Pizza Inn, Inc. (Nasdaq: PZZI) yesterday reported earnings per share for its fourth quarter ended June 24 of 7 cents, versus 7 cents for the same quarter last year. Net income was $701,000 versus $719,000, on revenues of $16.1 million versus $16.6 million in the previous year. Total chain sales for the quarter were $46.1 million versus $49.3 million for the same quarter last year.
For fiscal year 2001, earnings per share were 23 cents versus 25 cents last year. Net income was $2,480,000 compared to $2,884,000, on revenues of $63.8 million versus $66.3 million last year. Revenues consist of the gross sales of Norco, the Company’s food and equipment division, franchise fees, and royalties. Comparable chainwide same store sales finished down 3.0% for the year. Total chain sales were $184.4 million for the fiscal year versus $194.3 million last fiscal year.
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During the year, the Company also reported that it purchased over 541,000 shares of its common stock in open market trades.
Additional Comments:
“Clearly, our growth and future success continues to be directly related to the performance of our franchisees,” stated Ronnie Parker, President. “We’re focused on strategies to improve their sales growth per unit as well as provide even more attractive options for their successful growth of new units.” We have seen improvements in recent months and positive comparable sales growth in recent weeks. While adverse economic conditions began to impact the pizza industry in July, 2000, we believe our joint efforts with our franchisees are beginning to make a positive difference.
Some examples include working closely with our franchisees in the formation of new sustained print advertising efforts within their neighborhood trading areas. Additionally, management has devoted its time to supporting expanded remodeling, the launching of new pizzas and appetizer combinations. The Company has also completed a reorganization of the direction and capabilities of its marketing department and refocused the field operations team towards enhancing franchisee store satisfaction levels through heightened quality control and employee training. Management is also expanding its franchise sales staff capabilities and featuring a new self serve buffet/delivery and carryout prototype unit that requires dramatically reduced upfront construction costs and ongoing labor efficiencies, without impairing the chain’s commitment to quality. This combination continues to permit its on-premise, always freshly made pizza tradition — a quality point of difference from many of our competitors for four decades.
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By GlobalDataThese business plan priorities were established without significantly impacting cost controls. Franchise Services and Norco operating costs remain in line. Efficiencies in inventory controls, new purchasing contracts and distribution systems did, in fact, enable Norco to absorb most of the significant rise in transportation costs during fiscal year 2001 and avoid passing the burden on to our franchisee units. This was essential to maintaining our excellent franchisee/franchisor relationship.
Also, during the last three years of our 40 year history, a large number of units have completed the term of their franchisee contract, adversely affecting our ideal closed store rate. This has been further exacerbated in 2001, by unstable overseas economics, specifically in Latin America and the Far East. Accordingly, management will concentrate its international efforts primarily with larger operators in selected countries including the further successful development of existing quality groups such as our 20 unit operator in Saudi Arabia.
We believe our current focus and strategic plans well position us to reap the benefits of these new efforts for both our franchisees and shareholders.
For more information contact:
Ronald W. Parker
President
(972) 701-9955
For more information about the company, visit Pizza Inn at www.pizzainn.com .
PIZZA INN, INC.
(In thousands, except share and per share amounts)
4th Quarter
June 24, June 25,
2001 2000
Revenue $16,125 $16,612
Income before taxes $1,172 $1,104
Net Income $701 $719
Diluted earnings per share $0.07 $0.07
Basic earnings per share $0.07 $0.07
Weighted average shares outstanding:
Diluted 10,476,991 10,934,726
Basic 10,475,862 10,876,132
Twelve Months
June 24, June 25,
2001 2000
Revenue $63,827 $66,304
Income before taxes $3,921 $4,389
Net Income $2,480 $2,884
Diluted earnings per share $0.23 $0.25
Basic earnings per share $0.23 $0.25
Weighted average shares outstanding:
Diluted 10,638,640 11,441,222
Basic 10,635,237 11,316,552
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