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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):
AUGUST 24, 2004
PIZZA INN, INC.
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(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
MISSOURI 47-0654575 0-12919
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(STATE OR OTHER JURISDICTION OF (I.R.S. EMPLOYER COMMISSION
INCORPORATION OR ORGANIZATION) IDENTIFICATION NO.) FILE NUMBER
3551 PLANO PARKWAY
THE COLONY, TX 75056 75056
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(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
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REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (469) 384-5000
(FORMER NAME, FORMER ADDRESS AND FORMER FISCAL YEAR, IF CHANGED SINCE LAST
REPORT)
ITEM 8.01. OTHER EVENTS AND REGULATION FD DISCLOSURE.
SEE ATTACHED EXHIBIT 99.1
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS
(C) EXHIBITS
SEE ATTACHED EXHIBIT 99.1
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.
PIZZA INN, INC.
Date: August 24, 2004 By: /s/ Ronald W. Parker
Ronald W. Parker, Chief Executive Officer
INDEX TO EXHIBITS
Exhibit
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Item
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99.1 Press Release by Pizza Inn, Inc. regarding quarterly earnings.
PIZZA INN ANNOUNCES 4TH QUARTER FINANCIAL RESULTS
THE COLONY, TEXAS -AUGUST 24, 2004- PIZZA INN, INC. (NASDAQ:PZZI) today reported
earnings per share for its fourth quarter ended June 27, 2004 of 6 versus 5
for the same quarter last year. Net income increased to $564,000 from $522,000
for the same quarter last year, and revenues increased to $15.4 million versus
$14.1 million. For fiscal year 2004, earnings per share were 22 versus 31
last year. Net income was $2,243,000 versus $3,093,000 on revenues of $60.2
million versus $58.8 million last year. Revenues consist of gross sales of
Norco, the Company's food and equipment division, franchise fees, and royalties.
Comparable chainwide same-store sales were 1.3% higher for the quarter ended
June 27, 2004 and down 1.3% for the year ended June 27, 2004.
The Company also announced today that its Board of Directors decided to resume
purchases of up to approximately 1,100,000 shares of the Company's common stock
from time to time on the open market under a previously approved stock
repurchase program. The Company's decision to commence new purchases was based
on its belief that its common stock represents an attractive long-term
investment opportunity for the Company. The timing and extent of the purchases
will depend on market conditions. The funds required for the stock purchase
will be provided from the Company's cash balances, operating cash flow and, as
appropriate, the Company's credit facility.
Ronnie Parker, Pizza Inn's President and Chief Executive Officer, stated, "The
Board's decision to resume stock purchases reflects its confidence in the
long-term prospects of the Company and our ability to enhance long-term
shareholder value." Regarding current initiatives, Mr. Parker also noted:
"One of our highest priorities continues to be our efforts to improve our
franchisees' sales and profitability. For our fiscal quarter ended June 27,
2004, buffet restaurants' sales were up 2.5% as the effectiveness of our
marketing continues. Our 4-pack sampler program rollout, as well as more
aggressive franchisee catering and local store marketing, also had an impact.
Regarding profit margins, we have provided significant direct annualized savings
to our franchisees through overhead reductions and increased purchasing
efficiencies, and these efforts continue. Cheese market price decreases from
May's all-time high to more normal levels in July have also provided recent
margin relief to our franchisees.
Current initiatives which are progressing well include a re-design of our Pizza
Inn Express concept for smaller venues such as convenience stores and airports
to make them even more attractive regarding investment, return on investment,
and operating efficiencies. We are also making progress in our aggressive
pursuit of external revenues from other customers (non Pizza Inn) in our Norco
division to continue our focus on improving our distribution efficiencies as
well as enhancing the return on this investment.
Overall, we are pleased and optimistic regarding these and other current
initiatives to help our franchisees and shareholders realize improved returns on
their investment. The Board of Directors' Strategic Planning Committee is
working well with management to help identify opportunities and strategies such
as those mentioned above in our pursuit of these goals."
Certain statements in this press release, other than historical information, may
be considered forward-looking statements, within the meeting of the "safe
harbor" provisions of the Private Securities Litigation Reform Act of 1995, and
are subject to various risks, uncertainties and assumptions. Should one or more
of these risks or uncertainties materialize, or should underlying assumptions
prove incorrect, actual results may differ from those anticipated, estimated or
expected. Among the key factors that may have a direct bearing on Pizza Inn's
operating results, performance or financial condition are its ability to
implement its growth strategies, national, regional and local economic
conditions affecting the restaurant/entertainment industry, competition within
each of the restaurant and entertainment industries, store sales
cannibalization, success of its franchise operations, negative publicity,
fluctuations in quarterly results of operations, including seasonality,
government regulations, weather, commodity, insurance and labor costs.
Pizza Inn, Inc. is headquartered in The Colony, Texas, along with its
distribution division, Norco Restaurant Distribution Services. Pizza Inn
represents over 400 restaurants with annual sales of approximately $170 million.
P R E S S R E L E A S E
PIZZA INN, INC.
(In thousands, except share and per share amounts)
4th Quarter
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June 27, June 29,
2004 2003
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Revenue. . . . . . . . . . . . . . . . . . . . . . $ 15,424 $ 14,059
Income before taxes . . . . . . . . . $ 856 $ 747
Net Income . . . . . . . . . . . . . . . . . $ 564 $ 522
Diluted earnings per share. . . . . . . . . $ 0.06 $ 0.05
Basic earnings per share. . . . . . . . . . $ 0.06 $ 0.05
Weighted average shares outstanding:
Diluted . . . . . . . . . . . . . . . . . . . . 10,128,348 10,060,528
Basic . . . . . . . . . . . . . . . . . . . . . 10,093,674 10,058,674
Twelve Months
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June 27, . June 29,
2004 2003
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Revenue. . . . . . . . . . . . . . . . . . . . . . $ 60,212 $ 58,782
Income before taxes. . . . . . . . . . . . . . . . $ 3,402 $ 4,643
Net Income . . . . . . . . . . . . . . . . . . . . $ 2,243 $ 3,093
Diluted earnings per share . . . . . . . . . . . . $ 0.22 $ 0.31
Basic earnings per share . . . . . . . . . . . . . $ 0.22 $ 0.31
Weighted average shares outstanding:
Diluted . . . . . . . . . . . . . . . . . . . . 10,117,328 10,060,729
Basic . . . . . . . . . . . . . . . . . . . . . 10,075,638 10,058,475