KRISPY KREME DOUGHNUTS, INC. CONSOLIDATED STATEMENT OF CASH FLOWS Year Ended Feb. 1, 2015 (In thousands, except per share amounts) Revenues $ 383,984 Operating expenses: Direct operating expenses (exclusive of depreciation and amortization shown below) 345,007 General and administrative expenses 23,458 Depreciation and amortization expense 8,709 Impairment charges and lease termination costs 548 Settlement of litigation (14,930 ) Other operating (income) and expense, net 1,501 Operating income (loss) 4,761 Interest income 331 Interest expense (10,679 ) Loss on extinguishment of debt Equity in losses of equity method franchisees (786 ) Other non-operating income and (expense), net 2,815 Loss before income taxes (3,558 ) Provision for income taxes 503 Net loss $ (4,061 )

KRISPY KREME DOUGHNUTS, INC. CONSOLIDATED BALANCE SHEET Feb. 1, 2015 (In thousands) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 35,538 Receivables 19,229 Accounts and notes receivable equity method franchisees 1,019 Inventories 15,587 Deferred income taxes 106 Other current assets 4,327 Total current assets 75,806 Property and equipment 85,075 Investments in equity method franchisees 1,187 Goodwill and other intangible assets 23,856 Other assets 9,002 Total assets $ 194,926 LIABILITIES AND SHAREHOLDERS EQUITY CURRENT LIABILITIES: Current maturities of long-term debt $ 1,413 Accounts payable 8,981 Accrued liabilities 29,222 Total current liabilities 39,616 Long-term debt, less current maturities 73,454 Deferred income taxes 106 Other long-term obligations 23,995 Commitments and contingencies SHAREHOLDERS EQUITY: Preferred stock, no par value; 10,000 shares authorized; none issued and outstanding---common stock, no par value, 300,000 shares authorized; 67,512 and 65,370 shares issued and outstanding 361,801 Accumulated other comprehensive income (loss) (913 ) Accumulated deficit (303,133 ) Total shareholders equity 57,755 Total liabilities and shareholders equity $ 194,926

Analysis: Please analyze the information presented above and discuss what conclusions you can draw from this information.