Einstein Bros 2005 Annual Report Download - page 29

http://www.sec.gov/Archives/edgar/data/949373/000110465906016136/a06-3178_110k.htm[9/11/2014 10:13:03 AM]
We have audited the accompanying consolidated balance sheets of New World Restaurant Group, Inc. and Subsidiaries as of January 3, 2006
and December 28, 2004, and the related consolidated statements of operations, changes in stockholders’ equity (deficit) and cash flows for each of
the three years in the period ended January 3, 2006. These financial statements are the responsibility of the Company’ s management. Our
responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those
standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material
misstatement. The Company is not required to have, nor were we engaged to perform an audit of its internal control over financial reporting. Our
audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’ s internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above, present fairly, in all material respects, the financial position of New
World Restaurant Group, Inc. and Subsidiaries as of January 3, 2006 and December 28, 2004, and the results of their operations, and their cash
flows for each of the three years in the period ended January 3, 2006, in conformity with accounting principles generally accepted in the United
States of America.
Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. Schedule II is presented for
purposes of additional analysis and is not a required part of the basic financial statements. This schedule has been subjected to the auditing
procedures applied in the audit of the basic financial statements and in our opinion, is fairly stated in all material respects in relation to the basic
financial statements taken as a whole.
/s/ GRANT THORNTON LLP
Denver, Colorado
February 28, 2006
38
NEW WORLD RESTAURANT GROUP, INC.
CONSOLIDATED BALANCE SHEETS
AS OF JANUARY 3, 2006 AND DECEMBER 28, 2004
(in thousands, except share information)
January 3, December 28,
2006 2004
ASSETS
Current assets:
Cash and cash equivalents $ 1,556 $ 9,752
Restricted cash 2,554 1,269
Franchise and other receivables, net of allowance of $480 and $2,475 5,506 7,123
Inventories 5,072 4,941
Prepaid expenses and other current assets 4,506 1,643
Total current assets
19,194 24,728
Restricted cash long-term 595 2,526
Property, plant and equipment, net 33,359 41,855
Trademarks and other intangibles, net 67,717 77,219
Goodwill 4,875 4,875
Debt issuance costs and other assets 5,184 7,253
Total assets
$ 130,924 $ 158,456
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable $ 5,848 $ 8,243
Accrued expenses 24,789 34,836
Short term debt and current portion of long-term debt 280 295