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) September 13, 2010
Pizza Inn, Inc.
(Exact name of registrant as specified in its charter)
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Missouri
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0-12919
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47-0654575
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(IRS Employer Identification No.)
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3551 Plano Parkway, The Colony, Texas
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75056
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(Address of principal executive offices)
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(Zip Code)
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Registrant’s telephone number, including area code (469) 384-5000
Not Applicable
(Former name or former address, if changed since last report)
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 September 16, 2010, Pizza Inn, Inc. issued a press release discussing financial results of its fiscal year ended June 27, 2010, a copy of which is attached as Exhibit 99.1 hereto.
ITEM 8.01 Other Events
The Consolidated Statements of Operations included in the press release issued September 16, 2010 inadvertently reflected litigation costs of $446,000 for fiscal year 2010 which were properly characterized as general and administrative expenses in the Company’s Consolidated Statements of Operations included in its Annual Report on Form 10-K for the year ended June 27, 2010, filed on September 16, 2010. A copy of the correct Consolidated Statements of Operations is attached as Exhibit 99.2 hereto.
ITEM 9.01 Financial Statements and Exhibits
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Exhibits
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Exhibit
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Number
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Description
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99.1
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Pizza Inn, Inc. press release dated September 16, 2010.
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99.2.
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Pizza Inn, Inc. Consolidated Statements of Operations for the fiscal years ended June 27, 2010 and June 28, 2009
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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. | |||
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Date: September 21, 2010
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By:
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/s/ Charles R. Morrison | |
| Charles R. Morrison, President | |||
| and Chief Executive Officer | |||
Exhibit 99.1
FOR IMMEDIATE RELEASE
Contact:
Nancy Ellefson
VP of Finance
Pizza Inn, Inc.
469-384-5000
nellefson@pihq.com
PIZZA INN, INC. REPORTS RESULTS FOR
FISCAL YEAR 2010
Company Delivers 16% Pre-tax income growth despite tough economic conditions
The Colony, Texas – September 16, 2010 -- 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:
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·
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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.
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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.
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Comparable domestic buffet restaurant sales decreased 7% for both fiscal 2010 and for the fourth quarter compared to the prior fiscal year.
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Total comparable domestic restaurant sales decreased 8% for both fiscal 2010 and for the fourth quarter compared to the prior fiscal year.
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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 reasonabl
e, 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.”
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PIZZA INN, INC.
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CONSOLIDATED STATEMENTS OF OPERATIONS
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(In thousands, except per share amounts)
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||||||||
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Year Ended
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June 27,
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June 28,
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|||||||
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REVENUES:
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2010
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2009
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||||||
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Food and supply sales
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$ | 33,945 | $ | 37,793 | ||||
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Franchise revenue
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4,067 | 4,180 | ||||||
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Restaurant sales
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2,858 | 1,873 | ||||||
| 40,870 | 43,846 | |||||||
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COSTS AND EXPENSES:
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Cost of sales
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33,023 | 36,355 | ||||||
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Franchise expenses
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1,950 | 1,929 | ||||||
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General and administrative expenses
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3,003 | 3,217 | ||||||
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Severance
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- | 68 | ||||||
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Provision for bad debts
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155 | 75 | ||||||
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Litigation costs
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446 | 263 | ||||||
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Interest expense
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62 | 57 | ||||||
| 38,639 | 41,964 | |||||||
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INCOME FROM CONTINUING
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OPERATIONS BEFORE TAXES
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2,231 | 1,882 | ||||||
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Income tax expense
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786 | 531 | ||||||
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INCOME FROM
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CONTINUING OPERATIONS
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1,445 | 1,351 | ||||||
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Loss from discontinued
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operations, net of income tax benefit
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(281 | ) | (179 | ) | ||||
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NET INCOME
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$ | 1,164 | $ | 1,172 | ||||
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EARNINGS (LOSS) PER SHARE OF COMMON
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||||||||
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STOCK - BASIC:
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Income from continuing operations
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$ | 0.18 | $ | 0.16 | ||||
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Loss from discontinued operations
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$ | (0.03 | ) | $ | (0.02 | ) | ||
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Net income
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$ | 0.15 | $ | 0.14 | ||||
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EARNINGS (LOSS) PER SHARE OF COMMON
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STOCK - DILUTED:
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Income from continuing operations
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$ | 0.18 | $ | 0.16 | ||||
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Loss from discontinued operations
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$ | (0.03 | ) | $ | (0.02 | ) | ||
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Net income
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$ | 0.15 | $ | 0.14 | ||||
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Weighted average common
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shares outstanding - basic
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8,011 | 8,580 | ||||||
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Weighted average common
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shares outstanding - diluted
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8,011 | 8,580 | ||||||
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PIZZA INN, INC.
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CONSOLIDATED BALANCE SHEETS
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(In thousands, except share amounts)
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June 27,
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June 28,
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ASSETS
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2010
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2009
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CURRENT ASSETS
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Cash and cash equivalents
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$ | 761 | $ | 274 | ||||
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Accounts receivable, less allowance for doubtful
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accounts of $178 and $203, respectively
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2,678 | 2,559 | ||||||
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Income tax receivable
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184 | 80 | ||||||
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Inventories
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1,489 | 1,371 | ||||||
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Property held for sale
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16 | 17 | ||||||
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Deferred income tax assets
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723 | 618 | ||||||
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Prepaid expenses and other
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260 | 233 | ||||||
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Total current assets
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6,111 | 5,152 | ||||||
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LONG-TERM ASSETS
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Property, plant and equipment, net
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2,167 | 1,743 | ||||||
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Deferred income tax assets
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48 | 86 | ||||||
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Deposits and other
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132 | 81 | ||||||
| $ | 8,458 | $ | 7,062 | |||||
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LIABILITIES AND SHAREHOLDERS' EQUITY
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CURRENT LIABILITIES
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Accounts payable - trade
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$ | 1,783 | $ | 1,806 | ||||
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Deferred revenues
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236 | 132 | ||||||
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Accrued expenses
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1,360 | 1,009 | ||||||
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Bank debt
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110 | - | ||||||
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Total current liabilities
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3,489 | 2,947 | ||||||
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LONG-TERM LIABILITIES
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Deferred gain on sale of property
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134 | 159 | ||||||
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Deferred revenues, net of current portion
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207 | 246 | ||||||
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Bank debt
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220 | 621 | ||||||
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Other long-term liabilities
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27 | 37 | ||||||
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Total liabilities
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4,077 | 4,010 | ||||||
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COMMITMENTS AND CONTINGENCIES
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SHAREHOLDERS' EQUITY
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Common stock, $.01 par value; authorized 26,000,000
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shares; issued 15,130,319 shares; outstanding 8,010,919 shares
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151 | 151 | ||||||
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Additional paid-in capital
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8,906 | 8,741 | ||||||
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Retained earnings
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19,960 | 18,796 | ||||||
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Treasury stock at cost
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7,119,400 shares
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(24,636 | ) | (24,636 | ) | ||||
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Total shareholders' equity
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4,381 | 3,052 | ||||||
| $ | 8,458 | $ | 7,062 | |||||
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PIZZA INN, INC.
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CONSOLIDATED STATEMENTS OF CASH FLOWS
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(In thousands)
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||||||||
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Year Ended
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June 27,
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June 28,
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2010
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2009
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CASH FLOWS FROM OPERATING ACTIVITIES:
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Net income
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$ | 1,164 | $ | 1,172 | ||||
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Adjustments to reconcile net income to cash
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provided by operating activities:
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Depreciation and amortization
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357 | 290 | ||||||
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Provision for bad debt
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155 | 75 | ||||||
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Stock compensation expense
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165 | 198 | ||||||
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Deferred income taxes
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(67 | ) | 88 | |||||
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Changes in operating assets and liabilities:
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Notes and accounts receivable
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(269 | ) | 146 | |||||
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Income tax receivable
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(104 | ) | 192 | |||||
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Inventories
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(117 | ) | 25 | |||||
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Accounts payable - trade
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(23 | ) | (574 | ) | ||||
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Accrued expenses
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380 | (175 | ) | |||||
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Prepaid expenses and other
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(94 | ) | 80 | |||||
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Cash provided by operating activities
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1,547 | 1,517 | ||||||
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CASH FLOWS FROM INVESTING ACTIVITIES:
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Capital expenditures
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(769 | ) | (1,049 | ) | ||||
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Cash used for investing activities
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(769 | ) | (1,049 | ) | ||||
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CASH FLOWS FROM FINANCING ACTIVITIES:
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Net (payments) borrowings of long-term bank debt
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(291 | ) | 621 | |||||
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Purchases of treasury stock
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- | (1,972 | ) | |||||
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Cash used for financing activities
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(291 | ) | (1,351 | ) | ||||
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Net increase (decrease) in cash and cash equivalents
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487 | (883 | ) | |||||
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Cash and cash equivalents, beginning of year
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274 | 1,157 | ||||||
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Cash and cash equivalents, end of year
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$ | 761 | $ | 274 | ||||
Exhibit 99.2
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PIZZA INN, INC.
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CONSOLIDATED STATEMENTS OF OPERATIONS
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(In thousands, except per share amounts)
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||||||||
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Year Ended
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||||||||
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June 27,
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June 28,
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|||||||
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REVENUES:
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2010
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2009
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Food and supply sales
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$ | 33,945 | $ | 37,793 | ||||
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Franchise revenue
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4,067 | 4,180 | ||||||
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Restaurant sales
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2,858 | 1,873 | ||||||
| 40,870 | 43,846 | |||||||
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COSTS AND EXPENSES:
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||||||||
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Cost of sales
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33,023 | 36,355 | ||||||
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Franchise expenses
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1,950 | 1,929 | ||||||
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General and administrative expenses
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3,449 | 3,217 | ||||||
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Severance
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- | 68 | ||||||
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Provision for bad debts
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155 | 75 | ||||||
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Litigation costs
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- | 263 | ||||||
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Interest expense
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62 | 57 | ||||||
| 38,639 | 41,964 | |||||||
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INCOME FROM CONTINUING
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||||||||
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OPERATIONS BEFORE TAXES
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2,231 | 1,882 | ||||||
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Income tax expense
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786 | 531 | ||||||
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INCOME FROM
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CONTINUING OPERATIONS
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1,445 | 1,351 | ||||||
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Loss from discontinued
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operations, net of income tax benefit
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(281 | ) | (179 | ) | ||||
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NET INCOME
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$ | 1,164 | $ | 1,172 | ||||
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EARNINGS (LOSS) PER SHARE OF COMMON
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||||||||
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STOCK - BASIC:
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||||||||
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Income from continuing operations
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$ | 0.18 | $ | 0.16 | ||||
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Loss from discontinued operations
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$ | (0.03 | ) | $ | (0.02 | ) | ||
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Net income
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$ | 0.15 | $ | 0.14 | ||||
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EARNINGS (LOSS) PER SHARE OF COMMON
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||||||||
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STOCK - DILUTED:
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||||||||
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Income from continuing operations
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$ | 0.18 | $ | 0.16 | ||||
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Loss from discontinued operations
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$ | (0.03 | ) | $ | (0.02 | ) | ||
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Net income
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$ | 0.15 | $ | 0.14 | ||||
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Weighted average common
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||||||||
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shares outstanding - basic
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8,011 | 8,580 | ||||||
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Weighted average common
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||||||||
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shares outstanding - diluted
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8,011 | 8,580 | ||||||