THE COLONY, Texas, Sept. 16, 2010 (GLOBE NEWSWIRE) -- Pizza Inn, Inc. (Nasdaq:PZZI) today reported net income of $1.2 million, or $0.15 per share, for the fiscal year ended June 27, 2010, versus net income of $1.2 million, or $0.14 per share, for the prior fiscal year.

Highlights for the fourth quarter and fiscal year 2010 included:
  • Pre-tax income from continuing operations was $2.2 million for fiscal 2010 compared to $1.9 million for the prior fiscal year, an increase of 16% compared to the prior fiscal year.
  • The Company opened more restaurants than it closed for the first time in eleven years. The opening of 25 restaurants during the fiscal year is the most in 5 years, while the closing of 22 restaurants during the year is the least in 13 years.
  • Comparable domestic buffet restaurant sales decreased 7% for both fiscal 2010 and for the fourth quarter compared to the prior fiscal year.
  • Total comparable domestic restaurant sales decreased 8% for both fiscal 2010 and for the fourth quarter compared to the prior fiscal year.

Charlie Morrison, President and CEO, commented, "We battled through a difficult operating environment in the past year and managed to grow pre-tax income by 16%, which demonstrates the improvements we have made. A net increase in store openings in the year demonstrates the commitment we have made to restoring growth to the brand. Fiscal year 2011 is set up to continue this momentum with more scheduled openings of both company-owned and franchised new restaurants."

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 an owner, franchisor and supplier of a system of restaurants operating domestically and internationally under the trademark "Pizza Inn." The Company and its distribution division, Norco Restaurant Services Company, are headquartered in The Colony, Texas. The Company's common stock is listed on the Nasdaq Capital Market under the symbol "PZZI."

The Pizza Inn logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4933
     
PIZZA INN, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
     
     
  Year Ended
  June 27, June 28,
REVENUES: 2010 2009
     
Food and supply sales  $ 33,945  $ 37,793
Franchise revenue  4,067  4,180
Restaurant sales  2,858  1,873
   40,870  43,846
     
COSTS AND EXPENSES:    
Cost of sales  33,023  36,355
Franchise expenses  1,950  1,929
General and administrative expenses  3,003  3,217
Severance  --  68
Provision for bad debts  155  75
Litigation costs  446  263
Interest expense  62  57
   38,639  41,964
     
INCOME FROM CONTINUING OPERATIONS BEFORE TAXES  2,231  1,882
     
Income tax expense  786  531
     
INCOME FROM CONTINUING OPERATIONS  1,445  1,351
Loss from discontinued operations, net of income tax benefit  (281)  (179)
     
NET INCOME  $ 1,164  $ 1,172
     
EARNINGS (LOSS) PER SHARE OF COMMON STOCK -- BASIC:  
Income from continuing operations  $ 0.18  $ 0.16
Loss from discontinued operations  $ (0.03)  $ (0.02)
Net income  $ 0.15  $ 0.14
     
EARNINGS (LOSS) PER SHARE OF COMMON STOCK -- DILUTED:  
Income from continuing operations  $ 0.18  $ 0.16
Loss from discontinued operations  $ (0.03)  $ (0.02)
Net income  $ 0.15  $ 0.14
     
Weighted average common shares outstanding -- basic 8,011 8,580
     
Weighted average common shares outstanding -- diluted 8,011 8,580
 
PIZZA INN, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)
 
  June 27, June 28,
ASSETS 2010 2009
     
CURRENT ASSETS    
Cash and cash equivalents $761 $274
Accounts receivable, less allowance for doubtful accounts of $178 and $203, respectively  2,678  2,559
Income tax receivable  184  80
Inventories  1,489  1,371
Property held for sale  16  17
Deferred income tax assets  723  618
Prepaid expenses and other  260  233
Total current assets  6,111  5,152
     
LONG-TERM ASSETS    
Property, plant and equipment, net  2,167  1,743
Deferred income tax assets  48  86
Deposits and other  132  81
  $8,458 $7,062
LIABILITIES AND SHAREHOLDERS' EQUITY    
CURRENT LIABILITIES    
Accounts payable -- trade $1,783 $1,806
Deferred revenues  236  132
Accrued expenses  1,360  1,009
Bank debt  110  --
Total current liabilities  3,489  2,947
     
LONG-TERM LIABILITIES    
Deferred gain on sale of property  134  159
Deferred revenues, net of current portion  207  246
Bank debt  220  621
Other long-term liabilities  27  37
Total liabilities  4,077  4,010
     
COMMITMENTS AND CONTINGENCIES    
SHAREHOLDERS' EQUITY    
Common stock, $.01 par value; authorized 26,000,000 shares; issued 15,130,319 shares; outstanding 8,010,919 shares  151  151
Additional paid-in capital  8,906  8,741
Retained earnings  19,960  18,796
Treasury stock at cost 7,119,400 shares    
   (24,636)  (24,636)
Total shareholders' equity   4,381  3,052
  $8,458 $7,062
 
PIZZA INN, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
     
  Year Ended
  June 27, June 28,
  2010 2009
     
CASH FLOWS FROM OPERATING ACTIVITIES:    
     
Net income   $ 1,164  $ 1,172
Adjustments to reconcile net income to cash provided by operating activities:    
Depreciation and amortization  357  290
Provision for bad debt  155  75
Stock compensation expense  165  198
Deferred income taxes  (67)  88
Changes in operating assets and liabilities:    
Notes and accounts receivable  (269)  146
Income tax receivable  (104)  192
Inventories  (117)  25
Accounts payable -- trade  (23)  (574)
Accrued expenses  380  (175)
Prepaid expenses and other  (94)  80
 Cash provided by operating activities  1,547  1,517
     
CASH FLOWS FROM INVESTING ACTIVITIES:    
     
Capital expenditures  (769)  (1,049)
Cash used for investing activities  (769)  (1,049)
     
CASH FLOWS FROM FINANCING ACTIVITIES:    
     
Net (payments) borrowings of long-term bank debt  (291)  621
Purchases of treasury stock  --  (1,972)
     
Cash used for financing activities  (291)  (1,351)
     
Net increase (decrease) in cash and cash equivalents  487  (883)
Cash and cash equivalents, beginning of year  274  1,157
Cash and cash equivalents, end of year  $ 761  $ 274
CONTACT:  Pizza Inn, Inc.          Nancy Ellefson, VP of Finance          469-384-5000          nellefson@pihq.com

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