Einstein Bros 2008 Annual Report Download - page 17

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Form 10-K
http://www.sec.gov/Archives/edgar/data/949373/000119312509042707/d10k.htm[9/11/2014 10:10:56 AM]
employees or former employees and/or contract disputes. We do not believe any currently pending or threatened matter, other than as described
below, would have a material adverse effect on our business, results of operations or financial condition.
On September 18, 2007, Eric Mathistad, a former store manager, filed a putative class action against the Company in the Superior Court of
California for the State of California, County of San Diego. The plaintiff alleged that we failed to pay overtime wages to “salaried restaurant
employees” of our California stores who were misclassified as exempt employees, and that these employees were deprived of mandated meal
periods and rest breaks. On November 14, 2007, Bernadette Mejia, another former store manager, filed a similar case and these cases were
subsequently consolidated. On August 27, 2008, we settled this litigation with the plaintiffs.
On February 8, 2008, Gloria Weber and Hakan Mikado, non-exempt employees, filed a putative class action against the Company in the
Superior Court of California for the State of California, County of San Diego. The plaintiff alleged that we failed to pay minimum wages, failed to
pay overtime and failed to provide rest periods and meal breaks, among other charges. On August 27, 2008, we settled this litigation with the
plaintiffs.
These settlements provide for payment of up to an aggregate of $2.5 million by the Company. Each settlement is subject to final court
approvals and other conditions. There can be no assurance that the court will approve the settlements or that these other conditions will be satisfied.
The final hearings are scheduled for March 20, 2009.
We recorded a liability in accrued expenses and a charge in operating expenses during the third quarter of 2008 pursuant to SFAS No. 5,
Accounting for Contingencies, in the amount of $1.9 million to satisfy these settlements. This charge represents our current estimate of the
aggregate amount that is probable to be paid pursuant to these settlements, but there can be no assurance that amounts actually paid will not be
more or less than the amount recorded by the Company.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No items were submitted to a vote of security holders in the fourth quarter of the fiscal year ended December 30, 2008.
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Table of Contents
PART II
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER
PURCHASES OF EQUITY SECURITIES
Our common stock was quoted on the Pink Sheets OTC market under the symbol “NWRG.PK” through June 12, 2007. Our common stock
was moved to the NASDAQ Global Market under the symbol “BAGL” as part of our secondary public offering, which was completed on June 13,
2007. The following table sets forth the high and low sale prices (in the case of the NASDAQ Global Market) and the high and low bid
information (in the case of the Pink Sheets) for our common stock for each fiscal quarter during the periods indicated. Bid information quoted
reflects inter-dealer prices without retail mark-up, markdown or commission and may not necessarily represent actual transactions.
Year ended December 30, 2008 (fiscal 2008): High Low
First Quarter $19.17 $ 8.35
Second Quarter $15.46 $ 9.30
Third Quarter $15.04 $ 9.07
Fourth Quarter $10.59 $ 2.50
Year ended January 1, 2008 (fiscal 2007): High Low
First Quarter $11.00 $ 5.05
Second Quarter $25.00 $10.95
Third Quarter $19.77 $14.08
Fourth Quarter $24.90 $15.74
As of February 26, 2009, there were 351 holders of record of our common stock. This number does not include individual stockholders who
own common stock registered in the name of a nominee under nominee security listings.
We have not declared or paid any cash dividends on our common stock since our inception. We do not intend to pay any cash dividends in
the foreseeable future, and we are precluded from paying cash dividends on our common stock under our financing agreements.
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