UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) May 12, 2009
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Pizza Inn, Inc. |
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(Exact name of registrant as specified in its charter) |
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Missouri |
0-12919 |
47-0654575 |
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(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
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3551 Plano Parkway, The Colony, Texas |
75056 |
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(Address of principal executive offices) |
(Zip Code) |
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Registrant’s telephone number, including area code (469) 384-5000 |
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Not Applicable |
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(Former name or former address, if changed since last report) |
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
ITEM 2.02 Results of Operations and Financial Condition
On May 12, 2009, Pizza Inn, Inc. issued a press release discussing financial results of its third quarter of fiscal 2009, ending March 29, 2009.
Item 9.01 Financial Statements and Exhibits
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(d) |
Exhibits |
Exhibit Description
Number
99.1 Pizza Inn, Inc. press release dated May 12, 2009.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Pizza Inn, Inc. | |||||
| Date: May 12, 2009 | By: | /s/ Charles R. Morrison | |||
| Charles R. Morrison, President | |||||
| and Chief Executive Officer | |||||
FOR IMMEDIATE RELEASE
Contact:
Nancy Ellefson
VP of Finance
Pizza Inn, Inc.
469-384-5000
nellefson@pihq.com
PIZZA INN, INC. REPORTS RESULTS FOR
THIRD QUARTER FISCAL YEAR 2009
New concept restaurant continues strong performance with more company stores slated for the future
The Colony, Texas – May 12, 2009 -- 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. |
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| • | 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 it’s 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.
FOR IMMEDIATE RELEASE
Contact:
Nancy Ellefson
VP of Finance
Pizza Inn, Inc.
469-384-5000
nellefson@pihq.com
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.
PIZZA INN, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
| Three Months Ended |
Nine Months Ended |
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March 29, |
March 23, |
March 29, |
March 23, |
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| REVENUES: |
2009 |
2008 |
2009 |
2008 |
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| 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 administrative 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)
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March 29, |
June 29, |
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| ASSETS |
2009 (Unaudited) |
2008 |
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| 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 | ||||||||
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March 29, |
March 23, |
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2009 |
2008 |
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| 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)
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Nine Months Ended |
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March 29, |
March 23, |
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2009 |
2008 |
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| CASH PAYMENTS FOR: | ||||||||
| Interest | $ | 41 |
$ |
-- |
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| Income taxes | 220 |
195 |
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