THE COLONY, Texas, Nov. 5, 2009 (GLOBE NEWSWIRE) -- Pizza Inn, Inc. (Nasdaq:PZZI) today reported net income of $0.4 million, or $0.05 per share, for the fiscal quarter ended September 27, 2009, versus net income of $0.3 million, or $0.03 per share, for the same quarter of the prior fiscal year.
Highlights for the first quarter of fiscal year 2010 included:
* Sales from Company-owned restaurants increased 186%, or $0.4 million, in the first quarter of fiscal 2010 compared to the same quarter of the prior fiscal year, primarily due to the opening of new buffet locations in Denton, Texas in October, 2008 and Ft. Worth, Texas in September, 2009. * Comparable domestic buffet restaurant sales decreased 3.6% for the first quarter of fiscal 2010 compared to the same quarter of the prior fiscal year. * Chain-wide comparable domestic restaurant sales decreased 4.2% for the first quarter of fiscal 2010 compared to the same quarter of the prior fiscal year. * Franchise revenue for the first quarter of fiscal 2010 was flat to the same quarter of the prior fiscal year at $1.1 million despite the decline in same store sales due to four new franchise store openings in the current fiscal quarter compared to one new opening in the same quarter of the prior fiscal year. * For the second consecutive fiscal quarter, there were no buffet restaurant closures in the first quarter of fiscal 2010, compared to three such closures in the first quarter of fiscal 2009.
Charlie Morrison, President and CEO, commented, "Over the past two years, we have communicated that the keys to long-term sustainable growth and rejuvenation of the Pizza Inn brand centered around slowing the rate of buffet closures, successfully opening new company-operated restaurants, and building a pipeline of new franchise openings for the future. First quarter results demonstrate that these initiatives are working. No buffet restaurants have been closed for two consecutive quarters, another new company-operated store has been successfully opened, and new franchise locations have been opened, with more slated to open during the remainder of the fiscal year. Although tough economic conditions have impacted same store sales, our top-line performance is ahead of the pizza category average and the health of our business is very good."
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 an owner, franchisor and supplier of a system of restaurants operating domestically and internationally under the trademark "Pizza Inn." The Company and its distribution division, Norco Restaurant Services Company, are headquartered in The Colony, Texas. The Company's common stock is listed on the Nasdaq Capital Market under the symbol "PZZI."
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
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Sept. 27, Sept. 28,
REVENUES: 2009 2008
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Food and supply sales $ 8,395 $ 10,134
Franchise revenue 1,062 1,064
Restaurant sales 543 190
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10,000 11,388
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COSTS AND EXPENSES:
Cost of sales 8,116 9,655
Franchise expenses 467 479
General and administrative expenses 777 687
Severance -- 37
Bad debt 15 15
Interest expense 14 12
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9,389 10,885
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INCOME FROM CONTINUING OPERATIONS BEFORE TAXES 611 503
Income taxes 206 161
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INCOME FROM CONTINUING OPERATIONS 405 342
Loss from discontinued operations, net of taxes (39) (49)
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NET INCOME 366 293
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EARNINGS PER SHARE OF COMMON STOCK - BASIC:
Income from continuing operations $ 0.05 $ 0.04
Loss from discontinued operations (0.00) (0.01)
-------- --------
Net income $ 0.05 $ 0.03
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EARNINGS PER SHARE OF COMMON STOCK - DILUTED:
Income from continuing operations $ 0.05 $ 0.04
Loss from discontinued operations (0.00) (0.01)
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Net income $ 0.05 $ 0.03
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Weighted average common shares outstanding - basic 8,011 8,946
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Weighted average common and potential dilutive
common shares outstanding 8,011 8,970
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PIZZA INN, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)
Sept. 27, June 28,
ASSETS 2009 2009
(unaudited)
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CURRENT ASSETS
Cash and cash equivalents $ 91 274
Accounts receivable, less allowance for bad
debts of $92 and $203, respectively 2,746 2,559
Income tax receivable -- 80
Inventories 1,359 1,371
Property held for sale 17 17
Deferred income tax assets 618 618
Prepaid expenses and other 480 233
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Total current assets 5,311 5,152
LONG-TERM ASSETS
Property, plant and equipment, net 2,210 1,743
Deferred income tax assets 86 86
Deposits and other 102 81
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$ 7,709 $ 7,062
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable - trade $ 1,742 1,806
Deferred revenues 325 132
Accrued expenses 1,129 1,009
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Total current liabilities 3,196 2,947
LONG-TERM LIABILITIES
Deferred gain on sale of property 153 159
Deferred revenues 236 246
Bank debt 645 621
Other long-term liabilities 24 37
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Total liabilities 4,254 4,010
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COMMITMENTS AND CONTINGENCIES (See Note 3)
SHAREHOLDERS' EQUITY
Common stock, $.01 par value; authorized
26,000,000 shares; issued 15,130,319 and
15,130,319 shares, respectively; outstanding
8,010,919 and 8,010,919 shares, respectively 151 151
Additional paid-in capital 8,778 8,741
Retained earnings 19,162 18,796
Treasury stock at cost
Shares in treasury: 7,119,400 and 7,119,400,
respectively (24,636) (24,636)
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Total shareholders' equity 3,455 3,052
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$ 7,709 $ 7,062
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PIZZA INN, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three Months Ended
------------------
Sept. 27, Sept. 28,
2009 2008
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CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 366 $ 293
Adjustments to reconcile net income to
cash used for operating activities:
Depreciation and amortization 72 83
Stock compensation expense 37 55
Provision for bad debts 15 15
Changes in operating assets and liabilities:
Notes and accounts receivable (122) 209
Inventories 12 (20)
Accounts payable - trade (64) (866)
Accrued expenses (43) (327)
Deferred revenue 177 12
Prepaid expenses and other (281) (120)
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Cash provided (used) for operating activities 169 (666)
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CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (539) (407)
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Cash used for investing activities (539) (407)
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CASH FLOWS FROM FINANCING ACTIVITIES:
Change in line of credit, net 24 301
Cash overdraft 163 582
Repurchase of common stock -- (814)
-------- --------
Cash provided by financing activities 187 69
-------- --------
Net decrease in cash and cash equivalents (183) (1,004)
Cash and cash equivalents, beginning of period 274 1,157
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Cash and cash equivalents, end of period $ 91 $ 153
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