Einstein Bros 2010 Annual Report Download - page 27

Form 10-K
http://www.sec.gov/Archives/edgar/data/949373/000119312511067286/d10k.htm[9/11/2014 10:09:09 AM]
Net income (as Restated, see Note 3)
—
—
—
—
90,363
90,363
Common stock issued upon restricted stock awards 63,776 — — — — —
Common stock issued upon stock option exercise 427,777 — 1,808 — — 1,808
Common stock issued upon stock appreciation right exercise 403 — — — — —
Stock based compensation expense — — 941 — — 941
Net change in unrealized loss on derivative securities, net of income tax — — — 1,193 — 1,193
Balance, December 29, 2009 (as Restated, see Note 3) 16,461,123 $ 16 $ 266,928 $ (1,277) $ (201,344) $ 64,323
Net income — — — — 10,623 10,623
Common stock issued upon stock option exercise 193,163 1 1,026 — — 1,027
Common stock issued upon stock appreciation right exercise 1,188 — — — — —
Stock based compensation expense — — 1,532 — — 1,532
Additional redemption on temporary equity — — (387) — — (387)
Accretion of premium on Series Z Preferred Stock — — 1,072 — — 1,072
Dividend declared — — — — (2,081) (2,081)
Net change in unrealized loss on derivative securities, net of income tax — — — 1,277 — 1,277
Balance, December 28, 2010 16,655,474 $ 17 $ 270,171 $— $ (192,802) $ 77,386
The accompanying notes are an integral part of these consolidated financial statements.
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Table of Contents
EINSTEIN NOAH RESTAURANT GROUP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
52 weeks ended
December 30,
2008
December 29,
2009
December 28,
2010
(As Restated,
See Note 3)
(As Restated,
See Note 3)
OPERATING ACTIVITIES:
Net income $ 19,709 $ 90,363 $ 10,623
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 14,100 16,627 17,769
Deferred income tax expense (benefit) 1,368 (71,758) 9,724
Stock-based compensation expense 945 941 1,532
Loss (gain) on disposal of assets 198 212 (531)
Impairment charges and other related costs 263 818 —
Adjustment for Series Z Modification — — 929
Provision for losses on accounts receivable 157 206 167
Amortization of debt issuance and debt discount costs 487 574 530
Write-off of debt issuance costs — — 966
Changes in operating assets and liabilities:
Restricted cash 677 18 (201)
Accounts receivable 1,191 624 (212)
Accounts payable and accrued expenses 3,297 (1,015) 3,008
Other assets and liabilities 703 (3,910) (535)
Net cash provided by operating activities 43,095 33,700 43,769
INVESTING ACTIVITIES:
Purchase of property and equipment (26,690) (16,898) (16,597)
Proceeds from the sale of property, plant and equipment 17 2 860
Acquisition of restaurant assets (7) — —
Net cash used in investing activities (26,680) (16,896) (15,737)
FINANCING ACTIVITIES:
Proceeds from line of credit — — 23,700
Repayments on line of credit — — (11,000)
Payments under capital lease obligations (84) (49) (11)
Repayments of other borrowings (280) — —
Repayments under the term loan (1,675) (8,088) (79,787)
Borrowings under the new term loan — — 75,000
Redemptions under mandatorily redeemable Series Z Preferred Stock — (24,806) (32,194)
Additional redemption payments on Series Z Preferred Stock — — (568)
Debt issuance costs — — (2,315)
Proceeds upon stock option exercises 404 1,808 1,026
Net cash used in financing activities (1,635) (31,135) (26,149)
Net increase (decrease) in cash and cash equivalents 14,780 (14,331) 1,883
Cash and cash equivalents, beginning of period 9,436 24,216 9,885
Cash and cash equivalents, end of period $ 24,216 $ 9,885 $ 11,768
The accompanying notes are an integral part of these consolidated financial statements.
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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 28, 2010, the Company-owned, franchised or