Current assets:

Cash and cash equivalents

$
Inventories
Receivables
Prepaid expenses and other curre
Deferred tax assets
Total current assets

October 3,
2015

September 27,
2014

(Unaudited)

(Unaudited)

37,146
55,591
8,053
16,651
1,669

119,110

40,451
45,712
10,144
12,188
998

Q3
2015

D&A
Capex

q3
NWC

109,493

60,090
1,211
2,893
183,304

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
Accounts payable
$
29,927 $
Accrued expenses
14,197
Gift cards and customer deposits
28,048
Deferred revenue
2,635
Deferred tax liability
Total current liabilities
74,807

Deferred franchise revenue

Deferred rent
Other liabilities

782
12,327
1,111

61,031
365
3,976
174,865

28,369
13,145
25,869
4,173
856
72,412

1,004
13,716
1,367

2015
44,303

Change
Property and equipment, net of a
Other intangible assets, net
Other assets, net
Total Assets
$

12262
-11645

(7,222)

Q3

fy
2014

13385
-5604

fy
2012

fy
2013

2014

21422 19216 18128

-16633 -19055 -10790
FY

q3
2014
37,081

2013
Total current assets 121,083

2014
145,778

(Increase)

Total current liabili

90,730

99,087

FY
2013
30,353

2014
46,691

(16,338) Change (decrease)

Q3
September 27,
2014
Revenues:
Net retail sales
Franchise fees
Commercial revenue
Total revenues

Costs and expenses:

Cost of merchandise sold - retail
Cost of merchandise sold - commercial
Gross Profit
Gross Margin

85,561
558
542
86,661

48,146
278
38,237
44.1%

Operating Costs:
Selling, general and administrative
EBIT

36,217
2,020

Interest expense (income), net

(38)

EBT
Income tax expense

2,058
238
11.6%

Tax rate
Net income
Net Margin

Shares used in computing common per share amounts:

Basic
Diluted
EBIAT

1,820
2.1%

16,971,416
17,132,206
1,782

Q3
October 3,
2015
$

84,303
525
795
85,623
-1.2%
46,117
551
38,955
45.5%

Revenues:
Net retail sales
Franchise fees
Commercial revenue
Total revenues
Costs and expenses:
Cost of merchandise sold
Gross Profit
Gross Margin
Operating Costs:
Selling, general and administrative

37,643
1,312

Goodwill impairment
EBIT
EBIT Margin

(56)
Interest expense (income), net
1,368
301
22.0%
$

1,067
1.2%

16,670,358
16,890,722

EBT
Income tax expense (benefit)
Tax rate
Net income (loss)
Net Margin
Shares used in computing common per share amounts:
Basic
Diluted

1,011
EBIAT

FY

FY
2013

FY
2014

373,173 $
3,564
2,332
379,069

387,725
2,531
2,098
392,354

230,181
150,760
40.3%

220,738
158,331
42.4%

211,832
180,522
46.0%

165,516
43.45%
33,670
131,846
34.6%

160,708
42.40%
160,708
42.4%

164,445
41.91%
164,445
41.9%

2012
$

374,553
3,598
2,790
380,941

3
0

(259)

53

(48,429)
866
-1.8%

(2,118)
(6)
0.3%

16,024
1,662
10.4%

(49,295) $
-12.9%

(2,112) $
-0.6%

14,362
3.7%

16,331,672
16,331,672

16,465,138
16,465,138

16,908,001
17,133,811

130,980

160,714

162,783

Europe
Traditional
Non-Traditional
North America
Traditional
Non-Traditional
Europe Stores
NA Stores
Total Stores

Sales
% Growth
Franchise fees
% Growth
% of Revenue
Commercial revenue
% Growth
% of Revenue
Total
Avg. Rev Per Store

2012

2013

56
2

58
2

58
2

287
11

283
8

58
298
356

60
291
351
(1.4%)

$374,553
3598

2790

$380,941
$1,070

$373,173
(0.4%)
3564
(0.9%)
1.0%
2332
(16.4%)
0.6%
$379,069
$1,080

2014 LTM 2015

2016

2017

2018

58
2

60
3

62
4

64
5

253
10

253
10

254
10

255
11

256
11

60
263
323
(8.0%)

60
263
323
(8.0%)

63
264
327
(8.0%)

66
266
332
(8.0%)

69
267
336
(8.0%)

$387,725
$386,467
3.9%
(0.3%)
2531
$2,784
(29.0%)
10.0%
0.7%
0.7%
2098 2097.9880223
(10.0%)
(0.0%)
0.5%
0.5%
$392,354
$391,349
$1,215

$1,212

$396,195 $402,253 $407,100

2.5%
1.5%
1.2%
$2,854.08
###
###
2.5%
1.5%
1.2%
0.7%
0.7%
0.7%
$2,150.80
###
###
2.5%
1.5%
1.2%
0.5%
0.5%
0.5%
$401,200 $407,335 $412,243

2019

2020

66
6

68
7

257
12

258
12

72
269
341
(8.0%)

75
270
345
(8.0%)

$413,158 $418,004
1.5%
1.2%
###
###
1.5%
1.2%
0.7%
0.7%
###
###
1.5%
1.2%
0.5%
0.5%
$418,377 $423,285

Perpetuity
2

2016
$
396,195
2854.080777
2150.800031
$ 401,200

2017
$
402,253
2897.721156
2183.686881
$ 407,335

Net retail sales

Franchise fees
Commercial revenue
Total revenues

2012
2013
$ 374,553 $ 373,173 $
3598
3564
2790
2332
$380,941 $379,069 $

COGS
% of Revenue

$ (227,610) $(218,236) $
(59.7%)
(57.6%)

(211,832) $
(54.0%)

(219,155) $
(56.0%)

(224,672) $
(56.0%)

(228,108)
(56.0%)

Gross Profit
Gross Margin %

$ 153,331 $ 160,833 $
40.3%
42.4%

180,522 $
46.0%

172,194 $
44.0%

176,528 $
44.0%

179,227
44.0%

SG&A
% of Revenue

$ (165,516) $(160,708) $
43.45%
42.40%

(164,445) $
41.91%

(160,453) $
41.0%

(164,492) $
41.0%

(167,007)
41.0%

EBITDA

34,205

31,308

32,096

EBIT
EBIT Margin %

$ (12,185) $
-3.2%

9,237 $

19,341

125 $
0.0%

2014
2015
387,725 $
386,467
2531
2784
2098 2097.988022
392,354 $ 391,349

32,587

16,077 $
4.1%

11,740 $
3.0%

12,036 $
3.0%

12,220
3.0%

16,077

11,740

12,036

12,220

Interest Expense
EBT

$ (12,185) $

Tax Rate
Taxes

EBIAT

125

0.3%
(0.35) $
124.22

10.4%
(1,667.50) $
14,409.50

5.3%
(625.49) $

$ 11,114.98

5.3%
(641.23) $

$ 11,394.78

5.3%
(651.04)

$ 11,569.01

D&A
% of Revenue
CapEx

Change in NWC
FCF Build
EBIAT
D&A
CapEx
Change in NWC
FCF Build
PV

21422
5.62%

19216
5.07%

18128 $ 19,567.45
4.62%
5%

$ 20,060.01
5%

$ 20,366.74
5%

-16633
4.37%

-19055
5.03%

-10790 $ 15,653.96
2.75%
4%

$ 16,048.01
4%

$ 16,293.39
4%

-16338 $ (7,826.98) $ (8,024.01) $ (8,146.70)

-4.16%
2%
2%
2%
11394.77677
$ 20,060.01
$ (16,048.01)
$ (8,024.01)
$7,383
$7,171

11569.00883
$ 20,366.74
$ (16,293.39)
$ (8,146.70)
$7,496
$6,868

0.5
1.5
0.971285862 0.916307417

2018
$
407,100
2932.633459
2209.996362
$ 412,243

2019
$
413,158
2976.273838
2242.883212
$ 418,377

5
2020
Terminal
$
418,004
3011.186141
2269.192693
$ 423,285

$10.87
16,385,392
178,109,211
-38700000
139,409,211
4.5

(230,856) $
(56.0%)

(234,291) $
(56.0%)

(237,039)
(56.0%)

181,387 $
44.0%

184,086 $
44.0%

186,245
44.0%

(169,019) $
41.0%

(171,535) $
41.0%

(173,547)
41.0%

32,979

33,470

12,367 $
3.0%

12,551 $
3.0%

12,699
3.0%

12,367

12,551

12,699

5.3%
(658.88) $

$ 11,708.39

5.3%
(668.69) $

$ 11,882.63

33,863

5.3%
(676.53)

$ 12,022.01

WACC

$ 34,709

6%

2.50%

$ 20,612.13
5%

$ 20,918.85
5%

$ 21,164.24
5%

$ 16,489.70
4%

$ 16,735.08
4%

$ 16,931.39
4%

$ (8,244.85) $ (8,367.54) $ (8,465.69)

2%
2%
2%
11708.39448
$ 20,612.13
$ (16,489.70)
$ (8,244.85)
$7,586

11882.62654
$ 20,918.85
$ (16,735.08)
$ (8,367.54)
$7,699

Multiple

12022.01219
$ 21,164.24
$ (16,931.39)
$ (8,465.69)
$7,789

TEV - Multiple

154555.23

$187,423,051.80
(38,700,000)
$148,723,051.80
$9.08

$6,558

$6,278

$5,993

2.5
3.5
4.5
0.86444096 0.815510339 0.769349377