Asset Impairment, Estimated Lease Termination and Other Closing Costs
The following is a summary of the asset impairment, estimated lease termination and other closings costs we incurred for the periods presented:
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Three Months Ended
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(dollars in thousands)
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March 29, 2020
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March 31, 2019
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Asset impairments, net
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$
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—
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$
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348
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Lease termination charges and related costs
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117
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20
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Restaurant closure expenses
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56
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39
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Asset impairment, estimated lease termination charges and other closing costs
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$
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173
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$
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407
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Income Tax Expense
Income tax benefit for the three months ended March 29, 2020 was approximately $357,000, or 2.7% of our pretax income. Income tax expense for the three months ended March 31, 2019 was approximately $17,000, or 17.2% of our pretax income.
Basic and Diluted Net Income per Common Share Attributable to Shareholders
Net income attributable to shareholders for the three months ended March 29, 2020 was approximately $13.7 million, or $1.51 and $1.50 per basic and diluted share, respectively. The basic and diluted weighted-average number of common shares outstanding for the three months ended March 29, 2020 were approximately 9,083,000 and 9,164,000, respectively. Net income for the three months ended March 31, 2019 was approximately $82,000, or $0.01 per basic and diluted share. The basic and diluted weighted-average number of common shares outstanding for the three months ended March 31, 2019 was approximately 9,085,000 and 9,189,000, respectively.
Financial Condition, Liquidity and Capital Resources
Our balance of unrestricted cash and cash equivalents was approximately $8.0 million and $5.3 million as of March 29, 2020 and December 29, 2019, respectively. We used cash to purchase one Real Urban Barbeque restaurant in Illinois and 18 Granite City restaurants in 11 states. We were able to build cash by delaying payments to our vendors as a means to combat the effect of the COVID-19 pandemic.
On June 20, 2019 we entered into a loan agreement with our lender, Choice Financial Group. The loan agreement provides for a term loan in the principal amount of up to $24.0 million. The term loan has a maturity date of June 20, 2025. As of March 30, 2020, the term loan had an outstanding balance of approximately $15.0 million.
Our current ratio, which measures our immediate short-term liquidity, was 0.8 as of March 29, 2020, compared to 1.0 as of December 29, 2019. The current ratio is computed by dividing total current assets by total current liabilities.
Net cash used in operating activities for the three months ended March 29, 2019 was approximately $262,000, which reflects net income of approximately $13.3 million reduced primarily by the $14.4 million non-cash bargain purchase gain on the Granite City Acquisition. Changes in operating assets and liabilities for the three months ended March 29, 2020 primarily included cash inflows from an increase in accounts payable of $3.1 million. These cash inflows were partially offset by cash outflows related to a decrease in other accrued liabilities of $2.7 million.
Net cash provided by operating activities for the three months ended March 31, 2019 was approximately $1.6 million, which reflects net income of approximately $82,000 increased by non-cash charges of approximately $785,000. Changes in operating assets and liabilities for the three months ended March 31, 2019 primarily included cash inflows for accounts receivable of $743,000 and other assets of $53,000. These cash inflows were partially offset by cash outflows related to a decrease in accounts payable of $9,000 and a decrease in accrued and other liabilities of $24,000.
Net cash used for investing activities was approximately $4.9 million for the three months ended March 29, 2020, related to payments for acquired restaurants of $4.0 million and the purchase of property, equipment and leasehold improvements of $949,000. Net cash used for investing activities was approximately $4.2 million for the three months ended March 31, 2019, related to payments for acquired restaurants of $3.8 million, advances on notes receivable of $150,000 and the purchase of property, equipment and leasehold improvements of $221,000, partially offset by proceeds from the sale of fixed assets of $6,000.