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VI Acquisition Corp.
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| 84 Days Ended | 84 Days Ended | 259 Days Ended | 256 Days Ended | |
| July 14, 2005 | July 8, 2004 | July 14, 2005 | July 8, 2004 | |
| (As restated) | (As restated) | |||
| Revenues: | ||||
| Restaurant operations | $ 91,225 | $ 88,958 | $ 288,087 | $ 280,347 |
| Franchise operations | 1,283 | 1,165 | 3,703 | 3,495 |
| 92,508 | 90,123 | 291,790 | 283,842 | |
| Costs and expenses: | ||||
| Restaurant costs: | ||||
| Food | 23,702 | 24,571 | 76,307 | 76,667 |
| Labor | 29,861 | 28,827 | 92,143 | 89,125 |
| Other operating expenses | 24,720 | 22,923 | 77,823 | 74,485 |
| Franchise operating expenses | 480 | 512 | 1,512 | 1,605 |
| General and administrative expenses | 6,234 | 5,602 | 19,112 | 17,503 |
| Litigation settlement | (408) | — | (408) | — |
| Transaction expenses | — | — | 15 | 45 |
| Management fees | 196 | 196 | 588 | 897 |
| Asset impairments | — | — | — | 22 |
| Operating profit | 7,723 | 7,492 | 24,698 | 23,493 |
| Interest expense | (6,577) | (6,383) | (20,031) | (18,488) |
| Debt extinguishment costs | — | — | — | (6,856) |
| Other income, net | 211 | 111 | 437 | 161 |
| Income (loss) before income taxes | 1,357 | 1,220 | 5,104 | (1,690) |
| Provision for income taxes (benefit) | 49 | 247 | 1,072 | (1,043) |
| Net income (loss) | 1,308 | 973 | 4,032 | (647) |
| Preferred stock dividends and accretion | (1,989) | (1,778) | (5,964) | (5,244) |
| Net loss attributable to common stockholders | $ (681) | $ (805) | $ (1,932) | $ (5,891) |
The following consolidated statements of adjusted EBITDA and adjusted EBITDAR show “EBITDA”, “Adjusted EBITDA”, and “Adjusted EBITDAR” 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”, “Adjusted EBITDA”, and “Adjusted EBITDAR” 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”, “Adjusted EBITDA”, and “Adjusted EBITDAR” are not calculated in the same manner by all companies, they may not be comparable to other similarly titled measures of other companies.
VI Acquisition Corp.
Consolidated Statements of Adjusted EBITDA and Adjusted EBITDAR
(Unaudited) (In thousands)
| 84 Days Ended | 84 Days Ended | 259 Days Ended | 256 Days Ended | |
| July 14, 2005 | July 8, 2004 | July 14, 2005 | July 8, 2004 | |
| (As restated) | (As restated) | |||
| Net income (loss) | $ 1,308 | $ 973 | $ 4,032 | $ (647) |
| Provision for income taxes (benefit) | 49 | 247 | 1,072 | (1,043) |
| Interest expense | 6,577 | 6,383 | 20,031 | 18,488 |
| Depreciation & amortization | 4,744 | 4,375 | 13,744 | 12,983 |
| EBITDA | 12,678 | 11,978 | 38,879 | 29,781 |
| Adjustments to EBITDA | ||||
| Impairment of assets | — | — | — | 22 |
| Asset retirement expense | 52 | 32 | 74 | 117 |
| Litigation settlement | (408) | (408) | ||
| Debt extinguishment costs | — | — | — | 6,856 |
| Transaction expense | — | — | 15 | 45 |
| Amortization of rent related adjustments (a) | 358 | 366 | 1,104 | 1,115 |
| Total Adjustments | 2 | 398 | 785 | 8,155 |
| ADJUSTED EBITDA | 12,680 | 12,376 | 39,664 | 37,936 |
| Net rent expense | 4,096 | 3,935 | 12,798 | 12,097 |
| ADJUSTED EBITDAR | $ 16,776 | $ 16,311 | $ 52,462 | $ 50,033 |
(a) Includes amortization of the fair market rent adjustments which we were required to recognize under purchase accounting at the time of the June 2003 acquisition.
VI Acquisition Corp. Consolidated Balance Sheets
(Unaudited)(In Thousands, Except Share and Per Share Data)
| July 14, 2005 | October 28, 2004 | |
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $ 12,595 | $ 1,332 |
| Receivables, net | 6,376 | 11,915 |
| Inventories | 10,480 | 12,245 |
| Deferred income taxes, short-term | 3,507 | 4,673 |
| Prepaid expenses and other current assets | 3,274 | 3,432 |
| Income tax receivable | 336 | 270 |
| Total current assets | 36,568 | 33,867 |
| Deferred income taxes, long-term | 2,771 | — |
| Property and equipment, net | 82,015 | 80,316 |
| Assets under deemed landlord financing liability, net | 117,800 | 110,342 |
| Goodwill | 91,881 | 91,881 |
| Trademarks and tradenames | 42,600 | 42,600 |
| Franchise rights, net | 10,948 | 11,358 |
| Other assets, net | 11,808 | 13,763 |
| Total assets | $ 396,391 | $ 384,127 |
| Liabilities and stockholders’ equity | ||
| Current liabilities: | ||
| Current maturities of long-term debt and capitalized lease obligations | $ 93 | $ 201 |
| Cash overdraft | — | 3,190 |
| Accounts payable | 12,239 | 13,174 |
| Accrued compensation | 7,483 | 7,138 |
| Accrued taxes | 9,199 | 7,992 |
| Other accrued expenses | 22,304 | 18,520 |
| Total current liabilities | 51,318 | 50,215 |
| Long-term debt | 140,270 | 141,469 |
| Capitalized lease obligations | 213 | 248 |
| Deemed landlord financing liability | 122,164 | 114,670 |
| Deferred income taxes, long-term | — | 1,360 |
| Other noncurrent liabilities | 8,936 | 7,057 |
| Total liabilities | 322,901 | 315,019 |
| Commitments and contingencies | aa | |
| Stock subject to repurchase | 1,063 | 1,063 |
| Stockholders’ equity: | ||
| Preferred stock, $0.0001 par value: | ||
| Series A, 100,000 shares authorized, 68,943 shares issued and outstanding at July 14, 2005 and 68,659 shares issued and outstanding at October 28, 2004 (aggregate liquidation preference of $85,136 and $78,846, respectively) | 86,310 | 80,022 |
| Unclassified preferred stock, 100,000 shares authorized, no shares issued or outstanding | — | — |
| Common stock $0.0001 par value: | ||
| Class A, 2,800,000 shares authorized, 1,386,552 shares issued and outstanding at July 14, 2005 and October 28, 2004 | — | — |
| Paid-in capital | 2,452 | 2,426 |
| Treasury stock, at cost, 923.87 shares of preferred stock and 80,603 shares of common stock at July 14, 2005 and October 28, 2004 | (1,004) | (1,004) |
| Accumulated deficit | (15,331) | (13,399) |
| Total stockholders’ equity | 72,427 | 68,045 |
| Total liabilities and stockholders’ equity | $ 396,391 | $ 384,127 |
View the complete release online.
