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http://www.sec.gov/Archives/edgar/data/949373/000104746908002111/a2183061z10-k.htm[9/11/2014 10:12:02 AM]
10-K 1 a2183061z10-k.htm 10-K
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
(Mark One):
ýANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the fiscal year ended January 1, 2008
OR
oTRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the transition period from to
Commission File Number 0-27148
EINSTEIN NOAH RESTAURANT GROUP, INC.
(Exact Name of Registrant as Specified in its Charter)
Delaware 13-3690261
(State or other jurisdiction
of incorporation or organization)
(I.R.S. Employer
Identification No.)
555 Zang Street, Suite 300, Lakewood, Colorado 80228
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (303) 568-8000
Securities registered pursuant to Section 12(b) of the Act:
Title of each class:
Name of each exchange on which
registered:
Common Stock, $.001 par
value
The NASDAQ Global Market
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes o No ý
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes o No ý
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been

Table of contents

  • Page 1
    ... fiscal year ended January 1, 2008 OR o TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 0-27148 EINSTEIN NOAH RESTAURANT GROUP, INC. (Exact Name of Registrant as Specified in its Charter) Delaware (State...

  • Page 2
    ... day of the second fiscal quarter, July 3, 2007 was $85,204,828 (computed by reference to the closing sale price as reported on the NASDAQ Global Market). As of February 25, 2008 there were 15,888,977 shares of the registrant's Common Stock, par value of $0.001 per share outstanding. DOCUMENTS...

  • Page 3
    ..., our Einstein Bros. and Noah's restaurants are company-owned or licensed, while Manhattan Bagel restaurants are predominantly franchised, with one companyowned location. Our product offerings include fresh bagels and other bakery items baked on-site, made-to-order breakfast and lunch sandwiches on...

  • Page 4
    ... and Innovative Menu Offerings Our restaurants offer a wide variety of made-to-order menu items using high-quality, fresh ingredients. In keeping with our baking heritage, the menu at a typical Einstein Bros. or Noah's company-owned restaurant features a wide variety of fresh baked bagels, breads...

  • Page 5
    ... 2007 and Manhattan Bagel in the Spring of 2007. We also developed the pizza bagel at our Einstein Bros. restaurants in the Spring of 2007, which is a popular lunch item as well as a snack between traditional meal times, and introduced it to Noah's in January 2008. Manhattan Bagel offered a new line...

  • Page 6
    ...franchise restaurants in 2008. Restaurant Concepts Einstein Bros. Einstein Bros. offers a menu that specializes in high-quality foods for breakfast and lunch, including fresh-baked bagels and hot breakfast sandwiches, cream cheese and other spreads, specialty coffees and teas, creative soups, salads...

  • Page 7
    ... plain. Noah's Original Fruit & Nut bagels are high in protein and, at Einstein Bros., our gourmet bagels are unique options to traditional bagels and include premium flavors such as Dutch Apple and Spinach Florentine. To complement our bagel offerings, our restaurants offer a number of cream cheese...

  • Page 8
    ... salad. We also introduced the pizza bagel product offerings to Noah's in early 2008. Snacks In addition to our breakfast and lunch items, we also offer products designed for consumption between traditional meal times, including four varieties of pizza bagels, cookies and frozen drinks. Each company...

  • Page 9
    ...We also have developed proprietary coffee blends for sale at our Einstein Bros., Noah's and Manhattan Bagel 9 company-owned, franchised and licensed restaurants. In 2007, we purchased 100% of our coffee from one supplier. Other Ingredients We purchase other ingredients used in our restaurants, such...

  • Page 10
    ... all 50 states. During 2007, we actively marketed the Einstein Bros. brand franchise rights and signed two multi-location deals with two separate parties. The first Einstein Bros. franchise location is expected to open during the first half of 2008. Unlike past Manhattan Bagel franchises, which were...

  • Page 11
    ... and training period. In late 2007, we launched "Development Days" training programs for our Einstein Bros. and Noah's general managers. These programs provide communication on new initiatives, training on food 12 preparation, hospitality and other topics, refocus our managers on our vision; and...

  • Page 12
    ... credit card and gift card processing. The point-of-sale system is used to collect daily transaction data, which is used to generate information about daily sales, product mix and average check. All products sold and prices are programmed into the system from our corporate office. During 2007 we...

  • Page 13
    ...our cost of goods sold. For the last few years, cost increases in one or more of our agricultural commodities were generally modest in relation to our total cost of sales. In the third quarter of 2007, however the price for a bushel of wheat began to rise at a rapid rate and reached new price levels...

  • Page 14
    .... Murphy has a B.A. degree from Washington and Lee University. Daniel J. Dominguez. Mr. Dominguez was appointed Chief Operating Officer in December 2005. Mr. Dominguez joined us in November 1995 and served as Senior Vice President of Operations for Noah's New York Bagels from April 1998 to December...

  • Page 15
    ... may include matters such as future economic performance, restaurant openings or closings, operating margins, the availability of acceptable real estate locations, the sufficiency of our cash balances and cash generated from operating and financing activities for our future liquidity and capital...

  • Page 16
    ...properly manage the new restaurant. Our success in opening new franchised and licensed restaurants is dependent upon, among other factors, our ability to: attract quality businesses to invest in our core brands, maintain the effectiveness of our franchise disclosure documents in target states, offer...

  • Page 17
    ... on breakfast offerings and look to expand their coffee offerings. This could further increase competition in the breakfast daypart. In addition to current competitors, one or more new major competitors with substantially greater financial, marketing and operating resources could enter the market at...

  • Page 18
    ... change in the volume of products ordered from our distributors by our company-owned, franchised and/or licensed restaurants could increase our distribution costs. These risks could have a material adverse effect on our business, financial condition and results of operations. In early 2008, one of...

  • Page 19
    ... these claims or the number that are 22 successful could materially adversely affect our business, prospects, financial condition, operating results or cash flows. A regional or global health pandemic could severely affect our business. A health pandemic is a disease that spreads rapidly and widely...

  • Page 20
    ... franchising laws and a wide range of other state and local rules and regulations applicable to our business. The failure to comply with federal, state and local rules and regulations would have an adverse effect on us. Under various federal, state and local laws, an owner or operator of real estate...

  • Page 21
    ... in the market price of our common stock. ITEM 1B. UNRESOLVED STAFF COMMENTS None 25 ITEM 2. PROPERTIES Our Current Restaurants The following table details our restaurant openings and closings for each respective fiscal year: Fiscal 2005 Fiscal 2006 Fiscal 2007 Einstein Bros. Bagels http://www...

  • Page 22
    ... balance * Noah's Company-owned beginning balance Opened restaurants Closed restaurants Company-owned ending balance Licensed beginning balance Opened restaurants Closed restaurants Licensed ending balance Manhattan Bagel Company-owned beginning balance Opened restaurants Closed restaurants Company...

  • Page 23
    ... operating Einstein Bros. restaurants in airport locations which operationally fall under our licensing group. As of January 1, 2008, our company-owned facilities, franchisees and licensees operated in various states and in the District of Columbia as follows: Location Company Operated Franchised...

  • Page 24
    ... Expiration Lakewood, Colorado Hamilton, New Jersey(1) Whittier, California Walnut Creek, California(2) Walnut Creek, California(2) Carrolton, Texas Orlando, Florida Denver, Colorado Grove City, Ohio (1) (2) Headquarters, Support Center, Test Kitchen Franchise Support Center, Training Facility...

  • Page 25
    ...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 alleges that defendants failed to pay overtime wages to "salaried restaurant employees" of...

  • Page 26
    ... structure. The companies selected are participants of the restaurant industry with a sufficient period of operating history for continuous inclusion in the Index. Fiver Year Performance Graph Measurement Period-Five Years(1)(2) 12/31/2002 12/30/2003 12/28/2004 1/3/2006 1/2/2007 1/1/2008 BAGL...

  • Page 27
    ...years ended(1): Dec 30, 2003 (52 weeks) Dec 28, 2004 (52 weeks) Jan 3, 2006 (53 weeks) Jan 2, 2007 (52 weeks) Jan 1, 2008 (52 weeks) (in thousands of dollars, except per share data and as otherwise indicated) Statements of Operations Data: Revenues Cost of sales...income taxes Provision (benefit) for ...

  • Page 28
    ... for breakfast and lunch in a café atmosphere with a neighborhood emphasis. As of January 1, 2008, we owned and operated, franchised or licensed 612 restaurants in 35 states and in the District of Columbia, primarily under the Einstein Bros., Noah's and Manhattan Bagel brands. Einstein Bros. is...

  • Page 29
    ... been open for one full year and have not been relocated or closed during the current year. It summarizes our financial performance since 2004 by reporting company-owned restaurants by sales level and the related revenue (in thousands of dollars) and gross margin percentage: Fiscal 2005 Number of...

  • Page 30
    ...to open at least 18 new company-owned restaurants. For Einstein Bros., we have targeted Atlanta,, Baltimore, Chicago, Las Vegas, Phoenix, Tucson, and various cities in Florida and Texas for development. For Noah's, we intend to focus our development efforts on Portland, Seattle and various cities in...

  • Page 31
    ... label program or under the Einstein Bros. or Noah's brand to the consumer. The principal factors affecting manufacturing and commissary revenue are the number of franchised and licensed restaurants that purchase frozen bagel dough and commissary products from us, sales of our products in existing...

  • Page 32
    ... support our company-owned restaurants as well as our manufacturing and franchise and license operations. These costs include employee wages, taxes and related benefits, travel costs, information systems, recruiting and training costs, corporate rent, and general insurance costs. Depreciation and...

  • Page 33
    ... related costs Income from operations Other expense: Interest expense, net Write-off of debt discount upon redemption of senior notes Prepayment penalty upon redemption of senior notes Write-off of debt issuance costs upon redemption of senior notes Other, net Income (loss) before taxes Provision...

  • Page 34
    ... sales) improved slightly to 20.3% from 20.2% in 2007 compared to 2006. Price increases implemented in 2007 and $1.3 million of gift card breakage were offset primarily by higher commodities costs, labor and labor related costs, and other store level expenses. The cost of flour, cheese, coffee...

  • Page 35
    ... and 2007. Through 2006, depreciation and amortization expense was predominantly related to the assets of Einstein/Noah Bagel Corp. that we acquired in bankruptcy proceedings in June 2001. As most of these assets had five year lives, they had become fully depreciated in 2006. From this point forward...

  • Page 36
    ...) and Income Taxes 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...

  • Page 37
    ...revenues Franchise and license related revenues Total revenues Cost of sales: Company-owned restaurant costs Manufacturing and commissary costs Total cost of sales Gross profit: Company-owned restaurant Manufacturing and commissary Franchise and license Total gross profit Operating expenses: General...

  • Page 38
    ... primarily due to price increases and product mix shifts positively impacting revenue, improved control over food waste, labor hours, and supplies spending partially offset by increases in food costs, wage rates, utilities, lease and lease related expenses. In comparing the reported 52-week period...

  • Page 39
    ... to the increase was approximately $0.7 million in stock based compensation expense and $0.7 million for our 2006 annual leadership summits for our Einstein Bros. and Noah's general managers and our Manhattan Bagel franchisees. Depreciation and Amortization Depreciation and amortization expenses...

  • Page 40
    ... the net proceeds of the offering, among other things, to refinance the increasing rate notes which were issued in connection with the Einstein Bros./Noah's acquisition that occurred in 2001. Also on July 8, 2003, we entered into a three-year, $15.0 million senior secured revolving credit facility...

  • Page 41
    ... expense under our new debt structure, a decrease in accrued expenses related to lower accrued bonuses, a reduction in the gift card liability for estimated breakage and lower accrual for property, plant and equipment that has been received but not paid, partially offset by the sale of equipment to...

  • Page 42
    ... self service coolers, an expanded coffee bar, and a separate station for quick "to go" items. Finally, we plan to acquire additional equipment for new menu items and an improved ordering system that uses wireless technology to reduce the time our guests wait in line before they receive their food...

  • Page 43
    ... an estimate of the ultimate cost of claims incurred and unpaid as of the balance sheet date. The estimated liability is established based on actuarial estimates, is discounted at 10% based upon a discrete analysis of actual claims and historical data and is reviewed on a quarterly basis to ensure...

  • Page 44
    ...some companies to reduce volatility in reported 52 earnings caused by measuring related assets and liabilities differently. We do not expect the impact of adoption to have a material impact on our consolidated financial statements. In December 2007, the FASB issued SFAS 141 (revised 2007), Business...

  • Page 45
    ... ultimate cost of claims incurred and unpaid as of the balance sheet date. The estimated liability is established and discounted at 10% based upon analysis of historical data and actuarial estimates and is reviewed on a quarterly basis to ensure that the liability is appropriate. A 300 basis point...

  • Page 46
    ... unclaimed property laws, gift card balances may be recognized as gift card breakage and is recorded as a reduction to deferred revenue and an increase to company-owned restaurant revenues. For the fiscal year ended January 1, 2008, we recognized $1.3 million in gift card breakage representing our...

  • Page 47
    ... financial markets. 57 ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA Page Audited Annual Financial Statements Report of Independent Registered Public Accounting Firm Consolidated Balance Sheets as of January 2, 2007 and January 1, 2008 Consolidated Statements of Operations for the Years...

  • Page 48
    ..., the financial position of Einstein Noah as of January 1, 2008 and January 2, 2007, and the results of its operations and its cash flows for each of the three years in the period ended January 1, 2008 in conformity with accounting principles generally accepted in the United States of America...

  • Page 49
    60 EINSTEIN NOAH RESTAURANT GROUP, INC. CONSOLIDATED BALANCE SHEETS AS OF JANUARY 2, 2007 AND JANUARY 1, 2008 (in thousands, except share information) January 2, 2007 January 1, 2008 ASSETS Current assets: Cash and cash equivalents Restricted cash Franchise and other receivables, net of allowance ...

  • Page 50
    ...related share information) January 3, 2006 January 2, 2007 January 1, 2008 Revenues: Company-owned restaurant sales Manufacturing and commissary revenues Franchise and license related revenues Total revenues Cost of sales: Company-owned restaurant costs Manufacturing and commissary costs Total cost...

  • Page 51
    ... these consolidated financial statements. 62 EINSTEIN NOAH RESTAURANT GROUP, INC. CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' DEFICIT FOR THE YEAR TO DATE PERIODS ENDED JANUARY 3, 2006, JANUARY 2, 2007 AND JANUARY 1, 2008 (in thousands, except share information) Common Stock Additional Paid...

  • Page 52
    ...of these consolidated financial statements. 63 EINSTEIN NOAH RESTAURANT GROUP, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEAR TO DATE PERIODS ENDED JANUARY 3, 2006, JANUARY 2, 2007 AND JANUARY 1, 2008 (in thousands) January 3, 2006 January 2, 2007 January 1, 2008 OPERATING ACTIVITIES: Net...

  • Page 53
    ... under the brand names of Einstein Bros. Bagels ("Einstein Bros."), Noah's New York Bagels ("Noah's"), Manhattan Bagel Company ("Manhattan Bagel"), Chesapeake Bagel Bakery ("Chesapeake") and New World Coffee ("New World"). We have a 52/53-week fiscal year ending on the Tuesday closest to December 31...

  • Page 54
    ... in opening a new location, which is generally at the time the franchisee or licensee commences operations. Continuing royalties, which are a percentage of the net sales of franchised and licensed locations, are accrued as income each month. Gift Cards-Proceeds from the sale of gift cards are...

  • Page 55
    ... $0.2 million in impairment charges related to company-owned stores. During fiscal 2007, we recorded $0.2 million in exit costs from the decision to close one restaurant, and recorded a nominal impairment to write down the assets of our corporate headquarters when we relocated. Leases and...

  • Page 56
    ... related to our Einstein Bros. and Manhattan Bagel brands. For the fiscal years ended 2005, 2006, and 2007 ...discounted at 10% based upon a discrete analysis of actual claims and historical data and is reviewed 68 EINSTEIN NOAH RESTAURANT GROUP, INC. AND SUBSIDIARIES Notes to Consolidated Financial...

  • Page 57
    ... provisions of SFAS No. 131, Disclosures about Segments of an Enterprise and Related Information . Information regarding revenue and costs of sales for each of our business segments has been reported in the Consolidated Statements of Operations http://www.sec.gov/Archives/edgar/data/949373...

  • Page 58
    for the years ended January 3, 2006, January 2, 2007, and January 1, 2008. Our chief operating decision maker manages our business and allocates resources via a combination of restaurant sales reports and gross profit information related to our three sources of revenue, which are presented in their ...

  • Page 59
    ... No. 25 and related interpretations, in accounting for our fixed award stock options to our employees. As such, compensation expense was recorded only if the current market price of the underlying common stock exceeded the exercise price of the option on the date of grant. We applied the fair value...

  • Page 60
    ...period of 2.2 years. Total compensation costs related to the options...financial effects of the business combination. SFAS 141R is effective for business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after 73 EINSTEIN NOAH...

  • Page 61
    ...funds are current as of January 1, 2008. See Note 11 for additional information. 74 EINSTEIN NOAH RESTAURANT GROUP, INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (Continued) http://www.sec.gov/Archives/edgar/data/949373/000104746908002111/a2183061z10-k.htm[9/11/2014 10:12:02 AM]

  • Page 62
    ...carrier. 75 (b) (c) EINSTEIN NOAH RESTAURANT GROUP, INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (Continued) 5. INVENTORIES Inventories, which consist of food, beverage, paper supplies and bagel ingredients, are stated at the lower of cost or market, with cost being determined...

  • Page 63
    ... in our cost of sales. 76 EINSTEIN NOAH RESTAURANT GROUP, INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (Continued) 7. PROPERTY, PLANT AND EQUIPMENT (Continued) As of January 2, 2007, we owned manufacturing equipment that was located at the plant of Harlan, our frozen bagel dough...

  • Page 64
    ... between the Parties to a Business Combination. 77 EINSTEIN NOAH RESTAURANT GROUP, INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (Continued) 9. DEBT ISSUANCE COSTS AND OTHER ASSETS Debt issuance costs and other assets consist of the following: January 2, 2007 January 1, 2008 (in...

  • Page 65
    ... and related bonus expense Sales, use and property tax expense Unvouchered receipts for purchases of property, plant and equipment Deferred gift card revenue Utilities expense Interest expense Advertising expenses Audit, tax and legal expenses Deferred franchise and license revenue Other current...

  • Page 66
    Senior notes and other long-term debt, net of discount $ 166,556 $ 88,875 June 2007 Debt Redemption and Amended First Lien Term Loan On June 13, 2007, we completed a $90 million secondary public offering of 5 million shares of our common stock. After stock issuance costs of $6.7 million related...

  • Page 67
    ... January 1, 2008, we were in compliance with all our financial and operating covenants. The senior secured credit facility contains a number of negative covenants that limits us from taking certain actions including issuing debt, paying dividends and making investments. In addition, we are required...

  • Page 68
    ...EINSTEIN NOAH RESTAURANT GROUP, INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (Continued) 11. SENIOR NOTES AND OTHER LONG-TERM DEBT (Continued) New Jersey... January 2, 2007 consolidated balance sheet, and as current debt in the January 1, 2008 consolidated balance sheet in ...

  • Page 69
    ... by recognizing a reduction of cost of goods sold based on the volume of purchases of the vendor's product. During 2007, we received $1.7 million in leasehold improvements related to our new corporate headquarters, which is included in deferred rent. 82 (b) EINSTEIN NOAH RESTAURANT GROUP, INC. AND...

  • Page 70
    ...a merger or other business combination transaction, each right will entitle its holder to purchase, at the right's then-current exercise price, a number of the acquiring company's common shares having a market value at that time of twice the right's exercise price. 15. STOCK OPTION AND WARRANT PLANS...

  • Page 71
    ... the SAR Plan or termination of employment and typically vest over a two-year service period, and have a contractual life of five years. Generally, 50% of rights granted vest based solely upon the passage of time. We recognize compensation costs for these 85 EINSTEIN NOAH RESTAURANT GROUP, INC. AND...

  • Page 72
    ...the 2004 Directors' Plan and the Stock Award Plan during fiscal 2005, 2006, and 2007 were as follows: Number of Options 2005 2006 2007 2005 Weighted Average Exercise Price 2006 2007 Outstanding, beginning of year Granted Exercised Forfeited Outstanding, ending of year Exercisable and vested, end of...

  • Page 73
    ...$ 496,611 - 4.26 - 87 EINSTEIN NOAH RESTAURANT GROUP, INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (Continued) 15. STOCK OPTION AND WARRANT PLANS (Continued) Number of SARs Weighted Average Grant Date Fair Value Non-vested shares, January 2, 2007 Granted Vested Forfeited Non...

  • Page 74
    ..., 2006, and 2007, respectively. Employer contributions vest at the rate of 100% after three years of service. We established the Einstein Noah Restaurant Group, Inc. Nonqualified Deferred Compensation Plan (the "DC Plan") in June of 2007 for key employees, generally officers of the Company. The DC...

  • Page 75
    ... reduction of the valuation allowance. There was no net effect to the financial statements and none of the unrecognized tax benefits will impact our effective tax rate. The income tax uncertainties relate to periods in which net operating losses were generated. Upon adoption of FIN 48, the net...

  • Page 76
    ... carryforward periods are reduced. As of January 1, 2008, our net 90 EINSTEIN NOAH RESTAURANT GROUP, INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (Continued) 17. INCOME TAXES (Continued) operating loss carryforwards for U.S. federal income tax purposes were $148.8 million, and...

  • Page 77
    ... between the reported provision for income taxes and the amount computed by applying the statutory federal income tax rate of 35% to loss before income taxes is as follows: 2005 2006 2007 Expected tax provision (benefit) at 35% State tax provision (benefit), net of federal provision (benefit) Other...

  • Page 78
    ... agreement. In addition, Ms. Sisson has 93 EINSTEIN NOAH RESTAURANT GROUP, INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (Continued) 19. RELATED PARTY TRANSACTIONS (Continued) been granted options under the 2003 Executive Employee Incentive Plan, of which 102,199 are currently...

  • Page 79
    ... we did not need the entire space for our operations. Our sublease income was $0.7 million, $0.5 million and $0.5 million for fiscal 2005, 2006 and 2007, respectively. 94 EINSTEIN NOAH RESTAURANT GROUP, INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (Continued) 20. COMMITMENTS AND...

  • Page 80
    ...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 alleges that defendants failed to pay overtime wages to "salaried restaurant employees" of...

  • Page 81
    ... costs and paid a 3% redemption premium in the amount of $4.8 million during the first quarter ended 2006. 97 EINSTEIN NOAH RESTAURANT GROUP, INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (Continued) 21. QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) (Continued) Fiscal year 2007...

  • Page 82
    ... million of debt issuance costs and $0.5 million of debt discount, and paid a redemption premium in the amount of $0.2 million during the second quarter ended 2007. 98 EINSTEIN NOAH RESTAURANT GROUP, INC. Schedule II-Valuation and Qualifying Accounts Balance at beginning of period Balance at end of...

  • Page 83
    ... and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. Management's Annual Report on Internal Control Over Financial Reporting The Company's management is responsible for...

  • Page 84
    ...Proxy Statement, which will be filed within 120 days after the close of the 2007 fiscal year, and is hereby incorporated by reference. ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS This information will be included in our 2008 Proxy Statement...

  • Page 85
    ... Agreement dated as of November 30, 2006, by and among New World Restaurant Group, Inc., Einstein and Noah Corp., Manhattan Bagel Company, Inc., and Harlan Bagel Supply Company, LLC, and Harlan Bakeries, Inc. (Certain information contained in this exhibit has been omitted and filed separately with...

  • Page 86
    ... the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. EINSTEIN NOAH RESTAURANT GROUP, INC. http://www.sec.gov/Archives/edgar/data/949373/000104746908002111/a2183061z10-k.htm[9/11/2014 10:12:02 AM]

  • Page 87
    ... Officer (Principal Financial Officer) Controller and Chief Accounting Officer (Principal Accounting Officer) Director Director Director Director Director Director 106 QuickLinks EINSTEIN NOAH RESTAURANT GROUP, INC. FORM 10-K TABLE OF CONTENTS PART I http://www.sec.gov/Archives/edgar/data...

  • Page 88
    ... AND RESULTS OF OPERATION ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM EINSTEIN NOAH RESTAURANT GROUP, INC. CONSOLIDATED BALANCE SHEETS AS OF JANUARY 2, 2007 AND JANUARY...