Oct. 22, 2002
THE COLONY, Texas -- Pizza Inn Inc. (Nasdaq: PZZI) reports earnings per share for its first quarter, ended Sept. 29, were 3 cents versus 6 cents for the same quarter last year. Net income was down also, at $303,000 versus $590,000 on revenues of $15.4 million versus $17.3 million in the previous year.
Severance-related charges of nearly $415,000 in connection with the departure of the company's former CEO, Jeff Rogers, adversely affected the quarter's earnings, according to a news release. Those charges included legal and accounting fees.
Pizza Inn's comparable same-store sales finished down 3.6 percent for the quarter.
Excluding the severance-related charges, the company's net income for the first quarter was $577,000, or 6 cents per share.
"Revenues were down approximately $1.9 million quarter over quarter primarily due to lower chainwide retail sales and an overall decrease of more than 23 percent in cheese prices," Pizza Inn president and CEO Ronnie Parker said in the news release.
Parker said the company will focus on helping franchisees improve sales. Pizza Inn is adding field personnel and strengthening field training and marketing programs for all restaurants, he said.
Pizza Inn posted a sharp drop in income on slightly increased revenues in its fiscal 2002 annual report.