Einstein/Noah Bagel Corp. Reports 2nd Quarter Results
PR Newswire - August 04, 1999 16:15
GOLDEN, Colo., Aug. 4 /PRNewswire/ -- Einstein/Noah Bagel Corp. (Nasdaq: ENBX) today reported
financial results for its second quarter ended July 11, 1999. Highlights include:
-- Systemwide net revenue was $87,296,000 versus $87,899,000 for the
second quarter of fiscal 1998. The decrease was due to a smaller
average base of stores in 1999.
-- Systemwide store level cash flow increased 16.4% to $14,232,000 from
$12,224,000 for the second quarter of fiscal 1998.
-- Earnings before interest, taxes, depreciation and amortization (EBITDA)
was $6,017,000 versus $4,253,000 for the second quarter of fiscal
1998.
-- Reported net loss for the quarter was $ 2,733,000 or $0.08 diluted loss
per share versus a net loss of $8,949,000 or $0.27 diluted loss per
share for the second quarter of fiscal 1998.
-- Systemwide average net weekly per store sales for the quarter were
$13,529 compared with $13,326 for the second quarter of fiscal 1998.
-- At the end of the quarter, there were 540 stores open, 428 Einstein
Bros.(R) Bagels and 112 Noah's New York Bagels(R) stores.
"Although the second quarter systemwide net revenue was relatively flat compared with a year ago, this
quarter we delivered solid store-level cash flow of $14,232,000. This represents a 16.4% increase versus
the second quarter of 1998. While we still have improvements to make, I am encouraged by the store
operations and by our ability to manage the store P&L," said Bob Hartnett, Chairman, CEO and
President.
(Photo: newscom.com )
"This Summer we introduced more fresh sandwiches and salads on flatbreads at Einstein Bros. Bagels.
Our new signature sandwiches, The Cobbie, Club Mex and Big Hero are featured on our new Challah
rolls. In addition, we have introduced an improved egg bagel sandwich so customers can add ingredients
such as scallions and cheese to turkey sausage and green chilies to smoked salmon. The introduction of
these new items is consistent with our strategy of providing both long-time customers and interested
newcomers incredibly fresh and flavorful alternatives to dining in the morning and throughout the day,"
added Hartnett.
Currently, there are 540 ENBC retail bagel stores in 29 states and the District of Columbia operating
under the Einstein Bros.(R) Bagels and Noah's New York Bagels(R) brand names. Einstein Bros. and
Noah's stores are unique bagel cafes and bakeries featuring fresh-baked bagels, a variety of cream
cheese spreads, specialty coffee drinks, soups, sandwiches and salads.
Certain statements in this release constitute "forward-looking statements" and involve known and
unknown risks, uncertainties, and other factors which may cause the actual results, performance or
achievements of the Company, Einstein/Noah Bagel Partners, L.P., Einstein Bros. Bagels stores and
Noah's New York Bagels stores to be materially different from any future results, performance or
achievements expressed or implied by such forward looking statements. Such factors include, among
others, the following: competition; success of operating initiatives; development and operating costs;
advertising and promotional efforts; brand awareness; availability and terms of capital; adverse publicity;
acceptance of new product offerings; the company's relationship with Boston Chicken, Inc. ("Boston
Chicken"), the Company's majority stockholder; changes in business strategy or development plans;
achievement of development schedules; food, labor and employee benefit costs; changes in government
regulation; regional weather conditions; availability, locations and terms of sites for store development;
the Company's ability to implement new information technology systems; Year 2000 compliance of
systems provided to the Company by Boston Chicken or other third party vendors; Year 2000
compliance of systems used by Company suppliers and other factors referenced in the Company's
filings with the Securities and Exchange Commission.
EINSTEIN/NOAH BAGEL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Second Quarter Ended Two Quarters Ended
July 12, July 11, July 12, July 11,
1998 1999 1998 1999
Revenue:
Store revenue $87,899 $87,296 $198,374 $199,649
Costs and Expenses:
Store:
Cost of products sold 29,907 28,523 68,479 66,008
Salaries and benefits 27,289 27,356 62,669 62,750
Other controllable costs 6,988 6,753 16,257 15,940
Rent, occupancy and
related costs 8,002 8,214 18,591 19,564
Marketing expenses 3,489 2,218 7,457 5,589
Depreciation and
amortization 4,870 2,647 11,048 6,269
Total store costs
and expenses 80,545 75,711 184,501 176,120
Non-Store:
Salaries, benefits, general and
administrative 7,971 8,215 22,859 18,778
Depreciation and amortization
(excluding goodwill
amortization) 776 670 1,821 1,570
Goodwill amortization 2,462 2,731 5,709 6,146
Total non-store costs
and expenses 11,209 11,616 30,389 26,494
Total costs and expenses91,754 87,327 214,890 202,614
Income (Loss) from Operations(3,855) (31) (16,516) (2,965)
Other Income (Expense):
Interest income 22 -- 268 --
Interest expense (2,877) (2,689) (6,468) (6,360)
Other (3,409) 16 (3,409) (15)
Total other income
(expense) (6,264) (2,673) (9,609) (6,375)
Income (Loss) before Income
Taxes and Minority Interest(10,119) (2,704) (26,125) (9,340)
Income Taxes -- -- -- --
Minority Interest in Income
(Loss) of Subsidiary (1,170) 29 (3,759) (905)
Net Income (Loss) $(8,949) $(2,733) $(22,366) $(8,435)
Basic Earnings (Loss)
per Share $(0.27) $(0.08) $(0.68) $(0.25)
Diluted Earnings (Loss)
per Share $(0.27) $(0.08) $(0.68) $(0.25)
Weighted Average Number of Common
Shares Outstanding:
Basic 33,137 33,271 32,785 33,271
Diluted 33,137 33,271 32,785 33,271
EINSTEIN/NOAH BAGEL CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(unaudited)
April 18, July 11,
1999 1999
ASSETS
Current Assets:
Cash and cash equivalents $5,041 $4,326
Accounts receivable 1,392 1,339
Inventories 8,907 8,881
Prepaid expenses and other current assets 1,713 1,550
Total current assets 17,053 16,096
Property and Equipment, net 121,729 121,768
Goodwill, net 220,066 217,335
Trademarks, net 2,072 2,063
Recipes, net 2,574 2,502
Other Assets, net 6,884 6,359
Total assets $370,378 $366,123
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $11,202 $13,255
Accrued expenses 31,177 27,174
Current portion of senior term loan 6,000 6,000
Total current liabilities 48,379 46,429
Revolving Credit Facility 7,925 9,975
Long-Term Portion of Senior Term Loan 16,500 15,000
Convertible Subordinated Debentures 125,000 125,000
Other Noncurrent Liabilities 15,921 15,770
Minority Interest 32,997 33,026
Stockholders' Equity:
Preferred Stock - $.01 par value; 20,000,000
shares authorized; no shares issued
and outstanding -- --
Common Stock - $.01 par value; 200,000,000
shares authorized; issued: 34,083,681
shares in April and July 1999 341 341
Additional paid-in capital 377,616 377,616
Treasury stock, at cost (813,146 shares) (5,261) (5,261)
Accumulated deficit (249,040) (251,773)
Total stockholders' equity 123,656 120,923
Total liabilities and stockholders'
equity $370,378 $366,123
SOURCE Einstein/Noah Bagel Corp.
/CONTACT: Analyst: Nancy Shipp of Einstein/Noah Bagel Corp.,
303-216-3738/
/Photo: newscom.com
For assistance: PR Newswire Photo Desk, 888-776-6555 or 201-369-3467/
/Web site: einsteinbros.com
(ENBX) |
