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 or for the period ended June 30, 2015. Holdings and subsidiary guarantees are joint and several, full and unconditional. The following summarizes the Company’s condensed consolidating information as of June 30, 2015 and December 30, 2014, and for each of the 13-week and 26-week periods ended June 30, 2015 and July 1, 2014, respectively (in thousands):

Condensed Consolidating Statements of Operations




	13 Weeks Ended June 30, 2015
	Parent		Subsidiary			Subsidiary			Subsidiary
	Guarantor: Holdings		Issuer: NPC			Co-Issuer: NPCQB			Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Total sales	$	—	$	253,911		$	52,325		$	—	$	—		$	306,236
Total costs and expenses	—		247,557			49,328			—		—			296,885
Operating income	—		6,354			2,997			—		—			9,351
Interest expense	—		10,492			—			—		—			10,492
Equity in net income of subsidiary	72		3,643			—			—		(3,715		)	—
Income (loss) before income taxes	72		(495		)	2,997			—		(3,715		)	(1,141		)
Income tax benefit	—		(567		)	(646		)	—		—			(1,213		)
Net income	$	72	$	72		$	3,643		$	—	$	(3,715	)	$	72




	13 Weeks Ended July 1, 2014
	Parent			Subsidiary			Subsidiary		Subsidiary
	Guarantor: Holdings			Issuer: NPC			Co-Issuer: NPCQB		Co-Issuer: NPC Op Co B		Eliminations		Consolidated
Total sales	$	—		$	252,847		$	33,059	$	—	$	—	$	285,906
Total costs and expenses	—			247,780			31,823		—		—		279,603
Operating income	—			5,067			1,236		—		—		6,303
Interest expense	—			10,042			—		—		—		10,042
Equity (deficit) in net income of subsidiary	(1,374		)	797			—		—		577		—
(Loss) income before income taxes	(1,374		)	(4,178		)	1,236		—		577		(3,739		)
Income tax (benefit) expense	—			(2,804		)	439		—		—		(2,365		)
Net (loss) income	$	(1,374	)	$	(1,374	)	$	797	$	—	$	577	$	(1,374	)




	26 Weeks Ended June 30, 2015
	Parent		Subsidiary			Subsidiary			Subsidiary
	Guarantor: Holdings		Issuer: NPC			Co-Issuer: NPCQB			Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Total sales	$	—	$	514,478		$	100,966		$	—	$	—		$	615,444
Total costs and expenses	—		493,409			96,497			—		—			589,906
Operating income	—		21,069			4,469			—		—			25,538
Interest expense	—		20,957			—			—		—			20,957
Equity in net income of subsidiary	5,047		4,923			—			—		(9,970		)	—
Income before income taxes	5,047		5,035			4,469			—		(9,970		)	4,581
Income tax benefit	—		(12		)	(454		)	—		—			(466		)
Net income	$	5,047	$	5,047		$	4,923		$	—	$	(9,970	)	$	5,047




	26 Weeks Ended July 1, 2014
	Parent		Subsidiary			Subsidiary		Subsidiary
	Guarantor: Holdings		Issuer: NPC			Co-Issuer: NPCQB		Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Total sales	$	—	$	519,215		$	62,944	$	—	$	—		$	582,159
Total costs and expenses	—		499,750			61,709		—		—			561,459
Operating income	—		19,465			1,235		—		—			20,700
Interest expense	—		20,204			—		—		—			20,204
Equity in net income of subsidiary	1,582		788			—		—		(2,370		)	—
Income before income taxes	1,582		49			1,235		—		(2,370		)	496
Income tax (benefit) expense	—		(1,533		)	447		—		—			(1,086		)
Net income	$	1,582	$	1,582		$	788	$	—	$	(2,370	)	$	1,582

Condensed Consolidating Balance Sheet



	June 30, 2015
	Parent		Subsidiary		Subsidiary			Subsidiary
	Guarantor: Holdings		Issuer: NPC		Co-Issuer: NPCQB			Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Assets:
Current assets	$	—	$	65,310	$	9,285		$	—	$	—		$	74,595
Facilities and equipment, net	—		160,809		37,595			—		—			198,404
Franchise rights, net	—		584,885		44,885			—		—			629,770
Goodwill	—		290,502		4,124			—		—			294,626
Investment in subsidiary	272,072		75,112		—			—		(347,184		)	—
Other assets, net	—		37,577		1,821			—		—			39,398
Total assets	$	272,072	$	1,214,195	$	97,710		$	—	$	(347,184	)	$	1,236,793
Liabilities and member’s equity:
Current liabilities	$	—	$	89,838	$	20,664		$	—	$	—		$	110,502
Long-term debt	—		588,144		—			—		—			588,144
Other liabilities and deferred items	—		54,943		5,567			—		—			60,510
Deferred income taxes	—		209,198		(3,633		)	—		—			205,565
Member’s equity	272,072		272,072		75,112			—		(347,184		)	272,072
Total liabilities and member’s equity	$	272,072	$	1,214,195	$	97,710		$	—	$	(347,184	)	$	1,236,793



	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



	26 Weeks Ended June 30, 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	$	—	$	37,079		$	11,970		$	—	$	—		$	49,049
Investing activities:
Capital expenditures	—		(20,214		)	(6,252		)	—		—			(26,466		)
Return of investment in NPCQB	—		5,713			—			—		(5,713		)	—
Proceeds from sale-leaseback transactions	—		1,408			—			—		—			1,408
Proceeds from sale or disposition of assets	—		499			49			—		—			548
Net cash flows used in investing activities	—		(12,594		)	(6,203		)	—		(5,713		)	(24,510		)
Financing activities:
Net payments on debt	—		(3,119		)	—			—		—			(3,119		)
Distribution to parent	—		—			(5,713		)	—		5,713			—
Net cash flows used in financing activities	—		(3,119		)	(5,713		)	—		5,713			(3,119		)
Net change in cash and cash equivalents	—		21,366			54			—		—			21,420
Beginning cash and cash equivalents	—		11,278			785			—		—			12,063
Ending cash and cash equivalents	$	—	$	32,644		$	839		$	—	$	—		$	33,483



	26 Weeks Ended July 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	$	—	$	31,824		$	9,459		$	—	$	—		$	41,283
Investing activities:
Capital expenditures	—		(32,895		)	(2,210		)	—		—			(35,105		)
Return of investment in NPCQB	—		7,622			—			—		(7,622		)	—
Proceeds from sale or disposition of assets	—		2,351			22			—		—			2,373
Net cash flows used in investing activities	—		(22,922		)	(2,188		)	—		(7,622		)	(32,732		)
Financing activities:
Payment of accrued purchase price to sellers	—		(10,875		)	—			—		—			(10,875		)
Net payments on debt	—		(8,665		)	—			—		—			(8,665		)
Issuance of debt	—		40,000			—			—		—			40,000
Distribution to parent	—		—			(7,622		)	—		7,622			—
Other	—		(753		)	—			—		—			(753		)
Net cash flows provided by (used in) financing activities	—		19,707			(7,622		)	—		7,622			19,707
Net change in cash and cash equivalents	—		28,609			(351		)	—		—			28,258
Beginning cash and cash equivalents	—		19,170			865			—		—			20,035
Ending cash and cash equivalents	$	—	$	47,779		$	514		$	—	$	—		$	48,293