Second Quarter Year-to-Year Highlights:
- Revenue was flat as a decrease in food and supply sales was offset by a 32.2% increase in Company owned restaurant sales
- Net income decreased $0.3 million to $0.1 million due primarily to $0.2 million of pre-opening costs related to the Pie Five concept
- EBITDA decreased $0.4 million to $0.3 million
- Domestic buffet-style restaurant same store sales increased 0.4% while total domestic same store sales declined 0.2%
- Revenue from international franchising increased 26.4% to $0.3 million
- The Company opened three additional Pie Five restaurants
- A total of seven franchised and Company owned restaurants were opened in the quarter
THE COLONY, Texas, Feb. 8, 2012 (GLOBE NEWSWIRE) -- Pizza Inn Holdings, Inc. (Nasdaq:PZZI) today announced results for the second fiscal quarter ended December 25, 2011. Net income decreased $0.3 million year over year to $0.1 million, or $0.01 per share, compared to net income of $0.4 million, or $0.05 per share, for the same quarter of the prior fiscal year. The decline in net income was primarily attributable to $0.2 million of pre-opening costs associated with the opening of three new Company owned Pie Five restaurants during the three months ended December 25, 2011, as well as $0.1 million of costs associated with preparing the Company to support the growth of the Pie Five business and the franchising of Pizza Inn in China. Second quarter revenues were essentially unchanged at $10.3 million compared to $10.4 million for the same quarter of the prior fiscal year. Domestic buffet-style restaurant same store sales increased 0.4% while total domestic same store sales decreased 0.2% from the comparable quarter of the prior fiscal year. Company store restaurant sales increased 32.2% to $1.3 million due primarily to new store openings. Food and supply sales decreased by approximately $0.4 million, or 4.1%, due to a decrease in the average number of restaurants open in the current period when compared to the prior period.
For the six months ended December 25, 2011, net income was $0.4 million, or $0.05 per share, compared to $0.5 million, or $0.06 per share, for the same period in the prior fiscal year. The decline in net income was primarily attributable to $0.2 million of pre-opening costs associated with the opening of three Pie Five during the six months ended December 25, 2011, as well as $0.1 million of costs associated with preparing the Company to support the growth of the Pie Five business and the franchising of Pizza Inn in China. Revenues increased $0.5 million, or 2.4%, to $21.5 million for the six months ended December 25, 2011 compared to $21.0 million during the same period in the prior fiscal year. Domestic buffet-style restaurant same store sales increased 1.6% while total domestic same store sales increased 1.1% compared to the prior fiscal year. For the first half of fiscal 2012, Company store restaurant sales increased $0.7 million, or 37.4%, to $2.5 million due to new store openings.
"We continued to develop and expand our Pie Five concept with the addition of three new locations this quarter," commented Charlie Morrison, President and CEO. "We have invested in people and infrastructure in anticipation of continued growth of our Pie Five concept. The Company opened its fifth Pie Five location in the Dallas/Ft. Worth area in January and we expect to open three more Company owned stores before July 2012. We are now offering Pie Five franchises in all non-registration states in the US and are working on registering in all other states."
"We were also pleased to see same store sales growth in our Pizza Inn brand remain solid at 1.1% domestically and 0.9% internationally for the first half of the year," Mr. Morrison concluded.
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 the control of Pizza Inn Holdings. 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 the objectives and plans of Pizza Inn Holdings will be achieved.
Pizza Inn Holdings, Inc. is an owner, franchisor and supplier of a system of restaurants operating domestically and internationally under the trademarks "Pizza Inn" and "Pie Five Pizza Company." 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 HOLDINGS, INC. | ||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
| (In thousands, except per share amounts) | ||||
| (Unaudited) | ||||
| Three Months Ended | Six Months Ended | |||
| REVENUES: |
December 25, 2011 |
December 26, 2010 |
December 25, 2011 |
December 26, 2010 |
| Food and supply sales | $ 8,138 | $ 8,489 | $ 17,044 | $ 17,191 |
| Franchise revenue | 943 | 917 | 1,892 | 1,942 |
| Restaurant sales | 1,255 | 949 | 2,547 | 1,854 |
| 10,336 | 10,355 | 21,483 | 20,987 | |
| COSTS AND EXPENSES: | ||||
| Cost of sales | 8,611 | 8,473 | 17,861 | 17,177 |
| Franchise expenses | 521 | 344 | 973 | 820 |
| General and administrative expenses | 1,062 | 873 | 1,969 | 1,755 |
| Costs associated with store closure | -- | -- | -- | 319 |
| Bad debt | 15 | 40 | 30 | 55 |
| Interest expense | 17 | 18 | 33 | 28 |
| 10,226 | 9,748 | 20,866 | 20,154 | |
| INCOME FROM CONTINUING OPERATIONS BEFORE TAXES | 110 | 607 | 617 | 833 |
| Income taxes | 39 | 213 | 217 | 294 |
| INCOME FROM CONTINUING OPERATIONS | 71 | 394 | 400 | 539 |
| Loss from discontinued operations, net of taxes | (15) | (15) | (31) | (31) |
| NET INCOME | $ 56 | $ 379 | $ 369 | $ 508 |
| EARNINGS PER SHARE OF COMMON STOCK - BASIC: | ||||
| Income from continuing operations | $ 0.01 | $ 0.05 | $ 0.05 | $ 0.07 |
| Loss from discontinued operations | -- | -- | -- | (0.01) |
| Net income | $ 0.01 | $ 0.05 | $ 0.05 | $ 0.06 |
| EARNINGS PER SHARE OF COMMON STOCK - DILUTED: | ||||
| Income from continuing operations | $ 0.01 | $ 0.05 | $ 0.05 | $ 0.07 |
| Loss from discontinued operations | -- | -- | -- | (0.01) |
| Net income | $ 0.01 | $ 0.05 | $ 0.05 | $ 0.06 |
| Weighted average common shares outstanding - basic | 8,013 | 8,011 | 8,012 | 8,011 |
| Weighted average common and potential dilutive common shares outstanding | 8,362 | 8,012 | 8,292 | 8,013 |
| PIZZA INN HOLDINGS, INC. | ||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||
| (In thousands, except share amounts) | ||
| ASSETS |
December 25, 2011 (unaudited) |
June 26, 2011 |
| CURRENT ASSETS | ||
| Cash and cash equivalents | $ 509 | $ 949 |
| Accounts receivable, less allowance for bad debts of $189 and $162, respectively | 3,280 | 3,128 |
| Inventories | 1,724 | 1,829 |
| Income tax receivable | 653 | 553 |
| Deferred income tax assets | 783 | 822 |
| Prepaid expenses and other | 403 | 232 |
| Total current assets | 7,352 | 7,513 |
| LONG-TERM ASSETS | ||
| Property, plant and equipment, net | 4,059 | 3,196 |
| Long-term notes receivable | 39 | 51 |
| Deposits and other | 486 | 392 |
| $ 11,936 | $ 11,152 | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||
| CURRENT LIABILITIES | ||
| Accounts payable - trade | $ 2,095 | $ 2,103 |
| Accrued expenses | 1,262 | 1,557 |
| Deferred revenues | 157 | 202 |
| Bank debt | 580 | 333 |
| Total current liabilities | 4,094 | 4,195 |
| LONG-TERM LIABILITIES | ||
| Bank debt, net of current portion | 809 | 482 |
| Deferred tax liability | 461 | 360 |
| Deferred revenues, net of current portion | 145 | 165 |
| Deferred gain on sale of property | 96 | 109 |
| Other long-term liabilities | 25 | -- |
| Total liabilities | 5,630 | 5,311 |
| COMMITMENTS AND CONTINGENCIES | ||
| SHAREHOLDERS' EQUITY | ||
| Common stock, $.01 par value; authorized 26,000,000 shares; issued 15,140,319 and 15,130,319 shares, respectively; outstanding 8,020,919 and 8,010,919 shares, respectively | 151 | 151 |
| Additional paid-in capital | 9,105 | 9,009 |
| Retained earnings | 21,686 | 21,317 |
| Treasury stock at cost shares in treasury: 7,119,400 | (24,636) | (24,636) |
| Total shareholders' equity | 6,306 | 5,841 |
| $ 11,936 | $ 11,152 | |
| PIZZA INN HOLDINGS, INC. | ||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
| (In thousands) | ||
| (Unaudited) | ||
| Six Months Ended | ||
|
December 25, 2011 |
December 26, 2010 |
|
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||
| Net income | $ 369 | $ 508 |
| Adjustments to reconcile net income to cash provided by operating activities: | ||
| Depreciation and amortization | 389 | 546 |
| Stock compensation expense | 73 | 60 |
| Deferred tax | 39 | (92) |
| Provision for bad debts | 30 | 55 |
| Net income adjusted for non-cash items | 900 | 1,077 |
| Changes in operating assets and liabilities: | ||
| Notes and accounts receivable | (282) | (192) |
| Inventories | 105 | (394) |
| Accounts payable - trade | (8) | (25) |
| Accrued expenses | (169) | (243) |
| Deferred revenue | (78) | 58 |
| Prepaid expenses and other | (283) | (18) |
| Net changes in operating assets and liabilities | (715) | (814) |
| Cash provided by operating activities | 185 | 263 |
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||
| Capital expenditures | (1,222) | (1,313) |
| Cash used by investing activities | (1,222) | (1,313) |
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||
| Proceeds from exercise of stock options | 23 | -- |
| Change in bank debt, net | 574 | 615 |
| Cash provided by financing activities | 597 | 615 |
| Net decrease in cash and cash equivalents | (440) | (435) |
| Cash and cash equivalents, beginning of period | 949 | 761 |
| Cash and cash equivalents, end of period | $ 509 | $ 326 |
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
| CASH PAYMENTS FOR: | ||
| Interest | $ 32 | $ 27 |
| Income taxes - net | 57 | 290 |
| PIZZA INN HOLDINGS, INC. | ||
| RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | ||
| (In thousands) | ||
| Three Months Ended | ||
|
December 25, 2011 |
December 26, 2010 |
|
| Net Income | $ 56 | $ 379 |
| Interest Expense | 17 | 18 |
| Taxes | 39 | 213 |
| Depreciation and Amortization | 206 | 118 |
| EBITDA | $ 318 | $ 728 |
| Six Months Ended | ||
|
December 25, 2011 |
December 26, 2010 |
|
| Net Income | $ 369 | $ 508 |
| Interest Expense | 33 | 28 |
| Taxes | 217 | 294 |
| Depreciation and Amortization | 389 | 546 |
| EBITDA | $ 1,008 | $ 1,376 |