On the S-3 filing to sell $3M in shares: "Through June 30, 2013, the Company had sold an aggregate of 172,361 shares of common stock in the ATM offering, realizing new proceeds of $0.9 million during fiscal 2013."( P.20) This works out to roughly $5.22 per share ($900,000/172,361) and leaves the shelf offering with a balance of $2.1M that can be raised at various times going forward.
On the 8K filing to amend credit terms like paying off debt early: Through August 28, 2014, F&M has agreed to make up to $6M in additional loans to the Company. As of June 30, balances are as follows:
Term Loan Facility: balance of $1.6M at 4,574%
Advancing Term Loan: balance of $0.9M at 4.25% (ie: new loan/terms)
Revolving Crecit: balance of ZERO at 4.25%
Today, PZZI announced plans to enter into the Houston market via Company owned stores. On page 07 of the 10K, the following:
Developing Company-owned Pie Five Units in multiple metropolitan areas is a key component of our strategic plan. In addition to providing the Company with an attractive economic return, we believe that developing a domestic network of Company-owned Pie Five Units is an important aspect of our strategy for growing the Pie Five system. Growth in both the franchised and Company-owned Pie Five Units in operation improves the system's overall economies of scale for advertising, marketing, information systems, distribution and procurement of food products, and other costs. In fiscal 2014, we plan to allocate additional resources to developing and operating Company-owned Pie Five Units.
(p.05) "We anticipate continuing to develop new Pizza Inn Buffet and Delco Units in international markets in fiscal 2014, particularly in the Middle East".
(p.07) "As of June 30, 2013, there were 81 Pizza Inn restaurants operating internationally, with 53 of these restaurants operated or sub-licensed by our master licensees in the United Arab Emirates and Saudi Arabia....In the future, we may also pursue international opportunities for the development of Pie Five franchisees."
Short Interest: (source: nasdaqdotcom)
09/13: 631,091 shares shorted, average volume of 27,084 and 23.30 days to cover.
08/30: 643,321 shares shorted, average volume of 39,888 and 16.13 days to cover.
I thought it a decent earnings report as the results clearly suggest things are starting to turn around. With the amended credit terms, increases in loan amounts and the shelf offering to use equity as a financing tool as well, PZZI is well positioned to open one Company-owned store after another. IMO, that is where shareholders will get the most bang for the buck.