|
|
|
|
|
|
|
|
Balances
at December 26, 2010
|
||||||||||||
Previously
Reported
|
Adjustment
|
As
Adjusted
|
||||||||||
Cash
and cash equivalents
|
$ |
1,305,031
|
$ |
53,350
|
$ |
1,358,381
|
||||||
Property
and equipment, net - restricted assets of VIE
|
-
|
1,487,993
|
1,487,993
|
|||||||||
Other
long-term assets
|
63,539
|
16,560
|
80,099
|
|||||||||
Current
portion of long-term debt
|
1,858,262
|
89,414
|
1,947,676
|
|||||||||
Deferred
rent (long-term)
|
1,722,531
|
(99,588
|
)
|
1,622,943
|
||||||||
Long-term
debt, less current portion
|
14,706,756
|
1,229,437
|
15,936,193
|
|||||||||
Retained
earnings (accumulated deficit)
|
(2,728,836
|
)
|
(367,181
|
)
|
(3,096,017
|
)
|
||||||
Accumulated
other comprehensive income (loss)
|
(367,181
|
)
|
367,181
|
-
|
||||||||
Noncontrolling
interest in VIE
|
-
|
338,640
|
338,640
|
Three
Months Ended June
27, 2010
|
Six
Months Ended June
27, 2010
|
|||||||||||||||||||||||
Previously
Reported
|
Adjustment
|
As
Adjusted
|
Previously
Reported
|
Adjustment
|
As
Adjusted
|
|||||||||||||||||||
Change
in fair value of derivative instruments
|
$ | - | $ | (404,921 | ) | $ | (404,921 | ) | $ | - | $ | (404,921 | ) | $ | (404,921 | ) | ||||||||
Income
(loss) before income taxes
|
(353,994 | ) | (404,921 | ) | (758,915 | ) | (76,149 | ) | (404,921 | ) | (481,070 | ) | ||||||||||||
Net
income (loss)
|
(109,531 | ) | (404,921 | ) | (514,452 | ) | 45,738 | (404,921 | ) | (359,183 | ) | |||||||||||||
Basic
earnings per share
|
(0.01 | ) | (0.02 | ) | (0.03 | ) | 0.00 | (0.02 | ) | (0.02 | ) | |||||||||||||
Fully
diluted earnings per share
|
(0.01 | ) | (0.02 | ) | (0.03 | ) | 0.00 | (0.02 | ) | (0.02 | ) | |||||||||||||
Weighted
average number of common shares
outstanding
|
||||||||||||||||||||||||
Basic
|
18,876,000 | - | 18,876,000 | 18,873,253 | - | 18,873,253 | ||||||||||||||||||
Diluted
|
29,020,000 | (10,144,000 | ) | 18,876,000 | 29,020,000 | (10,146,747 | ) | 18,873,253 |
|
|
June
26
2011
|
December
26
2010
|
|||||||
Land
|
$
|
385,959
|
$
|
385,959
|
||||
Land
(restricted assets of VIE)
|
520,000
|
520,000
|
||||||
Building
|
2,254,018
|
2,255,246
|
||||||
Building
(restricted assets of VIE)
|
1,570,967
|
1,570,967
|
||||||
Equipment
|
9,343,011
|
8,140,417
|
||||||
Furniture
and fixtures
|
2,634,850
|
2,216,347
|
||||||
Leasehold
improvements
|
16,216,433
|
13,925,216
|
||||||
Restaurant
construction in progress
|
801,462
|
1,247,265
|
||||||
Total
|
33,726,700
|
30,261,417
|
||||||
Less
accumulated depreciation
|
(12,295,612)
|
(10,917,851
|
)
|
|||||
Less
accumulated depreciation attributable to restricted
assets of VIE
|
(618,085)
|
(602,974
|
)
|
|||||
Property
and equipment, net
|
$
|
20,813,003
|
$
|
18,740,592
|
|
June
26
2011
|
December
26
2010
|
|||||||
Amortized
Intangibles:
|
||||||||
Franchise
fees
|
$
|
373,750
|
$
|
373,750
|
||||
Trademark
|
8,025
|
7,475
|
||||||
Loan
fees
|
164,429
|
155,100
|
||||||
Total
|
546,204
|
536,325
|
||||||
Less
accumulated amortization
|
(134,676)
|
(115,246
|
)
|
|||||
Amortized
Intangibles, net
|
411,528
|
421,079
|
||||||
Unamortized
Intangibles:
|
||||||||
Liquor
licenses
|
631,698
|
554,382
|
||||||
Total
Intangibles, net
|
$
|
1,043,226
|
$
|
975,461
|
|
|
June
26
2011
|
December
26
2010
|
|||||||
Note
payable to a bank secured by a senior lien on all
company assets. Scheduled monthly principal and
interest payments are approximately $120,000 through
maturity in May 2017. Interest is charged based on a
swap arrangement designed to yield a fixed annual
rate of 7.10%.
|
$
|
7,878,564
|
$
|
8,399,538
|
||||
Note
payable to a bank secured by a senior mortgage on the
Brandon Property and a personal guaranty. Scheduled
monthly principal and interest payments are
approximately $8,000 for the period beginning July
2010 through maturity in June 2030, at which point a
balloon payment of $413,550 is due. Interest is
charged based on a fixed rate of 6.72%, per annum,
through June 2017, at which point the rate will
adjust to the U.S. Treasury Securities Rate plus 4%
(and every seven years thereafter).
|
1,131,854
|
1,141,188
|
||||||
Note
payable to a bank secured by a junior mortgage on the
Brandon Property. Matures in 2030 and requires
monthly principal and interest installments of
approximately $6,100 until maturity. Interest is
charged at a rate of 3.58% per annum.
|
899,253
|
915,446
|
||||||
DLOC
to a bank, secured by a senior lien on all company
assets. Scheduled interest payments are charged at a
rate of 4% over the 30-day LIBOR (the rate at June
26, 2011 was approximately 4.19%). In November 2011,
the DLOC will convert into a term loan bearing
interest at 4% over the 30-day LIBOR and will mature
in May 2017. The DLOC includes a carrying cost of
.25% per year of any available but undrawn
amounts.
|
833,233
|
1,424,679
|
||||||
Note
payable to a bank secured by a senior lien on all
company assets. Scheduled monthly principal and
interest payments are approximately $15,000 through
maturity in May 2017. Interest is charged based on a
swap arrangement designed to yield a fixed annual
rate of 5.91%.
|
1,289,293
|
1,379,098
|
||||||
Note
payable to a bank secured by a senior lien on all
company assets. Scheduled monthly principal and
interest payments are approximately $33,000 through
maturity in May 2017. Interest is charged based on a
swap arrangement designed to yield a fixed annual
rate of 6.35%.
|
2,800,792
|
-
|
||||||
Unsecured
note payable that matures in August 2013 and requires
monthly principal and interest installments of
approximately $2,200, with the balance due at
maturity. Interest is 7% per annum.
|
236,972
|
241,832
|
||||||
Note
payable to Ford Credit secured by a vehicle purchased
by Flyer Enterprises, Inc. to be used in the
operation of the business. This is an interest-free
loan under a promotional 0% rate. Scheduled monthly
principal payments are approximately $430. The note
matures in April 2013.
|
9,442
|
12,016
|
||||||
Notes
payable -- variable interest entity. Note payable to
a bank secured by a senior mortgage on the property
located at 15745 15 Mile Road, Clinton Township,
Michigan 48035, a DRH corporate guaranty, and a
personal guaranty. Scheduled monthly principal and
interest payments are approximately $12,500 through
maturity in 2025. Interest is charged at a rate of 4%
over the 30-day LIBOR (the rate at June 26, 2011 was
approximately 4.19%).
|
1,274,145
|
1,318,851
|
||||||
Notes
payable – related parties
|
2,770,897
|
3,051,221
|
||||||
Total
long-term debt
|
19,124,445
|
17,883,869
|
||||||
Less
current portion (includes VIE debt of $89,414)
|
(2,428,804)
|
(1,947,676
|
)
|
|||||
Long-term
debt, net of current portion
|
$
|
16,695,641
|
$
|
15,936,193
|
Year
|
Amount
|
|||
2011
|
$
|
2,428,804
|
||
2012
|
2,463,627
|
|||
2013
|
2,829,340
|
|||
2014
|
2,757,738
|
|||
2015
|
2,750,245
|
|||
Thereafter
|
5,894,691
|
|||
Total
|
$
|
19,124,445
|
|
|
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
June
26
2011
|
June
27
2010
|
June
26
2011
|
June
27
2010
|
|||||||||||||
Federal
|
||||||||||||||||
Current
|
$ |
0
|
$ |
0
|
$ |
0
|
$ |
0
|
||||||||
Deferred
|
(203,394
|
) |
295,744
|
(427,382
|
) |
190,607
|
||||||||||
State
|
||||||||||||||||
Current
|
(104,299
|
) |
(36,502)
|
(137,006
|
) |
(86,603)
|
||||||||||
Deferred
|
(43,804
|
) |
(14,779)
|
(97,097
|
) |
17,883
|
||||||||||
Income
tax benefit (provision)
|
$
|
(351,497
|
) |
$
|
244,463
|
$ |
(661,485
|
) |
$
|
121,887
|
June
26
2011
|
June
27
2010
|
|||||||
Income
tax benefit (provision) at federal statutory
rate
|
$
|
(646,371
|
) |
$
|
25,891
|
|||
State
income tax benefit (provision)
|
(234,104
|
) |
(68,720)
|
|||||
Permanent
differences
|
(50,559
|
) |
22,554
|
|||||
Tax
credits
|
211,257
|
70,000
|
||||||
Other
|
58,292
|
72,162
|
||||||
Income
tax benefit (provision)
|
$
|
(661,485
|
) |
$
|
121,887
|
June
26
2011
|
December
26
2010
|
|||||||
Deferred
tax assets:
|
||||||||
Net
operating loss carry forwards
|
$
|
316,214
|
$
|
1,252,609
|
||||
Deferred
rent expense
|
55,681
|
68,509
|
||||||
Start-up
costs
|
190,077
|
190,076
|
||||||
Tax
credit carry forwards
|
739,422
|
540,533
|
||||||
Other
– including state deferred tax assets
|
574,837
|
487,139
|
||||||
Total
deferred tax assets
|
1,876,230
|
2,538,866
|
||||||
Deferred
tax liabilities:
|
||||||||
Other
|
281,640
|
425,322
|
||||||
Tax
depreciation in excess of book
|
1,511,325
|
1,505,800
|
||||||
Total
deferred tax liabilities
|
1,792,965
|
1,931,122
|
||||||
Net
deferred income tax assets
|
$
|
83,266
|
$
|
607,744
|
|
Year
|
Amount
|
|||
2011
|
$
|
2,682,568
|
||
2012
|
2,806,774
|
|||
2013
|
2,871,487
|
|||
2014
|
2,738,572
|
|||
2015
|
2,434,249
|
|||
Thereafter
|
7,911,286
|
|||
Total
|
$
|
21,444,936
|
|
|
|
• | Level 1 | — |
Quoted
market prices in active markets for identical assets
and liabilities;
|
• | Level 2 | — |
Inputs,
other than level 1 inputs, either directly or
indirectly observable; and
|
• | Level 3 | — |
Unobservable
inputs developed using internal estimates and
assumptions (there is little or no market data) which
reflect those that market participants would
use.
|
FAIR
VALUE MEASUREMENTS
|
||||||||||||||||||||
Asset/(Liability)
|
||||||||||||||||||||
Description
|
Level
1
|
Level
2
|
Level
3
|
Total
|
Total
|
|||||||||||||||
Interest
Rate Swaps
|
$
|
—
|
$ |
(571,801
|
)
|
$ |
—
|
$ |
(571,801
|
)
|
$
|
(571,801
|
)
|
FAIR
VALUE MEASUREMENTS
|
||||||||||||||||||||
Asset/(Liability)
|
||||||||||||||||||||
Description
|
Level
1
|
Level
2
|
Level
3
|
Total
|
Total
|
|||||||||||||||
Interest
Rate Swaps
|
$
|
—
|
$ |
(367,181
|
)
|
$ |
—
|
$ |
(367,181
|
)
|
$
|
(367,181
|
)
|