Pizza Inn, Inc. Reports 3rd Quarter Financial Results
PIZZA INN, INC.
Revenues decreased approximately 8% or $1.1 million from the prior year quarter primarily due to reduced sale prices on certain key ingredients and lower overall retail sales. Comparable chainwide retail sales were down 3.2% for the quarter. Financial results continue to be adversely impacted by product cost inflation of approximately 5% for the quarter, which was not passed through to franchisees. Additionally, legal fees increased approximately $390,000 for the quarter compared to the same quarter last year as a result of ongoing litigation and related matters.
Tim Taft, the Company's new chief executive officer commented, "Operating margins continue to be lower due to sustained product cost inflation that we have not passed on to franchisees, but the Company remains focused on increasing productivity efficiencies and controlling expenses. Substantial progress has been made on our improved unit-level business model as evidenced by strong openings of our newest locations in Madison, Mississippi and Garner, North Carolina. We feel a sense of urgency to capitalize on the positive momentum these openings have generated and continue this success in our upcoming store openings."
Pizza Inn, Inc. is headquartered in The Colony, Texas, along with its distribution division, Norco Restaurant Services Company. Pizza Inn franchises over 400 restaurants with annual chainwide sales of approximately $160 million.
For more information contact: Shawn Preator Chief Financial Officer 469-384-5201 3551 Plano Parkway The Colony, TX 75056 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) 3rd Quarter March 27, March 28, 2005 2004 Revenue $13,401 $14,549 (Loss) Income before taxes ($31) $936 Net (Loss) Income ($20) $617 Diluted earnings (loss) per share $0.00 $0.06 Basic earnings (loss) per share $0.00 $0.06 Weighted average shares outstanding: Diluted 10,117,412 10,132,298 Basic 10,088,505 10,078,619 Nine Months March 27, March 28, 2005 2004 Revenue $41,586 $44,576 Income before taxes $489 $2,774 Net Income $316 $1,679 Diluted earnings per share $0.03 $0.17 Basic earnings per share $0.03 $0.17 Weighted average shares outstanding: Diluted 10,142,295 10,113,654 Basic 10,108,861 10,069,626
SOURCE: Pizza Inn, Inc.
CONTACT: Shawn Preator, Chief Financial Officer of Pizza Inn, Inc.,
Web site: http://www.pizzainn.com/