Year Ended

December 29,

2002

December 30,

2001

December 31,

2000

Cash Flows From Operating Activities:

Net income

$

8,263,329

$

7,724,006

$

15,430,547

Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:

Amortization of deferred stock-based compensation

79,568

—  

—  

Depreciation and amortization

12,883,405

10,491,058

8,065,141

Amortization of debt issuance costs

359,667

223,139

83,882

Write-off of unamortized debt issuance costs

2,447,507

—  

—  

Non cash restaurant closure and impairment costs

1,132,814

36,359

1,302,186

Impairment of real estate held for sale

150,000

—  

—  

Loss (gain) on sale of property and equipment

16,568

191,552

(61,832

)

Non cash gain on lease buyout

(451,881

)

—  

—  

Provision for doubtful accounts, net of charge-offs

119,168

698,316

1,272,256

Stock option income tax benefits

652,354

—  

—  

Accrued interest on stockholders/officers notes

(252,232

)

—  

—  

Provision (benefit) for deferred income taxes

1,364,894

1,224,469

(13,235,077

)

Changes in operating assets and liabilities:

Accounts receivable

904,802

531,837

(1,981,133

)

Inventories

(424,766

)

(138,626

)

(1,051,706

)

Prepaid expenses and other current assets

(882,351

)

(206,229

)

(906,078

)

Income tax refund receivable

(129,517

)

1,020,116

(254,491

)

Other assets

(236,989

)

72,192

345,880

Trade accounts payable and accrued liabilities

2,722,425

3,426,428

(1,486,592

)

Deferred rent payable

394,847

467,693

660,741

Net cash provided by operating activities

29,113,612

25,762,310

8,183,724

Cash Flows From Investing Activities:

Proceeds from sales of real estate, property and equipment

920,264

2,648,232

1,209,449

Purchases of property and equipment

(39,648,683

)

(18,675,387

)

(20,196,996

)

Acquisition of Western Franchise Development, net of cash acquired

(6,295,766

)

—  

—  

Acquisition of the Snyder Group Company

—  

(56,024

)

(1,572,900

)

Issuance of notes receivable—stockholder/officer

—  

(300,000

)

(300,000

)

Net cash used in investing activities

(45,024,185

)

(16,383,179

)

(20,860,447

)

Cash Flows From Financing Activities:

Borrowings of long-term debt

18,768,500

6,376,775

53,133,034

Payments of long-term debt and capital leases

(58,875,664

)

(4,702,184

)

(48,007,002

)

Debt issuance costs

(1,528,991

)

(459,419

)

(2,052,642

)

Repayment of debentures

—  

—  

(9,160,363

)

Repayment of promissory note

—  

—  

(1,799,938

)

Sale of common stock to Quad C, a related party

—  

—  

23,040,201

Proceeds from sale of common stock, net

42,796,967

81,024

664,132

Proceeds from exercise of stock options

554,233

—  

—  

Net cash provided by financing activities

1,715,045

1,296,196

15,817,422

Net (decrease) increase in cash and cash equivalents

$

(14,195,528

)

$

10,675,327

$

3,140,699

Cash and cash equivalents, beginning of period

18,992,153

8,316,826

5,176,127

Cash and cash equivalents, end of period

$

4,796,625

$

18,992,153

$

8,316,826