California Pizza Kitchen opened its first restaurant In Beverly Hills in 1985. Almost immediately after...
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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 companys 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
Revenues:
Restaurant sales
$
644,061
$
665,250
$
685,571
Royalties from licensing agreement
6,772
8,389
7,230
Domestic franchise revenues
3,945
3,529
3,602
International franchise revenues
2,598
2,273
2,316
Total revenues
657,376
679,441
698,719
Costs and expenses:
Food, beverage and paper supplies
150,747
156,196
167,541
Labor
241,878
249,495
249,421
Direct operating and occupancy
149,570
143,949
142,343
Cost of sales
542,195
549,640
559,305
General and administrative
53,656
53,716
54,567
Depreciation and amortization
39,021
42,196
42,314
Pre-opening costs
3,464
2,038
4,673
Loss on impairment of property and equipment
19,064
23,266
13,661
Store closure costs
1,916
747
1,241
Litigation, settlement and other costs
8,824
1,674
801
Total costs and expenses
668,140
673,277
676,562
Operating (loss)/income
(10,764)
6,164
22,157
Interest expense, net
(15)
(983)
(1,519)
(Loss)/income before income tax (benefit)/provision
(10,779)
5,181
20,638
Income tax (benefit)/provision
(9,333)
(2,260)
4,540
Net (loss)/income
$
(1,446)
$
7,441
$
16,098
Net (loss)/income per common share:
Basic
$
(0.06)
$
0.29
$
0.42
Diluted
$
(0.06)
$
0.29
$
0.42
Weighted average shares used in calculating net (loss)/income per common share:
Basic
24.683
24.259
25.388
Diluted
24.683
24.338
25.406
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
$
47,230
$
47,424
Other receivables
19,939
20,886
Inventories
8,942
8,612
Current deferred tax asset, net
9,850
8,701
Prepaid rent
556
8,012
Other prepaid expenses
8,433
4,046
Total current assets
94,950
97,681
Property and equipment, net
287,661
292,631
Noncurrent deferred tax asset, net
23,869
26,779
Goodwill
7,677
7,677
Other intangibles, net
6,865
6,742
Other assets
10,068
8,664
Total assets
$
431,090
$
440,174
Liabilities and stockholders equity
Current liabilities:
Accounts payable
$
25,720
$
14,708
Accrued compensation and benefits
25,431
25,359
Accrued rent
27,392
22,355
Deferred rent credits
7,243
6,930
Other accrued liabilities
37,090
34,315
Gift card liability
23,327
29,090
Store closure reserve
80
1,041
Total current liabilities
146,283
133,798
Long-term debt
---
23,600
Other liabilities
22,758
16,091
Deferred rent credits, net of current portion
36,431
35,732
Income taxes payable, net of current portion
644
11,140
Commitments and contingencies
-
-
Stockholders equity:
Common stock$0.01 par value, 80,000,000 shares authorized, 25,879,797 and 25,495,800 shares issued and outstanding at January 2, 2011, and January 3, 2010, respectively
259
255
Additional paid-in capital
192,563
187,000
Retained earnings
32,152
32,558
Total stockholders equity
224,974
219,813
Total liabilities and stockholders equity
$
431,090
$
440,174
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.)
a.
Current ratio
b.
Quick ratio
c.
Profit margin
%
d.
Return on equity
%
e.
Inventory turnover
f.
Debt-to-equity
g.
Earnings per share
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