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VI Acquisition Corp.
Consolidated Statements of Operations

(Unaudited) (In thousands)

Predecessor
Predecessor
84 days Ended 61 days Ended 256 days Ended 229 days Ended
07/08/2004 06/13/2003 07/08/2004 06/13/2003

Net Revenues        
Restaurant operations $ 88,958 $ 64,805 $ 280,347 $ 243,157
Franchise operations 1,204 1,086 3,660 4,513
90,162 65,891 284,007 247,670
Costs and expenses        
Restaurant operations:
Food costs 24,571 17,490 76,667 66,186
Labor costs 28,827 21,075 89,125 79,016
Other operating expenses 24,343 17,174 78,907 65,629
Franchise operations 592 562 1,893 2,648
General and administrative 5,602 3,983 17,524 16,629
Transaction expenses – 8,964 45 9,436
Management fees 196 212 897 674
84,131 69,460 265,058 240,218
Operating profit 6,031 (3,569) 18,949 7,452
Interest expense (3,770) (1,455) (10,321) (5,550)
Debt extinguishment costs – (6,516) (6,856) (6,516)
Other income, net 111 97 160 433
Income (loss) before income taxes 2,372 (11,443) 1,932 (4,181)
Provision for income taxes (benefit) 674 (4,528) 541 (1,986)
Net income (loss) 1,698 (6,915) 1,391 (2,195)
Preferred stock dividends and accretion (1,733) (755) (5,199) (2,260)
Net (loss) attributable to common stockholders $ (35) $ (7,670) $ (3,808) $ (4,455)
 

The following combined consolidated statements of operations show information that is not prepared in accordance to GAAP due to the combination of financial information prepared using different basis of accounting. The combined statements are presented for informational purposes only and should not be given more weight than the Consolidated Statement of Operations that are prepared in accordance to generally accepted accounting principles.

The following consolidated statements of operations show “EBITDA” and “Adjusted EBITDA” because we believe that, in addition to other financial measures, they are appropriate indicators to assist in the evaluation of our operating performance because they provide additional information with respect to our ability to meet our future debt service, capital expenditures and working capital needs and are used by securities analysts and others in evaluating companies in our industry. However, “EBITDA” and “Adjusted EBITDA” are not prescribed terms under accounting principles generally accepted in the United States, do not directly correlate to cash provided by or used in operating activities and should not be considered in isolation, nor as an alternative to more meaningful measures of performance determined in accordance with accounting principles generally accepted in the United States. Because “EBITDA” and “Adjusted EBITDA” are not calculated in the same manner by all companies, they may not be comparable to other similarly titled measures of other companies.

Third Quarter (Unaudited) (In thousands)
Combined Consolidated Statements of Operations

Predecessor
Combined

84 days Ended 61 days Ended 23 days Ended 84 days Ended

07/08/2004 06/13/2003 07/06/2003 07/06/2003

Net Revenues        
Restaurant operations $ 88,958 $ 64,805 $ 24,579 $ 89,384
Franchise operations 1,204 1,086 336 1,422
90,162 65,891 24,915 90,806
Costs and expenses        
Restaurant operations:
Food costs 24,571 17,490 6,980 24,470
Labor costs 28,827 21,075 7,827 28,902
Other operating expenses 24,343 17,174 6,478 23,652
Franchise operations 592 562 179 741
General and administrative 5,602 3,983 1,729 5,712
Transaction expenses – 8,964 82 9,046
Management fees 196 212 (45) 167
84,131 69,460 23,230 92,690
Operating profit (loss) 6,031 (3,569) 1,685 (1,884)
Interest expense (3,770) (1,455) (873) (2,328)
Debt extinguishment costs – (6,516) – (6,516)
Other income, net 111 97 22 119
Income (loss) before income taxes 2,372 (11,443) 834 (10,609)
Provision for income taxes (benefit) 674 (4,528) (89) (4,617)
Net income (loss) 1,698 (6,915) 923 (5,992)
Preferred stock dividends and accretion (1,733) (755) (252) (1,007)
Net income (loss) attributable to common stockholders $ (35) $ (7,670) $ 671 $ (6,999)
ADJUSTED EBITDA        
Income (loss) before income taxes $ 2,372 $ (11,443) $ 834 $ (10,609)
Interest expense 3,770 1,455 873 2,328
Depreciation & amortization 3,397 2,357 921 3,278
EBITDA 9,539 (7,631) 2,628 (5,003)
Adjustments to EBITDA        
Impairment expense – 96 – 96
Noncash compensation expense – 113 – 113
Transaction expense – 8,964 82 9,046
Debt extinguishment costs – 6,516 – 6,516
Amortization of rent related adjustments 193 (56) 66 10
Total Adjustments 193 15,633 148 15,781
ADJUSTED EBITDA $ 9,732 $ 8,002 $ 2,776 $ 10,778
 

Year to Date (Unaudited) (In thousands)
Combined Consolidated Statements of Operations

Predecessor
Combined
256 days Ended 229 days Ended 23 days Ended 252 days Ended

07/08/2004 06/13/2003 07/06/2003 07/06/2003
Net Revenues        
Restaurant operations $ 280,347 $ 243,157 $ 24,579 $ 267,736
Franchise operations 3,660 4,513 336 4,849
284,007 247,670 24,915 272,585
Costs and expenses        
Restaurant operations:
Food costs 76,667 66,186 6,980 73,166
Labor costs 89,125 79,016 7,827 86,843
Other operating expenses 78,907 65,629 6,478 72,107
Franchise operations 1,893 2,648 179 2,827
General and administrative 17,524 16,629 1,729 18,358
Transaction expenses 45 9,436 82 9,518
Management fees 897 674 (45) 629
265,058 240,218 23,230 263,448
Operating profit 18,949 7,452 1,685 9,137
Interest expense (10,321) (5,550) (873) (6,423)
Debt extinguishment costs (6,856) (6,516) – (6,516)
Other income, net 160 433 22 455
Income (loss) before income taxes 1,932 (4,181) 834 (3,347)
Provision for income taxes (benefit) 541 (1,986) (89) (2,075)
Net income (loss) 1,391 (2,195) 923 (1,272)
Preferred stock dividends and accretion (5,199) (2,260) (252) (2,512)
Net income (loss) attributable to common stockholders $ (3,808) $ (4,455) $ 671 $ (3,784)
ADJUSTED EBITDA        
Income (loss) before income taxes $ 1,932 $ (4,181) $ 834 $ (3,347)
Interest expense 10,321 5,550 873 6,423
Depreciation & amortization 10,042 8,948 921 9,869
EBITDA 22,295 10,317 2,628 12,945
Adjustments to EBITDA        
Impairment Expense 22 96 – 96
Noncash compensation expense – 652 – 652
Transaction expense 45 9,436 82 9,518
Debt extinguishment costs 6,856 6,516 – 6,516
Amortization of rent related adjustments 583 (216) 66 (150)
Total Adjustments 7,506 16,484 148 16,632
ADJUSTED EBITDA $ 29,801 $ 26,801 $ 2,776 $ 29,577
 

 

  
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