Kansas Pizza Pantry opened its first restaurant in Lawrence, Kansas in 1985. Almost immediately after the first location opened, it expanded from Kansas Pizza Pantry to more than 250 locations in more than 30 states and 11 countries. Kansas Pizza Pantry completed an initial public offering in August 2000. Several years ago, Silver Capital completed the acquisition of Kansas Pizza Pantry and, as a result of the acquisition, the company's common stock is no longer publicly traded. KANSAS PIZZA PANTRY, INC., AND SUBSIDIARIES Consolidated Statements of Operations (amounts in thousands, except for per share data) Revenues: Year 3 Year 2 Year 1 Restaurant sales $628,867 $652,485 $665,916 Royalties from licensing 6,482 8,039 6,670 agreement Domestic franchise 3,760 2,834 2,907 revenues International franchise 2,853 2,138 2,421 revenues Total revenues 641,962 665,496 677,914 Costs and expenses: Food, beverage and paper 149,332 154,781 165,676 supplies Labor 237,283 247,650 247,426 Direct operating and 142,720 occupancy Cost of sales General and administrative Depreciation and 50,791 37,096 142,273 140,517 529,335 544,704 553,619 49,906 51,792 amortization 40,271 40,449 Pre-opening costs 3,329 1,873 4,628 Loss on impairment of 18,852 23,241 property and equipment 13,486 Store closure costs 1,738 554 1,183 Litigation, settlement 8,849 1,639 886 and other costs Total costs and 649,990 662,188 666,043 expenses Operating (loss)/income (8,028) 3,308 12,531 Interest expense, net (22) (785) (1,414 (Loss)/income before income tax (8,050) 2,523 11,117 (5,479) (2,121) 2,545 (benefit)/provision Income tax (benefit)/provision Net (loss)/income Net (loss)/income per common share: Basic Diluted Weighted average shares used in calculating net (loss)/income per common share: $ (2,571) $ 4,644 $ 8,572 $ (0.05) $ 0.19 $ 0.34 $ (0.05) $ 0.19 $ 0.34 Basic Diluted 24,638 24,638 24,364 24,293 25,343 25,361