Q4 2013 Einstein Noah Restaurant Group Inc. Earnings Conference Call
February 27, 2014 @ 5 PM ET
October 16 2012
Provides Financial Outlook for the Third Quarter of 2012
The possible recapitalization of the Company may include a new Senior Credit Facility consisting of a Term Loan and a Revolver.
As previously announced,
Jeff O'Neill, President and Chief Executive Officer, said, "We are pleased with our achievements to date in executing our asset-light expansion strategy, extending our positive comparable sales momentum to six consecutive quarters, and cash flow improvements through our comprehensive cost savings initiatives. We believe that our financial discipline and cash flow generation capabilities support our ability to access the capital markets on favorable terms."
Third Quarter 2012 Financial Outlook
The Company also provided a financial outlook for the third quarter ended
Forward Looking Statement Disclosure
Certain statements in this press release constitute forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements which are not historical facts are intended to identify forward-looking statements. Words such as "expects", "intends", "plans". "possible", "estimate", "believes" and similar expressions are used to identify forward-looking statements. In particular, statements about any potential declaration and payment of a special cash dividend and consummation of a new senior credit facility are forward-looking statements and may not occur. Forward-looking statements are not guarantees of future results and involve and are subject to known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance (financial or operating), or achievements to differ materially from the future results, performance (financial or operating), or achievements expressed or implied by such forward-looking statements. These risks and uncertainties include, among others, (i) the ability of the Company to refinance its current senior credit facility, (ii) the state of capital markets, (iii) general economic conditions; (iv) the results for the 2012 third quarter are not necessarily indicative of future results; (v) the Company's ability to improve transactions and its long-term growth are dependent upon consumer acceptance of its products and marketing initiatives, general economic and market conditions, among other factors; and (vi) the Company's ability to build brand equity and create long-term value for its shareholders is dependent upon the success of our initiatives, financial results and the factors listed above, among other factors. These and other risks are more fully discussed in the Company's
Use of Non-GAAP Financial Information
In addition to the financial outlook reported in accordance with accounting principles generally accepted in
The Company includes in this document information on system-wide comparable store sales percentages. System-wide comparable store sales percentages refer to changes in sales of our restaurants, whether operated by the company or by franchisees and licensees, in operation for six fiscal quarters including those restaurants temporarily closed for an immaterial amount of time. Some of the reasons restaurants may be temporarily closed include remodeling, road construction, rebuilding related to site-specific catastrophes and natural disasters. Franchise and license comparable store sales percentages are based on sales of franchised and licensed restaurants, as reported by franchisees and licensees. Management reviews the increase or decrease in comparable sales to assess business trends. Comparable store sales exclude closed locations. When we intend to relocate a restaurant, we consider that restaurant to be temporarily closed for up to twelve months after it ceases operations. If a suitable relocation site has not been identified by the end of twelve months, we consider the restaurant to be permanently closed. Until that time, we include the restaurant in our open store count, but exclude its sales from our comparable store sales. As of
The Company uses company-owned comparable store sales, franchise and license sales and the resulting system-wide sales information internally in connection with restaurant development decisions, planning, and budgeting analyses. The Company believes comparable store sales information is useful in assessing consumer acceptance of our brands; facilitates an understanding of our financial performance and the overall direction and trends of sales and operating income; helps the Company appreciate the effectiveness of its advertising and marketing initiatives; and provides information that is relevant for comparison within the industry.
Comparable store sales percentages are non-GAAP financial measures, which should not be considered in isolation or as a substitute for other measures of performance prepared in accordance with GAAP, and may not be equivalent to comparable store sales as defined or used by other companies. The Company does not record franchise or license restaurant sales as revenues. However, royalty revenues are calculated based on a percentage of franchise and license restaurant sales, as reported by the franchisees or licensees.
|EINSTEIN NOAH RESTAURANT GROUP, INC.|
|RECONCILIATION OF PRELIMINARY NET INCOME (UNAUDITED) TO ADJUSTED EBITDA|
|13 weeks ended|
|September 27,||October 2,|
|Net income (preliminary, unaudited)||$||2,835||$||3,400|
|Adjustments to net income:|
|Interest expense, net||772||750|
|Provision for income taxes||1,647||2,200|
|Depreciation and amortization||4,836||5,000|
|Strategic alternative expenses||-||250|
|Other operating expense (income), net||47||50|