Einstein Bros 2013 Annual Report Download - page 24

Download and view the complete annual report

Please find page 24 of the 2013 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

10-K
http://www.sec.gov/Archives/edgar/data/949373/000119312514073832/d629623d10k.htm[9/11/2014 10:05:27 AM]
Fiscal Year Ended
Increase/
(Decrease)
January 1,
2013
December 31,
2013
2013
vs. 2012
(in thousands)
Revenues:
Company-owned restaurant sales $384,783 $ 388,362 0.9%
Manufacturing and commissary revenues 31,037 33,585 8.2%
Franchise and license related revenues 11,186 12,534 12.1%
Total revenues 427,006 434,481 1.8%
• System-wide comparable store sales decreased -0.3%, primarily due to a company-owned comparable store sales decrease of -0.6%.
During fiscal 2013, we focused on stimulating comparable transactions by improving our value layer deals coupled with innovative
features on our premium sandwiches. While we faced challenging economic headwinds in fiscal 2013, we believe that the investment
in value and additional discounting had a positive impact on transactions for the year and that we are well positioned for fiscal 2014.
• Our overall gross margin (excluding depreciation and amortization) for fiscal 2012 was $88.6 million for fiscal 2013, a decrease of
1.9%. We attribute this decrease to the deleveraging of company-owned restaurant costs resulting from our investment in discounting.
Fiscal Year Ended
Increase/
(Decrease)
January 1,
2013
December 31,
2013
2013
vs. 2012
(in thousands)
Total revenues $427,006 $ 434,481 1.8%
Company-owned restaurant costs 312,402 321,072 2.8%
Manufacturing and commissary costs 24,236 24,779 2.2%
Gross Margin $ 90,368 $ 88,630 (1.9%)
• Interest expense increased $2.6 million due to an increase of $50.6 million in our average debt balance and a 0.4% increase in our
weighted average interest rate. In fiscal 2012, we funded a special dividend through an amendment of our Senior Credit Facility.
• Net income was $14.6 million for fiscal 2013, an increase of 14.3% from net income of $12.7 million for fiscal 2012.
• Diluted earnings per share (“EPS”) were $0.82 for fiscal 2013 compared to $0.74 in fiscal 2012. The increase in diluted EPS is
primarily due to an increase in earnings from operations and the elimination of one-time expenses incurred in fiscal 2012 towards a
strategic alternatives review process and restructuring, partially offset by an increase in interest expense in fiscal 2013 resulting from a
higher amount of third party debt incurred for the funding of a special dividend in fiscal 2012. Diluted EPS for fiscal 2012 was
impacted by approximately $0.15 per share for strategic alternative transaction expenses and restructuring charges. For fiscal 2013,
increased interest expense impacted diluted EPS by approximately $0.10 per share.
30
Table of Contents
• Adjusted EBITDA was $47.2 million for fiscal 2013, a decrease of 5.0% from Adjusted EBITDA of $49.7 million for fiscal 2012. In
fiscal 2012, we expensed $3.7 million towards the strategic alternatives review process. We did not incur similar costs in fiscal 2013.
Consolidated Results – Fiscal 2013 vs Fiscal 2012
Fiscal Year Ended
(in thousands)
Increase/
(Decrease)
January 1,
2013
December 31,
2013
2013
vs. 2012
Revenues $427,006 $ 434,481 1.8%
Cost of sales 336,638 345,851 2.7%
Operating expenses 66,140 60,766 (8.1%)
Income from operations 24,228 27,864 15.0%
Interest expense, net 3,384 5,970 76.4%
Income before income taxes 20,844 21,894 5.0%
Total provision for income taxes 8,103 7,329 (9.6%)
Net income $ 12,741 $ 14,565 14.3%
Adjustments to net income:
Interest expense, net 3,384 5,970 76.4%