New World Restaurant Group Announces Relocation of Corporate Headquarters, $3.5 Million Savings Over Lease Term
New World Restaurant Group, Inc. today announced it will relocate its corporate headquarters effective June 1, 2007, in a transaction that is expected to save approximately $3.5 million in lease payments over the 10-year term of the new lease.
The new facility, which includes approximately 45,000 rentable square feet, is located at 555 Zang Street in Lakewood, Colorado, a short distance from the Company's current headquarters.
Rick Dutkiewicz, chief financial officer, said that in addition to significant cost savings, the new facility will afford the Company more efficient use of space while preserving excellent access to major thoroughfares for employees.
"We are very pleased with this new lease arrangement, which allows us to significantly reduce our long-term lease costs while improving the overall workplace environment for our employees," said Dutkiewicz. "While we remain focused on improving profitability through the long-term growth of our business, we are also continually looking for opportunities to lower our cost structure in select areas that make sense. In this case, we will save approximately $3.5 million on overhead costs over the life of the lease. This move follows a 2006 debt refinancing that lowered our average cash interest rate by nearly 4%, resulting in an expected $5.0 million annual improvement in after-tax cash flow."
About New World Restaurant Group, Inc.
New World is a leading company in the quick casual restaurant industry that operates locations primarily under the Einstein Bros. and Noah's New York Bagels brands and primarily franchises locations under the Manhattan Bagel brand. As of October 3, 2006, the Company's retail system consisted of 604 locations, including 419 company-owned locations, as well as 99 franchised and 86 licensed locations in 34 states, and the District of Columbia. The Company also operates a dough production facility.
Rick Dutkiewicz, chief financial officer, said that in addition to significant cost savings, the new facility will afford the Company more efficient use of space while preserving excellent access to major thoroughfares for employees.
"We are very pleased with this new lease arrangement, which allows us to significantly reduce our long-term lease costs while improving the overall workplace environment for our employees," said Dutkiewicz. "While we remain focused on improving profitability through the long-term growth of our business, we are also continually looking for opportunities to lower our cost structure in select areas that make sense. In this case, we will save approximately $3.5 million on overhead costs over the life of the lease. This move follows a 2006 debt refinancing that lowered our average cash interest rate by nearly 4%, resulting in an expected $5.0 million annual improvement in after-tax cash flow."
About New World Restaurant Group, Inc.
New World is a leading company in the quick casual restaurant industry that operates locations primarily under the Einstein Bros. and Noah's New York Bagels brands and primarily franchises locations under the Manhattan Bagel brand. As of October 3, 2006, the Company's retail system consisted of 604 locations, including 419 company-owned locations, as well as 99 franchised and 86 licensed locations in 34 states, and the District of Columbia. The Company also operates a dough production facility.
