Condensed Consolidating Financial Statements

NPC’s obligations under the 10 1/2% Senior Notes due 2020 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, NPCQB and NPC Operating Company B, Inc. (“NPC Op Co B”) are 100% owned by NPC. NPC Op Co B does not have any assets, operations or cash flows as of March 31, 2015. Holdings and subsidiary guarantees are joint and several, full and unconditional. The following summarizes the Company’s condensed consolidating information as of March 31, 2015 and December 30, 2014, and for each of the 13-week periods ended March 31, 2015 and April 1, 2014 (in thousands):

Condensed Consolidating Statements of Income




	13 Weeks Ended March 31, 2015
	Parent		Subsidiary		Subsidiary		Subsidiary
	Guarantor: Holdings		Issuer: NPC		Co-Issuer: NPCQB		Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Total sales	$	—	$	260,567	$	48,641	$	—	$	—		$	309,208
Total costs and expenses	—		245,852		47,169		—		—			293,021
Operating income	—		14,715		1,472		—		—			16,187
Interest expense	—		10,465		—		—		—			10,465
Equity in net income of subsidiary	4,975		1,280		—		—		(6,255		)	—
Income before income taxes	4,975		5,530		1,472		—		(6,255		)	5,722
Income tax expense	—		555		192		—		—			747
Net income	$	4,975	$	4,975	$	1,280	$	—	$	(6,255	)	$	4,975




	13 Weeks Ended April 1, 2014
	Parent		Subsidiary			Subsidiary			Subsidiary
	Guarantor: Holdings		Issuer: NPC			Co-Issuer: NPCQB			Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Total sales	$	—	$	266,368		$	29,885		$	—	$	—		$	296,253
Total costs and expenses	—		251,970			29,886			—		—			281,856
Operating income (loss)	—		14,398			(1		)	—		—			14,397
Interest expense	—		10,162			—			—		—			10,162
Equity (deficit) in net income of subsidiary	2,965		(9		)	—			—		(2,956		)	—
Income (loss) before income taxes	2,965		4,227			(1		)	—		(2,956		)	4,235
Income tax expense	—		1,271			8			—		—			1,279
Net income (loss)	$	2,965	$	2,956		$	(9	)	$	—	$	(2,956	)	$	2,956

Condensed Consolidating Balance Sheet



	March 31, 2015
	Parent		Subsidiary		Subsidiary		Subsidiary
	Guarantor: Holdings		Issuer: NPC		Co-Issuer: NPCQB		Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Assets:
Current assets	$	—	$	56,649	$	10,419	$	—	$	—		$	67,068
Facilities and equipment, net	—		161,311		37,838		—		—			199,149
Franchise rights, net	—		588,759		45,660		—		—			634,419
Goodwill	—		290,502		4,124		—		—			294,626
Investment in subsidiary	272,000		77,292		—		—		(349,292		)	—
Other assets, net	—		39,722		1,821		—		—			41,543
Total assets	$	272,000	$	1,214,235	$	99,862	$	—	$	(349,292	)	$	1,236,805
Liabilities and member’s equity:
Current liabilities	$	—	$	91,045	$	16,504	$	—	$	—		$	107,549
Long-term debt	—		589,184		—		—		—			589,184
Other liabilities and deferred items	—		55,039		5,481		—		—			60,520
Deferred income taxes	—		206,967		585		—		—			207,552
Member’s equity	272,000		272,000		77,292		—		(349,292		)	272,000
Total liabilities and member’s equity	$	272,000	$	1,214,235	$	99,862	$	—	$	(349,292	)	$	1,236,805



	December 30, 2014
	Parent		Subsidiary		Subsidiary		Subsidiary
	Guarantor: Holdings		Issuer: NPC		Co-Issuer: NPCQB		Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Assets:
Current assets	$	—	$	51,700	$	10,210	$	—	$	—		$	61,910
Facilities and equipment, net	—		162,248		35,874		—		—			198,122
Franchise rights, net	—		592,633		46,412		—		—			639,045
Goodwill	—		290,502		4,124		—		—			294,626
Investment in subsidiary	267,025		75,902		—		—		(342,927		)	—
Other assets, net	—		40,794		1,858		—		—			42,652
Total assets	$	267,025	$	1,213,779	$	98,478	$	—	$	(342,927	)	$	1,236,355
Liabilities and member’s equity:
Current liabilities	$	—	$	90,701	$	16,440	$	—	$	—		$	107,141
Long-term debt	—		591,263		—		—		—			591,263
Other liabilities and deferred items	—		55,467		4,736		—		—			60,203
Deferred income taxes	—		209,323		1,400		—		—			210,723
Member’s equity	267,025		267,025		75,902		—		(342,927		)	267,025
Total liabilities and member’s equity	$	267,025	$	1,213,779	$	98,478	$	—	$	(342,927	)	$	1,236,355

Condensed Consolidating Statements of Cash Flows



	13 Weeks Ended March 31, 2015
	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	$	—	$	20,689		$	3,761		$	—	$	—		$	24,450
Investing activities:
Capital expenditures	—		(7,127		)	(3,891		)	—		—			(11,018		)
Investment in NPCQB	—		(110		)	—			—		110			—
Proceeds from sale or disposition of assets	—		258			38			—		—			296
Net cash flows used in investing activities	—		(6,979		)	(3,853		)	—		110			(10,722		)
Financing activities:
Investment from parent	—		—			110			—		(110		)	—
Net payments on debt	—		(2,079		)	—			—		—			(2,079		)
Net cash flows (used in) provided by financing activities	—		(2,079		)	110			—		(110		)	(2,079		)
Net change in cash and cash equivalents	—		11,631			18			—		—			11,649
Beginning cash and cash equivalents	—		11,278			785			—		—			12,063
Ending cash and cash equivalents	$	—	$	22,909		$	803		$	—	$	—		$	23,712



	13 Weeks Ended April 1, 2014
	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	$	—	$	20,390		$	4,383		$	—	$	—		$	24,773
Investing activities:
Capital expenditures	—		(18,191		)	(1,055		)	—		—			(19,246		)
Return of investment in NPCQB	—		3,387			—			—		(3,387		)	—
Proceeds from sale or disposition of assets	—		324			—			—		—			324
Net cash flows used in investing activities	—		(14,480		)	(1,055		)	—		(3,387		)	(18,922		)
Financing activities:
Accrued purchase price paid to sellers	—		(10,875		)	—			—		—			(10,875		)
Net payments on debt	—		(7,625		)	—			—		—			(7,625		)
Distribution to parent	—		—			(3,387		)	—		3,387			—
Net cash flows used in financing activities	—		(18,500		)	(3,387		)	—		3,387			(18,500		)
Net change in cash and cash equivalents	—		(12,590		)	(59		)	—		—			(12,649		)
Beginning cash and cash equivalents	—		19,170			865			—		—			20,035
Ending cash and cash equivalents	$	—	$	6,580		$	806		$	—	$	—		$	7,386