Pizza Inn Holdings, Inc. Reports Results for First Quarter Fiscal Year 2014

Pizza Inn Holdings, Inc. Reports Results for First Quarter Fiscal Year 2014

First Quarter Highlights:

-- Adjusted EBITDA decreased $0.4 million to a loss of $0.1 million compared
to the first quarter of fiscal 2013.

-- Net income decreased $0.3 million from the first quarter of fiscal 2013 to
a loss of $0.4 million.

-- Total Company-owned restaurant sales increased 32% over the prior year
quarter to $2.4 million.

-- The Company continues to invest to grow the Pie Five concept:

  *Company-owned Pie Five restaurant sales increased 72% over the prior year
    quarter to $1.7 million.
  *Four additional Pie Five multi-unit franchise development agreements were
    awarded in the quarter.
  *Two franchised and two Company-owned Pie Five Pizza Co. restaurants opened
    in the quarter.

-- Pizza Inn average weekly domestic franchised comparable store sales
decreased 3.5% compared to first quarter of fiscal 2013.

THE COLONY, Texas, Nov. 12, 2013 (GLOBE NEWSWIRE) -- Pizza Inn Holdings, Inc.
(Nasdaq:PZZI) today announced results for the fiscal quarter ended September
29, 2013. First quarter net income decreased to a loss of $0.4 million
compared to a loss of $0.1 million for the same quarter of the prior fiscal
year. The decline in first quarter net income as compared to the prior year
quarter was primarily attributable to a reduction in franchise revenue and
food and supply sales related to the Pizza Inn franchise system and an
increase in expenses for Pie Five franchise development and Company-owned

First quarter franchise revenues decreased $0.1 million, or 7.1%, as compared
to the prior fiscal year quarter primarily as a result of lower royalties
resulting from lower franchisee retail sales. Because the franchise
development fees received from Pie Five franchisees are not recognized until
restaurants open, the fiscal first quarter of 2014 included a relatively small
amount of franchise revenue related to Pie Five. First quarter food and supply
sales decreased by approximately $0.7 million, or 9.7%, as compared to the
prior year primarily due to a 10.7% decrease in total domestic franchisee
retail sales as the result of a decrease in both the average number of stores
open and comparable store sales. First quarter general and administrative
expenses remained stable compared to the prior year as higher costs associated
with the continued growth of the Pie Five concept were mostly offset by lower
stock compensation expense and recruiting fees.

"We continue to feel the year over year impact at Pizza Inn of franchise
restaurants closed during 2013. But, we are pleased that the rate of closures
has declined significantly in the past two quarters," noted Randy Gier,
President and CEO. "In partnership with our franchisees, we are enhancing our
product quality, improving our operational consistency, and shifting our
marketing focus to further improve the comparable store trends of the Pizza
Inn brand," added Gier.

Company-owned restaurant sales increased 32.1% to $2.4 million due primarily
to new restaurant openings at Pie Five.

"We continue to develop and expand our Pie Five concept with the opening of
two Company-owned restaurants and three franchise restaurants so far in this
fiscal year, bringing the total number of restaurants in operation today to
16," said Gier.

"Four additional franchise development agreements were signed during the
quarter for an additional 35 restaurants in the Richmond, VA, Wichita, KS,
Tulsa, OK, Baltimore, MD, and Louisville/Lexington, KY metropolitan areas.
Additionally, a development agreement for the Nashville, Tennessee market has
been entered into during the second quarter. This brings our total Pie Five
franchise restaurants under development agreements to 118. We are also
currently evaluating sites for the expansion of Company Pie Five operations
into the Houston market.

"Our results for the first quarter of fiscal 2014 reflect a continued focus on
building two strong and sustainable restaurant brands. We are confident that
we are on the right track," concluded Gier.

Certain statements in this press release, other than historical information,
may be considered forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, and are intended to be covered by
the safe harbors created thereby. These forward-looking statements are based
on current expectations that involve numerous risks, uncertainties and
assumptions. Assumptions relating to these forward-looking statements involve
judgments with respect to, among other things, future economic, competitive
and market conditions, regulatory framework and future business decisions, all
of which are difficult or impossible to predict accurately and many of which
are beyond the control of Pizza Inn Holdings, Inc. Although the assumptions
underlying these forward-looking statements are believed to be reasonable, any
of the assumptions could be inaccurate and, therefore, there can be no
assurance that any forward-looking statements will prove to be accurate. In
light of the significant uncertainties inherent in these forward-looking
statements, the inclusion of such information should not be regarded as a
representation that the objectives and plans of Pizza Inn Holdings, Inc. will
be achieved.

About Pizza Inn Holdings, Inc.:

Headquartered in the Dallas suburb of The Colony, TX, Pizza Inn Holdings,
Inc., is an owner, franchisor and supplier of a system of restaurants
operating domestically and internationally under the trademarks "Pizza Inn"
and "Pie Five Pizza Co." Pizza Inn is an international pizza chain featuring
traditional and specialty pizzas, as well as freshly made pastas, sandwiches,
and desserts. Pie Five Pizza Co. is a fast-casual concept offering individual
pizzas made to order and cooked in less than five minutes. Founded in 1958,
Pizza Inn Holdings, Inc. owns and franchises approximately 300 restaurants.
The Company's common stock is listed on the Nasdaq Capital Market under the
symbol "PZZI". For more information, please visit

(In thousands, except per share amounts)
                                                  Three Months Ended
                                                  September 29, September 23,
                                                  2013          2012
REVENUES:                                          $10,212     $10,438
COSTS AND EXPENSES:                                             
Cost of sales                                      8,848        8,792
General and administrative expenses                1,030        1,005
Franchise expenses                                 667          501
Pre-opening expenses                               86           79
Bad debt                                           45           45
Interest expense                                   43           104
                                                  10,719       10,526
Income taxes                                       (169)        (45)
LOSS FROM CONTINUING OPERATIONS                    (338)        (43)
Loss from discontinued operations, net of taxes    (13)         (15)
NET LOSS                                           $(351)      $(58)
LOSS PER SHARE OF COMMON STOCK - BASIC:                         
Loss from continuing operations                    $(0.04)     $(0.01)
Loss from discontinued operations                  --          --
Net loss                                           $(0.04)     $(0.01)
LOSS PER SHARE OF COMMON STOCK - DILUTED:                       
Loss from continuing operations                    $(0.04)     $(0.01)
Loss from discontinued operations                  --          --
Net loss                                           $(0.04)     $(0.01)
Weighted average common shares outstanding - basic 8,496         8,021
Weighted average common and potential dilutive     9,034         8,113
common shares outstanding

(In thousands, except share amounts)
                                                   September 29,    June 30,
ASSETS                                              2013 (unaudited) 2013
CURRENT ASSETS                                                      
Cash and cash equivalents                           $1,073          $919
Accounts receivable, less allowance for bad debts   3,319           3,139
accounts of $273 and $228, respectively
Notes receivable                                    283             292
Inventories                                         1,486           1,615
Income tax receivable                               343             343
Deferred income tax assets                          826             882
Prepaid expenses and other                          537             307
Total current assets                                7,867           7,497
LONG-TERM ASSETS                                                    
Property, plant and equipment, net                  5,723           4,711
Long-term notes receivable                          12              40
Long-term deferred tax asset                        410             168
Deposits and other                                  10              119
                                                   $14,022        $12,535
LIABILITIES AND SHAREHOLDERS' EQUITY                                
CURRENT LIABILITIES                                                 
Accounts payable - trade                            $2,379          $1,572
Accrued expenses                                    1,767           1,749
Deferred revenues                                   141             169
Bank debt                                           181             669
Total current liabilities                           4,468           4,159
LONG-TERM LIABILITIES                                               
Bank debt, net of current portion                   1,675           1,856
Deferred revenues, net of current portion           531             370
Deferred gain on sale of property                   53              59
Other long-term liabilities                         37              22
Total liabilities                                   6,764           6,466
COMMITMENTS AND CONTINGENCIES(See Note 3)                          
SHAREHOLDERS' EQUITY                                                
Common stock, $.01 par value; authorized 26,000,000
shares; issued 15,569,432 and 15,312,680 shares,    156             153
respectively; outstanding 8,450,032 and 8,193,280
shares, respectively
Additional paid-in capital                          11,711          10,174
Retained earnings                                   20,027          20,378
Treasury stock at cost                                              
Shares in treasury: 7,119,400                      (24,636)        (24,636)
Total shareholders' equity                         7,258           6,069
                                                   $14,022        $12,535

(In thousands)
                                                  Three Months Ended
                                                  September 29, September 23,
                                                  2013          2012
CASH FLOWS FROM OPERATING ACTIVITIES:                           
Net loss                                           $(351)      $(58)
Adjustments to reconcile net loss to cash                      
provided by operating activities:
Depreciation and amortization                      364          291
Stock compensation expense                         15           45
Deferred tax                                       (186)        (43)
Gain on assets held for sale                       (6)          --
Provision for bad debts                            45           44
Changes in operating assets and liabilities:                    
Notes and accounts receivable                      (188)        176
Inventories                                        129          72
Accounts payable - trade                           807          (115)
Accrued expenses                                   33           77
Deferred revenue                                   127          (72)
Prepaid expenses and other                         (132)        (14)
Cash provided by operating activities              657          403
CASH FLOWS FROM INVESTING ACTIVITIES:                           
Proceeds from sale of assets                       6            --
Capital expenditures                               (1,365)      (394)
Cash used by investing activities                  (1,359)      (394)
CASH FLOWS FROM FINANCING ACTIVITIES:                           
Proceeds from sale of stock                        1,525        --
Borrowings of bank debt                            --           2,560
Repayments of bank debt                            (669)        (2,002)
Cash provided by financing activities             856          558
Net increase in cash and cash equivalents          154          567
Cash and cash equivalents, beginning of period     919          590
Cash and cash equivalents, end of period           $1,073      $1,157
CASH PAYMENTS FOR:                                              
Interest                                           $37         $33
Income taxes - net                                 $1          $--

(In thousands)
                                        Three Months Ended
                                        September 29, September 23,
                                        2013          2012
Net loss                               $(351)      $(58)
Interest expense                       43           104
Income Taxes - Continuing Operations   (169)        (45)
Income Taxes - Discontinued Operations (7)          (8)
Stock compensation expense             15           45
Depreciation and amortization          364          291
Adjusted EBITDA                        $(105)      $329

CONTACT: Randy Gier
         Chief Executive Officer
         Pizza Inn Holdings, Inc.

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