Pizza Inn Announces 2nd Quarter Financial Results
PIZZA INN, INC.
The decrease in revenues for the latest quarter is primarily due to reduced prices on certain key ingredients and lower overall retail sales. Also impacting the sales decline was the replacement of a company-owned buffet location with a new smaller delivery/carryout location. Net income for the quarter was adversely impacted by product cost inflation of approximately 5%, which was not passed through to franchisees. The previous year's quarter also included the reversal of $264,000 in bad debt expense. Additionally, legal and professional fees increased $188,000 for the quarter compared to the same quarter last year as a result of ongoing litigation and related matters.
Bob Page, the Company's Acting Chief Executive Officer commented, "Although operating margins are significantly lower due to product cost inflation that was not passed on to franchisees, we are encouraged by the continued progress of our previously outlined strategic plan. The plan remains on schedule and we believe it will position us for future growth by improving unit-level economics."
The Company also reported that through the quarter ended December 26, 2004, it has purchased approximately 39,000 shares of its common stock since the Board authorized resumed purchases earlier this year pursuant to a previously approved stock buy-back plan.
Certain statements in this press release, other than historical information, may be considered forward-looking statements, within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, and are subject to various risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may differ from those anticipated, estimated or expected. Among the key factors that may have a direct bearing on Pizza Inn's operating results, performance or financial condition are its ability to implement its growth strategies, national, regional and local economic conditions affecting the restaurant industry, competition within each of the restaurant industries, store sales cannibalization, success of its franchise operations, negative publicity, fluctuations in quarterly results of operations, including seasonality, government regulations, weather, commodity, insurance and labor costs.
Pizza Inn, Inc. is headquartered in The Colony, Texas, along with its distribution division, Norco Restaurant Distribution Services. Pizza Inn represents over 400 restaurants with annual sales of approximately $170 million.
Pizza Inn, Inc. For more information contact: 3551 Plano Parkway Robert B. Page The Colony, TX 75056 Acting Chief Executive Officer (469) 384-5000 For more information about the company, visit Pizza Inn at http://www.pizzainn.com/ PIZZA INN, INC. (In thousands, except share and per share amounts) 2nd Quarter December 26, December 28, 2004 2003 Revenue $13,804 $14,769 Income before taxes $79 $1,045 Net Income $51 $558 Diluted earnings per share $0.01 $0.06 Basic earnings per share $0.01 $0.06 Weighted average shares outstanding: Diluted 10,140,853 10,122,605 Basic 10,104,404 10,071,037 Six Months December 26, December 28, 2004 2003 Revenue $28,225 $30,145 Income before taxes $520 $1,809 Net Income $336 $1,062 Diluted earnings per share $0.03 $0.11 Basic earnings per share $0.03 $0.11 Weighted average shares outstanding: Diluted 10,154,987 10,104,332 Basic 10,119,039 10,065,130
SOURCE: Pizza Inn, Inc.
CONTACT: Robert B. Page, Acting Chief Executive Officer of Pizza Inn,
Web site: http://www.pizzainn.com/