THE COLONY, Texas, Nov. 5 /PRNewswire-FirstCall/ -- Pizza Inn, Inc. today reported net income of $0.03 per share in its first fiscal quarter ended September 23, 2007 versus a net loss of ($0.10) per share in the same quarter in the prior fiscal year. The quarter resulted in net income of $345,000 versus a net loss of ($1,061,000) for the same quarter in the prior fiscal year on revenues of $12.1 million and $11.8 million respectively. Operating performance for the first quarter of fiscal year 2008 included the following:
-- Comparable buffet restaurant sales increased 3.4% for the first quarter. -- Total domestic chain-wide comparable restaurant sales increased 1.4% for the first quarter. -- The Company recorded a charge of $300,000 or ($0.03) per share, in the quarter related to the departure of the company's previous CEO. After adjusting for this expense, the Company would have posted diluted earnings per share of $0.06. -- General and administrative expenses for the first quarter were lower by approximately 59%, or $914,000, due primarily to lower legal fees related to various litigation issues settled during fiscal 2007. -- Interest expense decreased 100%, or $200,000, compared to the same quarter in the prior fiscal year due to the Company eliminating all outstanding debt in December 2006.
Operating results for the first quarter mark the fourth consecutive profitable quarter for Pizza Inn, further strengthening the Company's financial and cash positions. It also marks seven consecutive months of comparable buffet sales growth.
Charlie Morrison, Interim CEO and Chief Financial Officer, commented, "Our momentum in same store sales through remodeling and operational execution demonstrates our progress in revitalizing the Pizza Inn brand. Working with our franchisee leadership, we are closing in on modifications to our buffet restaurant, taking the best elements of our existing prototype and combining these with a service and hospitality platform that deliver an exceptional customer experience in a more efficient restaurant. This new prototype will be introduced in 2008 as a company-owned restaurant and will be offered through our domestic and international franchise sales channels."
Further details of the new prototype will be released in the near future.
Certain statements in this press release, other than historical information, may be considered forward-looking statements, within the meaning 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 materially 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; success of its franchise operations; national, regional and local economic conditions affecting the restaurant industry; competition within the restaurant industry; restaurant sales cannibalization; negative publicity; fluctuations in quarterly results of operations, including seasonality; government regulations; weather; and commodity, insurance and labor costs.
Pizza Inn, Inc. (http://www.pizzainn.com/) is headquartered in The Colony, Texas, along with its distribution division, Norco Restaurant Services Company. Pizza Inn franchises approximately 346 restaurants and owns one restaurant with annual domestic and international chain-wide sales of approximately $145 million.
Contact:
Danny Meisenheimer
VP of Brand Management
Pizza Inn, Inc.
469-384-5000