THE COLONY, Texas, May 12, 2009 (GLOBE NEWSWIRE) -- Pizza Inn, Inc. (Nasdaq:PZZI) today reported net income of $361,000, or $0.05 per share, for the third quarter ended March 29, 2009, versus net income of $898,000, or $0.09 per share, for the third quarter of the prior fiscal year. Highlights for the quarter ended March 29, 2009, included:
* Comparable domestic buffet restaurant sales decreased 0.9%
for the quarter compared to the same period of the prior
fiscal year.
* Total domestic restaurant sales decreased 3.0% for the quarter
compared to the same period of the prior fiscal year.
* Sales for the company owned prototype buffet-style restaurant
located in Denton, TX that opened in October 2008 averaged
$30,000 per week for the quarter.
* Excluding the impact of an income tax expense of $203,000 for
the third quarter compared to an income tax benefit of $216,000
in the same quarter in the prior year, net income per share
would have been flat, or $0.07 in both periods.
* Two new domestic and three franchise international restaurants
opened during the quarter.
"After adjusting for income taxes paid in the current quarter as compared to a tax benefit in the prior year, our EPS for the quarter is flat year over year," said Charlie Morrison, President and CEO.
Morrison expects Pizza Inn's overall performance to continue to improve, as the new franchise pipeline for 2010 continues to be driven by the Company's new buffet-style prototype, as well as its recently launched royalty incentive program for new and existing franchisees. Pizza Inn's new prototype restaurant in Denton, Texas continues to perform well, with another corporate location slated to open in the Dallas-Fort Worth market later this summer.
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 more than 300 restaurants and owns two restaurants with annual domestic and international chain-wide sales of approximately $133 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 Nine Months Ended
-------------------- --------------------
March 29, March 23, March 29, March 23,
REVENUES: 2009 2008 2009 2008
--------- --------- --------- ---------
Food and supply sales $ 9,136 $ 10,316 $ 28,915 $ 32,269
Franchise revenue 1,056 1,181 3,164 3,643
Restaurant sales 565 171 1,344 529
--------- --------- --------- ---------
10,757 11,668 33,423 36,441
--------- --------- --------- ---------
COSTS AND EXPENSES:
Cost of sales 8,829 9,554 27,860 30,156
Franchise expenses 497 623 1,446 1,949
General and adminis-
trative expenses 793 649 2,336 1,977
Severance 12 4 49 383
Provision for bad debts 15 100 60 158
Loss on sale of assets -- 2 -- 9
Provision for (recovery
of) litigation costs -- -- 263 (284)
Interest expense 17 12 45 40
--------- --------- --------- ---------
10,163 10,944 32,059 34,388
--------- --------- --------- ---------
INCOME FROM CONTINUING
OPERATIONS BEFORE TAXES 594 724 1,364 2,053
Income tax expense
(benefit) 203 (216) 438 (216)
--------- --------- --------- ---------
INCOME FROM CONTINUING
OPERATIONS 391 940 926 2,269
Loss from discontinued
operations, net of taxes (30) (42) (136) (173)
--------- --------- --------- ---------
NET INCOME $ 361 $ 898 $ 790 $ 2,096
--------- --------- --------- ---------
EARNINGS PER SHARE OF
COMMON STOCK - BASIC:
Income from continuing
operations $ 0.05 $ 0.10 $ 0.11 $ 0.23
Loss from discontinued
operations -- (0.01) (0.02) (0.02)
--------- --------- --------- ---------
Net income $ 0.05 $ 0.09 $ 0.09 $ 0.21
========= ========= ========= =========
EARNINGS PER SHARE OF
COMMON STOCK - DILUTED:
Income from continuing
operations $ 0.05 $ 0.10 $ 0.11 $ 0.23
Loss from discontinued
operations -- (0.01) (0.02) (0.02)
--------- --------- --------- ---------
Net income $ 0.05 $ 0.09 $ 0.09 $ 0.21
========= ========= ========= =========
Weighted average common
shares outstanding -
basic 8,522 9,634 8,725 9,955
========= ========= ========= =========
Weighted average common
shares outstanding -
diluted 8,522 9,670 8,725 9,987
========= ========= ========= =========
PIZZA INN, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)
March 29,
2009 June 29,
(Unaudited) 2008
ASSETS ----------- -----------
CURRENT ASSETS
Cash and cash equivalents $ 339 $ 1,157
Accounts receivable, less allowance for bad
debts of $187 and $128, respectively 2,554 2,773
Notes receivable, current portion 5 6
Income tax receivable -- 272
Inventories 1,267 1,396
Property held for sale 311 301
Deferred income tax assets, net 555 555
Prepaid expenses and other assets 305 235
----------- -----------
Total current assets 5,336 6,695
LONG-TERM ASSETS
Property, plant and equipment, net 1,489 635
Notes receivable 1 7
Deferred income tax assets 237 237
Re-acquired development territory, net -- 46
Deposits and other assets 66 215
----------- -----------
$ 7,129 $ 7,835
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable - trade $ 1,679 $ 2,380
Accrued expenses 1,341 1,316
----------- -----------
Total current liabilities 3,020 3,696
LONG-TERM LIABILITIES
Deferred gain on sale of property 165 184
Deferred revenues 256 283
Other long-term liabilities 33 18
Debt 527 --
----------- -----------
Total liabilities 4,001 4,181
----------- -----------
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
8,392,700 and 9,104,361 shares, respectively 151 151
Additional paid-in capital 8,693 8,543
Retained earnings 18,414 17,624
Treasury stock, at cost
Shares in treasury: 6,737,619 and
6,025,958, respectively (24,130) (22,664)
----------- -----------
Total shareholders' equity 3,128 3,654
----------- -----------
$ 7,129 $ 7,835
=========== ===========
PIZZA INN, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Nine Months Ended
--------------------
March 29, March 23,
2009 2008
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 790 $ 2,096
Adjustments to reconcile net income to cash
(used) provided by operating activities:
Depreciation and amortization 222 275
Deferred tax -- (647)
Stock compensation expense 150 14
Provision for (recovery of) litigation costs 263 (284)
Loss on sale of assets -- 9
Provision for bad debts 60 158
Changes in operating assets and liabilities:
Notes and accounts receivable 438 (504)
Inventories 129 133
Accounts payable - trade (701) (405)
Accrued expenses (238) 296
Prepaid expenses and other (8) (84)
--------- ---------
Cash provided by operating activities 1,105 1,057
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of assets -- 108
Capital expenditures (984) (96)
--------- ---------
Cash (used) provided by investing activities (984) 12
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Change in line of credit, net 527 --
Repurchase of common stock (1,466) (1,935)
--------- ---------
Cash used for financing activities (939) (1,935)
--------- ---------
Net decrease in cash and cash equivalents (818) (866)
Cash and cash equivalents, beginning of period 1,157 1,879
--------- ---------
Cash and cash equivalents, end of period $ 339 $ 1,013
========= =========
PIZZA INN, INC.
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
(In thousands)
(Unaudited)
Nine Months Ended
--------------------
March 29, March 23,
2009 2008
--------- ---------
CASH PAYMENTS FOR:
Interest $ 41 $ --
Income taxes 220 195