/2ÿñH0      d 1$&%*ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ-ñ'ARK RESTAURANTS CORP. AND SUBSIDIARIES"ñ'CONSOLIDATED BALANCE SHEETSñ^September 27,ñ^September 28, ñ^1997 ñ^1996 ñ'ASSETSñ'CURRENT ASSETS: ñ'Cash and cash equivalentsñ"$ 772,283ñ"$ 907,003ñ'Accounts receivableñ"1,975,434ñ"1,462,4998ñ 'Current portion of long-term receivables (Note 2)ñ "227,402 À ðïö@ñ 'Inventories (Note 3)ñ "2,044,689ñ "1,168,384&ñ 'Deferred income taxes (Note 12)ñ "915,534ñ "631,0270ñ 'Prepaid expenses and other current assetsñ "432,816ñ "545,777ñ'Total current assetsñ"6,368,158ñ"4,808,641%ñ'LONG-TERM RECEIVABLES (Note 2)ñ"971,023 À`þA$ñ'ASSETS HELD FOR SALE (Note 3)ñ"1,892,639 À¥ñCA/ñ'FIXED ASSETS -- At cost (Notes 4 and 7);ñ'Leasehold improvementsñ"22,526,150ñ"13,019,524(ñ'Furniture, fixtures and equipmentñ"18,387,492ñ"11,113,933)ñ'Leasehold improvements in progress ñ"50,053ñ"6,289,726ñ"40,963,695ñ"30,423,1835ñ'Less accumulated depreciation and amortizationñ"14,037,200 À Ú™eAñ"26,926,495ñ"19,098,042(ñ 'INTANGIBLE ASSETS -- Net (Note 4)ñ "3,346,176 À €¤MA&ñ"'DEFERRED INCOME TAXES (Note 12)ñ""1,081,006 À"V},Añ$'OTHER ASSETS (Note 5)ñ$"682,601ñ$"679,720ñ&"$41,268,098ñ&"$32,379,479+ñ('LIABILITIES AND SHAREHOLDERS' EQUITYñ)'CURRENT LIABILITIES: ñ*'Accounts payable -- tradeñ*"$ 3,560,250ñ*"$ 2,365,939>ñ+'Accrued expenses and other current liabilities (Note 6)ñ+"3,098,356 À+NGA?ñ-'Current maturities of capital lease obligations (Note 8)ñ-"245,412 À-¸f A4ñ/'Current maturities of long-term debt (Note 7)ñ/"1,424,129ñ/"150,689%ñ0'Accrued income taxes (Note 12)ñ0"413,870ñ0"324,394 ñ2'Total current liabilitiesñ2"8,742,017ñ2"6,112,5610ñ4'OBLIGATIONS UNDER CAPITAL LEASES (Note 8)ñ4"406,533 À4–6$ABñ6'LONG-TERM DEBT -- Net of current maturities (Notes 4 and 7)ñ6"4,702,668 À6@žÚWA/ñ8'OPERATING LEASE DEFERRED CREDIT (Note 8)ñ8"1,528,000 À8øš7A4ñ:'COMMITMENTS AND CONTINGENCIES (Notes 7 and 8)0ñ;'SHAREHOLDERS' EQUITY (Notes 7, 9 and 10):Gñ<'Common stock, par value $.01 per share -- authorized, 10,000,000Cñ='shares; issued, 5,177,836 and 4,608,882 shares, respectively ñ="51,779 À= æ@!ñ?'Additional paid-in capitalñ?"14,131,383ñ?"7,790,242ñ@'Retained earningsñ@"12,953,117ñ@"11,215,462ñB"27,136,279ñB"19,051,793,ñC'Less treasury stock, 1,345,337 sharesñC"1,247,399ñC"1,247,399ñE"25,888,880ñE"17,804,394ñG"$41,268,098ñG"$32,379,4795ñI'See notes to consolidated financial statements-ñK'ARK RESTAURANTS CORP. AND SUBSIDIARIES,ñL'CONSOLIDATED STATEMENTS OF OPERATIONSñN^Year EndedñO^September 27,ñO^September 28,ñO^September 30, ñP^1997 ñP^1996 ñP^1995ñR'NET SALESñR"$ 104,326,386ñR"$ 76,795,940ñR"$ 73,026,907ñT'COST OF SALESñT"28,451,887ñT"20,861,465ñT"20,024,944ñW'Gross restaurant profitñW"75,874,499ñW"55,934,475ñW"53,001,963&ñY'MANAGEMENT FEE INCOME (Note 11)ñY"1,153,264ñY"1,204,808 ÀY(=,Añ\"77,027,763ñ\"57,139,283ñ\"53,927,295ñ^'OPERATING EXPENSES:#ñ_'Payroll and payroll benefitsñ_"38,520,986ñ_"27,740,390ñ_"26,191,191ñ`'Occupancyñ`"13,031,811ñ`"9,843,110ñ`"9,035,078ña'Depreciationña"3,320,739ña"2,664,892ña"2,289,211 ñb'Otherñb"13,922,524ñb"11,918,198ñb"11,227,851ñd"68,796,060ñd"52,166,590ñd"48,743,331*ñf'GENERAL AND ADMINISTRATIVE EXPENSESñf"5,445,990ñf"4,474,697 Àf€0PAñi"74,242,050ñi"56,641,287ñi"52,966,501ñk'OPERATING INCOMEñk"2,785,713ñk"497,996 Àk4R-Año'OTHER EXPENSE (INCOME): ñp'Interest expense (Note 7)ñp"755,383ñp"425,810ñp"359,159ñq'Interest incomeñq"(71,652)ñq"(86,708)ñq"(77,856)ñr'Other income (Note 13)ñr"(780,281)ñr"(1,082,717)ñr"(1,219,066)ñt"(96,550)ñt"(743,615)ñt"(937,763)/ñv'INCOME BEFORE PROVISION FOR INCOME TAXESñv"2,882,263ñv"1,241,611 Àv=ø