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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Mar. 25, 2012	May 03, 2012
Document and Entity Information
Entity Registrant Name	PIZZA INN HOLDINGS, INC /MO/
Document Type	10-Q
Document Period End Date	Mar. 25, 2012
Amendment Flag	false
Entity Central Index Key	0000718332
Current Fiscal Year End Date	--06-26
Entity Common Stock, Shares Outstanding		8,010,919
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q3

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		9 Months Ended
	Mar. 25, 2012	Mar. 27, 2011	Mar. 25, 2012	Mar. 27, 2011
REVENUES	$ 10,646	$ 10,721	$ 32,129	$ 31,708
COSTS AND EXPENSES:
Cost of sales	8,863	8,679	26,724	25,854
Franchise expenses	592	472	1,565	1,288
General and administrative expenses	1,016	823	2,986	2,577
Costs associated with store closure	0	0	0	319
Bad debt	35	15	65	70
Interest expense	38	21	71	49
Costs And Expenses	10,544	10,010	31,411	30,157
INCOME FROM CONTINUING OPERATIONS BEFORE TAXES	102	711	718	1,551
Income taxes	35	254	252	554
INCOME FROM CONTINUING OPERATIONS.	67	457	466	997
Loss from discontinued operations, net of taxes	(15)	(15)	(45)	(47)
NET INCOME	$ 52	$ 442	$ 421	$ 950
EARNINGS PER SHARE OF COMMON STOCK - BASIC:
Income from continuing operations	$ 0.01	$ 0.06	$ 0.06	$ 0.13
Loss from discontinued operations	0.00	0.00	(0.01)	(0.01)
Net income - basic	0.01	0.06	0.05	0.12
EARNINGS PER SHARE OF COMMON STOCK - DILUTED:
Income from continuing operations	0.01	0.06	0.06	0.13
Loss from discontinued operations	0.00	0.00	(0.01)	(0.01)
Net income - diluted	$ 0.01	$ 0.06	$ 0.05	$ 0.12
Weighted average common shares outstanding - basic	8,021	8,011	8,015	8,011
Weighted average common and potential dilutive common shares outstanding	8,385	8,016	8,322	8,013

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 25, 2012	Jun. 26, 2011
CURRENT ASSETS
Cash and cash equivalents	$ 694	$ 949
Accounts receivable, less allowance for bad debts of $223 and $162, respectively	3,335	3,128
Inventories	1,689	1,829
Income tax receivable	653	553
Deferred income tax assets	776	822
Prepaid expenses and other	326	232
Total current assets	7,473	7,513
LONG-TERM ASSETS
Property, plant and equipment, net	4,788	3,196
Long-term notes receivable	22	51
Deposits and other	477	392
Total Assets	12,760	11,152
CURRENT LIABILITIES
Accounts payable - trade	2,101	2,103
Accrued expenses	1,360	1,557
Deferred revenues	191	202
Bank debt	765	333
Total current liabilities	4,417	4,195
LONG-TERM LIABILITIES
Bank debt, net of current portion	1,096	482
Deferred tax liability	605	360
Deferred revenues, net of current portion	135	165
Deferred gain on sale of property	90	109
Other long-term liabilities	28	0
Total liabilities	6,371	5,311
COMMITMENTS AND CONTINGENCIES (See Note 3)
SHAREHOLDERS' EQUITY
Common stock, $.01 par value; authorized 26,000,000 shares; issued 15,140,319 and 15,130,319 shares, respectively; outstanding 8,020,919 and 8,010,919 shares, respectively	151	151
Additional paid-in capital	9,136	9,009
Retained earnings	21,738	21,317
Treasury stock at cost Shares in treasury: 7,119,400	(24,636)	(24,636)
Total shareholders' equity	6,389	5,841
Total Liabilities and Stockholders' Equity	$ 12,760	$ 11,152

CONDENSED CONSOLIDATED BALANCE SHEETS PARENTHETICALS - USD ($)	Mar. 25, 2012	Jun. 26, 2011
Accounts receivable, allowance for bad debts	$ 232	$ 162
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	26,000,000	26,000,000
Common stock, shares issued	15,140,319	15,130,319
Common stock, shares outstanding	8,020,919	8,010,919
Treasury stock , Shares	7,119,400	7,119,400

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Mar. 25, 2012	Mar. 27, 2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 421	$ 950
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	663	689
Stock compensation expense	104	73
Deferred tax	46	189
Provision for bad debts	65	70
Net income adjusted for non-cash items	1,299	1,971
Changes in operating assets and liabilities:
Notes and accounts receivable	(394)	(634)
Inventories	140	(218)
Accounts payable - trade.	(2)	(112)
Accrued expenses	76	7
Deferred revenue.	(60)	10
Prepaid expenses and other.	(175)	(130)
Net changes in operating assets and liabilities	(415)	(1,077)
Cash provided by operating activities	884	894
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(2,208)	(1,520)
Cash used by investing activities	(2,208)	(1,520)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options	23	0
Borrowings of bank debt	1,795	660
Repayments of bank debt	(749)	(91)
Cash provided by financing activities	1,069	569
Net decrease in cash and cash equivalents	(255)	(57)
Cash and cash equivalents, beginning of period	949	761
Cash and cash equivalents, end of period	694	704
CASH PAYMENTS FOR:
Interest	55	49
Income taxes - net	$ 37	$ 510

Summary of Significant Accounting Policies

9 Months Ended

Mar. 25, 2012

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

(1) Summary of Significant Accounting Policies

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly owned. All appropriate intercompany balances and transactions have been eliminated.

Cash and Cash Equivalents

The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.

Fiscal Quarters

The three and nine month periods ended March 25, 2012 and March 27, 2011, each contained 13 weeks and 39 weeks, respectively.

Revenue Recognition

The Company recognizes revenue when products are delivered and the customer takes ownership and assumes risk of loss, collection of the relevant receivable is probable, persuasive evidence of an arrangement exists and the sales price is fixed or determinable. The Company's Norco division sells food and supplies to franchisees on trade accounts under terms common in the industry. Food and supply sales revenues, including shipping and handling costs, are recognized upon delivery of the product. Revenue from restaurant sales is recognized when food and beverage products are sold. The Company reports revenue net of sales taxes collected from customers and remitted to governmental taxing authorities.

Franchise revenue consists of income from license fees, royalties, and area development and foreign master license fees. License fees are recognized as income when there has been substantial performance under the agreement by the Company. Domestic license fees are generally recognized at the time the restaurant is opened. Foreign master license fees are generally recognized upon execution of the agreement as all material services relating to the sale have been substantially performed by the Company and the fee has been collected. Royalties are recognized as income when earned.

Stock-Based Compensation

The Company accounts for stock options using the fair value recognition provisions of the authoritative guidance on share-based payments. The Company uses the Black-Scholes formula to estimate the value of stock-based compensation for options granted to employees and directors and expects to continue to use this acceptable option valuation model in the future. The authoritative guidance also requires the benefits of tax deductions in excess of recognized compensation cost to be reported as a financing cash flow.

Use of Management Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the Company’s management to make estimates and assumptions that affect its reported amounts of assets, liabilities, revenues, expenses and related disclosure of contingent liabilities. The Company bases its estimates on historical experience and other various assumptions that it believes are reasonable under the circumstances. Estimates and assumptions are reviewed periodically and actual results could differ materially from estimates.

Reclassification

Certain items have been reclassified in the prior year financial statements to conform to current year presentation.

Long-Term Debt

9 Months Ended

Mar. 25, 2012

Long-Term Debt

Long-Term Debt

(2) Long-Term Debt

On January 11, 2010, the Company entered into a Loan Agreement with Amegy Bank National Association (“Amegy”) providing for a $2.0 million revolving credit facility (with a $250 thousand letter of credit subfacility) and a $1.0 million term loan facility. On January 10, 2011, the Company and Amegy entered into a First Amendment to Loan Agreement increasing the Company's term loan facility and amending certain other provisions of the Loan Agreement. On October 26, 2011, the Company and Amegy entered into an Amended and Restated Loan Agreement further increasing the Company’s term loan facility and amending certain other provisions of the Loan Agreement. As amended, the Amegy credit facility provides a $2.0 million revolving credit facility (with a $250 thousand letter of credit subfacility) and a $4.0 million term loan facility, in addition to $0.7 million in existing term loans.

The Company may borrow, repay and re-borrow under the Amegy revolving credit facility through January 11, 2013, at which time all amounts outstanding under the revolving credit facility mature. Availability under the revolving credit facility is limited by advance rates on eligible inventory and accounts receivable. Interest on indebtedness from time to time outstanding under the revolving credit facility is computed at the greater of Amegy’s prime rate or 5% and is payable monthly. A commitment fee of 0.25% per annum is payable quarterly on the average unused portion of the revolving credit facility.

The Company may borrow under the term loan facility through October 31, 2012. Advances for such term loans are limited by a percentage of the costs of equipment and leasehold improvements for new restaurant locations of the Company. Interest only is payable monthly on each term loan for up to 120 days after the initial advance. Thereafter, each term loan is payable in 36 equal monthly installments of principal plus accrued interest. Interest on each term loan accrues at either (a) the greater of 6% or Amegy’s prime rate plus 1% or (b) at the Company’s option, a fixed rate determined by Amegy. A fee of 0.5% of the total term loan facility was paid at closing.

The obligations of the Company under the Amended and Restated Loan Agreement are guaranteed by each of the subsidiaries of the Company and are secured by a pledge of all of the stock of such subsidiaries as well as security interests in substantially all of the assets of the Company and its subsidiaries including, but not limited to, accounts receivable, inventory and equipment. The Amended and Restated Loan Agreement contains various affirmative covenants which, among other things, require the Company to provide Amegy with certain financial statements, compliance statements, reports and other information. The Amended and Restated Loan Agreement also contains various negative covenants which, among other things, require the Company to maintain certain financial ratios and restrict the ability of the Company to engage in certain activities. The Company is in compliance with all covenants as of the reporting date. If an event of default occurs under the Amended and Restated Loan Agreement, Amegy may terminate all commitments under the credit facilities and declare all unpaid principal, interest and other amounts owing under the credit facilities to be immediately due and payable. As of March 25, 2012 the balance on the term loan facility was $1.9 million with an interest rate of 6% and the balance on the revolving credit facility was zero with an interest rate of 5%.

Commitments and Contingencies.

9 Months Ended

Mar. 25, 2012

Commitments and Contingencies.

Commitments and Contingencies.

(3) Commitments and Contingencies

On April 22, 2009, the Company’s board of directors amended the stock purchase plan first adopted on May 23, 2007, and previously amended on June 2, 2008, to increase the number of shares of common stock the Company may repurchase to a total of 3,016,000 shares. As of March 25, 2012, up to an additional 848,425 shares could be purchased under the plan.

The Company is subject to other claims and legal actions in the ordinary course of its business. The Company believes that all such claims and actions currently pending against it are either adequately covered by insurance or would not have a material adverse effect on the Company’s annual results of operations, cash flows or financial condition if decided in a manner that is unfavorable to the Company.

- Definition

The entire disclosure for commitments and contingencies.

+ References

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+ Details

Stock-Based Compensation

9 Months Ended

Mar. 25, 2012

Stock-Based Compensation

Stock-Based Compensation

(4) Stock-Based Compensation

For the quarter and nine months ended March 25, 2012, we recognized stock-based compensation expense of $30,000 and $102,700. As of March 25, 2012, unamortized stock-based compensation expense was $0.2 million.

The following table summarizes the number of shares of the Company’s common stock subject to outstanding stock options:

	Nine Months Ended
	March 25, 2012			March 27, 2011

Outstanding at beginning of year		604,036			565,510

Granted		169,032			20,996
Exercised		(10,000	)		-
Forfeited/Canceled/Expired		(15,000	)		(25,000	)

Outstanding at end of period		748,068			561,506

Exercisable at end of period		518,024			407,010

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References

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+ Details

Earnings Per Share

9 Months Ended

Mar. 25, 2012

Earnings Per Share

Earnings Per Share [Text Block]

(5) Earnings per Share (EPS)

The following table shows the reconciliation of the numerator and denominator of the basic EPS calculation to the numerator and denominator of the diluted EPS calculation (in thousands, except per share amounts).

	Three Months Ended
	March 25, 2012						March 27, 2011
	Diluted			Basic			Diluted			Basic

Income from continuing operations	$	67		$	67		$	457		$	457
Discontinued operations		(15	)		(15	)		(15	)		(15	)
Net income available to common stockholders	$	52		$	52		$	442		$	442

Weighted average common shares		8,021			8,021			8,011			8,011
Dilutive stock options		364			-			5			-
Average common shares outstanding		8,385			8,021			8,016			8,011

Income from continuing operations per share	$	0.01		$	0.01		$	0.06		$	0.06
Discontinued operations loss per common share		-			-			-			-
Net income per common share	$	0.01		$	0.01		$	0.06		$	0.06


	Nine Months Ended
	March 25, 2012						March 27, 2011
	Diluted			Basic			Diluted			Basic

Income from continuing operations	$	466		$	466		$	997		$	997
Discontinued operations		(45	)		(45	)		(47	)		(47	)
Net income available to common stockholders	$	421		$	421		$	950		$	950

Weighted average common shares		8,015			8,015			8,011			8,011
Dilutive stock options		307			-			2			-
Average common shares outstanding		8,322			8,015			8,013			8,011

Income from continuing operations per share	$	0.06		$	0.06		$	0.13		$	0.13
Discontinued operations loss per common share		(0.01	)		(0.01	)		(0.01	)		(0.01	)
Net income per common share	$	0.05		$	0.05		$	0.12		$	0.12

For the three and nine months ended March 25, 2012, options to purchase 75,000 shares of common stock at an exercise price of $5.51 were excluded from the computation of diluted EPS because the options’ exercise price exceeded the average market price of the common shares for the periods. For the three and nine months ended March 27, 2011, options to purchase 425,000 shares of common stock at exercise prices ranging from $2.00 to $3.17 were excluded from the computation of diluted EPS because the options’ exercise prices exceeded the average market price of the common shares for the periods.

Closed restaurants and discontinued operations

9 Months Ended

Mar. 25, 2012

Closed restaurants and discontinued operations [Abstract]

Closed restaurants and discontinued operations

(6) Closed restaurants and discontinued operations

The authoritative guidance on “Accounting for the Impairment or Disposal of Long-Lived Assets,” requires that discontinued operations that meet certain criteria be reflected in the statement of operations after results of continuing operations as a net amount. This guidance also requires that the operations of the closed restaurants, including any impairment charges, be reclassified to discontinued operations for all periods presented.

The authoritative guidance on “Accounting for Costs Associated with Exit or Disposal Activities,” requires that a liability for a cost associated with an exit or disposal activity be recognized when the liability is incurred. This authoritative guidance also establishes that fair value is the objective for initial measurement of the liability.

Loss from discontinued operations reflects costs associated with a former Company-owned restaurant in Houston, Texas that was closed during the quarter ended September 23, 2007. This property is on the market for sub-lease. Because we believe that the property will sub-lease at or above the contracted lease rates, we have not reserved any additional costs related to our obligations under this non-cancelable lease.

- Definition

The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations).

+ References

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-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 144
-Paragraph 43-48
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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+ Details

Income Taxes

9 Months Ended

Mar. 25, 2012

Income Taxes.

Income Taxes

(7) Income Taxes

For the three and nine month periods ended March 25, 2012, income tax expense of $35,000 and $252,000, respectively, was calculated on an effective income tax rate that is consistent with the statutory U.S. federal income tax rate of 34% adjusted for state income tax effects and permanent difference items. Management believes that future operations will generate sufficient taxable income, along with the reversal of temporary differences, to fully realize the net deferred tax asset of $0.8 million.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
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-Article 4

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-Publisher FASB
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-Subparagraph (SX 210.4-08.(h))
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+ Details

Segment Reporting

9 Months Ended

Mar. 25, 2012

Segment Reporting

Segment Reporting

(8) Segment Reporting

Summarized in the following tables are net sales and operating revenues, operating income and geographic information (revenues) for the Company’s reportable segments for the three month and nine month periods ended March 25, 2012 and March 27, 2011 (in thousands). Operating income reported below excludes income tax provision and discontinued operations.

	Three Months Ended						Nine Months Ended
	March 25,			March 27,			March 25,			March 27,
	2012			2011			2012			2011
Revenue:
Franchising and food and supply distribution	$	8,993		$	9,587		$	27,929		$	28,720
Company-owned restaurants (1)		1,653			1,134			4,200			2,988
Consolidated revenues	$	10,646		$	10,721		$	32,129		$	31,708

Depreciation and amortization:
Franchising and food and supply distribution	$	-		$	-		$	-		$	-
Company-owned restaurants (1)		198			98			459			581
Combined		198			98			459			581
Corporate administration and other		71			44			191			108
Depreciation and amortization	$	269		$	142		$	650		$	689

Income (loss) from continuing operations before taxes:
Franchising and food and supply distribution (2)	$	692		$	1,171		$	2,456		$	3,484
Company-owned restaurants (1) (2)		(199	)		(42	)		(598	)		(706	)
Combined		493			1,129			1,858			2,778
Corporate administration and other (2)		(391	)		(418	)		(1,140	)		(1,227	)
Operating income	$	102		$	711		$	718		$	1,551

Geographic information (revenues):
United States	$	10,424		$	10,472		$	31,312		$	30,969
Foreign countries		222			249			817			739
Consolidated total	$	10,646		$	10,721		$	32,129		$	31,708

(1) Company stores that were closed are included in discontinued operations in the accompanying Condensed Consolidated Statement of Operations.

(2) Portions of corporate administration and other have been allocated to segments.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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+ Details