RAVE Restaurant Group, Inc. Reports Third Quarter Financial Results
Total Pizza Inn domestic retail sales increased 27.0% in the third quarter of fiscal 2022 compared to the same period of the prior year.- Total Pie Five domestic retail sales increased 19.5% in the third quarter of fiscal 2022 compared to the same period of the prior year.
Pizza Inn domestic comparable store retail sales increased 22.8% in the third quarter of fiscal 2022 compared to the same period of the prior year.- Pie Five comparable store retail sales increased 21.4% in the third quarter of fiscal 2022 compared to the same period of the prior year.
- The Company recorded net income of
$0.5 million for the third quarter of fiscal 2022 compared to net income of$0.4 million for the same period of the prior year. - Income before taxes was
$0.5 million for the third quarter of fiscal 2022 compared to net income before taxes of$0.4 million for the same period of the prior year. - Total revenue increased by
$0.4 million to$2.6 million for the third quarter of fiscal 2022 compared to the same period of the prior year. - Convertible Notes decreased
$1.6 million during the third quarter of fiscal 2022 to zero atMarch 27, 2022 due to full repayment in cash at maturity onFebruary 15, 2022 . - On a fully diluted basis, net income increased
$0.01 per share to$0.03 per share for the third quarter of fiscal 2022 compared to$0.02 per share for the same period of the prior year. - Cash and cash equivalents decreased
$1.0 million during the third quarter of fiscal 2022 to$7.2 million atMarch 27, 2022 . Pizza Inn domestic unit count finished at 128.Pizza Inn international unit count finished at 31.- Pie Five domestic unit count finished at 33.
"Eight consecutive quarters of profitability should not go unnoticed. Our Pie Five and Pizza Inn brands are energized by strong sales and profitability, relatively stable store count and smart management of our cash," said
Solano also credited the success of the previous eight quarters to the Company's laser focus on its core products while challenging each brand to innovate. "Specifically, Pie Five saw strong results from the launch of Mike's Sticky Fingers Pizza and
The Company's financial statements are prepared in accordance with
The Company considers EBITDA and Adjusted EBITDA to be important supplemental measures of operating performance that are commonly used by securities analysts, investors and other parties interested in our industry. The Company believes that EBITDA is helpful to investors in evaluating its results of operations without the impact of expenses affected by financing methods, accounting methods and the tax environment. The Company believes that Adjusted EBITDA provides additional useful information to investors by excluding non-operational or non-recurring expenses to provide a measure of operating performance that is more comparable from period to period. Management also uses these non-GAAP financial measures for evaluating operating performance, assessing the effectiveness of business strategies, projecting future capital needs, budgeting and other planning purposes.
"EBITDA" represents earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA represents earnings before interest, taxes, depreciation and amortization, stock compensation expense, severance, gain/loss sale of assets, costs related to impairment and other lease charges, franchise default and closed store revenue/expense, and closed and non-operating store costs. A reconciliation of these non-GAAP financial measures to net income is included with the accompanying financial statements.
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
Since 1958,
Contact:
Investor Relations
469-384-5000
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||||||||||||
Three Months Ended |
Nine Months Ended |
|||||||||||
2022 |
2021 |
2022 |
2021 |
|||||||||
REVENUES: |
$ |
2,620 |
$ |
2,183 |
$ |
7,869 |
$ |
6,214 |
||||
COSTS AND EXPENSES: |
||||||||||||
Cost of sales |
1 |
76 |
1 |
229 |
||||||||
General and administrative expenses |
1,357 |
1,250 |
3,940 |
3,524 |
||||||||
Franchise expenses |
705 |
629 |
2,475 |
1,782 |
||||||||
Gain on sale of assets |
- |
(156) |
- |
(156) |
||||||||
Impairment of long-lived assets and other lease charges |
- |
- |
- |
21 |
||||||||
Bad debt expense (recovery) |
1 |
(97) |
9 |
18 |
||||||||
Interest expense |
14 |
23 |
61 |
69 |
||||||||
Depreciation and amortization expense |
46 |
41 |
138 |
128 |
||||||||
Total costs and expenses |
2,124 |
1,766 |
6,624 |
5,615 |
||||||||
INCOME BEFORE TAXES |
496 |
417 |
1,245 |
599 |
||||||||
Income tax expense |
3 |
1 |
10 |
5 |
||||||||
NET INCOME |
493 |
416 |
1,235 |
594 |
||||||||
INCOME PER SHARE OF COMMON STOCK - BASIC: |
$ |
0.03 |
$ |
0.02 |
$ |
0.07 |
$ |
0.03 |
||||
INCOME PER SHARE OF COMMON STOCK - DILUTED: |
$ |
0.03 |
$ |
0.02 |
$ |
0.07 |
$ |
0.03 |
||||
Weighted average common shares outstanding - basic |
18,005 |
17,991 |
18,005 |
17,061 |
||||||||
Weighted average common and potential dilutive common shares outstanding |
18,452 |
18,789 |
18,686 |
17,859 |
|
|||||
2022 |
2021 |
||||
ASSETS |
|||||
CURRENT ASSETS |
|||||
Cash and cash equivalents |
$ |
7,237 |
$ |
8,330 |
|
Accounts receivable, less allowance for bad debts of |
1,175 |
911 |
|||
Notes receivable, current |
443 |
901 |
|||
Deferred contract charges, current |
36 |
35 |
|||
Prepaid expenses and other |
131 |
196 |
|||
Total current assets |
9,022 |
10,373 |
|||
LONG-TERM ASSETS |
|||||
Property, plant and equipment, net |
365 |
445 |
|||
Operating lease right of use asset, net |
1,771 |
2,085 |
|||
Intangible assets definite-lived, net |
196 |
183 |
|||
Notes receivable, net of current portion |
242 |
52 |
|||
Deferred contract charges, net of current portion |
223 |
207 |
|||
Total assets |
$ |
11,819 |
$ |
13,345 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||
CURRENT LIABILITIES |
|||||
Accounts payable - trade |
$ |
615 |
$ |
644 |
|
Accrued expenses |
749 |
924 |
|||
Other current liabilities |
46 |
46 |
|||
Operating lease liability, current |
483 |
465 |
|||
Short term loan, current |
60 |
250 |
|||
Convertible notes short term, net of unamortized debt issuance costs and discounts |
- |
1,576 |
|||
Deferred revenues, current |
430 |
626 |
|||
Total current liabilities |
2,383 |
4,531 |
|||
LONG-TERM LIABILITIES |
|||||
Operating lease liability, net of current portion |
1,546 |
1,911 |
|||
Deferred revenues, net of current portion |
795 |
1,170 |
|||
Total liabilities |
4,724 |
7,612 |
|||
SHAREHOLDERS' EQUITY |
|||||
Common stock, |
251 |
251 |
|||
Additional paid-in capital |
37,342 |
37,215 |
|||
Accumulated deficit |
(5,961) |
(7,196) |
|||
Treasury stock at cost |
|||||
Shares in treasury: 7,085,154 and 7,085,154, respectively |
(24,537) |
(24,537) |
|||
Total shareholders' equity |
7,095 |
5,733 |
|||
Total liabilities and shareholders' equity |
$ |
11,819 |
$ |
13,345 |
|
|||||
Nine Months Ended |
|||||
|
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|||||
Net income |
$ |
1,235 |
$ |
594 |
|
Adjustments to reconcile net income to cash provided by/(used in) operating activities: |
|||||
Impairment of long-lived assets and other lease charges |
- |
21 |
|||
Stock compensation expense |
127 |
39 |
|||
Depreciation and amortization |
105 |
100 |
|||
Amortization of operating right of use assets |
314 |
435 |
|||
Amortization of intangible assets definite-lived |
33 |
28 |
|||
Amortization of debt issue costs |
21 |
20 |
|||
Gain on the sale of assets |
- |
(156) |
|||
Provision for bad debt |
9 |
18 |
|||
Changes in operating assets and liabilities: |
|||||
Accounts receivable |
(273) |
(245) |
|||
Notes receivable |
28 |
(144) |
|||
Deferred contract charges |
(17) |
23 |
|||
Prepaid expenses and other |
65 |
(57) |
|||
Deposits and other |
- |
5 |
|||
Accounts payable - trade |
(29) |
(1) |
|||
Accounts payable - lease termination impairments |
- |
(428) |
|||
Accrued expenses |
(175) |
201 |
|||
Operating lease liability |
(347) |
(470) |
|||
Deferred revenue |
(571) |
(289) |
|||
Other long-term liabilities |
- |
(51) |
|||
Cash provided by/(used in) operating activities |
525 |
(357) |
|||
CASH FLOWS FROM INVESTING ACTIVITIES: |
|||||
Payments received on notes receivable |
240 |
40 |
|||
Purchase of intangible assets definite-lived |
(46) |
- |
|||
Purchase of property, plant and equipment |
(25) |
(29) |
|||
Cash provided by investing activities |
169 |
11 |
|||
CASH FLOWS FROM FINANCING ACTIVITIES: |
|||||
Proceeds from sale of stock |
- |
3,761 |
|||
Equity issuance costs - ATM offering |
- |
(131) |
|||
Payment of Convertible Notes |
(1,597) |
- |
|||
Short term loan, current |
(190) |
- |
|||
Cash (used in)/provided by financing activities |
(1,787) |
3,630 |
|||
Net (decrease)/increase in cash and cash equivalents |
(1,093) |
3,284 |
|||
Cash and cash equivalents, beginning of period |
8,330 |
3,203 |
|||
Cash and cash equivalents, end of period |
$ |
7,237 |
$ |
6,487 |
|
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION |
|||||
CASH PAID FOR: |
|||||
Interest |
$ |
64 |
$ |
64 |
|
Income taxes |
$ |
8 |
$ |
16 |
|
Non-cash activities: |
|||||
Conversion of notes to common shares |
$ |
- |
$ |
- |
|
Operating lease right of use assets at adoption |
$ |
- |
$ |
- |
|
Operating lease liability at adoption |
$ |
- |
$ |
- |
|
||||||||||||
Three Months Ended |
Nine Months Ended |
|||||||||||
2022 |
2021 |
2022 |
2021 |
|||||||||
Net income |
$ |
493 |
$ |
416 |
$ |
1,235 |
$ |
594 |
||||
Interest expense |
14 |
23 |
61 |
69 |
||||||||
Income taxes |
3 |
1 |
10 |
5 |
||||||||
Depreciation and amortization |
46 |
41 |
138 |
128 |
||||||||
EBITDA |
$ |
556 |
$ |
481 |
$ |
1,444 |
$ |
796 |
||||
Stock compensation expense |
42 |
39 |
127 |
39 |
||||||||
Severance |
- |
- |
33 |
- |
||||||||
Gain on sale of assets |
- |
(156) |
- |
(156) |
||||||||
Impairment of long-lived assets and other lease charges |
- |
- |
- |
21 |
||||||||
Franchisee default and closed store revenue |
(9) |
(43) |
(21) |
(154) |
||||||||
Closed and non-operating store costs |
1 |
77 |
3 |
235 |
||||||||
Adjusted EBITDA |
$ |
590 |
$ |
398 |
$ |
1,586 |
$ |
781 |
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