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) APRIL 29, 2005
PIZZA INN, INC.
(Exact name of registrant as specified in its charter)
MISSOURI 0-12919 47-0654575
(State or other (Commission File Number) (IRS Employer
jurisdiction of incorporation) Identification No.)
3551 PLANO PARKWAY, THE COLONY, TEXAS 75056
(Address of principal executive offices) (Zip Code)
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):
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d-2(b))
[ ] 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 April 29, 2005, Pizza Inn, Inc. released the results of operations for
the fiscal quarter ending March 27, 2005. The release is furnished herewith and
incorporated herein by reference.
ITEM 7.01 REGULATION FD DISCLOSURE.
Pizza Inn, Inc. elects to disclose the information in the press release
furnished as Exhibit 99.1 to this report and incorporated herein by reference
through Form 8-K pursuant to Regulation FD.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.
(C) EXHIBITS.
EXHIBIT NO. DESCRIPTION OF EXHIBIT
----------- ----------------------
99.1 Press Release dated April 29, 2005 (furnished herewith and
---- incorporated herein by reference)
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.
Date: April 29, 2005 By:/s/ Shawn M. Preator
Shawn M. Preator, Chief Financial Officer
P R E S S R E L E A S E
FOR IMMEDIATE RELEASE
PIZZA INN, INC. REPORTS 3RD QUARTER FINANCIAL RESULTS
THE COLONY, TEXAS - APRIL 29, 2005 - PIZZA INN, INC. (NASDAQ:PZZI) today
reported $0.00 earnings per share for its quarter ended March 27, 2005 versus
$0.06 earnings per share for the same quarter last year. The quarter resulted
in a net loss of $20,000 versus net income of $617,000 for the same quarter last
year on revenues of $13.4 million and $14.5 million, respectively. For the
nine-month period, earnings per share were $0.03 versus $0.17 last year. Net
income for the nine-month period was $316,000 versus $1,679,000 on revenues of
$41.6 million versus $44.6 million last year.
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.
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