P R E S S R E L E A S E
FOR IMMEDIATE RELEASE
PIZZA INN, INC. REPORTS 2ND QUARTER EARNINGS
THE COLONY, TEXAS -JANUARY 23, 2004- PIZZA INN, INC. (NASDAQ:PZZI) today
reported earnings per share for its second quarter ended December 28, 2003 of 6
cents versus 19 cents for the same quarter last year. Net income was $558,000
versus $1,892,000, on revenues of $14.8 million versus $15.2 million in the
previous year. For the six-month period, earnings per share were 11 versus 22
last year. Net income was $1,062,000 compared to $2,196,000 on revenues of $30.1
million versus $30.5 million last year.
The previous year's quarter included the reversal of a previously recorded
pre-tax charge of approximately $1.9 million. This reserve was previously
recorded in the fourth quarter of fiscal 2002 to fully reserve for the possible
nonpayment for a note receivable owed to the Company from the Company's former
chief executive officer. The Company received payment in full for the note
receivable in December 2002.
Excluding the above-described reversal in the previous year's quarter, net
income for our second quarter ended December 29, 2002 was $606,000 or 6 cents
per share, compared to net income of $558,000 or 6 cents per share for the
quarter ended December 28, 2003. Excluding the above-described reversal in the
previous year's quarter, net income for the six-month period ended December 29,
2002 was $910,000 or 9 cents per share, compared to net income of $1,062,000 or
11 cents per share for the six months ended December 28, 2003.
Additionally, effective December 28, 2003, the Company reacquired the area
developer rights for Tennessee and portions of Kentucky for approximately
$962,000, of which $682,000 was a cash payment.
Comparable chainwide same-store sales finished down 1.4% for the quarter ended
December 28, 2003 and down 3.1% for the six months ended December 28, 2003.
PIZZA INN, INC.
(In thousands, except share and per share amounts)
2nd Quarter
- ------------------------------------
December 28, December 29,
2003 2002
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Revenue. . . . . . . . . . . . . . . $ 14,769 $ 15,164
Income before taxes. . . . . . . . . $ 845 $ 2,867
Net Income . . . . . . . . . . . . . $ 558 $ 1,892
Diluted earnings per share . . . . . $ 0.06 $ 0.19
Basic earnings per share . . . . . . $ 0.06 $ 0.19
Weighted average shares outstanding:
Diluted . . . . . . . . . . . . . 10,122,605 10,060,465
Basic . . . . . . . . . . . . . . 10,071,037 10,058,431
Six Months
- ------------------------------------
December 28, December 29,
2003 2002
------------- -----------
Revenue. . . . . . . . . . . . . . . $ 30,145 $ 30,525
Income before taxes. . . . . . . . . $ 1,609 $ 3,327
Net Income . . . . . . . . . . . . . $ 1,062 $ 2,196
Diluted earnings per share . . . . . $ 0.11 $ 0.22
Basic earnings per share . . . . . . $ 0.11 $ 0.22
Weighted average shares outstanding:
Diluted . . . . . . . . . . . . . 10,104,332 10,059,407
Basic . . . . . . . . . . . . . . 10,065,130 10,058,339