Einstein/Noah Bagel Corp. Reports 1st Quarter Results
PR Newswire - May 19, 1999 16:15
GOLDEN, Colo., May 19 /PRNewswire/ -- Einstein/Noah Bagel Corp. (Nasdaq: ENBX) today reported
financial results for its first quarter ended April 18, 1999 (sixteen weeks). Highlights include:
-- Systemwide net revenue increased 1.7% to $112,353,000 from $110,475,000 for the first quarter of
fiscal 1998.
-- Earnings before interest, taxes, depreciation and amortization (EBITDA)
was $5,004,000 versus an EBITDA loss of $2,192,000 for the first
quarter of fiscal 1998.
-- Reported net loss for the quarter was $ 5,702,000 or $0.17 diluted loss
per share versus a net loss of $13,417,000 or $0.41 diluted loss per
share for the first quarter of fiscal 1998.
-- Systemwide average net weekly per store sales for the quarter were
$12,946 compared with $12,360 for the first quarter of fiscal 1998.
-- At the end of the quarter, there were 538 stores open, 426 Einstein
Bros.(R) Bagels and 112 Noah's New York Bagels(R) stores.
"The WPSA's for the first 8 weeks of the quarter were $12,538, while the WPSA's for the last 8 weeks of
the quarter were $13,352. During the first weeks of the quarter, we experienced the normal seasonality
consistent with this time of year. However, I am encouraged by the positive trends in average net weekly
per store sales (WPSA) and am hopeful that these trends will carry into the second and third quarter,"
said Bob Hartnett, Chairman, CEO and President.
"Our focus this quarter has been more of the same -- building store revenue, improving margins and
tightly managing our overhead. Our EBITDA for the quarter of $5,004,000 compared with an EBITDA
loss of $2,192,000 for the first quarter 1998 reflects our ability to stay focused," added Hartnett.
Currently, there are 538 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)
First Quarter Ended
April 19, April 18,
1998 1999
(unaudited) (unaudited)
Revenue:
Store revenue $110,475 $112,353
Costs and Expenses:
Store:
Cost of products sold 38,572 37,485
Salaries and benefits 35,380 35,394
Other controllable costs 9,269 9,187
Rent, occupancy and related costs 10,589 11,350
Marketing expenses 3,968 3,371
Depreciation and amortization 6,178 3,622
Total store costs and expenses 103,956 100,409
Non-Store:
Salaries, benefits, general and
administrative 14,888 10,563
Depreciation and amortization
(excluding goodwill amortization) 1,045 900
Goodwill amortization 3,247 3,415
Total non-store costs and expenses 19,180 14,878
Total costs and expenses 123,136 115,287
Income (Loss) from Operations (12,661) (2,934)
Other Income (Expense):
Interest income 246 --
Interest expense (3,591) (3,671)
Other -- (31)
Total other income (expense) (3,345) (3,702)
Income (Loss) before Income Taxes and
Minority Interest (16,006) (6,636)
Income Taxes -- --
Minority Interest in Loss
of Subsidiary (2,589) (934)
Net Income (Loss) $(13,417) $(5,702)
Basic Earnings (Loss) per Share $(0.41) $(0.17)
Diluted Earnings (Loss) per Share $(0.41) $(0.17)
Weighted Average Number of Common
Shares Outstanding:
Basic 32,520 33,271
Diluted 32,520 33,271
EINSTEIN/NOAH BAGEL CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
December 27, April 18,
1998 1999
(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $3,766 $5,041
Accounts receivable 1,716 1,392
Inventories 9,672 8,907
Prepaid expenses and other
current assets 1,699 1,713
Total current assets 16,853 17,053
Property and Equipment, net 122,403 121,729
Goodwill, net 223,482 220,066
Trademarks, net 2,065 2,072
Recipes, net 2,670 2,574
Other Assets, net 7,669 6,884
Total assets $375,142 $370,378
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $17,804 $11,202
Accrued expenses 23,284 31,177
Current portion of senior term loan 6,000 6,000
Total current liabilities 47,088 48,379
Revolving Credit Facility 5,625 7,925
Long-Term Portion of Senior Term Loan 18,000 16,500
Convertible Subordinated Debentures 125,000 125,000
Other Noncurrent Liabilities 16,140 15,921
Minority Interest 33,931 32,997
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
December 1998 and April 1999 341 341
Additional paid-in capital 377,616 377,616
Treasury stock, at cost
(813,146 shares) (5,261) (5,261)
Accumulated deficit (243,338) (249,040)
Total stockholders' equity 129,358 123,656
Total liabilities and
stockholders' equity $375,142 $370,378
SOURCE Einstein/Noah Bagel Corp.
/CONTACT: Analysts: Nancy Shipp of Einstein/Noah Bagel Corp.,
303-216-3738/
/Web site: einsteinbros.com
(ENBX) |
