Einstein Bros 2012 Annual Report Download - page 28

10-K
http://www.sec.gov/Archives/edgar/data/949373/000119312513085036/d445565d10k.htm[9/11/2014 10:07:50 AM]
payable to holders of record of the Company’ s common stock as of the close of business on December 17, 2012. The payment date of the dividend
was December 27, 2012. We expensed $3.7 million towards this review.
Other operating (income) expenses, net changed by $2.0 million from income of $0.4 million in fiscal 2011 to expense of $1.6 million in
fiscal 2012. In fiscal 2011, we recognized gains on the sale of three restaurants, a gain on the insurance proceeds from a restaurant fire and we
incurred acquisition costs related to the purchase of nine stores. In fiscal 2012, we expensed approximately $1.2 million for an employee benefit
settlement. We also incurred $0.1 million in acquisition costs in fiscal 2012 towards the purchase of seven restaurants from our franchisees.
Interest expense, net remained flat in fiscal 2012, primarily due to scheduled term loan repayments totaling $5.6 million offset by incremental
interest on borrowings of $68.1 million in December 2012. As of January 1, 2013, we had an outstanding debt balance of $136.7 million. Our
weighted average interest rate for fiscal 2012 was 3.4% compared to a weighted average rate of 3.1% for fiscal 2011. As of January 1, 2013, our
weighted average interest rate was 4.3%. Subject to pay-downs of the revolving credit facility, we estimate interest expense to be in the range of
$6.5 million to $7.0 million for fiscal 2013.
The components of our provision for income taxes were as follows:
January 3, January 1,
2012 2013
(in thousands)
Current
Total current income tax provision $ 1,040 $ 235
Deferred
Total deferred income tax provision 6,900 12,658
Change in valuation allowance 18 (4,790)
Total deferred income tax provision 6,918 7,868
Total income tax provision $ 7,958 $ 8,103
Our effective tax rate increased from 37.6% for fiscal 2011 to 38.9% for fiscal 2012 because certain federal employment tax credits that were
available to us in fiscal 2011 were not available to us during fiscal 2012. With the enactment of the American Taxpayer Relief Act of 2012 on
January 2, 2013, these federal employment tax credits, as calculated on a retroactive basis, are expected to reduce our fiscal 2013 annual effective
income tax rate.
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Table of Contents
EINSTEIN NOAH RESTAURANT GROUP, INC.
NON-GAAP FINANCIAL INFORMATION
Fiscal Year Ended
January 3, January 1,
2012 2013
(in thousands, except earnings per
share and related share information)
Total revenues, as reported $ 423,595 $ 427,006
Impact of extra week in fiscal 2011 (7,300) —
Non-GAAP total revenues $ 416,295 $ 427,006
Net income available to common stockholders $ 13,203 $ 12,741
Adjustments for, net of tax:
Extra week in fiscal 2011 (528) —
Restructuring expenses 686 293
Strategic alternatives expense — 2,247
Incremental interest expense — 166
Other operating expenses, net (246) 973
Adjusted net income $ 13,115 $ 16,420
Weighted average number of common shares outstanding:
Basic 16,629,098 16,935,018
Diluted 16,880,321 17,217,180
Net income per share available to common stockholders – Basic $ 0.79 $ 0.75
Adjustments for, net of tax:
Extra week in fiscal 2011 (0.03) —