effective tax rate cannot be made, the actual effective tax rate for the year-to-date period may be the best estimate of the annual effective tax rate. For the 13 and 39 weeks ended September 30, 2018, the actual year-to-date effective tax rate was used to compute the income tax benefit as a reliable estimate of the annual estimated tax rate cannot be made as nominal changes in projected income or loss result in a significant variance in our estimated effective tax rate. The effective tax rate differed from the federal statutory rate primarily due to the impact of ASU 2016-09, state income taxes, federal and state tax credits and certain discrete items. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) into law making significant On that same date, the SEC staff also issued Staff Accounting Bulletin (SAB) 118, which provides guidance on accounting for the tax effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under ASC 740. A company must reflect the income tax effects of those aspects of the Tax Act for which accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete, but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. At September 30, 2018, the Company has not completed the accounting for the tax effects of enactment of the Tax Act; however, the Company made a reasonable estimate of the effects and booked a provisional tax expense adjustment in the fiscal year 2017, the period in which the legislation was enacted |
Capital Stock
Capital Stock | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Capital Stock | (6) Capital Stock On May 8, 2018, the Company announced that its Board of Directors authorized a stock repurchase program for up to $65.0 million of its outstanding common stock, replacing the Company’s previous $30.0 million share repurchase program. The current program permits the Company, from time to time, to purchase shares in the open market (including in pre-arranged stock trading plans in accordance with the guidelines specified in Rule 10b5-1 under the Securities Exchange Act of 1934, as amended) or in privately negotiated transactions. The number of common shares actually repurchased, and the timing and price of repurchases, will depend upon market conditions, Securities and Exchange Commission requirements and other factors. Purchases may be started or stopped at any time without prior notice depending on market conditions and other factors. For the 39 weeks ended September 30, 2018, the Company repurchased 959,240 shares of its common stock for approximately $12.3 million under the new stock repurchase program and had repurchased 5,000 shares of its common stock for approximately $0.1 million under the previous share repurchase program, including cost and commission, in open market transactions. Repurchased shares are included as treasury stock in the condensed consolidated balance sheets and the condensed consolidated statements of equity. On June 14, 2018, the Company registered 1,000,000 additional shares of its common stock, par value $0.01, reserved for issuance under the Amended and Restated 2013 Long-Term Incentive Plan. As a result, the total number of shares registered under the 2013 Long-Term Incentive Plan is 3,500,000. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | (7) Stock-Based Compensation Stock options are awarded under the 2013 Long-Term Incentive Plan to eligible employees and certain non-employee members of the Board of Directors A summary of activity for the 39 weeks ended September 30, 2018 is as follows: Options Shares (Thousands) Weighted Average Exercise Price Aggregate Intrinsic Value (Thousands) Weighted Average Remaining Term (Years) Outstanding—December 31, 2017 3,309 $ 10.71 $ 7,699 4.90 Granted 102 13.05 Exercised (984 ) 8.30 Canceled (347 ) 13.61 Outstanding—September 30, 2018 2,080 $ 11.60 $ 3,615 5.60 Exercisable—September 30, 2018 1,573 $ 11.04 $ 3,533 4.62 Stock-based compensation is measured at the grant date based on the calculated fair value of the award, and is recognized as expense over the requisite employee service period, which is generally the vesting period of the grant with a corresponding increase to additional paid-in capital. For the 13 and 39 weeks ended September 30, 2018, the Company recognized stock-based compensation expense of $0.2 million and $2.5 million, respectively. For the 13 weeks ended September 24, 2017, the Company recognized stock-based compensation expense of $1.4 million. For the 39 weeks ended September 24, 2017, the Company recognized stock-based compensation expense of $3.3 million. As of September 30, 2018, unrecognized stock-based compensation expense was $2.8 million, which will be recognized through fiscal year 2022. The Company records stock-based compensation expense within general and administrative expenses in the condensed consolidated statements of operations. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (8) Commitments and Contingencies The Company is subject to legal proceedings, claims and liabilities, such as employment-related claims and slip and fall cases, which arise in the ordinary course of business and are generally covered by insurance. In the opinion of management, the amount of ultimate liability with respect to those actions should not have a material adverse impact on the Company’s financial position or results of operations and cash flows. In October 2017, plaintiffs filed a purported collective and class action lawsuit in the United States District Court for the Southern District of New York against the Company alleging violations of the Fair Labor Standards Act (FLSA) and New York Labor Law (NYLL). The plaintiffs allege that the Company violated the FLSA and NYLL by not paying overtime compensation to our assistant managers and violated NYLL by not paying spread-of-hours pay. Potbelly believes the assistant managers were properly classified under state and federal law. The Company intends to vigorously defend this action. This case is at an early stage, and Potbelly is therefore unable to make a reasonable estimate of the probable loss or range of losses, if any, that might arise from this matter. |
Organization and Other Matters
Organization and Other Matters (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Business | Business Potbelly Corporation (the “Company” or “Potbelly”), through its wholly owned subsidiaries, owns or operates more than 400 company-owned shops in the United States. Additionally, Potbelly franchisees operate more than 50 shops domestically, in the Middle East, Canada and India. |
Basis of Presentation | Basis of Presentation The unaudited condensed consolidated financial statements and notes herein should be read in conjunction with the audited consolidated financial statements of Potbelly Corporation and its subsidiaries and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. The unaudited condensed consolidated financial statements included herein have been prepared by the Company without audit, pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to the SEC rules and regulations. In the opinion of management, all adjustments, which are of a normal and recurring nature (except as otherwise noted), that are necessary to present fairly the Company’s financial position as of September 30, 2018 and December 31, 2017, its statement of operations for the 13 and 39 weeks ended September 30, 2018 and September 24, 2017 and its statement of cash flows for the 39 weeks ended September 30, 2018 and September 24, 2017 have been included. The consolidated statements of operations for the interim periods presented herein are not necessarily indicative of the results to be expected for the full year. The Company does not have any components of other comprehensive income recorded within its consolidated financial statements and therefore, does not separately present a statement of comprehensive income in its condensed consolidated financial statements. |
Principles of Consolidation | Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of Potbelly Corporation; its wholly owned subsidiary, Potbelly Illinois, Inc. (“PII”); PII’s wholly owned subsidiaries, Potbelly Franchising, LLC and Potbelly Sandwich Works, LLC (“LLC”); seven of LLC’s wholly owned subsidiaries and LLC’s seven joint ventures, collectively, the “Company.” All intercompany balances and transactions have been eliminated in consolidation. For consolidated joint ventures, non-controlling interest represents a non-controlling partner’s share of the assets, liabilities and operations related to the seven joint venture investments. The Company has ownership interests ranging from 51-80% in these consolidated joint ventures. |
Fiscal Year | Fiscal Year The Company uses a 52/53-week fiscal year that ends on the last Sunday of the calendar period. Approximately every five or six years a 53rd week is added. Fiscal year 2018 consists of 52 weeks and 2017 consisted of 53 weeks. The fiscal quarters ended September 30, 2018 and September 24, 2017 each consisted of 13 weeks. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and the disclosure of contingent assets and liabilities. Significant estimates include amounts for long-lived assets and income taxes. Actual results could differ from those estimates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements I n May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, “Revenue from Contracts with Customers.” The pronouncement was issued to clarify the principles for recognizing revenue and to develop a common revenue standard and disclosure requirements for U.S. GAAP and International Financial Reporting Standards (IFRS). In addition, the FASB issued ASU 2016-08, ASU 2016-10 and ASU 2016-12 in March 2016, April 2016 and May 2016, respectively, to help provide interpretive clarifications on the new guidance in Accounting Standards Codification (ASC) Topic 606. Potbelly adopted the standard effective January 1, 2018 using the modified retrospective method applied to contracts that were not completed as of the date of adoption. The adoption does not have a material impact on sandwich shop sales, but impacted the recognition of franchise revenue and gift card breakage. Potbelly licenses intellectual property and trademarks to franchisees through franchise arrangements. As part of these agreements, Potbelly receives an initial franchise fee payment, which historically was recognized as revenue when the shop opened. Effective for the annual period beginning January 1, 2018, initial franchise fees are recognized as revenue over the contractual term. Potbelly sells gift cards to customers and records the sale as a liability. The liability is released once the card is redeemed. Historically, a portion of these gift card sales were not redeemed by the customer (“breakage”) and Potbelly would recognize breakage two years after the period of sale. Effective for the annual period beginning January 1, 2018, expected breakage is recognized as customers redeem the gift cards. Upon adoption of the standard, Potbelly’s accumulated deficit increased by $0.7 million (net of tax). The franchise revenue adjustment impacted accrued expenses, other long-term liabilities and deferred income taxes. The breakage adjustment impacted accrued expenses and deferred income taxes. For the 13 weeks ended September 30, 2018, revenue recognized was $0.1 million higher than it would have been under the previous methodology, and for the 39 weeks ended September 30, 2018, revenue recognized was $0.3 million higher than it would have been under the previous methodology. In February 2016, the FASB issued ASU No. 2016-02, “Leases,” which will replace the existing guidance in ASC 840, “Leases.” The pronouncement requires a dual approach for lessee accounting under which a lessee would account for leases as finance leases or operating leases. Both finance leases and operating leases will result in the lessee recognizing a right-of-use asset and a corresponding lease liability. For finance leases, the lessee would recognize interest expense and amortization of the right-of-use asset, while for operating leases, the lessee would recognize a straight-line total lease expense. The pronouncement is effective for fiscal years beginning after December 15, 2018, including annual and interim periods thereafter. In July 2018, the FASB issued Accounting Standards Update No. 2018-11 “Leases (Topic 842): Targeted Improvements” (“ASU 2018-11”), which permits companies to initially apply the new leases standard at the date of adoption and not restate periods prior to adoption. The Company plans to adopt ASU 2018-11. The Company is currently evaluating the impact of ASU 2016-02 and anticipates it will be able to complete its analysis of all potential impacts of the standard, implement any system and process changes that might be necessary and educate the appropriate employees with respect to the new standard in order to effectively adopt the standard beginning in the first quarter of 2019. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Current and Noncurrent Contract Liabilities from Contracts with Customers | The opening and closing balances of the Company’s current and noncurrent contract liabilities from contracts with customers were as follows: Current Contract Liability Noncurrent Contract Liability (Thousands) (Thousands) Beginning balance as of January 1, 2018 $ (2,325 ) $ (2,144 ) Ending balance as of September 30, 2018 (1,375 ) (1,809 ) Decrease in contract liability $ (950 ) $ (335 ) |
Summary of Expected Revenue Recognition Related to Contract Liabilities | The Company expects to recognize revenue related to contract liabilities as follows (in thousands), which may vary based upon franchise activity as well as gift card redemption patterns: Years Ending Amount 2018 $ 692 2019 752 2020 212 2021 206 2022 199 Thereafter 1,123 Total revenue recognized $ 3,184 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Summary of Earnings (Loss) Per Share Calculation | The following table summarizes the earnings (loss) per share calculation: For the 13 Weeks Ended For the 39 Weeks Ended September 30, September 24, September 30, September 24, 2018 2017 2018 2017 Net income (loss) attributable to Potbelly Corporation $ (1,961 ) $ (240 ) $ (4,515 ) $ 305 Weighted average common shares outstanding-basic 25,369,281 24,959,023 25,355,174 25,030,951 Plus: Effect of potential stock options exercise — — — 770,965 Plus: Effect of potential warrant exercise — — — 55,167 Weighted average common shares outstanding-diluted 25,369,281 24,959,023 25,355,174 25,857,083 Income (loss) per share available to common stockholders-basic $ (0.08 ) $ (0.01 ) $ (0.18 ) $ 0.01 Income (loss) per share available to common stockholders-diluted $ (0.08 ) $ (0.01 ) $ (0.18 ) $ 0.01 Potentially dilutive shares that are considered anti-dilutive: Common share options 2,050,503 4,012,073 2,569,808 1,151,317 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Options Activity | A summary of activity for the 39 weeks ended September 30, 2018 is as follows: Options Shares (Thousands) Weighted Average Exercise Price Aggregate Intrinsic Value (Thousands) Weighted Average Remaining Term (Years) Outstanding—December 31, 2017 3,309 $ 10.71 $ 7,699 4.90 Granted 102 13.05 Exercised (984 ) 8.30 Canceled (347 ) 13.61 Outstanding—September 30, 2018 2,080 $ 11.60 $ 3,615 5.60 Exercisable—September 30, 2018 1,573 $ 11.04 $ 3,533 4.62 |
Organization and Other Matter_2
Organization and Other Matters - Additional Information (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2018USD ($)ShopJointVenture | Sep. 30, 2018USD ($)ShopSubsidiaryJointVenture | Dec. 31, 2017USD ($) | |
Nature Of Business And Basis Of Presentation [Line Items] | |||
Number of wholly owned subsidiaries | Subsidiary | 7 | ||
Number of joint ventures | JointVenture | 7 | 7 | |
Term of breakage recognized after sale | 2 years | ||
Increase in accumulated deficit | $ (225,195) | $ (225,195) | $ (219,990) |
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 | |||
Nature Of Business And Basis Of Presentation [Line Items] | |||
Increase in accumulated deficit | 700 | 700 | |
Increase in revenue recognized | $ 100 | $ 300 | |
Minimum [Member] | |||
Nature Of Business And Basis Of Presentation [Line Items] | |||
Number of shops Potbelly Corporation owns or operates | Shop | 400 | 400 | |
Ownership interest rate | 51.00% | ||
Maximum [Member] | |||
Nature Of Business And Basis Of Presentation [Line Items] | |||
Ownership interest rate | 80.00% | ||
Middle East, Canada and India [Member] | Minimum [Member] | |||
Nature Of Business And Basis Of Presentation [Line Items] | |||
Number of shops franchisees operate | Shop | 50 | 50 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 24, 2017 | Sep. 30, 2018 | Sep. 24, 2017 | |
Disaggregation Of Revenue [Line Items] | ||||
Amount of revenue recognized | $ 106,996,000 | $ 106,127,000 | $ 320,260,000 | $ 315,962,000 |
Aggregate value of remaining performance obligation on outstanding contracts | 3,200,000 | 3,200,000 | ||
Revenue recognized related to prior periods | 0 | |||
January 1, 2018 Liability Ending Balance [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Amount of revenue recognized | $ 300,000 | 1,800,000 | ||
Point in Time Sales [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Amount of revenue recognized | 319,800,000 | |||
Over Time Sales [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Amount of revenue recognized | $ 500,000 |
Revenue - Summary of Current an
Revenue - Summary of Current and Noncurrent Contract Liabilities from Contracts with Customers (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Revenue From Contract With Customer [Abstract] | |
Beginning balance of current contract liability | $ (2,325) |
Ending balance of current contract liability | (1,375) |
Decrease in contract liability, current | (950) |
Beginning balance of noncurrent contract liability | (2,144) |
Ending balance of noncurrent contract liability | (1,809) |
Decrease in contract liability, noncurrent | $ (335) |
Revenue - Summary of Expected R
Revenue - Summary of Expected Revenue Recognition Related to Contract Liabilities (Detail) $ in Thousands | Sep. 30, 2018USD ($) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligations | $ 3,200 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2018-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligations | $ 692 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligations | $ 752 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligations | $ 212 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligations | $ 206 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligations | $ 199 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligations | $ 1,123 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: (nil) | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligations | $ 3,184 |
Revenue, remaining performance obligation, expected timing of satisfaction, period |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 24, 2017 | Sep. 30, 2018 | Sep. 24, 2017 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Impairment charge | $ 4.4 | $ 1.5 | $ 8.5 | $ 5.8 |
Hurricane Harvey [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Impairment charge | 0.7 | 0.7 | ||
Insurance recoveries | $ 0.7 | $ 0.7 |
Earnings (Loss) Per Share - Add
Earnings (Loss) Per Share - Additional Information (Detail) - shares | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Common Share Options [Member] | ||
Earnings (Loss) Per Share [Line Items] | ||
Potential common shares included in diluted shares outstanding | 0 | 0 |
Earnings (Loss) Per Share - Sum
Earnings (Loss) Per Share - Summary of Earnings (Loss) Per Share Calculation (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 24, 2017 | Sep. 30, 2018 | Sep. 24, 2017 | |
Earnings (Loss) Per Share [Line Items] | ||||
Net income (loss) attributable to Potbelly Corporation | $ (1,961) | $ (240) | $ (4,515) | $ 305 |
Weighted average common shares outstanding-basic | 25,369,281 | 24,959,023 | 25,355,174 | 25,030,951 |
Plus: Effect of potential stock options exercise | 770,965 | |||
Plus: Effect of potential warrant exercise | 55,167 | |||
Weighted average common shares outstanding-diluted | 25,369,281 | 24,959,023 | 25,355,174 | 25,857,083 |
Income (loss) per share available to common stockholders-basic | $ (0.08) | $ (0.01) | $ (0.18) | $ 0.01 |
Income (loss) per share available to common stockholders-diluted | $ (0.08) | $ (0.01) | $ (0.18) | $ 0.01 |
Common Share Options [Member] | ||||
Earnings (Loss) Per Share [Line Items] | ||||
Potentially dilutive shares that are considered anti-dilutive | 2,050,503 | 4,012,073 | 2,569,808 | 1,151,317 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal corporate tax rate | 21.00% | 35.00% | |
Adjustments to provisional amount previously recorded related to enactment of Tax Act | $ 0 | $ 0 |
Capital Stock - Additional Info
Capital Stock - Additional Information (Detail) - USD ($) | 9 Months Ended | |||||
Sep. 30, 2018 | Sep. 24, 2017 | Jun. 14, 2018 | May 08, 2018 | May 07, 2018 | Dec. 31, 2017 | |
Equity Class Of Treasury Stock [Line Items] | ||||||
Stock repurchase program, authorized amount | $ 65,000,000 | |||||
Common stock repurchased value | $ 12,414,000 | $ 8,853,000 | ||||
Common stock, par value | $ 0.01 | $ 0.01 | ||||
Amended and Restated 2013 Long-Term Incentive Plan [Member] | ||||||
Equity Class Of Treasury Stock [Line Items] | ||||||
Additional shares of common stock reserved for issuance | 1,000,000 | |||||
Common stock, par value | $ 0.01 | |||||
Total number of shares registered | 3,500,000 | |||||
Previous Share Repurchase Program [Member] | ||||||
Equity Class Of Treasury Stock [Line Items] | ||||||
Stock repurchase program, authorized amount | $ 30,000,000 | |||||
Common stock shares repurchased | 5,000 | |||||
Common stock repurchased value | $ 100,000 | |||||
New Stock Repurchase Program [Member] | ||||||
Equity Class Of Treasury Stock [Line Items] | ||||||
Common stock shares repurchased | 959,240 | |||||
Common stock repurchased value | $ 12,300,000 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 24, 2017 | Sep. 30, 2018 | Sep. 24, 2017 | Jun. 14, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average common stock fair value | $ 13.05 | ||||
Recognized stock-based compensation expense | $ 200 | $ 1,400 | $ 2,516 | $ 3,263 | |
Unrecognized stock compensation expense | $ 2,800 | $ 2,800 | |||
Unrecognized stock compensation expense, recognition period | 2,022 | ||||
2013 Long Term Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Additional shares of common stock reserved for issuance | 1,000,000 | ||||
Total number of shares registered | 3,500,000 | ||||
Weighted average common stock fair value | $ 5.24 | ||||
Expected life of options | 6 years 3 months | ||||
Volatility | 35.39% | ||||
Risk-free interest rate | 2.85% | ||||
Dividend yield | 0.00% | ||||
Method used to determine fair value of the options | Black-Scholes option pricing model |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Options Activity (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Options outstanding shares, beginning balance | 3,309 | |
Options, granted | 102 | |
Options, exercised | (984) | |
Options, canceled | (347) | |
Options outstanding shares, ending balance | 2,080 | 3,309 |
Options outstanding shares, exercisable | 1,573 | |
Options outstanding weighted average exercise price, beginning balance | $ 10.71 | |
Options, weighted average exercise price, granted | 13.05 | |
Options, weighted average exercise price, exercised | 8.30 | |
Options, weighted average exercise price, canceled | 13.61 | |
Options outstanding weighted average exercise price, ending balance | 11.60 | $ 10.71 |
Options outstanding weighted average exercise price, exercisable | $ 11.04 | |
Options outstanding aggregate intrinsic value | $ 3,615 | $ 7,699 |
Options exercisable aggregate intrinsic value | $ 3,533 | |
Option outstanding weighted average remaining term | 5 years 7 months 6 days | 4 years 10 months 24 days |
Options exercisable weighted average remaining term | 4 years 7 months 13 days |
Commitment and Contingencies -
Commitment and Contingencies - Additional Information (Detail) | 1 Months Ended |
Oct. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Purported collective and class action lawsuit filed date | October 2,017 |