Einstein Bros 2011 Annual Report Download - page 45

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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]
Net income
$ 90,363
$ 10,623
$ 13,203
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 16,627 17,769 19,259
Deferred income tax expense (71,758) 9,724 6,918
Stock-based compensation expense 941 1,532 2,312
Loss (gain) on disposal of assets 212 (531) (820)
Impairment charges and other related costs 818 — —
Adjustment for Series Z modification — 929 —
Provision for losses on accounts receivable 206 167 69
Amortization of debt issuance and debt discount costs 574 530 449
Write-off of debt issuance costs — 966 —
Changes in operating assets and liabilities, net of acquisitions:
Restricted cash 18 (201) (180)
Accounts receivable 624 (212) (2,002)
Accounts payable and accrued expenses (1,015) 3,008 956
Other assets and liabilities (3,910) (535) (1,054)
Net cash provided by operating activities 33,700 43,769 39,110
INVESTING ACTIVITIES:
Purchase of property and equipment (16,898) (16,597) (18,242)
Proceeds from the sale and disposal of property, plant and equipment 2 860 1,392
Acquisition of restaurant assets, net of cash acquired — — (6,835)
Net cash used in investing activities (16,896) (15,737) (23,685)
FINANCING ACTIVITIES:
Proceeds from line of credit — 23,700 2,000
Repayments on line of credit — (11,000) (8,000)
Payments under capital lease obligations (49) (11) (21)
Repayments under the term loan (8,088) (79,787) —
Borrowings under the new term loan — 75,000 —
Repayments under the credit facility — — (7,500)
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) —
Dividends paid — — (6,273)
Proceeds upon stock option exercises 1,808 1,026 1,253
Net cash used in financing activities (31,135) (26,149) (18,541)
Net (decrease) increase in cash and cash equivalents (14,331) 1,883 (3,116)
Cash and cash equivalents, beginning of period 24,216 9,885 11,768
Cash and cash equivalents, end of period $ 9,885 $ 11,768 $ 8,652
The accompanying notes are an integral part of these consolidated financial statements.
56
Table of Contents
EINSTEIN NOAH RESTAURANT GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
1. DESCRIPTION OF BUSINESS
Einstein Noah Restaurant Group, Inc. and its wholly-owned subsidiaries (collectively, the “Company”) is the largest owner/operator,
franchisor and licensor of bagel specialty restaurants in the United States. As of January 3, 2012, the Company owned, franchised or licensed
various restaurant concepts under the brand names of Einstein Bros. Bagels (“Einstein Bros.”), Noah’ s New York Bagels (“Noah’ s”), Manhattan
Bagel Company (“Manhattan Bagel”) and Kettleman Bagel Company (“Kettleman Bagel”). As of January 3, 2012, the Company had 773
restaurants in 39 states and the District of Columbia.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES