General and administrative expenses increased to $11.1 million from $10.1 million primarily due to higher variable incentive compensation.Adjusted EBITDA was $11.5 million in the first quarter of 2012 compared to $7.8 million in the first quarter of 2011. (*) Income from operations increased by $3.2 million to $6.0 million in the first quarter of 2012. Net income increased 174% to $3.2 million or $0.19 per diluted share, which included $0.02 per diluted share for restructuring expenses related to the closing of the four remaining commissaries, compared to $1.2 million, or $0.07 per diluted share, which included $0.01 per diluted share for restructuring expenses related to recruitment and relocation of a senior development executive. * A reconciliation of the non-GAAP measure to the nearest GAAP measure can be found in the accompanying tables below. Restaurant Development As of April 3, 2012, there were 777 Einstein Bros.® Bagels, Noah's New York Bagels®, and Manhattan Bagel® branded restaurants in operation. During the first quarter of 2012, the Company added five restaurants to its operations. The first quarter ended with 447 Company-owned and operated restaurants. Franchisees and licensees operated 91 and 239 restaurants, respectively, as of the end of the period. Fiscal Year 2012 Guidelines The Company is reiterating the following guidelines for its fiscal year 2012, which is a 52-week period.
- 60 to 80 system-wide openings, including eight to twelve Company-owned restaurants, twelve to fourteen franchise restaurants, and 40 to 54 license restaurants.
- Capital expenditures of $24 million to $26 million.
- Commodity inflation of 2% to 3%.
- To date, the Company has secured price protection on approximately 81% and 100% of its wheat and coffee requirements, respectively.
- An annual effective tax rate of approximately 39%; however, the Company will continue to only pay minimal cash-taxes for the next several years.