Einstein Bros 2005 Annual Report Download - page 24

http://www.sec.gov/Archives/edgar/data/949373/000110465906016136/a06-3178_110k.htm[9/11/2014 10:13:03 AM]
Investing Activities
During fiscal 2005, we used approximately $10.3 million of cash to purchase additional property and equipment that included $1.2 million for
new stores, $2.3 million for remodeling existing stores, $4.3 million for replacement and new equipment at our existing company-operated stores,
$0.9 million for our manufacturing operations and less than $1.6 million for general corporate purposes.
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During fiscal 2004, we used $9.4 million of cash to purchase additional property and equipment that included $1.2 million for new
restaurants, $5.8 million for replacement and new equipment at our existing company-operated restaurants, $0.8 million for our manufacturing
operations and $1.6 million for general corporate purposes.
We anticipate that the majority of our capital expenditures for fiscal 2006 will be focused on our refresh and remodel strategy that includes
updates of restaurant interiors and improvements to service through new menu boards. In addition, we plan to acquire additional equipment for new
menu items and improvements in the speed of service, particularly during the morning day-part. We also plan to open 10 new company-owned
restaurants during 2006 at an average capital investment of approximately $400,000 per location.
Financing Activities
During fiscal 2005, we used cash of approximately $0.3 million to repay our obligations under the New Jersey Economic Development
Authority Note Payable (as further discussed in Note 10 to our consolidated financial statements included in Item 8 of this report), offset by
approximately $0.2 million in proceeds received from the exercise of warrants issued in connection with a private financing transaction related to
our issuance of increasing rate notes that were repaid in July 2003.
During fiscal 2004, we used $1.0 million of cash to reduce our debt outstanding on the AmSouth Revolver, approximately $0.8 million to
repay our obligations under the Chesapeake Bagel Bakery Note Payable and approximately $0.3 million to repay our obligations under the New
Jersey Economic Development Authority Note Payable (as further discussed in Note 10 to our consolidated financial statements included in Item 8
of this report).
As a result of our refinancing of our $160 Million Notes with $170 million in new term loans in February 2006, we borrowed approximately
$169.4 million in term loans and incurred approximately $5.0 million in debt issuance costs. Upon closing of our new debt facility, we began
amortizing these costs and the debt issuance costs related to our $160 Million Notes and AmSouth Revolver were written-off.
Contractual Obligations
The following table summarizes the amounts of payments due under specified contractual obligations as of January 3, 2006:
Payments Due by Period
2006
2007 to
2009
2010 to
2011
2012 and
thereafter Total
(in thousands of dollars)
Accounts payable and accrued expenses $ 30,637 $ — $ — $ — $ 30,637
Debt(a) 280 160,560 — — 160,840
Interest expense on $160 Million Notes(a) 20,800 31,200 — — 52,000
Manditorily Redeemable Series Z — 57,000 — — 57,000
Minimum lease payments under capital leases 19 29 — — 48
Minimum lease payments under operating leases 23,973 28,264 4,980 2,151 59,368
Purchase obligations(b) 9,072 — — — 9,072
Other long-term obligations(c) — 1,448 832 5,095 7,375
Total
$ 84,781 $ 278,501 $ 5,812 $ 7,246 $ 376,340
(a) On January 27, 2006, the $160 Million Notes maturing on July 1, 2008 were called for redemption. On February 28, 2006, the $160 Million
Notes were replaced with $170 million in new term loans. Borrowings from the new debt facility were used to repay the $160 Million Notes
plus a 3%
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