As we blow out the
We were the first bakery to create
candles to 2012, we
cupcakes with unique fillings,
realize the year ended with a colossal expansion plan that surpassed everyone’s expectations.
frostings, and decorations that had never been done before. Vanilla
SALES PER SQUARE FOOT I’ve always believed you need to make it personal. When you are decorating a cupcake, it should make you happy, so make it look and taste however makes you feel good.
The cupcake craze is getting crazier.
Coconut was one of my first creations. It consisted of vanilla cake frosted with rich vanilla cream cheese frosting and topped with just the right amount of sweet shredded coconut.
After going public through a $66 million merger with an investment company, the 57th Street General Acquisition Corporation. Our expansion plans have succeeded. “The growth plans for Crumbs come as so-called gourmet
cupcake shops are proliferating across the country. Sprinkles, based in Los Angeles, began with one location in Beverly Hills and now has seven with plans for three more.”
NY TIMES
MILLION IN SALES
10
09
03
To our Shareholders
Year in Review
05
Financials
In a world where we move too fast, a cupcake is the exception.�
The board
Crumbs has a business model more corporate than many of its competitors, like Magnolia Bakery, whose shops have a nostalgic feel. Although all of Crumbs’s cupcake recipes are Mrs. Bauer’s, says her husband, there are no kitchens or ovens on the premises. Instead, Crumbs outsources of all of the baking to commercial baking facilities.
Message to our Share holders
When we first opened our store, the cupcakes were vanilla, chocolate, lemon, or strawberry, maybe with sprinkles.� We first opened its doors in March of 2003 on the Upper
West Side of Manhattan by Mia & Jason Bauer. The menu is
an irresistible blend of comfort-oriented classics and elegant
baked goods, but the specialty of the house is the Crumbs Sig-
West Side of Manhattan by Mia & Jason Bauer. The menu is
an irresistible blend of comfort-oriented classics and elegant
baked goods, but the specialty of the house is the Crumbs Sig- nature size cupcakes! With our more than 50 varieties baked nature size cupcakes! With our more than 50 varieties baked
fresh daily and a new cupcake of the week every Monday,
each Crumbs Bake Shop is an oasis of wall to wall delicious-
ness. And now you can enjoy your favorite Crumbs treats in
fresh daily and a new cupcake of the week every Monday,
ness. And now you can enjoy your favorite Crumbs treats in
the comfort of your own home - just like Mom used to bake. Delivered straight to your front door, perfect for any occa-
sion, without needing an occasion at Crumbs Bake Shop first opened its doors in March of 2003 on the Upper West Side
of Manhattan by Mia & Jason Bauer. The menu is an irresist-
ible. We first opened its doors in March of 2003 on the Upper
each Crumbs Bake Shop is an oasis of wall to wall deliciousthe comfort of your own home - just like Mom used to bake. Delivered straight to your front door, perfect for any occa-
sion, without needing an occasion at Crumbs Bake Shop first opened its doors in March of 2003 on the Upper West Side
of Manhattan by Mia & Jason nd of comfort-oriented classics and elegant baked goods, but the specialty of the house is the Crumbs Signature size cupcakes!
04
Financials
05
Financials
GROWTH
The menu is an irresistible. We first opened its doors in March of 2003 on the Upper West Side of Manhattan by Mia &
Jason Bauer. The menu is an irresistible blend of comfort-ori-
ented classics and elegant baked goods, but the specialty of the house is the Crumbs Signature size cupcakes! With our more than 50 varieties baked fresh daily and a new cupcake of the
MORE STORES BY 2012
week every Monday, each Crumbs Bake
PEOPLE
The menu is an irresistible. We first opened its doors in March of 2003 on the Upper West Side of Manhattan by Mia &
Jason Bauer. The menu is an irresistible blend of comfort-ori-
ented classics and elegant baked goods, but the specialty of the house is the Crumbs Signature size cupcakes! With our more than 50 varieties baked fresh daily and a new cupcake of the week every Monday, each Crumbs Bake
2012
2011
Cash
77%
Cupcakes
Additional
11%
Other Baked Goods
Stock
3%
9%
SERVICE Edwin Lewis added, “My initial investment in Crumbs was
predicated on my high personal regard for Jason and Mia, the
performance of their initial stores, and the significant potential
for the brand. To that point, with their creation of the gourmet cupcake and the subsequent experience they provide, they have defined a new, high-end fast-casual category. What I’m most impressed by is the power of the brand which exhibits fierce customer loyalty in all its markets.
in earnings before interest, taxes, depreciation and amortization. That translates into about 13 million cupcakes sold.
08
Financials
“Crumbs has emerged as the cupcake leader with significant long-term potential.” I look forward to working with management and I’m ex-
country. After reviewing a significant number of potential op-
for shareholders as they execute their plan.” Mark Klein,
for growth and further development of its brand, Crumbs
cited to see the company so well positioned to create value Chairman, Chief Executive Officer and President of 57th
Street, commented, “We are very pleased to be partnering with Crumbs on this transaction. The cupcake category is
a unique subsection of the burgeoning fast-casual segment
of the restaurant industry, and Crumbs has emerged as the
cupcake leader with significant long-term potential. Crumbs benefits from a founder-driven culture and an experienced
management team that has proven successful in expanding
from a single Manhattan bake shop to 34 locations across the
portunities, we determined that given its significant potential
presented the most attractive and compelling private company
and was best aligned with our goal of maximizing value for our shareholders.” Its distinctive operating model, which consists
of company stores, unique recipes, and geographic clustering, is rapidly scalable and generates industry high margins and
returns on investment. cussed on the conference call announcing the business mbination and can be found in the investor presentation posted on www.crumbs.com
COLORADO: 5 MORE SHOPS
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Year in Review
Crumbs has a business model more corporate than many of it’s competitors. Based on preliminary results for the fourth quarter ended De-
year ended December 31, 2010 and has not finalized its finan-
million while net income is expected to be between $1.7 and
year ended December 31, 2010 will be subject to audit and as a year ended December 31, 2010 will be subject to audit and as a result are subject to adjustment and change. Crumbs opened a result are subject to adjustment and change. Crumbs opened a
cember 31, 2010, total sales for 2010 are expected to be $31.1 $1.9 million and Adjusted EBITDA is expected to be be-
tween $2.4 and $2.6 million. These preliminary results above
cial results. Additionally, the financial statements for the fiscal
total of seven stores in 2010, and ended the year with 34 loca-
year ended December 31, 2010 and has not finalized its financial results. Additionally, the financial statements for the fiscal
total of seven stores in 2010, and ended the year with 34 loca-
tions in six states and Washington DC. Total sales for 2011 are tions in six states and Washington DC. Total sales for 2011 are expected to be between $45 to $50 million, while net income prepare its financial statements for its fourth quarter and fiscal expected to be between $45 to $50 million, while net income are only estimates and may change. Crumbs is continuing to
Year in Review
If we were to create a holiday music album, what would it be called? We announce a new and delicious Cupcake of the Month each month in addition to sponsoring contests and cupcake giveaways. Since joining Facebook, the number of cupcake friends has continued to rise past 50,000!
We announce a new and delicious Cupcake of the Month each month in addition to sponsoring contests and cupcake giveaway
16
Board of Directors Edwin Lewis Chairman of the Board Edwin Lewis has served as Crumbs’ Chairman of the board of managers since March 2008 and is the largest investor in Crumbs. Mr. Lewis has served as Chairman and Chief Executive Officer of Not Your Daughter’s Jeans since September 2008. Mr. Lewis has also served as President of C&E Holdings, Inc. since February 1997 and President of Magnolia Bluff, Inc. since January, 2002. Julian R. Geiger President and Chief Executive Officer Mr. Geiger was appointed President and Chief Executive Officer of the Company on November 2011. Previously, Mr. Geiger served as a member of the Company’s Board of Directors since May 2011. Mr. Geiger also currently serves as Chairman of the Board of Directors of Aeropostale Inc., a mall-based, specialty retailer of casual apparel and accessories. Jason Bauer Co-Founder and Senior Vice President of Business Development Jason Bauer is the co-founder of Crumbs and has served as Crumbs’ Senior Vice President of Business Development since November 2011. Prior to co-founding Crumbs, Mr. Bauer was involved in numerous entrepreneurial ventures, including founding Famous Fixins, a manufacturer of celebrity-licensed products, where he served as President and Chief Executive Officer from 1996 through 2002. Mark D. Klein Director In April 2010, Mr. Klein became a Managing Member and Majority Partner of M. Klein & Company, LLC, which owns the Klein Group, LLC, a registered broker dealer. Mr. Klein also maintains registration with the Klein Group, LLC as a registered representative and Principal. Between March 2007 and July 2009, Mr. Klein was the Chief Executive Officer, President and a Director of Alternative Asset Management Corporation (“AAMAC”), a special purpose acquisition company he helped form in 2007 and which completed a merger with Great American Group LLC in July 2009.
2012 CRUMBS BAKE SHOP ANNUAL REPORT