Einstein Bros 2008 Annual Report Download - page 30

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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]
Other expense:
Write-off of debt discount upon redemption of senior notes — 528 **
Prepayment penalty upon redemption of senior notes 4,800 240 (95.0%)
Write-off of debt issuance costs upon redemption of senior notes 3,956 2,071 (47.6%)
Other (5) — **
Total other expense 8,751 2,839 (67.6%)
As a percentage of total revenue 2.2% 0.7%
** not meaningful
36
Table of Contents
During 2007, we wrote off $2.1 million of debt issuance costs and paid a $0.2 million redemption premium related to the $65 Million Second
Lien Term Loan, and wrote off a $0.5 million discount related to the $25 Million Subordinated Note. During 2006, we wrote off $4.0 million of
debt issuance costs and paid a 3% redemption premium on the $160 Million Notes in the amount of $4.8 million.
In 2007, there was a 35.2% decrease in interest expense, or $7.0 million compared to 2006, which related to the amendment of our first lien
indebtedness that occurred in June 2007.
Interest income increased 61.0% to $483,000 in 2007 from $300,000 in 2006. This is directly related to our increase in our interest-earning
cash and cash equivalents in 2007 from 2006.
Income Taxes
(dollars in
thousands)
Increase/
(Decrease)
Fiscal
2006
Fiscal
2007
2007 vs.
2006
Provision for income taxes — 454 **
As a percentage of revenue 0.0% 0.1%
** not meaningful
For our financial statements prepared in accordance with generally accepted accounting principles (“GAAP”), we reported net income for
2007 of $12.6 million, versus the net loss of $6.9 million we reported for 2006. This increase is due to improved operations, the result of the
interest savings from the reduction of the principal and the interest rate on our debt facility which we amended during 2007, the reduction of
depreciation expense as many of our assets became fully depreciated in 2006, and the reduction of expense on our amortizing intangible assets
became fully amortized in 2006.
For tax purposes, our net operating loss carryforward reduced our federal and state income tax liability incurred for 2007. We have recorded
a provision for income taxes in the amount of $0.5 million for 2007 as a result of our estimate of state income tax and alternative minimum tax, and
there was no provision recorded for 2006.
As of January 1, 2008, our net operating loss carryforwards for U.S. federal income tax purposes were $148.8 million, $102.2 million of
which are subject to an annual usage limitation of $4.7 million.
37
Table of Contents
Contractual Obligations
The following table summarizes the amounts of payments due under specified contractual obligations as of December 30, 2008:
Payments Due by Fiscal Period
2009
2010 to
2011
2012 to
2013
2014 and
thereafter Total
(in thousands of dollars)
Accounts payable and accrued expenses $ 27,533 $— $— $— $ 27,533
Debt 8,088 2,025 77,762 — 87,875
Estimated interest expense on our debt facility(a) 4,241 5,811 1,473 — 11,525