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Pizza Inn Holdings, AŞ Message Board

  • freetoquestionu freetoquestionu Oct 24, 2013 8:50 AM Flag


    Last year they announced on Nov 7. Here is what they did last year so we can compare:

    REVENUES: $ 10,438

    Cost of sales 8,792
    General and administrative expenses 1,005
    Franchise expenses 501
    Pre-opening expenses 79
    Bad debt 45
    Interest expense 104

    They only had 6 company P5 as of last year. Today we have 13, not counting the one moving. 7 additional stores adds about $1M in revenues per quarter. I would like to see revenues over $11M, recognition of the fees that these franchisee players are ponying up. They need to start to show a profit. Something like a $250K profit would be welcome news. They cleaned up their books the last two quarters, taking write offs.

    This quarter should show the progress they made. My whisper number $350K profit. $.04 profit per share.

    Sentiment: Buy

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    • Not quite. You all are missing a critical element in your analysis. It is not a straight forward add and subtract. Expenses and revenues for a growth company are viewed together as all stated as well as separately. for example, one does not penalize a start up for incurred expense that is in line with executing a plan. revenues are not taken over a full year so an analyst will project earnings over the year when assessing the valuation. So it appears all of your analysis is far short and you will be pleasantly surprised in a couple of weeks.

    • don't get too aggressive on your profit estimate. There are costs associated with opening a new corporate owned store that is expensed in the quarter that the unit opens. There are also costs associated with negotiating and finalizing new franchise agreements, and revenues from these new agreements do not get booked until unit opens. So right now there are expenses with revenues.

      Sentiment: Strong Buy

      • 1 Reply to noahtheboatbuilder
      • Noah,

        There are costs associated with opening new store and moving a store. the great part the costs the company stores incur are somewhat supplemented by the fees the franchisee are paying in. The 3Q is there strongest quarter. Kids are out of school, families on vacations, they buy more pizza during these this quarter. They will have 12-13 P5's in this quarters numbers fully operating for the quarter. I also believe they have a handle on bad debts expense now and interest expense.

        They would have turned a profit last quarter if they didn't write off so much. I will break down my estimate and do the math shortly.

        Sentiment: Buy