Einstein Bros 2010 Annual Report Download - page 33

Form 10-K
http://www.sec.gov/Archives/edgar/data/949373/000119312511067286/d10k.htm[9/11/2014 10:09:09 AM]
Consolidated Statements of Changes in Stockholders’ (Deficit) Equity
Accumulated deficit $ (203,381) $ (201,344) $ 2,037
Total stockholders’ equity 62,286 64,323 2,037
As Reported As Restated Difference
52 weeks ended
December 29,
2009
52 weeks ended
December 29,
2009
52 weeks ended
December 29,
2009
(in thousands)
Consolidated Statement of Cash Flows
Net income $ 71,995 $ 90,363 $ 18,368
Deferred income tax benefit (53,390) (71,758) (18,368)
Net cash provided by operating activities 33,700 33,700 —
4. INVENTORIES
Inventories consist of the following as of:
December 29,
2009
December 28,
2010
(in thousands of dollars)
Finished goods $ 4,100 $ 4,205
Raw materials 1,413 1,380
Total inventories $ 5,513 $ 5,585
5. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment consist of the following as of:
December 29,
2009
December 28,
2010
(in thousands of dollars)
Leasehold improvements $ 98,112 $ 104,452
Store and manufacturing equipment 82,143 88,630
Furniture and fixtures 1,323 1,320
Office and computer equipment 17,998 18,274
Vehicles 41 41
Property, plant and equipment 199,617 212,717
Less accumulated depreciation 140,935 156,054
Property, plant and equipment, net $ 58,682 $ 56,663
Included in operating expenses is depreciation expense, which was $14.1 million, $16.6 million and $17.8 million for the fiscal years ended 2008, 2009 and 2010, respectively. There is no depreciation
expense included in cost of sales.
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Table of Contents
EINSTEIN NOAH RESTAURANT GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
6. GOODWILL, TRADEMARKS AND OTHER INTANGIBLES
The Company’ s goodwill was $5.0 million for both fiscal years 2009 and 2010. The Company’ s trademarks and other intangibles consist of amortizing intangibles that have been fully amortized and
non-amortizing intangibles. The Company’ s non-amortizing intangibles were $63.8 million for both fiscal years 2009 and 2010.
7. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Accrued expenses and other current liabilities consist of the following as of:
December 29,
2009
December 28,
2010
(in thousands of dollars)
Payroll and labor related expense $ 9,488 $ 11,580
Sales, use and property tax expense 2,251 2,708
Accrued expenses 5,649 2,215
Dividends payable — 2,081
Deferred gift card revenue 1,377 1,039
Deferred franchise and license revenue 237 279
Other current liabilities 1,631 569
Total accrued expenses and other current liabilities $ 20,633 $ 20,471
Long-term deferred franchise and license revenue is included in other liabilities on the balance sheet and was $0.5 million and $0.6 million as of December 29, 2009 and December 28, 2010,
respectively.
8. LONG-TERM DEBT
New Credit Facility
On December 20, 2010, the Company entered into a new senior $125 million credit facility with Bank of America, N.A., as administrative agent (the “Administrative Agent”) and other lenders party
thereto (the “New Credit Facility”).
The New Credit Facility has a commitment of up to $125 million, including a term loan of up to $75 million (the “Term Loan”) and a revolving credit facility of up to $50 million (the “Revolving
Facility”). Borrowings under the New Credit Facility bear interest at a rate equal to an applicable margin plus, at the Company’ s option, either a variable base rate or a Eurodollar rate. The applicable margin for
Eurodollar rate loans ranges from 2.5% to 3.0% and for base rate loans ranges from 1.5% to 2.0%, depending on the level of the Company’ s consolidated leverage ratio (as defined in the New Credit Facility).
Upon the occurrence of a payment event of default which is continuing, all amounts due under the New Credit Facility will bear interest at 2.0% above the interest rate otherwise applicable.
The New Credit Facility matures on December 20, 2015 (the “Maturity Date”). The Term Loan must be repaid in consecutive quarterly principal installments, increasing from $1,875,000 to $2,812,500
over the term of the New Credit Facility, commencing on March 31, 2011, and continuing thereafter on the last day of each calendar quarter, with any remaining amounts due and payable on the Maturity Date.
The Term Loan also requires mandatory prepayments of:
• 100% of net cash proceeds of asset sales and insurance and condemnation proceeds above a threshold and subject to the ability to reinvest under certain circumstances; and