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Form 10-K
http://www.sec.gov/Archives/edgar/data/949373/000119312512092597/d260635d10k.htm[9/11/2014 10:08:30 AM]
2011 was 3.1%.
The components of our provision for income taxes are as follows:
December 28,
2010
January 3,
2012
(in thousands)
Current
Total current income tax provision $ 194 $ 1,040
Deferred
Total deferred income tax provision 9,862 6,899
Change in valuation allowance (138) 19
Total deferred income tax provision 9,724 6,918
Total income tax provision $ 9,918 $ 7,958
Our effective tax rate decreased from 48.3% from fiscal 2010 to 37.6% for fiscal 2011. This decrease relates to the elimination of several
items that were non-deductible in 2010, including the $0.9 million adjustment on the modification of the Series Z, the additional redemption
amount of the Series Z and the remaining deferred tax associated with our interest rate swap which expired in 2010. We also realized higher federal
employment tax credits in fiscal 2011.
Results of Operations for Fiscal 2010 as compared to Fiscal 2009
Financial Highlights
• Operating income increased 10.7% to $27.6 million in fiscal 2010 from $24.9 million in fiscal 2009.
• Net income decreased $79.8 million. EPS decreased to $0.67 per share on a dilutive basis in fiscal 2010 compared to $5.47 per share on
a dilutive basis in fiscal 2009. This decrease was primarily due to the
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Table of Contents
benefit from income taxes that we recognized related to the reversal in fiscal 2009 of substantially all of our valuation allowance of
$79.3 million on our deferred tax assets, which had an impact of $4.80 per share on a dilutive basis in fiscal 2009.
• Adjusted EBITDA increased $3.0 million, or 7.1%, to $45.3 million in fiscal 2010 from $42.3 million in fiscal 2009.
• Adjusted EPS was $0.75 on a dilutive basis in fiscal 2010 compared to $0.67 on a dilutive basis in fiscal 2009.
• Our net cash from operating activities increased by 29.8% to $43.8 million from $33.7 million.
Consolidated Results – Fiscal 2010 vs Fiscal 2009
Fiscal Year Ended
Increase/
(Decrease)
Percentage of
total revenues (in thousands)
December 29,
2009
December 28,
2010
2010
vs. 2009
December 29,
2009
December 28,
2010
Revenues $ 408,562 $ 411,711 0.8%
Cost of sales 330,830 327,923 (0.9%) 81.0% 79.6%
Operating expenses 52,815 56,217 6.4% 12.9% 13.7%
Income from operations 24,917 27,571 10.7% 6.1% 6.7%
Interest expense, net 6,114 5,135 (16.0%) 1.5% 1.2%
Adjustment for Series Z modification* — 929 ** 0.0% 0.2%
Write-off of debt issuance costs upon
redemption of term loan — 966 ** 0.0% 0.2%
Income before income taxes 18,803 20,541 9.2% 4.6% 5.0%
Total (benefit) provision for income tax (71,560) 9,918 ** (17.5%) 2.4%
Net income $ 90,363 $ 10,623 (88.2%) 22.1% 2.6%
Adjustments to net income:
Interest expense, net 6,114 5,135 (16.0%)
(Benefit) provision for income taxes (71,560) 9,918 **
Depreciation and amortization 16,627 17,769 6.9%