Einstein Bros 2011 Annual Report Download - page 31

Download and view the complete annual report

Please find page 31 of the 2011 Einstein Bros annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 74

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74

Form 10-K
http://www.sec.gov/Archives/edgar/data/949373/000119312512092597/d260635d10k.htm[9/11/2014 10:08:30 AM]
Fiscal Year Ended
Increase/
(Decrease) (in thousands)
December 29,
2009
December 28,
2010
2010
vs. 2009
Franchise and license related revenues $ 7,512 $ 9,115 21.3%
Percent of total revenues 1.8% 2.2%
Number of franchise and license restaurants 255 302
Overall, franchise and license revenue improvement of 21.3% from 2009 was driven by strong royalty streams that were a result of the net
opening of 32 license locations and 15 franchise locations over the last twelve months. For fiscal 2010, franchise and license comparable store
sales were +2.7%.
Corporate Support
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
General and administrative expenses $ 35,463 $ 38,502 8.6% 8.7% 9.4%
Depreciation and amortization 16,627 17,769 6.9% 4.1% 4.3%
Restructuring expenses — 477 ** 0.0% 0.1%
Other operating expense/(income) 725 (531) (173.2%) 0.2% (0.1%)
Total operating expenses $ 52,815 $ 56,217 6.4% 12.9% 13.7%
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%
(Benefit) provision for income tax (71,560) 9,918 (113.9%) (17.5%) 2.4%
** Not meaningful
Our general and administrative expenses increased $3.0 million in fiscal 2010 compared to fiscal 2009 due to an increase of $1.8 million in
incentive compensation as a result of the achievement of performance targets in fiscal 2010 and $0.6 million in stock based compensation. We also
incurred $0.5 million in severance expense related to a restructuring plan which was implemented late in 2010. We approved a plan to reorganize
the organization to align with our franchise growth model. This reorganization included eliminating certain redundant positions and reducing
headcount.
Depreciation and amortization expenses increased $1.1 million or 6.9% in fiscal 2010 compared to fiscal 2009 due to additional assets
invested in the company-owned restaurants that were added or upgraded in 2010.
Interest expense, net decreased in fiscal 2010 primarily due to the expiration of the swap in August 2010 and a decrease in the Series Z
additional redemption amounts of $0.4 million.
37
Table of Contents
The components of our provision for income taxes are as follows:
December
29,
2009
December
28,
2010
(in thousands)
Current
Total current income tax provision $ 198 $ 194
Deferred
Total deferred income tax provision 7,563 9,862
Change in valuation allowance (79,321) (138)
Total deferred income tax (benefit) provision (71,758) 9,724
Total income tax (benefit) provision $(71,560) $ 9,918
In 2009, we recorded a net deferred tax benefit of $71.8 million, comprised of a $79.3 million reversal of substantially all of our valuation