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INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES AND INVESTEES
 3 Months Ended
Mar. 31, 2015
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES AND INVESTEES  
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES AND 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, 2015

 

 

March 31, 2014

 

 

Gruppa Florentina, LLC

 

 

20.00

%

 

 

20.00

%

 

Gruppa Florentina, LLC is the sole member of Milano Restaurants International Corporation, (“Milano”) which operates 35 pizza parlors under the trade name “Me-N-Ed’s Pizza Parlors” located primarily in Central and Northern California.  Milano has a 100% ownership interest in SienaCorp, 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,

 

2015

 

 

2014

 

Real estate, net of accumulated depreciation

 

$

11,981

 

 

$

10,518

 

Notes receivable

 

 

7,528

 

 

 

6,730

 

Other assets

 

 

29,163

 

 

 

31,026

 

Notes payable

 

 

(10,132

)

 

 

(10,473

)

Other liabilities

 

 

(6,182

)

 

 

(7,402

)

Shareholders' equity

 

 

(32,358

)

 

 

(30,399

)

 

 

 

 

 

 

 

 

 

For the Three Months Ended March 31,

 

 

2015

 

 

 

2014

 

Revenue

 

$

12,790

 

 

$

11,626

 

Depreciation

 

 

(288

)

 

 

(288

)

Operating expenses

 

 

(11,598

)

 

 

(10,669

)

Interest expense

 

 

(201

)

 

 

(227

)

Income from continuing operations

 

 

703

 

 

 

442

 

Income from discontinued operations

 

 

-

 

 

 

-

 

Net income

 

$

703

 

 

$

442

 

 

 

 

 

 

 

 

 

 

Company's proportionate share of earnings (1)

 

$

141

 

 

$

88

 

 

 

 

 

 

 

 

 

 

(1) Earnings represents continued and discontinued operations