Pinstripes (PNST) investor relations material

Executive summary

• Revenue increased 10.4% year-over-year to $35.5 million for Q3 FY2025, driven by new store openings, but net loss widened to $8.1 million from net income of $12.2 million in the prior year.

• Achieved best corporate profitability quarter in two years with adjusted EBITDA of $2.7 million and venue-level EBITDA margin over 19%.

• The company operates 18 locations, with one new venue opened in Walnut Creek, CA, and plans for further expansion contingent on financing.

• Substantial doubt exists about the company's ability to continue as a going concern due to liquidity constraints, debt covenant breaches, and ongoing losses.

• CFO Tony Querciagrossa will step down effective February 28, 2025.

Financial highlights

• Q3 revenue was $35.5 million, up 10.4% year-over-year; net loss was $8.1 million; adjusted EBITDA reached $2.7 million.

• Venue-level EBITDA margin was 19.2%, with mature stores at 21.6%, both slightly down year-over-year.

• Food and beverage revenue increased 10.5% to $27.5 million; recreation revenue rose 10.3% to $8.1 million.

• General and administrative expenses decreased to $4.8 million from $5.3 million.

• Cash and cash equivalents fell to $2.4 million as of January 5, 2025, from $13.2 million at prior fiscal year-end.

Outlook and guidance

• Management expects continued revenue growth from new store openings and increased same store sales, but acknowledges ongoing liquidity challenges and the need for additional capital.

• No material price increases planned for private events or open play; focus remains on creative promotions.

• Exploring strategic alternatives and cost reductions to address going concern risks.