Einstein Bros 2010 Annual Report Download - page 43

Form 10-K
http://www.sec.gov/Archives/edgar/data/949373/000119312511067286/d10k.htm[9/11/2014 10:09:09 AM]
Table of Contents
EINSTEIN NOAH RESTAURANT GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Fiscal year 2009:
1st Quarter
(13 wks)
2nd Quarter
(13 wks)
3rd Quarter
(13 wks)
4th Quarter
(13 wks)
(As Restated,
See Note 3)
(As Restated,
See Note 3)
(As Restated,
See Note 3)
(in thousands, except earnings per share and
related share information)
Revenue $ 100,423 $ 104,358 $ 100,046 $ 103,735
Income from operations 3,117 8,015 6,213 7,572
Net income (a) 1,470 6,086 79,989 2,818
Net income per common share—Basic $ 0.10 $ 0.38 $ 4.93 $ 0.17
Net income per common share—Diluted $ 0.09 $ 0.37 $ 4.80 $ 0.17
Weighted average number of common shares outstanding:
Basic 16,025,935 16,047,305 16,236,271 16,392,052
Diluted 16,216,152 16,412,363 16,693,843 16,730,940
Fiscal year 2010:
1st Quarter
(13 wks)
2nd Quarter
(13 wks)
3rd Quarter
(13 wks)
4th Quarter
(13 wks)
(in thousands, except earnings per share and
related share information)
Revenue $ 100,812 $ 103,473 $ 101,361 $ 106,065
Income from operations 4,458 7,166 7,044 8,902
Net income (b) 620 3,248 3,400 3,354
Less: Additional redemption on temporary equity (50) (191) (124) (22)
Less: Beneficial conversion feature on temporary equity — — 169 (169)
Add: Accretion of premium on Series Z preferred stock — 499 138 435
Net income available to common stockholders $ 570 $ 3,556 $ 3,583 $ 3,598
Net income available to common stockholders per share—Basic $ 0.03 $ 0.22 $ 0.22 $ 0.22
Net income available to common stockholders per share—Diluted $ 0.03 $ 0.21 $ 0.21 $ 0.21
Cash dividend declared $— $— $— $ 0.125
Weighted average number of common shares outstanding:
Basic 16,467,072 16,496,118 16,565,771 16,600,719
Diluted 16,765,609 16,813,355 16,791,275 16,853,782
(a) In the third quarter of 2009, the Company reduced its $84.3 million valuation allowance by $79.3 million to $4.9 million, as restated.
(b) In connection with the debt redemption and the Company’ s New Credit Facility, the Company wrote off $1.0 million of debt issuance costs during the fourth quarter ended 2010.
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Table of Contents
EINSTEIN NOAH RESTAURANT GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
The following sets forth the effects of the restatement (see Note 3) to the Company’ s Consolidated Balance Sheets as of April 1, 2008, July 1, 2008 and September 30, 2008 and to the Company’ s
Consolidated Statements of Operations for the quarterly periods then ended.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share information)
(Unaudited)
April 1, 2008 July 1, 2008 September 30, 2008
As reported As restated As reported As restated As reported As restated
ASSETS
Current assets:
Cash and cash equivalents $ 13,945 $ 13,945 $ 18,416 $ 18,416 $ 22,150 $ 22,150
Restricted cash 1,170 1,170 876 876 887 887
Franchise and other receivables, net of allowance of $582, $278 and $278, respectively 7,808 7,808 6,498 6,498 7,207 7,207
Inventories 5,042 5,042 4,917 4,917 5,033 5,033
Prepaid expenses and other current assets 4,791 4,791 5,036 5,036 4,684 4,684
Total current assets 32,756 32,756 35,743 35,743 39,961 39,961
Property, plant and equipment, net 49,599 49,599 52,532 52,532 56,180 56,180
Trademarks and other intangibles, net 63,831 63,831 63,831 63,831 63,831 63,831
Goodwill 4,981 4,981 4,981 4,981 4,981 4,981
Debt issuance costs and other assets, net 2,992 2,992 2,881 2,881 2,769 2,769
Total assets $ 154,159 $ 154,159 $ 159,968 $ 159,968 $ 167,722 $ 167,722
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable $ 4,481 $ 4,481 $ 5,472 $ 5,472 $ 4,976 $ 4,976
Accrued expenses and other current liabilities 22,068 22,068 19,795 19,795 23,375 23,375
Short term debt and current portion of long-term debt 1,180 1,180 1,180 1,180 9,180 9,180
Current portion of obligations under capital leases 79 79 79 79 86 86
Mandatorily redeemable, Series Z Preferred Stock, $.001 par value, $1,000 per share liquidation value; 57,000 shares
authorized; 57,000 shares issued and outstanding as of July 1, 2008 and September 30, 2008 — — 57,000 57,000 57,000 57,000
Total current liabilities 27,808 27,808 83,526 83,526 94,617 94,617
Senior notes and other long-term debt 87,425 87,425 87,200 87,200 78,975 78,975
Long-term obligations under capital leases 48 48 29 29 72 72
Long-term deferred income tax liabilities — 15,305 — 15,647 — 15,989
Other liabilities 10,953 10,953 11,034 11,034 11,386 11,386
Mandatorily redeemable, Series Z Preferred Stock, $.001 par value, $1,000 per share liquidation value; 57,000 shares authorized;
57,000 shares issued and outstanding as of April 1, 2008 57,000 57,000 — — — —
Total liabilities 183,234 198,539 181,789 197,436 185,050 201,039
Commitments and contingencies
Stockholders’ deficit:
Series A junior participating preferred stock, 700,000 shares authorized; no shares issued and outstanding
Common stock, $.001 par value; 25,000,000 shares authorized; 15,923,227, 15,932,856 and 15,975,251 shares issued and
outstanding 16 16 16 16 16 16
Additional paid-in capital 263,520 263,520 263,860 263,860 264,105 264,105
Accumulated other comprehensive loss — — — — (289) (289)
Accumulated deficit (292,611) (307,916) (285,697) (301,344) (281,160) (297,149)
Total stockholders’ deficit (29,075) (44,380) (21,821) (37,468) (17,328) (33,317)