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INVESTMENTS IN UNCONSOLIDATED INVESTEES
 9 Months Ended
Sep. 30, 2016
Equity Method Investments and Joint Ventures [Abstract]  
INVESTMENTS 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 
   September 30, 2016   September 30, 2015 
           
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 September 30,  2016   2015 
Real estate, net of accumulated depreciation  $13,582   $13,435 
Notes receivable   9,359    8,255 
Other assets   30,332    29,393 
Notes payable   (10,231)   (10,307)
Other liabilities   (7,372)   (7,173)
Shareholders’ equity   (35,670)   (33,603)
           
For the Nine Months Ended September 30,  2016   2015 
Revenue  $40,598   $38,428 
Depreciation   (863)   (863)
Operating expenses   (37,215)   (35,144)
Interest expense   (602)   (605)
Income from continuing operations   1,918    1,816 
Income from discontinued operations   —    — 
Net income  $1,918   $1,816 
           
Company’s proportionate share of earnings (1)  $384   $363 

 

(1) Earnings represent continued and discontinued operations.