repurchase program, we repurchased one million shares of common stock in open market transactions and a private transaction at a total cost of $3,670,000 through the quarter ended September 29, 2002. On October 7, 2002, Nathan’s was authorized to purchase up to one million additional shares of its common stock. Through March 28, 2004, Nathan’s purchased 851,301 shares of common stock at a cost of approximately $3,251,000. Nathan’s has not purchased any addi- tional shares of common stock after March 28, 2004. To date, Nathan’s has purchased a total of 1,851,301 shares of common stock at a cost of approximately $6,921,000. Nathan’s expects to make additional purchases of stock from time to time, depending on market conditions, in open market or in privately negotiated transactions, at prices deemed appropriate by management. There is no set time limit on the purchases. Nathan’s expects to fund these stock repur- chases from its operating cash flow. 2003 period as compared to $238,000 during the fiscal 2002 period. The fiscal 2003 loss before tax included $428,000 of additional depreciation expense due to a change in the estimated useful lives of the restaurants operating within Home Depot Improvement Centers for which Nathan’s received early lease termination notifications dur- ing the second quarter fiscal 2003 period. In the first quarter fiscal 2003 period, Nathan’s adopted SFAS No. 142, “Goodwill and Other Intangibles.” In connection with the implementation of this new standard, Goodwill, Trademarks, Trade Names and Recipes were deemed to be impaired and their carrying value was written down by $13,192,000, or $12,338,000, net of tax. We are not a party to any off-balance sheet arrangements. Cash and cash equivalents at March 28, 2004 aggregated $3,449,000, increasing by $2,034,000 during fiscal 2004. At March 28, 2004, marketable securities increased by $2,854,000 from March 30, 2003 to $7,477,000 and net working capital increased to $9,185,000 from $5,935,000 at March 30, 2003. Cash provided by operations was $5,276,000 in fiscal 2004 as compared to $2,296,000 in fiscal 2003. The fiscal 2004 increase resulted primarily from higher operating profits. Additionally, Nathan’s applied its expected Net Operating Loss from the fiscal year ended March 2003 against its estimated tax payments for its fiscal year ending March 28, 2004 reducing current year Federal tax pay- ments by approximately $668,000. During fiscal 2004, Nathan’s received repayments on notes receivable of $797,000 and proceeds from the sale of three restaurants and other fixed assets of $489,000. We incurred capital expenditures of $449,000 during fiscal 2004. Nathan’s continued to repurchase shares of common stock pur- suant to its Stock Repurchase Program having repurchased 210,063 shares of common stock at a total cost of $928,000. We also repaid notes payable and obligations under capital leases in the amount of $187,000 during fiscal 2004. On September 14, 2001, Nathan’s was authorized to purchase up to one million shares of its common stock. Pursuant to our stock At June 7, 2004, there were 30 properties that we either owned or leased from third parties which we leased or sublet to franchisees, operating managers and non-franchisees. We remain contingently liable for all costs associated with these properties including: rent, property taxes and insurance. Additionally, we guaranteed financing on behalf of certain franchisees with two third-party lenders. Our maximum obligation for loans funded by the lenders as of March 28, 2004 was approximately $566,000.  In connection with our acquisition of Miami Subs, we deter- mined that up to 18 underperforming restaurants would be closed pursuant to our divestiture plan. We have terminated leases on 17 of those properties and sold the remaining property to a non-franchisee. Since acquiring Miami Subs, we have accrued approximately $1,461,000 and made payments of approximately $1,282,000 for lease obligations and termination costs, as part of the acquisition, for units having total future minimum lease obligations of $8,298,000 that had remaining lease terms of one year up to approximately 17 years. We may incur future cash payments, consisting primarily of future lease payments, including costs and expenses associated with terminating additional leases, that were not part of our divestiture plan.  We expect that we will make additional investments in certain existing restaurants and to support the growth of the Branded Product Program in the future and to fund those investments from our operating cash flow. We may further incur additional capital expenditures in connection with the replacement of the restaurant whose lease will expire in September 2004. The following schedule represents Nathan’s cash contractual obligations by maturity (in thousands): 2004 Annual Report  Nathan’s Famous, Inc. & Subsidiaries page ten Liquidity and Capital Resources Off-Balance Sheet Arrangements Cumulative Effect of Change in Accounting Principle Payments Due by Period Less than After Cash Contractual Obligations Total 1 Year 1–3 Years 3–5 Years 5 Years Long-term debt $ 986 $ 167 $ 333 $ 333 $ 153 Capital lease obligations 53 6 16 19 12 Employment agreements 494 494 — — — Operating leases 19,440 3,871 7,167 4,759 3,643 Gross cash contractual obligations 20,973 4,538 7,516 5,111 3,808 Sublease income 11,154 2,075 3,885 2,682 2,512 Net cash contractual obligations $ 9,819 $2,463 $3,631 $2,429 $1,296