Professional Documents
Culture Documents
Exhibit 2
California Pizza Kitchen, Inc.
Consolidated Balance Sheet (in thousands)
As of
12/31/2006
1/1/2006
Assets
Current assets
Cash and cash equivalents
Investments in marketable securities
Other receivables
Inventories
Current deferred tax asset, net
Prepaid income tax
Other prepaid expenses & other current assets
Total current assets
Property and equipment, net
Noncurrent deferred tax asset, net
Goodwill and other intangibles
Other assets
Total assets
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable
Accrued compensation and benefits
Accrued rent
Deferred rent credits
Other accrued liabilities
Accrued income tax
Total current liabilities
Other liabilities
Deferred rent credits, net of current portion
Shareholders' equity:
Common stock
Additional paid-in-capital
Accumulated deficit
Accumulated comprehensive loss
Total shareholders' equity
Total liabilities & Shareholders' Equity
Sources of data: Company Annual and Quarterly Reports.
11,272
11,408
4,109
3,776
8,437
1,428
5,492
45,922
213,408
4,513
5,967
4,444
274,254
7,054
13,068
13,253
4,056
9,294
8,187
7/1/2007
7,876
4,745
11,721
5,388
37,917
10,709
4,596
11,834
8,769
6,444
49,530
255,382
5,867
5,825
5,522
310,513
271,867
6,328
5,754
6,300
339,779
46,725
15,044
15,042
14,532
4,494
13,275
3,614
66,001
5,383
24,810
8,683
27,486
8,662
32,436
197
231,159
(34,013)
(7)
197,336
193
221,163
(13,013)
291
228,647
(3,050)
208,343
225,888
274,254
7,178
310,513
14,115
15,572
14,979
5,135
13,980
9,012
72,793
339,779
Exhibit 3
California Pizza Kitchen, Inc.
Consolidated Income Statements (in thousands, except per-share data)
Fiscal Year(1)
2004
2005
2003
Restaurant sales
Franchise and other revenues
Total revenues
2006
$ 356,260
3,627
359,887
$ 418,799
3,653
422,452
$ 474,738
4,861
479,599
$ 547,968
6,633
554,601
$ 134,604
1,564
136,168
$ 156,592
1,989
158,581
87,806
129,702
70,273
287,781
103,813
152,949
83,054
339,816
118,480
173,751
92,827
385,058
135,848
199,744
108,558
444,150
33,090
49,272
26,214
108,576
38,426
56,912
30,773
126,111
21,488
20,714
4,147
28,794
23,975
737
36,298
25,440
4,051
43,320
29,489
6,964
11,035
7,070
800
12,206
9,022
852
Severance charges(2)
Loss on impairment of PP&E
Store closure costs
Legal settlement reserve
Operating income
1,221
18,984
5,552
2,700
1,333
25,097
1,160
152
600
26,840
317
571
(349)
(32)
(143)
428
Interest income
Other income
Equity in loss of unconsolidated JV
Total other income (expense)
Income before income tax provision
Income tax provision (benefit)
Net income
$
$
0.30
0.29
$
$
168
5,520
(82)
5,602 $
54,896
3.4%
0.93
0.92
739
1,105
(22)
1,822
28,662
9,172
19,490
$
$
1.01
0.99
171
137
$
25,525
7,709
17,816
57,509
62,383
8.0%
7.5%
29,971
8,687
9,622
718
287
91
718
287
91
8,974
2,961
6,013
9,713
3,393
6,320
$
$
1.08
1.06
$
$
0.20
0.20
$
$
0.22
0.21
205
157
$
768
30,689
9,689
21,000
188
141
$
707
193
176
$
65,406
5.9%
213
162
$
65,427
182
$
68,535
4.8%
Notes:
(1)
For the Years Ended December 31, 2006, January 1, 2006 and January 2, 2005, December 28, 2003.
(2)
Severance charges represent payments to former President/CEO and former SVP/Senior Development Officer under terms of their separation agreements.
(3)
Sources of data: Company Annual and Quarterly Reports and quarterly company earnings conference calls.
5.4%
Exhibit 4
California Pizza Kitchen, Inc.
Selected Historical Comparable Store Sales (Calendarized)
CY06
CY07
CY03
CY04
CY05
Q1
Q2
Q3
Q4
Q1
3.4%
9.3%
6.4%
4.8%
5.9%
5.6%
6.9%
4.7%
4.1%
4.8%
1.8%
2.6%
-1.8%
-2.3%
-1.1%
-4.0%
3.3%
4.0%
4.6%
6.8%
5.9%
5.3%
5.5%
6.9%
Brinker International(1)
2.1%
1.9%
3.2%
2.7%
-2.0%
-2.1%
-2.1%
-4.4%
0.7%
3.9%
1.7%
-1.3%
-0.8%
-1.6%
0.8%
0.4%
19.7% 14.5%
24.4%
13.3%
10.2%
11.6%
10.1%
8.3%
0.0%
-3.9%
4.2%
1.6%
9.4%
-2.1%
0.7%
4.6%
2.2%
4.7%
8.6%
5.7%
2.5%
2.9%
2.9%
1.0%
1.1%
3.8%
3.0%
4.1%
2.8%
2.9%
2.0%
2.8%
0.2%
2.7%
7.8%
9.0%
3.2%
2.8%
2.0%
0.0%
5.1%
3.0%
1.2%
1.3%
-1.0%
-0.5%
-0.9%
-2.5%
4.6%
5.0%
2.8%
3.7%
-0.4%
-0.3%
1.5%
-1.0%
4.1%
7.5%
3.8%
4.8%
3.3%
0.8%
0.2%
-0.5%
1.4%
11.6%
10.4%
6.8%
6.0%
4.3%
7.4%
1.9%
Sonic Corporation
1.6%
7.0%
5.4%
5.5%
4.3%
4.0%
3.4%
2.0%
3.5%
7.6%
5.6%
6.4%
1.2%
2.3%
3.3%
0.9%
Note:
(1)
Brinker's comparable store sales is a blended rate for its various brands.
Exhibit 5
California Pizza Kitchen, Inc.
Selected Forecasts for California Pizza Kitchen
Firm
Oppenheimer and Co. Inc.
CIBC World Markets
KeyBanc Capital Markets
RBC Capital Markets
Morgan Keegan & Co., Inc.
MKM Partners
Date of Price
2007E
Report Target Revenues
EPS
4/9/2007 $ 40 $
4/12/2007
37
5/11/2007
NA
5/11/2007
37
5/11/2007
NA
5/11/2007
39
652.9 $ 1.33
647.5
1.29
NA
1.28
650.7
1.31
644.2
1.33
647.5
1.34
2008E
Revenues EPS
NA
755.1
NA
753.1
742.1
754.3
NA
1.57
1.55
1.59
1.58
1.69
2009E
Revenues EPS
NA
NA
NA
NA
NA
NA
878.2 1.90
NA
NA
NA
NA
Exhibit 6
California Pizza Kitchen, Inc.
Stock Price Comparison
Value of $100 invested in CPK and S&P SmallCap 600 Restaurants Index
$140
$130
$120
$110
$100
CPK
$90
Date
3-Jul-06
100
100
5-Jul-06
99
99
6-Jul-06
97
98
7-Jul-06
96
97
10-Jul-06
101
98
11-Jul-06
100
97
12-Jul-06
103
95
13-Jul-06
98
92
14-Jul-06
97
92
17-Jul-06
98
92
18-Jul-06
96
92
19-Jul-06
99
94
20-Jul-06
94
91
21-Jul-06
95
90
24-Jul-06
97
93
25-Jul-06
98
95
26-Jul-06
96
92
27-Jul-06
95
90
28-Jul-06
95
91
31-Jul-06
97
91
1-Aug-06
94
90
2-Aug-06
93
91
3-Aug-06
95
92
4-Aug-06
95
93
7-Aug-06
96
92
8-Aug-06
100
92
9-Aug-06
95
90
Exhibit 7
California Pizza Kitchen, Inc.
Comparative Restaurant Financial Data, 2006 Fiscal Year (in millions, except per-share data)
Fiscal Year End
7/2/2007
Dec. $
Dec.
Dec.
Brinker International(1)
Net Profit
Earnings
Dividends
Margin
Margin
Per Share
Per Share
1,338
15.9%
6.5%
1.17
0.20
6.49
0.80
20.05
239
9.6%
4.1%
0.41
0.00
7.78
1.05
June
29.37
4,151
12.0%
4.7%
1.49
0.20
8.59
0.90
Dec.
41.78
278
13.3%
5.8%
0.93
0.00
6.61
1.10
Dec.
24.57
1,315
12.2%
6.2%
1.02
0.00
9.09
1.00
Dec.
86.00
823
13.0%
5.0%
1.28
0.00
14.56
NA
May
44.14
5,721
13.2%
5.9%
2.16
0.40
8.37
1.00
May
30.54
291
31.6%
3.1%
1.78
0.44
19.84
0.60
Dec.
25.66
308
9.7%
4.3%
0.92
0.00
11.20
1.10
Dec.
46.02
829
16.3%
7.2%
1.87
0.00
12.53
1.25
Dec.
35.37
938
10.5%
3.6%
1.24
0.00
11.41
1.10
Dec.
26.76
987
11.6%
5.1%
1.45
0.00
11.17
0.57
Dec.
40.19
619
13.7%
4.9%
1.82
0.00
14.68
1.05
Dec.
16.80
272
15.6%
8.7%
1.01
0.00
2.93
NA
Sonic Corporation
Aug.
22.00
693
24.9%
11.4%
0.88
0.00
4.66
0.90
Dec.
12.81
597
12.5%
5.7%
0.44
0.00
4.30
0.90
Current
Current
Total
Shr.
Debt/
Interest
T. Capital
Return On
Assets
Liabilities
Debt
Equity
Capital
Coverage
Turnover
Capital Equity
66
0.00
7.20
Beta
24.28
38
Per Share
3.8% $
0.71
Book Value
10.7%
EBITDA
555
22.10
Revenue
0.85
208
0.0%
NMF
2.7
10.1% 10.1%
105
187
175
487
26.5%
11.7
2.0
14.0% 18.0%
96
36
203
0.0%
NMF
1.2
242
497
502
1,076
31.8%
14.4
2.6
13.2% 18.0%
4.9%
4.9%
75
26
116
0.0%
NMF
2.4
14.0% 14.0%
203
163
712
0.0%
NMF
1.8
11.4% 11.4%
179
61
474
0.0%
NMF
1.7
378
1,026
645
1,230
34.4%
10.9
3.1
12
31
43
101
30.1%
5.9
2.0
7.9%
9.1%
30
40
160
0.2%
NMF
1.9
8.3%
8.3%
128
110
398
0.0%
NMF
2.1
15.1% 15.1%
8.8%
8.7%
20.6% 27.5%
65
104
19
290
6.2%
NMF
3.0
11.1% 11.5%
125
134
166
360
31.6%
29.2
1.9
9.8% 13.9%
29
70
114
244
31.9%
7.7
1.7
9.3% 12.5%
26
59
68
68
50.0%
12.8
2.0
18.6% 34.9%
Sonic Corporation
43
78
159
392
28.9%
15.0
1.3
15.3% 20.1%
53
78
36
319
10.2%
19.9
1.7
9.7% 10.7%
Notes:
(1)
Brinker's restaurant brands include Chili's Grill & Bar, Romano's Macaroni Grill, On The Border and Maggiano's.
(2)
Darden's restaurant brands include Red Lobster and The Olive Garden.
(3)
RARE's restaurant brands include LongHorn Steakhouse, The Capital Grille and Bugaboo Creek Steak House.
Sources of data: Value Line Investment Survey , 2007; Standard & Poor's Stock Report , 2007 and company Annual Reports and websites.
Exhibit 8
California Pizza Kitchen, Inc.
Interest Rates and Yields
2000
2001
2002
2003
2004
2005
2006: Jan.
Feb.
Mar.
Apr.
May.
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
2007: Jan.
Feb.
Mar.
Apr.
May.
June
4.20%
4.41%
4.51%
4.59%
4.72%
4.79%
4.96%
4.98%
4.82%
4.89%
4.95%
4.85%
4.96%
5.02%
4.97%
4.88%
4.77%
4.63%
4.30%
4.51%
4.61%
4.72%
4.81%
4.95%
5.09%
4.99%
4.90%
4.91%
4.96%
4.88%
4.94%
4.97%
4.90%
4.87%
4.80%
4.77%
4.35%
4.64%
4.74%
4.89%
4.97%
5.09%
5.07%
4.85%
4.69%
4.72%
4.64%
4.58%
4.79%
4.75%
4.51%
4.60%
4.69%
5.00%
4.42%
4.57%
4.72%
4.99%
5.11%
5.11%
5.09%
4.88%
4.72%
4.73%
4.60%
4.56%
4.76%
4.72%
4.56%
4.69%
4.75%
5.10%
Sources of data: Economic Report of the President and Fannie Mae website.
30-year
5.94%
5.49%
......
......
......
......
......
4.54%
4.73%
5.06%
5.20%
5.15%
5.13%
5.00%
4.85%
4.85%
4.69%
4.68%
4.85%
4.82%
4.72%
4.87%
4.90%
5.20%
5.29%
5.35%
5.53%
5.84%
5.95%
5.89%
5.85%
5.68%
5.51%
5.51%
5.33%
5.32%
5.40%
5.39%
5.30%
5.47%
5.47%
5.79%
6.24%
6.27%
6.41%
6.68%
6.75%
6.78%
6.76%
6.59%
6.43%
6.42%
6.20%
6.22%
6.34%
6.28%
6.27%
6.39%
6.39%
6.70%
Average
Prime
Lending
9.23%
6.91%
4.67%
4.12%
4.34%
6.19%
Average
LIBOR
3-month
6.55%
3.63%
1.79%
1.22%
1.67%
3.63%
7.38%
7.50%
7.63%
7.75%
7.88%
7.13%
8.25%
8.25%
8.25%
8.25%
8.25%
8.25%
8.25%
8.25%
8.25%
8.25%
8.25%
8.25%
4.68%
4.82%
4.99%
5.15%
5.23%
5.51%
5.49%
5.40%
5.37%
5.37%
5.37%
5.36%
5.36%
5.36%
5.35%
5.36%
5.36%
5.36%
Exhibit 9
CALIFORNIA PIZZA KITCHEN
Pro Forma Tax Shield Effect of Recapitalization Scenarios
(Dollars in thousands, except share data; figures based on end of June 2007)
Debt/Total Capital
20%
Actual
10%
6.16%
32.5%
6.16%
32.5%
6.16%
32.5%
6.16%
32.5%
30,054
0
30,054
1,391
30,054
2,783
30,054
4,174
30,054
9,755
20,299
28,663
9,303
19,359
27,271
8,852
18,419
25,880
8,400
17,480
0
225,888
225,888
22,589
203,299
225,888
45,178
180,710
225,888
67,766
158,122
225,888
22,589
45,178
67,766
643,773
643,773
628,516
651,105
613,259
658,437
598,002
665,769
Book value:
Debt
Equity
Total capital
30%
Market value:
Debt(3)
(4)
Equity
Market value of capital
Notes:
(1)
Interest rate of CPK's credit facility with Bank of America: LIBOR + 0.80%.
(2)
(3)
(4)
Actual market values of equity equals the share price ($22.10) multiplied by the current number of shares outstanding (29.13 million).