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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report: August 22, 2002
PIZZA INN, INC.
(Exact name of registrant as specified in its charter)
MISSOURI 0-12919 47-0654575
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation or organization) File Number) Identification Number)
3551 PLANO PARKWAY, THE COLONY, TX 75056
(Address of principal executive offices)(zip code)
Telephone number of registrant, including area code: (469) 384-5000
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ITEM 5.
See attached Exhibit 1.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, as
amended, the Registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
PIZZA INN, INC.
By:/s/ Ronald W. Parker
Ronald W. Parker, Chief Executive Officer
Date: August 22, 2002
P R E S S R E L E A S E
FOR IMMEDIATE RELEASE
PIZZA INN ANNOUNCES EXECUTIVE CHANGES AND
4TH QUARTER FINANCIAL RESULTS
THE COLONY, TEXAS-AUGUST 22, 2002
FINANCIAL RESULTS
PIZZA INN, INC. (NASDAQ:PZZI) today reported a net loss for its fourth quarter
ended June 30 of $498,000, or 5 a share, compared to net income of $701,000, or
7 a share a year ago, on revenues of $18.1 million versus $16.6 million in the
previous year. Total chain sales for the quarter were $47.8 million versus
$46.1 million for the same quarter last year. The decrease in net income was
primarily attributable to a pretax charge of approximately $1.9 million to
reserve for a note receivable owed to the Company from C. Jeffrey Rogers, the
Company's Chief Executive Officer. Based on a review of certain financial
information provided by Mr. Rogers, the Board of Directors of the Company has
determined that collection of the loan of approximately $1.9 million from the
Company to Mr. Rogers is doubtful. Pizza Inn recorded the charge in the fourth
quarter of fiscal 2002 to fully reserve for the possible nonpayment by Mr.
Rogers.
For fiscal year 2002, earnings per share were 11 versus 23 last year. Net
income was $1,137,000 compared to $2,480,000 on revenues of $66.6 million versus
$65.3 million last year. Revenues consist of the gross sales of Norco, the
Company's food and equipment division, franchise fees, and royalties.
Comparable chainwide same store sales finished flat for the year. Total chain
sales were $181.3 million for the fiscal year versus $184.2 million last fiscal
year.
Excluding the above-described bad debt charge, earnings per share for its fourth
quarter ended June 30 were 8 , versus 7 for the same quarter last year. Net
income, excluding the bad debt charge, was $788,000 versus $701,000 on revenues
of $18.1 million versus $16.6 million in the previous year. The fourth
quarter ended June 30 includes a $700,000 non-cash reserve reversal, which was
originally set up as the Company emerged from bankruptcy, now deemed
unnecessary. This was offset by other items, including the full provision of
all remaining rent expense at the Company's former corporate headquarters of
approximately $304,000 due to the continued weak leasing market and additional
legal reserves of $165,000. The fourth quarter ended June 30 included 14 weeks
versus 13 weeks for the same quarter last year.
Excluding the above bad debt charge earnings per share, for fiscal year 2002,
were 24 versus 23 last year. Net income, excluding the bad debt charge, was
$2,424,000 compared to $2,480,000 on revenues of $66.6 million versus $65.3
million last year. Fiscal 2002 included 53 weeks versus 52 weeks in fiscal
2001.
PIZZA INN ANNOUNCES EXECUTIVE CHANGES AND
4TH QUARTER FINANCIAL RESULTS
EXECUTIVE CHANGES
The Company also announced that C. Jeffrey Rogers has resigned his position as
Chief Executive Officer, Vice-Chairman and Director of the Company. Ronald W.
Parker, previously President and a Director of Pizza Inn, Inc., has been named
the Company's new Chief Executive Officer. The changes are effective
immediately.
President and CEO Ronnie Parker said, "The opportunity to lead Pizza Inn into
its next era of growth is both a great honor and great responsibility. We have
an excellent restaurant concept, and are well positioned for our future with a
strong foundation of quality products, and excellent franchisees and employees
who are focused on our goals. Our first priority will be to continue to
strengthen relationships and communications with our franchisees to further
ensure customer satisfaction with both our quality products and service. With
the recent completion of our new corporate facility and distribution center, our
current priorities will also include regaining net growth in new restaurants,
improving comparative restaurant sales, and continuing to reduce corporate debt
levels. I look forward to helping lead this Company's future."
Mr. Parker has a long and successful record in the restaurant industry since
1974. He has served as President of Pizza Inn since July 2000 and, after
joining the Company in October 1992, was elected Executive Vice President, Chief
Operating Officer and a Director in January 1993. Mr. Parker came to Pizza Inn
from the Bonanza restaurant division of Metromedia Steakhouses, Inc. where he
was Executive Vice President and spent ten years.
_________________________________
This announcement contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. These statements include those
identified by such words as may, will, expect, anticipate, believe, plan and
other similar terminology. These "forward-looking" statements reflect
management's current expectations regarding future events and operating and
financial performance and are based upon currently available data. However,
actual results are subject to future events and uncertainties, which could cause
actual results to differ from those projected in this announcement. Factors that
can cause actual results to differ materially include changes in commodity,
labor, and other operating costs: changes in competition in the food industry,
consumer preferences, spending patterns and demographic trends; the
effectiveness of our operating initiatives and advertising and promotional
efforts; and changes in accounting policies and practices. Further information
about factors that could affect our financial and other results are included in
our Forms 10-Q and 10-K filed with the Securities and Exchange Commission.
P R E S S R E L E A S E
Pizza Inn, Inc. For more information contact:
3551 Plano Parkway Ronald W. Parker
The Colony, TX 75056 Chief Executive Officer
(469) 384-5000
For more information about the company, visit Pizza Inn at www.pizzainn.com
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PIZZA INN, INC.
(In thousands, except share and per share amounts)
June 30, June 24,
4TH QUARTER. . . . . . . . . . . . . 2002 2001
- ------------------------------------ ------------ -----------
Revenue. . . . . . . . . . . . . . . $ 18,061 $ 16,584
(Loss) Income before taxes . . . . . ($755) $ 1,172
Net (Loss) Income. . . . . . . . . . ($498) $ 701
Diluted (loss) earnings per share. . ($0.05) $ 0.07
Basic (loss) earnings per share. . . ($0.05) $ 0.07
Weighted average shares outstanding:
Diluted . . . . . . . . . . . . . 10,058,094 10,476,991
Basic . . . . . . . . . . . . . . 10,058,094 10,475,862
June 30, . . June 24,
TWELVE MONTHS. . . . . . . . . . . . 2002 2001
- ------------------------------------ ------------ -----------
Revenue. . . . . . . . . . . . . . . $ 66,642 $ 65,269
Income before taxes. . . . . . . . . $ 1,723 $ 3,921
Net Income . . . . . . . . . . . . . $ 1,137 $ 2,480
Diluted earnings per share . . . . . $ 0.11 $ 0.23
Basic earnings per share . . . . . . $ 0.11 $ 0.23
Weighted average shares outstanding:
Diluted . . . . . . . . . . . . . 10,095,085 10,638,640
Basic . . . . . . . . . . . . . . 10,091,817 10,635,237