Consolidated Statements of Operations (in thousands, except share and per share amounts) Fifty-Two Fifty-Two Fifty-Three Weeks Ended Weeks Ended Weeks Ended March 28, March 30, March 31, 2004 2003 2002 Revenues Sales $20,765 $ 24,762 $27,425 Franchise fees and royalties 6,286 5,977 7,944 License royalties 2,970 2,585 2,038 Interest income 199 292 500 Investment and other income 459 156 1,568 Total revenues 30,679 33,772 39,475 Costs and Expenses Cost of sales 14,775 16,592 18,269 Restaurant operating expenses 3,806 5,621 6,559 Depreciation and amortization 971 1,314 1,395 Amortization of intangible assets 261 278 888 General and administrative expenses 7,519 8,600 9,292 Interest expense 75 132 256 Impairment charge on long-lived assets 25 1,367 392 Impairment charge on notes receivable 208 1,425 185 Other expense (income), net 45 232 (210) Total costs and expenses 27,685 35,561 37,026 Income (loss) from continuing operations before provision (benefit)  for income taxes 2,994 (1,789) 2,449 Provision (benefit) for income taxes 1,100 (283) 1,057 Income (loss) from continuing operations 1,894 (1,506) 1,392 Loss from discontinued operations, net of income tax benefit of $(82) and  $(95) in 2003 and 2002, respectively — (124) (143) Income (loss) from operations before cumulative effect of a change in  accounting principle 1,894 (1,630) 1,249 Cumulative effect of change in accounting principle, net of tax benefit  of $(854) in 2003 — (12,338) — Net income (loss) $ 1,894 $(13,968) $ 1,249 Per Share Information Basic income (loss) per share: Income (loss) from continuing operations $ .36 $ (.25) $ .20 Loss from discontinued operations — (.03) (.02) Cumulative effect of change in accounting principle — (2.06) — Net income (loss) $ .36 $ (2.34) $ .18 Diluted income (loss) per share: Income (loss) from continuing operations $ .33 $ (.25) $ .20 Loss from discontinued operations — (.03) (.02) Cumulative effect of change in accounting principle — (2.06) — Net income (loss) $ .33 $ (2.34) $ .18 Weighted-average shares used in computing net income (loss) per share Basic 5,306,000 5,976,000 7,048,000 Diluted 5,678,000 5,976,000 7,083,000 The accompanying notes are an integral part of these statements. 2004 Annual Report  Nathan’s Famous, Inc. & Subsidiaries page fourteen