THE COLONY, Texas, Nov. 12, 2008 (GLOBE NEWSWIRE) -- Pizza Inn, Inc. (Nasdaq:PZZI) today reported net income of $293,000, or $0.03 per share, for the first quarter ended September 28, 2008, versus net income of $345,000, or $0.03 per share, for the first quarter of the prior fiscal year. Highlights for the first quarter included:
* Comparable domestic buffet restaurant sales increased 1.1% for the first quarter of fiscal 2009 compared to the same period of the prior fiscal year. * Total domestic restaurant sales decreased 3.4% for the first quarter of fiscal 2009 compared to the same period of the prior fiscal year. * The first quarter of fiscal 2009 represented the sixth consecutive quarter of domestic same store sales growth compared to the prior year. * General and administrative expenses decreased 21% in the first quarter of fiscal 2009 compared to the same period of the prior year due primarily to lower severance expense.
Charlie Morrison, President and CEO, commented, "Our same store sales performance has remained positive in these difficult economic times, which is indicative of the continued progress we are making in restoring the Pizza Inn brand. Our newest Company-owned restaurant in Denton, TX opened in mid-October and the initial sales results have been above expectations. This new Company restaurant will be the foundation for the development of Company and franchisee restaurants in the future."
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 320 restaurants and owns two restaurants with annual and domestic and international chain-wide sales of approximately $135 million.
The Pizza Inn logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4933
PIZZA INN, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended
-------------------
Sept. 28, Sept. 23,
REVENUES: 2008 2007
-------- --------
Food and supply sales $ 10,134 $ 10,779
Franchise revenue 1,064 1,116
Restaurant sales 190 183
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11,388 12,078
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COSTS AND EXPENSES:
Cost of sales 9,655 10,072
Franchise expenses 479 620
General and administrative expenses 687 621
Severance 37 300
Bad debt 15 23
Interest expense 12 14
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10,885 11,650
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INCOME FROM CONTINUING OPERATIONS BEFORE TAXES 503 428
Income taxes 161 --
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INCOME FROM CONTINUING OPERATIONS 342 428
Loss from discontinued operations, net of
taxes (49) (83)
-------- --------
NET INCOME 293 345
-------- --------
EARNINGS PER SHARE OF COMMON STOCK - BASIC:
Income from continuing operations $ 0.04 $ 0.04
Loss from discontinued operations (0.01) $ (0.01)
-------- --------
Net income $ 0.03 $ 0.03
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EARNINGS PER SHARE OF COMMON STOCK - DILUTED:
Income from continuing operations $ 0.04 $ 0.04
Loss from discontinued operations (0.01) (0.01)
-------- --------
Net income $ 0.03 $ 0.03
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Weighted average common shares outstanding
- basic 8,946 10,166
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Weighted average common and
potential dilutive common shares outstanding 8,970 10,167
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PIZZA INN, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)
Sept. 28,
ASSETS 2008 June 29,
(unaudited) 2008
-------- --------
CURRENT ASSETS
Cash and cash equivalents $ 153 $ 1,157
Accounts receivable, less allowance for bad
debts of $142 and $128, respectively 2,703 2,773
Notes receivable, current portion 8 6
Income tax receivable 120 272
Inventories 1,416 1,396
Property held for sale 299 301
Deferred income tax assets 555 555
Prepaid expenses and other 396 235
-------- --------
Total current assets 5,650 6,695
LONG-TERM ASSETS
Property, plant and equipment, net 996 635
Notes receivable 3 7
Deferred income tax assets 237 237
Re-acquired development territory, net -- 46
Deposits and other 165 215
-------- --------
$ 7,051 $ 7,835
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable - trade $ 1,514 $ 2,380
Cash overdraft 582 --
Accrued expenses 1,001 1,316
Short-term debt 301 --
-------- --------
Total current liabilities 3,398 3,696
LONG-TERM LIABILITIES
Deferred gain on sale of property 178 184
Deferred revenues 277 283
Other long-term liabilities 11 18
-------- --------
Total liabilities 3,864 4,181
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COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY
Common stock, $.01 par value; authorized
26,000,000 shares; issued 15,130,319 and
15,130,319 shares, respectively;
outstanding 8,788,262 and 9,104,361 shares,
respectively 151 151
Additional paid-in capital 8,598 8,543
Retained earnings 17,917 17,624
Treasury stock at cost
Shares in treasury: 6,342,057 and 6,025,958,
respectively (23,479) (22,664)
-------- --------
Total shareholders' equity 3,187 3,654
-------- --------
$ 7,051 $ 7,835
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PIZZA INN, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three Months Ended
--------------------
Sept. 28, Sept. 23,
2008 2007
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CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 293 $ 345
Adjustments to reconcile net income to
cash used for operating activities:
Depreciation and amortization 83 84
Severance accrual expense -- 300
Stock compensation expense 55 --
Provision for bad debts 15 23
Changes in operating assets and liabilities:
Deferred revenue 12 --
Notes and accounts receivable 209 (380)
Inventories (20) 184
Accounts payable - trade (866) (302)
Accrued expenses (327) (646)
Prepaid expenses and other (120) (92)
------- -------
Cash used for operating activities (666) (484)
------- -------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (407) (40)
------- -------
Cash used for investing activities (407) (40)
------- -------
CASH FLOWS FROM FINANCING ACTIVITIES:
Change in line of credit, net 301 --
Cash overdraft 582 --
Repurchase of common stock (814) (35)
------- -------
Cash provided by (used) for financing
activities 69 (35)
------- -------
Net decrease in cash and cash equivalents (1,004) (559)
Cash and cash equivalents, beginning of period 1,157 1,879
------- -------
Cash and cash equivalents, end of period $ 153 $ 1,320
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