Real Mex Restaurants, Inc.

CIK:0001289480|SEC Filings

Consolidated Statements of Operations (Unaudited) (USD $) In Thousands	3 Months Ended	6 Months Ended	3 Months Ended	6 Months Ended
	Jun. 27, 2010 Predecessor	Jun. 27, 2010 Predecessor	Jun. 26, 2011 Successor	Jun. 26, 2011 Successor
Revenues:
Restaurant revenues	$ 119,282	$ 229,417	$ 116,451	$ 222,565
Manufacturing and distribution revenues	9,428	18,875	9,864	19,248
Franchise and other revenues	927	1,764	865	1,600
Total revenues	129,637	250,056	127,180	243,413
Restaurant costs
Cost of sales	28,854	55,597	27,981	53,878
Labor	41,429	82,153	41,772	79,694
Direct operating and occupancy expense	32,627	64,799	33,234	64,404
Total restaurant costs	102,910	202,549	102,987	197,976
Manufacturing and distribution costs	7,997	14,833	9,353	17,690
General and administrative expense	5,485	11,078	6,322	12,826
Depreciation and amortization	6,401	12,715	5,516	11,037
Impairment of goodwill and intangible assets			71,321	71,321
Total costs and expenses	122,793	241,175	195,499	310,850
Operating (loss) income	6,844	8,881	(68,319)	(67,437)
Other income (expense):
Interest expense	(7,643)	(15,306)	(7,062)	(14,081)
Other (expense) income, net		116	(65)	(116)
Total other expense, net	(7,643)	(15,190)	(7,127)	(14,197)
Loss before income tax (benefit) provision	(799)	(6,309)	(75,446)	(81,634)
Income tax (benefit) provision	(29)	(41)		44
Net loss	$ (770)	$ (6,268)	$ (75,446)	$ (81,678)

Consolidated Statements of Cash Flows (Unaudited) (USD $) In Thousands	6 Months Ended
	Jun. 27, 2010 Predecessor	Jun. 26, 2011 Successor
Operating activities
Net loss	$ (6,268)	$ (81,678)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation	10,929	10,082
Amortization of:
Favorable lease asset and unfavorable lease liability, net	1,786	955
Debt discount	1,857	65
Deferred financing costs	1,244	1,238
Impairment of goodwill and intangible assets		71,321
Loss on disposal of property and equipment	13	14
Stock-based compensation expense	49	(15)
Changes in operating assets and liabilities:
Trade and other receivables	(154)	(332)
Inventories	(885)	(528)
Prepaid expenses and other current assets	434	(534)
Other assets	66	(100)
Accounts payable and accrued liabilities	205	(4,363)
Other liabilities	814	1,024
Net cash (used in) provided by operating activities	10,090	(2,851)
Investing activities
Purchases of property and equipment	(5,078)	(3,727)
Net proceeds from disposal of property and equipment	2
Net cash used in investing activities	(5,076)	(3,727)
Financing activities
Net borrowings under revolving credit facility		5,200
Borrowing under long-term debt agreements	1,417	1,411
Payments on long-term debt agreements and capital lease obligations	(1,312)	(1,081)
Payments of financing costs	(75)
Net cash provided by financing activities	30	5,530
Net (decrease) increase in cash and cash equivalents	5,044	(1,048)
Cash and cash equivalents at beginning of period	3,317	3,359
Cash and cash equivalents at end of period	8,361	2,311
Supplemental disclosure of cash flow information
Interest paid	9,564	9,997
Income taxes paid (refunded)	(41)	44
Supplemental disclosure of noncash investing and financing activities
In-kind interest on senior unsecured credit facility added to principal	$ 2,212	$ 2,605

Consolidated Balance Sheets (Unaudited) (USD $) In Thousands	Jun. 26, 2011	Dec. 26, 2010
Current assets:
Cash and cash equivalents	$ 2,311	$ 3,359
Trade receivables, net	8,671	8,295
Other receivables	577	621
Inventories, net	12,146	11,618
Prepaid expenses	3,430	2,877
Current portion of favorable lease asset, net	3,352	3,357
Other current assets	229	248
Total current assets	30,716	30,375
Property and equipment, net	65,977	72,730
Goodwill	46,000	113,721
Trademarks and other intangible assets	38,500	42,100
Deferred charges	3,472	4,710
Favorable lease asset, less current portion, net	9,982	11,655
Other assets	6,253	6,154
Total assets	200,900	281,445
Current liabilities:
Accounts payable	15,145	18,745
Accrued self-insurance reserves	9,962	13,212
Accrued compensation and benefits	12,139	12,091
Accrued interest	10,362	10,188
Other accrued liabilities	9,417	10,146
Current portion of long-term debt	169,234	507
Current portion of capital lease obligations	257	269
Total current liabilities	226,516	65,158
Long-term debt, less current portion	307	160,693
Capital lease obligations, less current portion	385	514
Deferred tax liabilities	19,522	19,522
Unfavorable lease liability, less current portion, net	5,152	5,870
Other liabilities	3,234	2,211
Total liabilities	255,116	253,968
Commitments and contingencies
Stockholders' equity (deficit):
Common stock, $.001 par value, 1,000 shares authorized, issued and outstanding at June 26, 2011 and December 26, 2010
Additional paid-in capital	45,245	45,260
Accumulated deficit	(99,461)	(17,783)
Total stockholder's equity (deficit)	(54,216)	27,477
Total liabilities and stockholders' equity (deficit)	$ 200,900	$ 281,445