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PIZZA INN, INC. (Nasdaq: PZZI) today reported earnings per share for its first quarter ended September 29, 2002 of 3 cents versus 6 cents for the same quarter last year. Net income was $303,000 versus $590,000, on revenues of $15.4 million versus $17.3 million in the previous year. Severance-related charges of approximately $415,000, in connection with the departure of the Company's former Chief Executive Officer, Jeff Rogers, including legal and accounting fees, adversely affected earnings for the quarter. Comparable same-store sales finished down 3.6% for the quarter.
Excluding the above-described severance-related charges, net income for its first quarter ended September 29 was $577,000, or 6 cents per share, compared to net income of $590,000, or 6 cents per share for the same quarter last year.
Ronnie Parker, the Company's President and Chief Executive Officer stated, "Revenues were down approximately $1.9 million quarter over the quarter primarily due to lower chainwide retail sales and an overall decrease of more than 23% in cheese prices. Although the significantly lower cheese prices negatively impact our top line revenues, they ease margin pressure on our franchisees. Our primary focus continues to be in helping our franchisees improve their sales levels. To help reach this goal we are strengthening our field training and marketing programs for both new and existing restaurants and are currently adding additional field personnel. We are encouraged by the initial success of these joint efforts with our franchisees at our recent new store openings."