California Pizza Kitchen opened its first restaurant in Beverly Hills in 1985. Almost immediately after the first location opened, it expanded from California to more than 250 locations in more than 30 states and 11 countries. California Pizza Kitchen completed an initial public offering in August 2000 and traded on the NASDAQ National Market under the ticker symbol CPKI. On July 7, 2011, Golden Gate Capital completed the acquisition of California Pizza Kitchen and, as a result of the acquisition, the company's common stock is no longer publicly traded. CALIFORNIA PIZZA KITCHEN, INC., AND SUBSIDIARIES Consolidated Statements of Operations Years ended January 2, 2011, January 3, 2010, and December 28, 2008 (amounts in thousands, except for per share data) 2010 2009 2008 $636,816 6,422 3,490 2,493 $658,215 8,039 3,074 2,168 $674,826 6,880 3,147 2,211 649,221 671,496 687,064 Revenues: Restaurant sales Royalties from licensing agreement Domestic franchise revenues International franchise revenues Total revenues Costs and expenses: Food, beverage and paper supplies Labor Direct operating and occupancy Cost of sales General and administrative Depreciation and amortization Pre-opening costs Loss on impairment of property and equipment Store closure costs Litigation, settlement and other costs 149,662 239,323 145,720 155,111 248,340 142,885 166,456 248,266 141,279 534,705 52,081 37,936 3,359 18,889 1,804 8,789 546,336 52,141 41,111 1,933 23,091 556,001 52,992 41,229 4,568 13,486 1,129 766 635 1,639 657,563 666,886 670,171 Total costs and expenses Operating (loss)/income Interest expense, net (8,342) (17) 4,610 (878) 16,893 (1,414) (Loss)/income before income tax (benefit)/provision Income tax (benefit)/provision (8,359) (6,250) 3,732 (2,169) 15,479 3,405 Net (loss)/income $ (2,109) $ 5,901 $ 12,074 Net (loss)/income per common share: Basic $ (0.08) $ 0.24 $ 0.35 Diluted $ (0.08) $ 0.24 $ 0.35 Weighted average shares used in calculating net (loss)/income per common share: Basic 24.578 24.154 25.283 Diluted 24.578 24.233 25.301 CALIFORNIA PIZZA KITCHEN, INC., AND SUBSIDIARIES Consolidated Balance Sheets January 2, 2011, and January 3 2010 (in thousands, except for share data) 2010 2009 Assets Current assets: Cash and cash equivalents Other receivables Inventories Current deferred tax asset, net Prepaid rent Other prepaid expenses $ 33,230 14,984 7,237 8,975 381 5,248 $ 33,424 15,931 6,967 7,826 6,367 2,961 Total current assets Property and equipment, net Noncurrent deferred tax asset, net Goodwill Other intangibles, net Other assets 70,055 262,776 22,917 6,032 5,773 9,123 73,476 272,546 25,827 6,032 5,650 7,719 Total assets $376,676 $391,250 Liabilities and stockholders' equity Current liabilities: Accounts payable Accrued compensation and benefits Accrued rent Deferred rent credits Other accrued liabilities Gift card liability Store closure reserve $ 21,065 24,269 23,640 5,528 24,490 18,477 66 $ 12,853 24,197 20,703 5,215 21,715 24,540 656 Total current liabilities 117,535 109,879 16,030 34,125 469 22,900 11,634 33,426 10,055 Long-term debt Other liabilities Deferred rent credits, net of current portion Income taxes payable, net of current portion Commitments and contingencies Stockholders' equity: Common stock-$0.01 par value, 80,000,000 shares authorized, 25,179,797 and 24,795,800 shares issued and outstanding at January 2, 2011, and January 3, 2010, respectively Additional paid-in capital Retained earnings Total stockholders' equity 252 185,563 22,702 248 180,000 23,108 208,517 203,356 Total liabilities and stockholders' equity $376,676 $391,250 Compute the following ratios using information from the company annual report that was issued before California Pizza Kitchen was acquired. (Round your answers to 2 decimal places. Enter percentage answers rounded to 2 decimal places (i.e. 0.1234 should be entered as 12.34). Negative amounts should be indicated by a minus sign.) 59.60 0.42 % a. Current ratio b. Quick ratio c. Profit margin d. Return on equity e. Inventory turnover f. Debt-to-equity g. Earnings per share %
