Einstein Bros 2005 Annual Report Download - page 16

http://www.sec.gov/Archives/edgar/data/949373/000110465906016136/a06-3178_110k.htm[9/11/2014 10:13:03 AM]
Other expense (income)
(312)
(284)
(172)
(322)
131
Loss before income taxes
(14,018) (17,454) (72,709) (44,528) (21,586)
Provision (benefit) for state income taxes — (49) 812 366 167
Net loss
(14,018) (17,405) (73,521) (44,894) (21,753)
Dividends and accretion on Preferred Stock — — (14,423) (27,594) (58,520)
Net loss available to common stockholders
$ (14,018) $ (17,405) $ (87,944) $ (72,488) $ (80,273)
Net loss per share—basic and diluted
$ (1.42)
$ (1.77)
$ (22.71)
$ (55.18)
$ (133.43)
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As of:
Jan 3, 2006 Dec 28, 2004 Dec 30, 2003 Dec 31, 2002 Jan 1, 2002
(in thousands of dollars, except per share amounts)
Balance Sheet
Cash and cash equivalents $ 1,556 $ 9,752 $ 9,575 $ 10,705 $ 15,478
Property, plant and equipment, net 33,359 41,855 54,513 73,780 98,064
Total assets 130,924 158,456 181,738 203,174 280,203
Short-term debt and current portion of
long-term debt 280 295 2,105 150,872 168,394
Mandatorily redeemable Series Z preferred
stock, $.001 par value, $1,000 per share
liquidation value(3) 57,000 57,000 57,000 — —
Long-term debt 160,560 160,840 161,120 11,011 12,119
Mandatorily redeemable Series F preferred
stock, $.001 par value, $1,000 per share
liquidation value (temporary equity)(3) — — — 84,932 57,338
Total stockholders’ equity (deficit) (126,211) (112,483) (95,153) (96,146) (30,096)
Other Financial Data:
Depreciation and amortization $ 26,316 $ 27,848 $ 34,013 $ 35,047 $ 18,260
Capital expenditures 10,264 9,393 6,921 5,172 3,757
Number of locations at end of period 626 690 736 747 770
Franchised and licensed 191 237 272 287 287
Company-owned and operated 435 453 464 460 483
Increase (decrease) in comp store sales(4) 5.2% (1.9)% (3.5)% 1.9% 2.5%
(1) We have a 52/53-week fiscal year ending on the Tuesday closest to December 31. Fiscal years 2004, 2003, 2002 and 2001 which ended on December 28,
2004, December 30, 2003, December 31, 2002 and January 1, 2002, respectively, contained 52 weeks, while fiscal year 2005, which ended on January 3,
2006, contained 53 weeks.
(2) Interest expense is comprised of interest paid or payable in cash and non-cash interest expense resulting from the amortization of debt discount, notes
paid-in-kind, debt issuance costs and the amortization of warrants issued in connection with debt financings.
(3) As more fully described in the notes to the consolidated financial statements, the adoption of Statement of Financial Accounting Standard (SFAS)
No. 150 resulted in the Series Z Preferred Stock being presented as a liability rather than the historical mezzanine presentation of the Series F.
(4) Comparable store sales represent sales at restaurants that were open for one full year and have not been relocated or closed during the current year.
Comparable store sales are also referred to as “same-store” sales and as “comp sales” within the restaurant industry.
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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Quickservice Industry Overview
According to the Restaurant Industry Operations Report 2004, published in 2005 by the National Restaurant Association and Deloitte,
quickservice sales growth continues to strengthen fueled by an improving economy. Growth in quickservice restaurant sales outpaced full service
restaurants. Part of the reason for the stronger growth of quickservice restaurants was lessened competition from grocery and convenience stores, as