• |
The company recorded net income of $0.6 million for the second quarter of fiscal 2025, a 9.8% increase from the same period of the prior year.
|
• |
Income before taxes increased by $0.2 million to $0.7 million for the second quarter of fiscal 2025 compared to the same period of the prior year, a 39% increase.
|
• |
Total revenue increased by $0.1 million to $2.8 million for the second quarter of fiscal 2025 compared to the same period of the prior year, a 4% increase.
|
• |
Adjusted EBITDA increased by $0.3 million to $0.8 million for the second quarter of fiscal 2025 compared to the same period of the prior year, a 51% increase.
|
• |
On a fully diluted basis, net income was $0.04 per share for the second quarter of fiscal 2025, the same as it was in the same period of the prior year.
|
• |
Pizza Inn domestic comparable store retail sales increased 0.8% in the second quarter of fiscal 2025 compared to the same period of the prior year.
|
• |
Pie Five domestic comparable store retail sales decreased 11.4% in the second quarter of fiscal 2025 compared to the same period of the prior year.
|
• |
Cash and cash equivalents were $2.9 million on December 29, 2024.
|
• |
Short-term investments were $6.0 million on December 29, 2024.
|
• |
Pizza Inn domestic unit count finished at 102.
|
• |
Pizza Inn international unit count finished at 27.
|
• |
Pie Five domestic unit count finished at 20.
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
December 29,
2024
|
December 24,
2023
|
December 29,
2024
|
December 24,
2023
|
|||||||||||||
REVENUES
|
$
|
2,869
|
$
|
2,746
|
$
|
5,919
|
$
|
5,833
|
||||||||
COSTS AND EXPENSES
|
||||||||||||||||
General and administrative expenses
|
1,314
|
1,341
|
2,730
|
2,660
|
||||||||||||
Franchise expenses
|
829
|
844
|
1,824
|
2,016
|
||||||||||||
Provision (recovery) for credit losses
|
9
|
10
|
(8
|
)
|
35
|
|||||||||||
Interest income
|
(87
|
)
|
(46
|
)
|
(169
|
)
|
(48
|
)
|
||||||||
Depreciation and amortization expense
|
53
|
57
|
96
|
112
|
||||||||||||
Total costs and expenses
|
2,118
|
2,206
|
4,473
|
4,775
|
||||||||||||
INCOME BEFORE TAXES
|
751
|
540
|
1,446
|
1,058
|
||||||||||||
Income tax expense (benefit)
|
144
|
(13
|
)
|
313
|
119
|
|||||||||||
NET INCOME
|
$
|
607
|
$
|
553
|
$
|
1,133
|
$
|
939
|
||||||||
INCOME PER SHARE OF COMMON STOCK
|
||||||||||||||||
Basic
|
$
|
0.04
|
$
|
0.04
|
$
|
0.08
|
$
|
0.07
|
||||||||
Diluted
|
$
|
0.04
|
$
|
0.04
|
$
|
0.08
|
$
|
0.07
|
||||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
|
||||||||||||||||
Basic
|
14,690
|
14,444
|
14,638
|
14,299
|
||||||||||||
Diluted
|
14,716
|
14,465
|
14,660
|
14,319
|
December 29,
2024
|
June 30,
2024
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS
|
||||||||
Cash and cash equivalents
|
$
|
2,871
|
$
|
2,886
|
||||
Short-term investments
|
6,045
|
4,945
|
||||||
Accounts receivable, less allowance for credit losses of $42 and $57, respectively
|
1,115
|
1,411
|
||||||
Notes receivable, current
|
65
|
68
|
||||||
Assets held for sale
|
26
|
33
|
||||||
Deferred contract charges, current
|
23
|
26
|
||||||
Prepaid expenses and other current assets
|
207
|
167
|
||||||
Total current assets
|
10,352
|
9,536
|
||||||
LONG-TERM ASSETS
|
||||||||
Property and equipment, net
|
171
|
182
|
||||||
Operating lease right-of-use assets, net
|
648
|
817
|
||||||
Intangible assets definite-lived, net
|
211
|
252
|
||||||
Notes receivable, net of current portion
|
56
|
79
|
||||||
Deferred tax asset, net
|
4,492
|
4,756
|
||||||
Deferred contract charges, net of current portion
|
185
|
197
|
||||||
Total assets
|
$
|
16,115
|
$
|
15,819
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||
CURRENT LIABILITIES
|
||||||||
Accounts payable - trade
|
$
|
455
|
$
|
359
|
||||
Accrued expenses
|
498
|
915
|
||||||
Operating lease liabilities, current
|
371
|
402
|
||||||
Deferred revenues, current
|
116
|
343
|
||||||
Total current liabilities
|
1,440
|
2,019
|
||||||
LONG-TERM LIABILITIES
|
||||||||
Operating lease liabilities, net of current portion
|
393
|
555
|
||||||
Deferred revenues, net of current portion
|
503
|
543
|
||||||
Total liabilities
|
2,336
|
3,117
|
||||||
COMMITMENTS AND CONTINGENCIES (SEE NOTE C)
|
||||||||
SHAREHOLDERS’ EQUITY
|
||||||||
Common stock, $0.01 par value; authorized 26,000,000 shares; issued 25,647,171 and 25,522,171 shares, respectively;
outstanding 14,711,566 and 14,586,566 shares, respectively
|
256
|
255
|
||||||
Additional paid-in capital
|
37,506
|
37,563
|
||||||
Retained earnings
|
6,045
|
4,912
|
||||||
Treasury stock, at cost
|
||||||||
Shares in treasury: 10,935,605 and 10,935,605 respectively
|
(30,028
|
)
|
(30,028
|
)
|
||||
Total shareholders' equity
|
13,779
|
12,702
|
||||||
|
||||||||
Total liabilities and shareholders' equity
|
$
|
16,115
|
$
|
15,819
|
Six Months Ended
|
||||||||
December 29,
2024
|
December 24,
2023
|
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net income
|
$
|
1,133
|
$
|
939
|
||||
Adjustments to reconcile net income to cash provided by operating activities:
|
||||||||
Amortization of discount on short-term investment
|
(63
|
)
|
—
|
|||||
Impairment of long-lived assets and other lease charges
|
9
|
—
|
||||||
Stock-based compensation expense
|
126
|
82
|
||||||
Depreciation and amortization
|
47
|
70
|
||||||
Amortization of operating right-of-use assets
|
169
|
219
|
||||||
Amortization of definite-lived intangible assets
|
41
|
42
|
||||||
Non-cash lease expense
|
43
|
—
|
||||||
Provision (recovery) for credit losses
|
(8
|
)
|
35
|
|||||
Deferred income tax
|
264
|
71
|
||||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
304
|
(69
|
)
|
|||||
Notes receivable
|
—
|
(54
|
)
|
|||||
Deferred contract charges
|
15
|
11
|
||||||
Prepaid expenses and other current assets
|
(40
|
)
|
(254
|
)
|
||||
Accounts payable - trade
|
96
|
151
|
||||||
Accrued expenses
|
(417
|
)
|
(442
|
)
|
||||
Operating lease liabilities
|
(236
|
)
|
(249
|
)
|
||||
Deferred revenues
|
(267
|
)
|
(247
|
)
|
||||
Cash provided by operating activities
|
1,216
|
305
|
||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Purchases of short-term investments
|
(8,102
|
)
|
—
|
|||||
Maturities of short-term investments
|
7,065
|
—
|
||||||
Payments received on notes receivable
|
26
|
30
|
||||||
Proceeds from sale of assets
|
7
|
—
|
||||||
Purchase of definite-lived intangible assets
|
—
|
(8
|
)
|
|||||
Purchase of property and equipment
|
(45
|
)
|
(38
|
)
|
||||
Cash used in investing activities
|
(1,049
|
)
|
(16
|
)
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Taxes paid on issuance of restricted stock units
|
(182
|
)
|
(311
|
)
|
||||
Cash used in financing activities
|
(182
|
)
|
(311
|
)
|
||||
Net decrease in cash and cash equivalents
|
(15
|
)
|
(22
|
)
|
||||
Cash and cash equivalents, beginning of period
|
2,886
|
5,328
|
||||||
Cash and cash equivalents, end of period
|
$
|
2,871
|
$
|
5,306
|
||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
|
||||||||
CASH PAID FOR:
|
||||||||
Income taxes (net of refunds)
|
$
|
98
|
$
|
4
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
December 29,
2024
|
December 24,
2023
|
December 29,
2024
|
December 24,
2023
|
|||||||||||||
Net income
|
$
|
607
|
$
|
553
|
$
|
1,133
|
$
|
939
|
||||||||
Interest income
|
(87
|
)
|
(46
|
)
|
(169
|
)
|
(48
|
)
|
||||||||
Income taxes
|
144
|
(13
|
)
|
313
|
119
|
|||||||||||
Depreciation and amortization
|
53
|
57
|
96
|
112
|
||||||||||||
EBITDA
|
$
|
717
|
$
|
551
|
$
|
1,373
|
$
|
1,122
|
||||||||
Stock-based compensation expense
|
53
|
3
|
126
|
82
|
||||||||||||
Severance
|
5
|
—
|
5
|
—
|
||||||||||||
Franchisee default and closed store revenue
|
32
|
(18
|
)
|
23
|
(82
|
)
|
||||||||||
Adjusted EBITDA
|
$
|
807
|
$
|
536
|
$
|
1,527
|
$
|
1,122
|