Einstein Bros 2007 Annual Report Download - page 37

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http://www.sec.gov/Archives/edgar/data/949373/000104746908002111/a2183061z10-k.htm[9/11/2014 10:12:02 AM]
Company-owned restaurant sales $ 363,044 $ 363,699 0.2% 93.3% 93.3%
Manufacturing and commissary revenues 20,786 21,076 1.4% 5.3% 5.4%
Franchise and license related revenues 5,263 5,187 (1.4)% 1.4% 1.3%
Total revenues 389,093 389,962 0.2% 100.0% 100.0%
Cost of sales:
Company-owned restaurant costs 296,610 290,176 (2.2)% 76.2% 74.4%
Manufacturing and commissary costs 18,781 21,154 12.6% 4.8% 5.4%
Total cost of sales 315,391 311,330 (1.3)% 81.0% 79.8%
Gross profit:
Company-owned restaurant 66,434 73,523 10.7% 17.1% 18.9%
Manufacturing and commissary 2,005 (78) * 0.5% 0.0%
Franchise and license 5,263 5,187 (1.4)% 1.4% 1.3%
Total gross profit 73,702 78,632 6.7% 19.0% 20.2%
Operating expenses:
General and administrative expenses 36,096 37,484 3.8% 9.3% 9.6%
Depreciation and amortization 26,316 16,949 (35.6)% 6.8% 4.3%
Loss on sale, disposal or abandonment of assets,
net 314 493 57.0% 0.1% 0.1%
Charges of integration and reorganization cost 5 — * 0.0% 0.0%
Impairment charges and other related costs 1,603 2,268 41.5% 0.4% 0.6%
Income from operations 9,368 21,438 128.8% 2.4% 5.5%
Other expense:
Interest expense, net 23,698 19,555 (17.5)% 6.1% 5.0%
Write-off of debt discount upon redemption of
senior notes — — * 0.0% 0.0%
Prepayment penalty upon redemption of senior
notes — 4,800 * 0.0% 1.2%
Write-off of debt issuance costs upon
redemption of senior notes — 3,956 * 0.0% 1.0%
Other, net (312) (5) 98.4% (0.1)% 0.0%
Income (loss) before taxes (14,018) (6,868) 51.0% (3.6)% (1.8)%
Provision for income taxes — — * 0.0% 0.0%
Net income (loss) $ (14,018) $ (6,868) 51.0% (3.6)% (1.8)%
*not meaningful
44
Restaurant Operations
We have a 52/53-week fiscal year ending on the Tuesday closest to December 31. Fiscal year 2006 ended on January 2, 2007 contained
52 weeks, while fiscal year 2005, which ended on January 3, 2006, contained 53 weeks.
Restaurant sales for 2006 improved 0.2% when compared to 2005. Our 2006 restaurant sales increased 1.9% when calculated on a
comparative 52-week basis for both fiscal 2005 and 2006. Our 2006 comparable store sales increased 4.5% over 2005 partially due to a system-