Einstein Bros 2007 Annual Report Download - page 33

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http://www.sec.gov/Archives/edgar/data/949373/000104746908002111/a2183061z10-k.htm[9/11/2014 10:12:02 AM]
Cost of sales:
Company-owned restaurant costs 290,176 297,180 2.4% 74.4% 73.80%
Manufacturing and commissary costs 21,154 24,792 17.2% 5.4% 6.20%
Total cost of sales 311,330 321,972 3.4% 79.8% 80.0%
Gross profit:
Company-owned restaurant 73,523 75,817 3.1% 18.9% 18.8%
Manufacturing and commissary (78) (588) (653.8)% 0.0% (0.1)%
Franchise and license 5,187 5,701 9.9% 1.3% 1.4%
Total gross profit 78,632 80,930 2.9% 20.2% 20.1%
Operating expenses:
General and administrative expenses 37,484 40,635 8.4% 9.6% 10.1%
Depreciation and amortization 16,949 11,192 (34.0)% 4.3% 2.8%
Loss on sale, disposal or abandonment of assets,
net 493 601 21.9% 0.1% 0.1%
Impairment charges and other related costs 2,268 236 (89.6)% 0.6% 0.1%
Income from operations 21,438 28,266 31.8% 5.5% 7.0%
Other expense:
Interest expense, net 19,555 12,387 (36.7)% 5.0% 3.1%
Write-off of debt discount upon redemption of
senior notes — 528 * 0.0% 0.1%
Prepayment penalty upon redemption of senior
notes 4,800 240 (95.0)% 1.2% 0.1%
Write-off of debt issuance costs upon
redemption of senior notes 3,956 2,071 (47.6)% 1.0% 0.5%
Other, net (5) — * 0.0% 0.0%
Income (loss) before taxes (6,868) 13,040 * (1.8)% 3.2%
Provision for income taxes — 454 * 0.0% 0.1%
Net income (loss) $ (6,868) $ 12,586 * (1.8)% 3.1%
*not meaningful
Total Revenues, Cost of Sales and Gross Profit
Total revenues increased 3.3% to $402.9 million from $390.0 million. Total cost of sales increased 3.4% to $322.0 million from
$311.3 million. Total gross profit increased 2.9% to $80.9 million from $78.6 million.
39
Restaurant Operations
We have a 52/53-week fiscal year ending on the Tuesday closest to December 31. Fiscal years 2006 and 2007, which ended on January 2,
2007 and January 1, 2008, respectively, contained 52 weeks.
Restaurant sales for 2007 improved 2.6% when compared to 2006. Our 2007 comparable store sales increased 3.7% over 2006 due primarily