INVESTMENT IN UNCONSOLIDATED INVESTEES

3 Months Ended

Mar. 31, 2017

Equity Method Investments and Joint Ventures [Abstract]

INVESTMENT IN UNCONSOLIDATED INVESTEES

NOTE 4. INVESTMENT IN UNCONSOLIDATED INVESTEES

Investments in unconsolidated investees in which we have a 20% to 50% interest or otherwise exercise significant influence are carried at cost and adjusted for the Company’s proportionate share of their undistributed earnings or losses under the equity method of accounting.

Investments in unconsolidated investees consist of the following:

	Percentage ownership as of
	March 31, 2017			March 31, 2016
Gruppa Florentina, LLC		20.00	%	20.00	%

Gruppa Florentina, LLC is the sole shareholder of Milano Restaurants International Corporation, (“Milano”) which operates 33 pizza parlors under the trade name “Me-N-Ed’s Pizza Parlors” and four pizza parlors operating under the trade name “Blast 825 Pizza”, located primarily in Central and Northern California. Milano has a 100% ownership interest in Siena Corp, which operates two grills under the trade names “Me-N-Ed’s Victory Grill” and “Me-N-Ed’s Coney Island Grill”. Milano has a 100% ownership interest in Piazza del Pane, Inc., which operates two restaurants located in Central California. Milano also has 23 franchised locations, including two operating, under the trade name Angelo & Vito’s Pizzerias.

The following is a summary of the financial position and results of operations from our investees (dollars in thousands):

As of March 31,	2017			2016
Real estate, net of accumulated depreciation	$	13,499		$	13,620
Notes receivable		9,764			8,657
Other assets		28,313			29,494
Notes payable		(9,449	)		(10,555	)
Other liabilities		(5,958	)		(5,146	)
Shareholders’ equity		(36,169	)		(36,071	)

For the Three Months Ended March 31,		2017			2016
Revenue	$	13,614		$	13,414
Depreciation		(288	)		(288	)
Operating expenses		(12,614	)		(12,235	)
Interest expense		182			(205	)
Income from continuing operations		894			687
Net income	$	894		$	687
Company’s proportionate share of earnings	$	179		$	137