PIZZA INN, INC.
The quarter ended March 28, 2004 includes a pretax adjustment of $285,000 to a previously recorded legal reserve. The Company and all other parties in the previously disclosed class-action fax litigation have entered into a settlement agreement, which is awaiting court approval. Excluding the above- described adjustment of approximately $188,000 (after-tax), or 2 cents per share, net income of $617,000, or 6 cents per share, for the quarter ended March 28, 2004 would have been $429,000 or 4 cents per share.
The Company also announced that its board of directors, following the recommendation of the shareholders at its annual meeting held February 11, 2004, approved the reimbursement of expenses for Newcastle Partners' proxy solicitation efforts related to matters presented for a vote at the Company's annual shareholder meeting. The Company has established a reserve during its fiscal third quarter of approximately $176,000 to fund reimbursement of these expenses.
Comparable chainwide same-store sales were 0.9% higher for the quarter ended March 28, 2004 and down 1.8% for the nine months ended March 28, 2004.
Ronnie Parker, the Company's Chief Executive Officer, commented, "We are encouraged to see continuing positive comparable sales trends as our new marketing efforts are beginning to make a difference. While the recent spike in overall cheese prices has put additional margin pressure on our franchisees, we remain extremely focused to help our franchisees improve their sales and overall profitability levels."
The Company also announced the establishment, by unanimous approval of the board, of a Strategic Planning Committee to be comprised of independent directors of the Company. The Strategic Planning Committee will work closely with management to undertake an extensive review of all aspects of the Company's operations and the development of a long-term strategic plan. The Committee members will include Robert B. Page, who has over twenty years of experience in the restaurant industry, and Ramon D. Phillips, who is a franchisee and was formerly Chief Financial Officer of the Company.
The Company also announced that its annual owners' conference in Biloxi, Mississippi has been scheduled for June 20-23.
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.
Pizza Inn, Inc. For more information contact: 3551 Plano Parkway Ronald W. Parker The Colony, TX 75056 President and Chief Executive Officer (469) 384-5000
For more information about the company, visit Pizza Inn at www.pizzainn.com
PIZZA INN, INC. (In thousands, except share and per share amounts) 3rd Quarter March 28, March 30, 2004 2003 Revenue $14,643 $14,198 Income before taxes $937 $569 Net Income $617 $376 Diluted earnings per share $0.06 $0.04 Basic earnings per share $0.06 $0.04 Weighted average shares outstanding: Diluted 10,132,298 10,063,572 Basic 10,078,619 10,058,547 Nine Months March 28, March 30, 2004 2003 Revenue $44,788 $44,723 Income before taxes $2,546 $3,896 Net Income $1,679 $2,571 Diluted earnings per share $0.17 $0.26 Basic earnings per share $0.17 $0.26 Weighted average shares outstanding: Diluted 10,113,654 10,060,795 Basic 10,069,626 10,058,408
SOURCE: Pizza Inn, Inc.
CONTACT: Ronald W. Parker, President and Chief Executive Officer of
Pizza Inn, Inc., +1-469-384-5000
Web site: http://www.pizzainn.com/