Condensed Consolidating Financial Statements

NPC’s obligations under the Senior Notes and Senior Secured Credit Facilities are fully guaranteed by Holdings. As of the date hereof, Holdings’ only material asset is 100% of the stock of NPC. The remaining co-issuers with NPC, NPC Quality Burgers, Inc. (“NPCQB”) (f/k/a NPC Operating Company A, Inc.) and NPC Operating Company B, Inc. (“NPC Op Co B”) do not have any assets, operations or cash flows as of June 25, 2013 and are 100% owned by NPC. Holdings and subsidiary guarantees are joint and several, full and unconditional. The following summarizes the Company’s condensed consolidating information as of June 25, 2013 and December 25, 2012, and for each of the 13-week and 26-week periods ended June 25, 2013 and June 26, 2012 (in thousands):

Condensed Consolidating Statements of Income



	13 Weeks Ended June 25, 2013
	Parent		Subsidiary		Subsidiary		Subsidiary
	Guarantor: Holdings		Issuer: NPC		Co-Issuer: NPCQB		Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Total sales	$	—	$	261,958	$	—	$	—	$	—		$	261,958
Total costs and expenses	—		241,044		—		—		—			241,044
Operating income	—		20,914		—		—		—			20,914
Interest expense	—		10,237		—		—		—			10,237
Equity in net income of subsidiary	8,088		—		—		—		(8,088		)	—
Income before income taxes	8,088		10,677		—		—		(8,088		)	10,677
Income tax expense	—		2,589		—		—		—			2,589
Net income	$	8,088	$	8,088	$	—	$	—	$	(8,088	)	$	8,088



	13 Weeks Ended June 26, 2012
	Parent		Subsidiary		Subsidiary		Subsidiary
	Guarantor: Holdings		Issuer: NPC		Co-Issuer: NPCQB		Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Total sales	$	—	$	263,561	$	—	$	—	$	—		$	263,561
Total costs and expenses	—		242,839		—		—		—			242,839
Operating income	—		20,722		—		—		—			20,722
Interest expense	—		11,467		—		—		—			11,467
Loss on debt extinguishment	—		5,144		—		—		—			5,144
Equity in net income of subsidiary	2,989		—		—		—		(2,989		)	—
Income before income taxes	2,989		4,111		—		—		(2,989		)	4,111
Income tax expense	—		1,122		—		—		—			1,122
Net income	$	2,989	2,989		$	—	$	—	$	(2,989	)	2,989



	26 Weeks Ended June 25, 2013
	Parent		Subsidiary		Subsidiary		Subsidiary
	Guarantor: Holdings		Issuer: NPC		Co-Issuer: NPCQB		Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Total sales	$	—	$	540,927	$	—	$	—	$	—		$	540,927
Total costs and expenses	—		494,162		—		—		—			494,162
Operating income	—		46,765		—		—		—			46,765
Interest expense	—		20,477		—		—		—			20,477
Equity in net income of subsidiary	21,332		—		—		—		(21,332		)	—
Income before income taxes	21,332		26,288		—		—		(21,332		)	26,288
Income tax expense	—		4,956		—		—		—			4,956
Net income	$	21,332	$	21,332	$	—	$	—	$	(21,332	)	$	21,332



	26 Weeks Ended June 26, 2012
	Parent		Subsidiary		Subsidiary		Subsidiary
	Guarantor: Holdings		Issuer: NPC		Co-Issuer: NPCQB		Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Total sales	$	—	$	533,975	$	—	$	—	$	—		$	533,975
Total costs and expenses	—		488,377		—		—		—			488,377
Operating income	—		45,598		—		—		—			45,598
Interest expense	—		24,381		—		—		—			24,381
Loss on debt extinguishment	—		5,144		—		—		—			5,144
Equity in net income of subsidiary	11,994		—		—		—		(11,994		)	—
Income before income taxes	11,994		16,073		—		—		(11,994		)	16,073
Income tax expense	—		4,079		—		—		—			4,079
Net income	$	11,994	$	11,994	$	—	$	—	$	(11,994	)	$	11,994

Condensed Consolidating Balance Sheet



	June 25, 2013
	Parent		Subsidiary		Subsidiary		Subsidiary
	Guarantor: Holdings		Issuer: NPC		Co-Issuer: NPCQB		Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Assets:
Current assets	$	—	$	103,436	$	—	$	—	$	—		$	103,436
Facilities and equipment, net	—		145,461		—		—		—			145,461
Franchise rights, net	—		615,262		—		—		—			615,262
Goodwill	—		290,502		—		—		—			290,502
Investment in subsidiary	256,803		—						(256,803		)	—
Other assets, net	—		44,563		—		—		—			44,563
Total assets	$	256,803	$	1,199,224	$	—	$	—	$	(256,803	)	$	1,199,224
Liabilities and member’s equity:
Current liabilities	$	—	$	107,273	$	—	$	—	$	—		$	107,273
Long-term debt	—		557,500		—		—		—			557,500
Other liabilities and deferred items	—		58,787		—		—		—			58,787
Deferred income taxes	—		218,861		—		—		—			218,861
Member’s equity	256,803		256,803						(256,803		)	256,803
Total liabilities and member’s equity	$	256,803	$	1,199,224	$	—	$	—	$	(256,803	)	$	1,199,224



	December 25, 2012
	Parent		Subsidiary		Subsidiary		Subsidiary
	Guarantor: Holdings		Issuer: NPC		Co-Issuer: NPCQB		Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Assets:
Current assets	$	—	$	68,786	$	—	$	—	$	—		$	68,786
Facilities and equipment, net	—		143,625		—		—		—			143,625
Franchise rights, net	—		622,634		—		—		—			622,634
Goodwill	—		290,502		—		—		—			290,502
Investment in subsidiary	235,471		—		—		—		(235,471		)	—
Other assets, net	—		44,235		—		—		—			44,235
Total assets	$	235,471	$	1,169,782	$	—	$	—	$	(235,471	)	$	1,169,782
Liabilities and member’s equity:
Current liabilities	$	—	$	89,743	$	—	$	—	$	—		$	89,743
Long-term debt	—		558,125		—		—		—			558,125
Other liabilities and deferred items	—		68,153		—		—		—			68,153
Deferred income taxes	—		218,290		—		—		—			218,290
Member’s equity	235,471		235,471		—		—		(235,471		)	235,471
Total liabilities and member’s equity	$235,471		$1,169,782		$0		$0		$	(235,471	)	$1,169,782

Condensed Consolidating Statements of Cash Flows



	26 Weeks Ended June 25, 2013
	Parent		Subsidiary			Subsidiary		Subsidiary
	Guarantor: Holdings		Issuer: NPC			Co-Issuer: NPCQB		Co-Issuer: NPC Op Co B		Eliminations		Consolidated
Operating activities:
Net cash flows provided by operating activities	$	—	$	66,792		$	—	$	—	$	—	$	66,792
Investing activities:
Capital expenditures	—		(22,102		)	—		—		—		(22,102		)
Proceeds from sale or disposition of assets	—		540			—		—		—		540
Net cash flows used in investing activities	—		(21,562		)	—		—		—		(21,562		)
Financing activities:
Net cash flows used in financing activities	—		(2,938		)	—		—		—		(2,938		)
Net change in cash and cash equivalents	—		42,292			—		—		—		42,292
Beginning cash and cash equivalents	—		25,493			—		—		—		25,493
Ending cash and cash equivalents	$	—	$	67,785		$	—	$	—	$	—	$	67,785



	26 Weeks Ended June 26, 2012
	Parent			Subsidiary			Subsidiary		Subsidiary
	Guarantor: Holdings			Issuer: NPC			Co-Issuer: NPCQB		Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Operating activities:
Net cash flows provided by operating activities	$	—		$	53,160		$	—	$	—	$	—		$	53,160
Investing activities:
Capital expenditures	—			(16,040		)	—		—		—			(16,040		)
Purchase of the stock of the Company	(216,635		)	(436,081		)	—		—		216,635			(436,081		)
Purchase of business assets, net of cash acquired	—			(19,371		)	—		—		—			(19,371		)
Proceeds from sale or disposition of assets	—			24			—		—		—			24
Net cash flows used in investing activities	(216,635		)	(471,468		)	—		—		216,635			(471,468		)
Financing activities:
Retirement of predecessor entity debt and other obligations	—			(372,700		)	—		—		—			(372,700		)
Proceeds from equity contributions, net	216,635			216,635			—		—		(216,635		)	216,635
Issuance of debt	—			565,000			—		—		—			565,000
Debt issue costs	—			(31,905		)	—		—		—			(31,905		)
Interest rate derivative	—			(636		)	—		—		—			(636		)
Net cash provided by financing activities	216,635			376,394			—		—		(216,635		)	376,394
Net change in cash and cash equivalents	—			(41,914		)	—		—		—			(41,914		)
Beginning cash and cash equivalents	—			78,394			—		—		—			78,394
Ending cash and cash equivalents	$	—		$	36,480		$	—	$	—	$	—		$	36,480