Einstein Bros 2008 Annual Report Download - page 41

Form 10-K
http://www.sec.gov/Archives/edgar/data/949373/000119312509042707/d10k.htm[9/11/2014 10:10:56 AM]
Purchase of property and equipment (13,172) (25,869) (26,690)
Proceeds from the sale of equipment 209 1,168 17
Acquisition of restaurant assets — (375) (7)
Net cash used in investing activities (12,963) (25,076) (26,680)
FINANCING ACTIVITIES:
Proceeds from secondary common stock offering — 90,000 —
Costs incurred with offering of our common stock — (6,667) —
Proceeds from line of credit 24 — —
Repayments of line of credit (24) — —
Repayments of other borrowings (280) (280) (280)
Payments under capital lease obligations (53) (53) (84)
Repayment of notes payable (160,000) — —
Borrowings under First Lien Term Loan 80,000 11,900 —
Repayments under First Lien Term Loan (1,425) (925) (1,675)
Borrowing under Second Lien 65,000 — —
Repayments under Second Lien Term Loan — (65,000) —
Borrowings under Subordinated Note 24,375 — —
Repayments under Subordinated Note — (25,000) —
Debt issuance costs (4,923) (843) —
Proceeds upon stock option exercises 194 1,017 404
Net cash provided by (used in) financing activities 2,888 4,149 (1,635)
Net increase in cash and cash equivalents 3,921 3,959 14,780
Cash and cash equivalents, beginning of period 1,556 5,477 9,436
Cash and cash equivalents, end of period $ 5,477 $ 9,436 $ 24,216
The accompanying notes are an integral part of these consolidated financial statements.
See Note 17 for the supplemental cash flow information.
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Table of Contents
EINSTEIN NOAH RESTAURANT GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION
The consolidated financial statements of Einstein Noah Restaurant Group, Inc. and its wholly-owned subsidiaries (collectively, the “Company”)
have been prepared in conformity with accounting principles generally accepted in the United States of America. All inter-company accounts and
transactions have been eliminated in consolidation. As of December 30, 2008, the Company owned, franchised or licensed various restaurant
concepts under the brand names of Einstein Bros. Bagels (“Einstein Bros.”), Noah’ s New York Bagels (“Noah’ s”), Manhattan Bagel Company
(“Manhattan Bagel”), and New World Coffee (“New World”).
We have a 52/53-week fiscal year ending on the Tuesday closest to December 31. Fiscal years 2006, 2007 and 2008 which ended on January 2,
2007, January 1, 2008, and December 30, 2008 respectively, contained 52 weeks.
Certain immaterial reclassifications have been made to conform previously reported data to the current presentation. These reclassifications have
no effect on net income or financial position as previously reported.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Use of Estimates
The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of
America requires us to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of revenues, costs and expenses during the reporting period. Actual
results could differ from the estimates.
Revenue Recognition
Company-owned restaurant sales—We record revenue from the sale of food, beverage and retail items as products are sold. Sales tax amounts
collected from customers that are remitted to governmental authorities are recorded in revenue on a net basis.
Manufacturing and commissary revenues—Our manufacturing revenues are recorded at the time of shipment to customers. During fiscal year
2005, our manufacturing operations began selling bagels to a wholesaler and a distributor who take possession in the United States and sells