THE COLONY, Texas, Sept. 24, 2008 (GLOBE NEWSWIRE) -- Pizza Inn, Inc. (Nasdaq:PZZI) today reported net income of $2,825,000, or $0.29 per share, for the fiscal year ended June 29, 2008, versus net income of $206,000, or $0.02 per share, for the prior fiscal year. For the fourth quarter, the Company reported net income of $729,000, or $0.08 per share, for fiscal 2008 versus $658,000, or $0.06 per share, in the same quarter in the prior fiscal year. Highlights for the fourth quarter and fiscal year 2008 included:
* Comparable domestic buffet restaurant sales increased 2.3% for the fourth quarter and 3.5% for fiscal 2008 compared to the prior fiscal year. * Total comparable domestic restaurant sales increased 2.6% for fiscal 2008 and 1.8% for the fourth quarter compared to the prior fiscal year. * The fourth quarter of fiscal 2008 represented the 5th consecutive quarter of same store sales growth compared to the prior year. * General and administrative expenses decreased 23% in fiscal 2008 compared to the prior year despite fourth quarter expenses of $215,000, or $0.02 per share, related to an internal controls assessment and other compliance work in accordance with the Sarbanes-Oxley Act of 2002.
Charlie Morrison, President and CEO, commented, "It has been a great year for Pizza Inn. We accomplished nearly all of our goals in the continued effort to turn around this brand. Our positive same store sales growth is evidence of a preference by customers to choose Pizza Inn's quality over that of our competition. Much of the work completed this year will manifest itself in the opening of our next Company-operated restaurant in Denton, Texas next month. This buffet-style restaurant will showcase a new, yet familiar, look to the Pizza Inn brand which represents the future of Company-owned and franchised Pizza Inns everywhere."
Certain statements in this press release, other than historical information, may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and are intended to be covered by the safe harbors created thereby. These forward-looking statements are based on current expectations that involve numerous risks, uncertainties and assumptions. Assumptions relating to these forward-looking statements involve judgments with respect to, among other things, future economic, competitive and market conditions, regulatory framework and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond Pizza Inn's control. Although the assumptions underlying these forward-looking statements are believed to be reasonable, any of the assumptions could be inaccurate and, therefore, there can be no assurance that any forward-looking statements will prove to be accurate. In light of the significant uncertainties inherent in these forward-looking statements, the inclusion of such information should not be regarded as a representation that Pizza Inn's objectives and plans will be achieved.
Pizza Inn, Inc. (www.pizzainn.com) is headquartered in The Colony, Texas, along with its distribution division, Norco Restaurant Services Company. Pizza Inn franchises approximately 319 restaurants and owns one restaurant with annual and domestic and international chain-wide sales of approximately $150 million.
The Pizza Inn logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4933
PIZZA INN, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Year Ended
-------------------
June 29, June 24,
REVENUES: 2008 2007
-------- --------
Food and supply sales $ 43,807 $ 41,029
Franchise revenue 4,970 4,622
Restaurant sales 741 774
-------- --------
49,518 46,425
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COSTS AND EXPENSES:
Cost of sales 40,819 39,170
Franchise expenses 2,538 2,633
General and administrative expenses 2,957 3,842
Severance 391 --
Provision for bad debts 146 96
Loss (gain) on sale of assets 9 (570)
Other income -- (159)
Impairment of long-lived assets -- 48
(Recovery of) provision for litigation costs (284) 302
Interest expense -- 476
-------- --------
46,576 45,838
-------- --------
INCOME FROM CONTINUING
OPERATIONS BEFORE TAXES 2,942 587
Income taxes (99) --
-------- --------
INCOME FROM
CONTINUING OPERATIONS 3,041 587
Loss from discontinued
operations, net of income tax benefit (216) (381)
-------- --------
NET INCOME $ 2,825 $ 206
-------- --------
EARNINGS (LOSS) PER SHARE OF COMMON
STOCK - BASIC:
Income from continuing operations $ 0.31 $ 0.06
Loss from discontinued operations $ (0.02) $ (0.04)
-------- --------
Net income $ 0.29 $ 0.02
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EARNINGS (LOSS) PER SHARE OF COMMON
STOCK - DILUTED:
Income from continuing operations $ 0.31 $ 0.06
Loss from discontinued operations $ (0.02) $ (0.04)
-------- --------
Net income $ 0.29 $ 0.02
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Weighted average common
shares outstanding - basic 9,761 10,145
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Weighted average common
shares outstanding - diluted 9,789 10,146
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PIZZA INN, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)
June 29, June 24,
ASSETS 2008 2007
-------- --------
CURRENT ASSETS
Cash and cash equivalents $ 1,157 $ 1,879
Accounts receivable, less allowance for
doubtful accounts of $128 and $451,
respectively 2,773 2,716
Notes receivable, current portion 6 8
Income tax receivable 272 --
Inventories 1,396 1,518
Property held for sale 301 336
Deferred income tax assets 555 458
Prepaid expenses and other 235 165
-------- --------
Total current assets 6,695 7,080
LONG-TERM ASSETS
Property, plant and equipment, net 635 778
Notes receivable 7 12
Deferred income tax assets 237 --
Re-acquired development territory, net 46 239
Deposits and other 215 85
-------- --------
$ 7,835 $ 8,194
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable - trade $ 2,380 $ 2,082
Accrued expenses 1,316 1,805
-------- --------
Total current liabilities 3,696 3,887
LONG-TERM LIABILITIES
Deferred gain on sale of property 184 209
Deferred revenues, net of current portion 283 314
Other long-term liabilities 18 7
-------- --------
Total liabilities 4,181 4,417
-------- --------
COMMITMENTS AND CONTINGENCIES (See Notes D,
F and I)
SHAREHOLDERS' EQUITY
Common stock, $.01 par value; authorized
26,000,000 shares; issued 15,130,319 and
15,120,319 shares, respectively;
outstanding 9,104,361 and 10,168,494
shares, respectively 151 151
Additional paid-in capital 8,543 8,471
Retained earnings 17,624 14,799
Treasury stock at cost
Shares in treasury: 6,025,958 and
4,951,825, respectively (22,664) (19,644)
-------- --------
Total shareholders' equity 3,654 3,777
-------- --------
$ 7,835 $ 8,194
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PIZZA INN, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Year Ended
------------------
June 29, June 24,
2008 2007
-------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 2,825 $ 206
Adjustments to reconcile net income to cash
provided by (used for) operating
activities:
Depreciation and amortization 342 692
Impairment of long-lived assets and
goodwill -- 48
Deferred rent expense (benefit) 54 (9)
Provision for bad debt 146 96
Stock compensation expense (benefit) 51 (14)
Litigation expense (benefit) -- 302
Loss (gain) on sale of assets 9 (570)
Deferred income taxes (334) 687
Changes in operating assets and liabilities:
Deferred revenue (53) 196
Notes and accounts receivable (196) 320
Income tax receivable (272) --
Inventories 122 254
Accounts payable - trade 298 (135)
Accrued expenses (490) (3,520)
Prepaid expenses and other (83) 76
Cash provided by (used for) -------- --------
operating activities 2,419 (1,371)
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of assets 108 11,325
Capital expenditures (249) (249)
Cash (used for) provided by -------- --------
investing activities (141) 11,076
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Deferred financing costs -- (25)
Repayments of long-term bank debt -- (8,044)
Purchases of treasury stock (3,020) --
Proceeds from exercise of stock options 20 59
-------- --------
Cash used for financing activities (3,000) (8,010)
-------- --------
Net (decrease) increase in cash and cash
equivalents (722) 1,695
Cash and cash equivalents, beginning of year 1,879 184
-------- --------
Cash and cash equivalents, end of year $ 1,157 $ 1,879
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