EXHIBIT 99.3
FOG CUTTER CAPITAL GROUP INC.
PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in thousands, except share data)
| | Year Ended
December 31, 2006 | |
| | As Reported | | Pro forma
Adjustments | | Pro forma | |
| | | | (Unaudited) | | (Unaudited) | |
| | | | | | | |
Revenue: | | | | | | | |
Restaurant and manufacturing sales | | $ | 38,252 | | | | $ | 38,252 | |
Restaurant franchise and royalty fees | | 2,779 | | | | 2,779 | |
Real estate rental income | | 3,909 | | (3,706 | ) | 203 | |
Total revenue | | 44,940 | | (3,706 | ) | 41,234 | |
| | | | | | | |
Operating costs and expenses: | | | | | | | |
Restaurant and manufacturing cost of sales | | 21,570 | | | | 21,570 | |
Real estate operating expense | | 1,486 | | (1,331 | ) | 155 | |
Engineering and development | | 1,556 | | | | 1,556 | |
Depreciation and amortization | | 1,915 | | (448 | ) | 1,467 | |
Total operating costs and expenses | | 26,527 | | (1,779 | ) | 24,748 | |
| | | | | | | |
General and administrative expenses: | | | | | | | |
Compensation and employee benefits | | 11,911 | | | | 11,911 | |
Professional fees | | 3,819 | | | | 3,819 | |
Fees paid to related parties | | 426 | | | | 426 | |
Other | | 15,562 | | (210 | ) | 15,352 | |
Total general and administrative expenses | | 31,718 | | (210 | ) | 31,508 | |
| | | | | | | |
Non-operating income (expense): | | | | | | | |
Gain on sale of real estate | | 2,905 | | (505 | ) | 2,400 | |
Gain on sale of notes receivable | | 496 | | | | 496 | |
Interest income | | 283 | | (25 | ) | 258 | |
Interest expense | | (2,833 | ) | 1,058 | | (1,775 | ) |
Other income (loss), net | | 191 | | (6 | ) | 185 | |
Total non-operating income (expense) | | 1,042 | | 522 | | 1,564 | |
Loss before provision for income taxes, minority interests, and equity in income of equity investees | | (12,263 | ) | (1,195 | ) | (13,458 | ) |
| | | | | | — | |
Minority interest in losses | | 109 | | | | 109 | |
Equity in earnings of equity investees | | 748 | | | | 748 | |
Income tax benefit | | 1,176 | | | | 1,176 | |
Income (loss) from continuing operations | | (10,230 | ) | (1,195 | ) | (11,425 | ) |
| | | | | | | |
Basic earnings (loss) per share from continuing operations | | $ | (1.28 | ) | $ | (0.16 | ) | $ | (1.44 | ) |
Basic weighted average shares outstanding | | 7,957,428 | | | | 7,957,428 | |
Diluted earnings (loss) per share from continuing operations | | $ | (1.28 | ) | $ | (0.16 | ) | $ | (1.44 | ) |
Diluted weighted average shares outstanding | | 7,957,428 | | | | 7,957,428 | |
