|
|
|
|
|
|
|
|
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 September 26, 2010
|
Nine
Months Ended September 26, 2010
|
||||||||||||||||||||||
Previously
Reported
|
Adjustment
|
As
Adjusted
|
Previously
Reported
|
Adjustment
|
As
Adjusted
|
||||||||||||||||||
General and administrative | $ | 2,670,428 | $ | (45,536 | ) | $ | 2,624,892 | $ | 7,707,679 | $ | 890 | $ | 7,708,569 | ||||||||||
Occupancy | 765,289 | 45,680 | 810,969 | 2,165,555 | (20,747 | ) | 2,144,808 | ||||||||||||||||
Depreciation and amortization | 696,161 | 2,609 | 698,770 | 1,941,765 | 2,609 | 1,944,374 | |||||||||||||||||
Change in fair value of derivative instruments | - | (177,707 | ) | (177,707 | ) | - | (582,628 | ) | (582,628 | ) | |||||||||||||
Interest expense | (243,854 | ) | (105,694 | ) | (349,548 | ) | (931,730 | ) | (105,694 | ) | (1,037,424 | ) | |||||||||||
Income (loss) before income taxes | 331,587 | (288,979 | ) | 42,608 | 232,612 | (671,074 | ) | (438,462 | ) | ||||||||||||||
Net income (loss) | 200,468 | (288,979 | ) | (88,511 | ) | 223,380 | (671,074 | ) | (447,694 | ) | |||||||||||||
Net
income (loss) attributable to noncontrolling
interest
|
- | 88,446 | 88,446 | - | 88,446 | 88,446 | |||||||||||||||||
Net income (loss) attributable to DRH | - | (65 | ) | (65 | ) | - | (359,248 | ) | (359,248 | ) | |||||||||||||
Basic earnings (loss) per share | 0.01 | (0.01 | ) | 0.00 | 0.01 | (0.03 | ) | (0.02 | ) | ||||||||||||||
Fully diluted earnings (loss) per share | 0.01 | (0.01 | ) | 0.00 | 0.01 | (0.03 | ) | (0.02 | ) | ||||||||||||||
Weighted
average number of common
shares outstanding
|
|||||||||||||||||||||||
Basic
|
18,870,505 | - | 18,870,505 | 18,870,505 | - | 18,870,505 | |||||||||||||||||
Diluted
|
29,160,000 | (10,289,495 | ) | 18,870,505 | 29,113,333 | (10,242,828 | ) | 18,870,505 |
|
|
September
25
2011
|
December
26
2010
|
|||||||
Land
|
$
|
469,680
|
$
|
385,959
|
||||
Land
(restricted assets of VIE)
|
520,000
|
520,000
|
||||||
Building
|
2,745,296
|
2,255,246
|
||||||
Building
(restricted assets of VIE)
|
1,570,967
|
1,570,967
|
||||||
Equipment
|
9,682,030
|
8,140,417
|
||||||
Furniture
and fixtures
|
2,810,371
|
2,216,347
|
||||||
Leasehold
improvements
|
17,332,641
|
13,925,216
|
||||||
Restaurant
construction in progress
|
772,390
|
1,247,265
|
||||||
Total
|
35,903,375
|
30,261,417
|
||||||
Less
accumulated depreciation
|
(13,039,524)
|
(10,917,851
|
)
|
|||||
Less
accumulated depreciation attributable to
restricted assets of VIE
|
(625,641)
|
(602,974
|
)
|
|||||
Property
and equipment, net
|
$
|
22,238,210
|
$
|
18,740,592
|
|
September
25
2011
|
December
26
2010
|
|||||||
Amortized
intangibles:
|
||||||||
Franchise
fees
|
$
|
303,750
|
$
|
373,750
|
||||
Trademark
|
22,283
|
7,475
|
||||||
Loan
fees
|
164,429
|
155,100
|
||||||
Total
|
490,462
|
536,325
|
||||||
Less
accumulated amortization
|
(83,375)
|
(115,246
|
)
|
|||||
Amortized
intangibles, net
|
407,087
|
421,079
|
||||||
Unamortized
intangibles:
|
||||||||
Liquor
licenses
|
673,067
|
554,382
|
||||||
Total
intangibles, net
|
$
|
1,080,154
|
$
|
975,461
|
|
|
September
25
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%.
|
$
|
7,602,346
|
$
|
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).
|
1,127,278
|
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 $6,300
until maturity. Interest is charged at a rate
of 3.58% per annum.
|
891,048
|
915,446
|
||||||
DLOC
to a bank, secured by a senior lien on all
company assets. Scheduled interest payments
are charged at a rate of 3.0% over the 30-day
LIBOR (the rate at September 25, 2011 was
approximately 3.23%). 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.
|
1,662,999
|
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%.
|
1,244,391
|
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%.
|
2,701,583
|
-
|
||||||
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.
|
234,478
|
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.
|
8,154
|
12,016
|
||||||
Notes
payable - variable interest entity. Note
payable to a bank secured by a senior
mortgage on the property located at
15745 Fifteen 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 September
25, 2011 was approximately 4.23%).
|
1,251,791
|
1,318,851
|
||||||
Notes
payable – related parties
|
2,638,769
|
3,051,221
|
||||||
Total
long-term debt
|
19,362,837
|
17,883,869
|
||||||
Less
current portion (includes VIE debt of
$89,414)
|
(2,884,518)
|
(1,947,676
|
)
|
|||||
Long-term
debt, net of current portion
|
$
|
16,478,319
|
$
|
15,936,193
|
Year
|
Amount
|
|||
September
25, 2011
|
$
|
2,884,518 | ||
September
23, 2012
|
3,034,050 | |||
September
22, 2013
|
2,987,327 | |||
September
21, 2014
|
3,176,477 | |||
September
20, 2015
|
2,941,824 | |||
Thereafter
|
4,338,641 | |||
Total
|
$
|
19,362,837
|
|
Number
of Restricted
Stock
Shares
|
||||
Unvested,
June 26, 2011
|
0 | |||
Granted
|
60,800 | |||
Vested
|
0 | |||
Expired/Forfeited
|
(200 | ) | ||
Unvested,
September 25, 2011
|
60,600 |
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
September
25
2011
|
September
26
2010
|
September
25
2011
|
September
26
2010
|
|||||||||||||
Federal
|
||||||||||||||||
Current
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
0
|
||||||||
Deferred
|
(36,390
|
)
|
(69,280)
|
(463,772
|
)
|
121,327
|
||||||||||
State
|
||||||||||||||||
Current
|
(71,500
|
)
|
(36,502)
|
(208,507
|
)
|
(123,105)
|
||||||||||
Deferred
|
(47,286
|
)
|
(25,337)
|
(144,382
|
)
|
(7,454)
|
||||||||||
Income
tax benefit (provision)
|
$
|
(155,176
|
)
|
$
|
(131,119)
|
$
|
(816,661
|
)
|
$
|
(9,232)
|
September
25
2011
|
September
26
2010
|
|||||||
Income
tax benefit (provision) at federal statutory
rate
|
$
|
(766,063
|
)
|
$
|
(78,957)
|
|||
State
income tax benefit (provision)
|
(352,889
|
)
|
(130,559)
|
|||||
Permanent
differences
|
(77,139
|
)
|
9,535
|
|||||
Tax
credits
|
318,643
|
105,000
|
||||||
Other
|
60,787
|
85,749
|
||||||
Income
tax benefit (provision)
|
$
|
(816,661
|
)
|
$
|
(9,232)
|
September
25
2011
|
December
26
2010
|
|||||||
Deferred
tax assets:
|
||||||||
Net
operating loss carry forwards
|
$
|
363,121
|
$
|
1,252,609
|
||||
Deferred
rent expense
|
62,762
|
68,509
|
||||||
Start-up
costs
|
231,393
|
190,076
|
||||||
Tax
credit carry forwards
|
846,808
|
540,533
|
||||||
Other
|
437,643
|
487,139
|
||||||
Total
deferred tax assets
|
1,941,727
|
2,538,866
|
||||||
Deferred
tax liabilities:
|
||||||||
Other
|
176,552
|
425,322
|
||||||
Tax
depreciation in excess of book
|
1,765,585
|
1,505,800
|
||||||
Total
deferred tax liabilities
|
1,942,137
|
1,931,122
|
||||||
Net
deferred income tax (liabilities)
assets
|
$
|
(410
|
)
|
$
|
607,744
|
|
Year
|
Amount
|
|||
2011
|
$
|
2,699,479
|
||
2012
|
2,883,835
|
|||
2013
|
2,948,547
|
|||
2014
|
2,815,633
|
|||
2015
|
2,511,310
|
|||
Thereafter
|
8,377,052
|
|||
Total
|
$
|
22,235,856
|
|
|
|
●
|
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
|
$
|
—
|
$
|
(712,430
|
)
|
$
|
—
|
$
|
(712,430
|
)
|
$
|
(712,430
|
)
|
FAIR VALUE MEASUREMENTS | ||||||||||||||||||||
Asset/(Liability) | ||||||||||||||||||||
Description
|
Level
1
|
Level
2
|
Level
3
|
Total
|
Total
|
|||||||||||||||
Interest
Rate Swaps
|
$
|
—
|
$
|
(367,181
|
)
|
$
|
—
|
$
|
(367,181
|
)
|
$
|
(367,181
|
)
|