<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Fiscal Quarter Ended December 28, 1993
Commission File Number 0-13007
NATIONAL PIZZA COMPANY
(Exact name of registrant as specified in its charter)
Kansas 48-0817298
(State of Incorporation) (I.R.S. Employer Identification Number)
720 W. 20th Street, Pittsburg, KS 66762
(Address of principal executive offices)
Registrant's telephone number, including area code (316) 231-3390
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No ____
The number of shares outstanding of each of the registrant's
classes of common stock as of January 28, 1994:
Class A Common Stock, $0.01 par value - 12,581,006
Class B Common Stock, $0.01 par value - 12,430,487
<PAGE>
[TEXT]
NATIONAL PIZZA COMPANY
INDEX
PAGE
PART I. FINANCIAL INFORMATION
Condensed Consolidated Balance Sheets --
December 28, 1993 and March 30, 1993 3
Condensed Consolidated Statements of Income --
For the Thirteen Weeks and Thirty Nine Weeks
Ended December 28, 1993 and December 29, 1992 4
Condensed Consolidated Statements of Cash Flows --
For the Thirty Nine Weeks Ended
December 28, 1993 and December 29, 1992 5
Notes to Condensed Consolidated Financial Statements 6
Management's Discussion and Analysis of
Financial Condition and Results of Operations 7
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 13
<PAGE>
<TABLE>
PART I - FINANCIAL INFORMATION
National Pizza Company
Condensed Consolidated Balance Sheets
(Unaudited)
<CAPTION>
Dec. 28, 1993 March 30, 1993
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 6,891,000 $ 6,195,000
Notes and accounts receivable 4,336,000 1,014,000
Inventories of food and supplies 3,542,000 2,436,000
Prepaid expenses and other current assets 2,886,000 1,154,000
-----------------------------
Total current assets 17,655,000 10,799,000
Facilities and equipment, net 150,069,000 147,127,000
Franchise rights 20,926,000 21,778,000
Goodwill, less accumulated amortization 34,671,000 17,673,000
Other assets 7,454,000 6,931,000
-----------------------------
$230,775,000 $204,308,000
</TABLE>
<TABLE>
<CAPTION>
LIABILITIES AND STOCKHOLDERS' EQUITY
<S> <C> <C>
Current liabilities:
Accounts payable $ 15,283,000 $ 13,137,000
Payroll taxes 1,997,000 1,315,000
Accrued interest 1,188,000 1,066,000
Accrued payroll 4,730,000 2,907,000
Other accrued liabilities 11,437,000 8,073,000
Current portion of long-term debt 1,178,000 662,000
----------------------------
Total current liabilities 35,813,000 27,160,000
Long-term debt and obligations
under capital leases 90,282,000 79,078,000
Deferred income taxes and other 9,064,000 8,634,000
Stockholders' equity:
Class A Common Stock 139,000 139,000
Class B Common Stock 137,000 137,000
Paid-in capital 22,334,000 22,368,000
Retained earnings 92,341,000 84,405,000
----------------------------
114,951,000 107,049,000
Less treasury stock (19,335,000) (17,613,000)
-----------------------------
Total stockholders' equity 95,616,000 89,436,000
-----------------------------
$230,775,000 $204,308,000
<CAPTION>
<FN>
See notes to condensed consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
National Pizza Company
Condensed Consolidated Statements of Income
(Unaudited)
<CAPTION>
For the 13 Weeks Ended For the 39 Weeks Ended
Dec. 28, Dec. 29, Dec. 28, Dec. 29,
1993 1992 1993 1992
<S> <C> <C> <C> <C>
Net sales $81,873,000 $69,023,000 $246,472,000 $210,688,000
Franchise revenues 1,626,000 98,000 3,565,000 261,000
-------------------------------------------------------
Total revenues 83,499,000 69,121,000 250,037,000 210,949,000
Cost of sales 24,348,000 19,741,000 73,481,000 61,169,000
-------------------------------------------------------
59,151,000 49,380,000 176,556,000 149,780,000
Direct labor costs 23,923,000 19,192,000 72,154,000 58,879,000
Operating expenses 22,594,000 19,869,000 66,467,000 59,809,000
General and admin exp 6,768,000 4,970,000 20,081,000 15,777,000
-------------------------------------------------------
53,285,000 44,031,000 158,702,000 134,465,000
Operating income 5,866,000 5,349,000 17,854,000 15,315,000
Interest expense (1,756,000) (1,598,000) (5,011,000) (4,783,000)
Other income (expense) 381,000 (21,000) 157,000 69,000
--------------------------------------------------------
Income before
income taxes 4,491,000 3,730,000 13,000,000 10,601,000
Provision for
income taxes 1,751,000 1,436,000 5,064,000 3,981,000
--------------------------------------------------------
Net income $2,740,000 $2,294,000 $7,936,000 $6,620,000
Earnings per share $ 0.11 $ 0.09 $ 0.32 $ 0.25
Weighted average
shares outstanding 25,083,088 25,851,078 25,186,218 26,053,694
<FN>
See notes to condensed consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
National Pizza Company
Condensed Consolidated Statements of Cash Flows
(Unaudited)
<CAPTION>
For the Thirty Nine Weeks Ended
Dec. 28, 1993 Dec. 29, 1992
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 7,936,000 $ 6,620,000
Non-cash items included in net income:
Depreciation and amortization 17,982,000 13,959,000
Deferred income taxes and other 160,000 (189,000)
Change in assets and liabilities,
net of acquisitions:
Notes and accounts receivable (440,000) (292,000)
Inventories of food and supplies 182,000 166,000
Prepaid expenses and other current assets (894,000) (276,000)
Accounts payable 89,000 494,000
Payroll taxes 682,000 (471,000)
Accrued interest 122,000 210,000
Accrued payroll 1,073,000 854,000
Other accrued liabilities (950,000) 1,158,000
-------------------------------
Net cash flows from operating activities 25,942,000 22,233,000
CASH FLOWS USED BY INVESTING ACTIVITIES:
Acquisition of NRH Corporation, net of cash (19,370,000) - - -
Capital expenditures, net (9,190,000) (12,299,000)
Acquisition of Intangible Assets (15,000) - - -
Changes in other assets, net 2,102,000 106,000
Proceeds from sale of capital assets 552,000 - - -
---------------------------------
Net cash flows used by investing activities (25,921,000) (12,193,000)
CASH FLOWS FROM (USED BY) FINANCING ACTIVITIES:
Purchase of treasury stock (1,761,000) (6,556,000)
Net change in revolving credit agreements 16,200,000 (24,980,000)
Proceeds from the issuance of long-term debt - - - 25,000,000
Payment of long-term debt (13,770,000) (2,699,000)
Exercise of stock options 6,000 9,000
--------------------------------
Net cash flows from (used by)
financing activities 675,000 (9,226,000)
--------------------------------
NET CHANGE IN CASH AND CASH EQUIVALENTS 696,000 814,000
CASH AND CASH EQUIVALENTS
AT BEGINNING OF PERIOD 6,195,000 5,998,000
--------------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 6,891,000 $ 6,812,000
<FN>
See notes to condensed consolidated financial statements.
</TABLE>
<PAGE>
National Pizza Company
Notes to Condensed Consolidated Financial Statements
(Unaudited)
Note 1
In the opinion of Management of the Company, the accompanying unaudited
condensed consolidated financial statements contain all normal recurring
adjustments necessary to present fairly the financial position of the Company as
of December 28, 1993 and March 30, 1993, the results of operations for the
fiscal quarters and cumulative periods ended December 28, 1993 and December 29,
1992 and the statements of cash flows for the three fiscal quarters ended
December 28, 1993 and December 29, 1992.
NRH Corporation, a wholly owned subsidiary of the Company, was acquired on
June 8, 1993. The Catering division, whose operations were not material to the
company as a whole, was sold on November 18, 1993.
These statements should be read in conjunction with the financial
statements and notes contained in the Company's annual report on Form 10-K for
the fiscal year ended March 30, 1993.
Note 2
There were cash payments for income taxes of $4.4 million in the thirty
nine weeks ended December 28, 1993 and $4.2 million in the thirty nine weeks
ended December 29, 1992. Cash paid for interest for the thirty nine weeks ended
December 28, 1993 and December 29, 1992 was $4.9 million and $4.3 million,
respectively.
<PAGE>
National Pizza Company
Management's Discussion and Analysis
of Financial Condition and Results of Operations
At December 28, 1993, National Pizza Company owned and operated 260 Pizza Hut
restaurants and 99 delivery kitchens in 13 states. The Company's pizza
restaurants are generally free standing, full table service restaurants which
offer high quality and moderately priced pizza, pasta, sandwiches and a salad
bar. Beverage service includes soft drinks and, in most restaurants, beer.
Delivery kitchens provide home delivery and carry out of pizza products, but
they do not have dining facilities, salad bars or beer.
On the same date, the Company owned and operated 188 and franchised 18 quick
service seafood Skipper's restaurants in 12 western states and British Columbia.
Skipper's offers a limited menu including fish, shrimp and clams. Each
restaurant features a casual atmosphere and beer is served in most locations.
On June 8, 1993, the Company purchased the stock of NRH Corporation. NRH is the
owner and operator of 26 Tony Roma's restaurants in four states, and franchisor
of 132 restaurants in 19 domestic states and nine foreign countries at December
28, 1993. Tony Roma's is a casual theme restaurant chain known as "A Place for
Ribs", but also offers a variety of menu choices including chicken, steaks and
salads.
<TABLE>
Pizza Hut Operations & Catering
<CAPTION>
For the Thirteen Weeks Ended
December 28, 1993 December 29, 1992
Restaurants Delivery Restaurants Delivery
<S> <C> <C> <C> <C>
Net Sales $39,590,000 $13,585,000 $35,943,000 $13,188,000
Percentage of net sales:
Cost of sales 26.2% 25.2% 25.3% 24.3%
Direct labor costs 25.7% 32.2% 25.9% 30.4%
Operating expenses 25.2% 23.6% 27.3% 25.6%
----------------------------------------------------
77.1% 81.0% 88.5% 80.3%
Operating profit 22.9% 19.0% 21.5% 19.7%
</TABLE>
<TABLE>
<CAPTION>
For the Thirty Nine Weeks Ended
December 28, 1993 December 29, 1992
Restaurants Delivery Restaurants Delivery
<S> <C> <C> <C> <C>
Net Sales $120,997,000 $40,988,000 $109,075,000 $40,247,000
Percentage of net sales:
Cost of sales 26.6% 25.7% 26.2% 25.2%
Direct labor costs 26.6% 33.0% 26.2% 31.1%
Operating expenses 24.9% 24.0% 26.4% 25.5%
------------------------------------------------------
78.1% 82.7% 78.8% 81.8%
Operating profit 21.9% 17.3% 21.2% 18.2%
Number of units 260 99 262 97
</TABLE>
Comparison of Pizza Hut Operating Results for the Thirteen Weeks Ended
December 28, 1993 with the Thirteen Weeks Ended December 29, 1992
Net sales from Pizza Hut operations for the thirteen weeks ended December 28,
1993, were $53.2 million, up 8.2% over the same period in the prior fiscal year.
Sales in comparable restaurants and delivery kitchens open in excess of twelve
months increased approximately 11.4% on a real basis over the same quarter a
year earlier, reflecting continued impact from the value-priced BIGFOOT pizza
and successful national marketing campaigns.
The Company sold its catering operations on November 18, 1993, which primarily
served as the concessionaire for a multi-purpose arena in Memphis, Tennessee.
The Company recorded $250,000 in sales from its concession and catering division
for the thirteen weeks ended December 28, 1993, but the division was never
material to the overall operations of the Company. National Pizza will continue
to operate a Pizza Hut carry-out stand within the facility.
Management anticipates, based on the economic environment and competitive
conditions, comparable unit sales in real dollars will increase due to the
positive results generated from new products and increased consumer confidence.
Cost of sales in the Pizza Hut operations--as a percentage of net sales--for the
thirteen weeks ended December 28, 1993 (26.0%) increased when compared with the
cost of sales percentage for the thirteen weeks ended December 29, 1992 (25.0%).
This increase principally reflects higher cheese prices, which accounts for
approximately 40% of a pizza's cost, and higher food costs associated with the
BIGFOOT pizza. Cost of sales includes food and beverage costs and the expense
of paper takeout supplies.
Direct labor in the Pizza Hut operations increased to 27.3% of net sales for the
most recent quarter, compared with 27.1% for the comparable quarter a year ago.
This increase is principally a result of higher worker's compensation costs.
The third fiscal quarter percentages for cost of sales and direct labor show
continued operating improvement during the current fiscal year.
Overall operating expenses continued to decrease as a percentage of sales, to
24.8% for the quarter ended December 28, 1993 from 26.8% for the quarter ended
December 29, 1992. Major operating expenses in the Pizza Hut division include
advertising, depreciation and amortization, and rent.
Comparison of Pizza Hut Operating Results for the Thirty Nine Weeks Ended
December 28, 1993 with the Thirty Nine Weeks Ended December 29, 1992
Pizza Hut operations increased fiscal year-to-date net sales by $12.7 million,
or 8.5%, partially due to the introduction of BIGFOOT. In addition, the Pizza
Hut luncheon buffet, introduced in most markets by December, 1992, significantly
increased lunch sales. The Company experienced higher labor and food costs
associated with these two introductions due to the nature of the products.
Operating costs as a percent of sales are lower due to a higher sales base and a
redirected marketing approach relying more on national marketing and less on
local store marketing. This has reduced marketing costs by over 10%.
On September 29, 1993, the Company appointed Mr. Marty Couk, previously the
Company's Vice President of Operations for the Pizza Hut division, to the top
position of that division with the transfer of Mr. Bob Page to Tony Roma's
operations. Mr. Page will serve as Tony Roma's Chief Operating Officer.
The Company incurred some business interruption and clean-up expenses due to the
earthquake in Los Angeles, California. All restaurants were fully operating
within ten days following the January 17, 1994 quake, and the Company does not
expect the event to materially affect Pizza Hut operations.
Skipper's Operations
<TABLE>
<CAPTION>
For the Thirteen Weeks Ended
December 28, 1993 December 29, 1992
<S> <C> <C>
Total Revenues $18,717,000 $ 19,551,000
Percentage of revenue:
Cost of sales 36.6% 37.7%
Direct labor costs 31.4% 29.6%
Operating expenses 31.8% 33.5%
---------------------------------
99.8% 100.8%
Operating profit 0.2% (0.8)%
</TABLE>
<TABLE>
<CAPTION>
For the Thirty Nine Weeks Ended
December 28, 1993 December 29, 1992
<S> <C> <C>
Total Revenues $ 61,142,000 $60,656,000
Percentage of revenue:
Cost of sales 37.1% 36.6%
Direct labor costs 30.3% 29.0%
Operating expenses 30.2% 33.3%
---------------------------------------
97.6% 98.9%
Operating profit 2.4% 1.1%
Number of Company units 188 192
</TABLE>
Comparison of Skipper's Operating Results for the Thirteen Weeks Ended
December 28, 1993 with the Thirteen Weeks Ended December 29, 1992
Early in the fiscal year, Skipper's relied less on coupons and adopted an
"everyday low pricing" strategy to increase customer traffic. Customer counts
rose in the first two quarters but declined 5% in the third fiscal quarter ended
December 28, 1993 (from the comparable quarter a year earlier) when the Company
began promoting meals with higher contribution margins in an attempt to enhance
overall operating returns. While this adjustment slightly benefited margins,
customers reacted with fewer visits. Skippers has since returned to marketing
its value pricing strategy. Sales were down 2.7% on a nominal basis in the
quarter ended December 28, 1993, when compared with the same quarter a year
earlier.
Cost of sales--as a percentage of net sales--decreased 1.1% of revenue in the
thirteen weeks ended December 28, 1993 when compared with the thirteen weeks
ended December 29, 1992. Most of this decrease was attributable to meals with
higher margin contribution.
Direct labor costs, consisting of wages, taxes and related fringe benefits,
increased 1.8% of revenues over the same period in the prior year. Skipper's
English-Style product, which requires additional preparation time, is the
primary reason for this increase, along with higher workers' compensation costs.
Restaurant operating expenses, in dollars, have declined in each of the last six
quarters. Much of the decline is attributable to a reduction in advertising
expenditures. Skipper's reduced the amount of coupon advertising when it
adopted its new pricing strategy.
Comparison of Skipper's Operating Results for the Thirty Nine Weeks Ended
December 28, 1993 with the Thirty Nine Weeks Ended December 29, 1992
Sales improved slightly for the three fiscal quarters ended December 28, 1993,
as compared with the three fiscal quarters a year ago. Franchising revenues
from the 18 franchised stores were down minimally for the three comparable
periods. Cost of sales and labor have increased due to the introduction of
Skipper's new English-Style fish in May, 1993.
Management anticipates, based on the economic environment and competitive
conditions, comparable unit sales in real dollars will slightly increase due to
positive guest reaction to lower menu prices and acceptance of new products. On
September 21, 1993, the Company announced that Mr. J. Frank Brown joined the
Company as President of Skipper's, Inc. Mr. Brown has previous experience with
another quick serve seafood chain.
Tony Roma's Operations
<TABLE>
<CAPTION>
For the Thirteen Weeks Ended
December 28, 1993
<S> <C>
Restaurant Sales 9,818,000
Net Franchise Revenues 1,536,000
--------------------------------------------
Total Revenues $11,354,000
Percentage of revenue:
Cost of sales 31.5%
Direct labor costs 30.2%
Operating expenses 29.1%
-------------------------------------------
90.8%
Operating profit 9.2%
</TABLE>
<TABLE>
<CAPTION>
For the Twenty Nine Weeks Ended
December 28, 1993
<S> <C>
Restaurant Sales 22,312,000
Net Franchise Revenues 3,312,000
---------------------------------------
Total Revenues $25,624,000
Percentage of revenue:
Cost of sales 29.7%
Direct labor costs 29.4%
Operating expenses 29.5%
--------------------------------------
88.5%
Operating profit 11.5%
Number of Company units 26
Number of Franchised units 132
</TABLE>
Analysis of Tony Roma's Operating Results for the Thirteen Weeks ended
December 28, 1993
On June 8, 1993, National Pizza Company completed its acquisition of NRH
Corporation, owner and franchisor of Tony Roma's A Place for Ribs. Comparable
sales for the thirteen weeks ended December 28, 1993, were down 9.6% when
compared with the similar period in the prior year, reflective of the positive
sales impact caused by Hurricane Andrew in August, 1992. In addition, five
Florida locations are under extensive remodeling, which further suppresses the
current quarter's sales. Franchising operations contributed approximately
13.5% of Tony Roma's total revenue for the fiscal quarter
One reason cited for the acquisition of Tony Roma's was to provide a growth
vehicle for the Company. Management currently anticipates opening six to seven
company-owned restaurants in the next fiscal year.
Analysis of Tony Roma's Operating Results for the Twenty Nine Weeks ended
December 28, 1993
Since the acquisition of NRH Corporation on June 8, 1993, the Company has
focused on providing marketing support in an attempt to increase sales, gaining
efficiencies through the consolidation of backoffice operations, and funding the
renovation of existing units and the building of new the Company.
The Company restaurant in Northridge, California experienced structural damage
as a result of the Los Angeles earthquake on January 17, 1994, and two stores in
the area were also temporarily closed for cleanup and equipment repair. This
incident may have some affect on Tony Roma's operating results, but will not
affect the Company as a whole. The Company is in the process of preparing an
insurance claim for the business interruption, reconstruction and clean-up of
the damaged stores.
Consolidated Results
Comparison of Operating Results for the Thirteen Weeks Ended
December 28, 1993 with the Thirteen Weeks Ended December 29, 1992
Overall sales for the thirteen weeks ended December 28, 1993 were $83.5 million,
an increase of $14.4 million, or 20.8% when compared with $69.1 million for the
thirteen weeks ended December 29, 1992. Of this increase, $11.4 million is
attributable to new sales and franchise revenues from the Tony Roma's
acquisition.
General and administrative expenses--as a percentage of sales--rose in the
thirteen weeks ended December 28, 1993 (8.1%), when compared with the thirteen
weeks ended December 29, 1992 (7.2%). The thirteen weeks ended December 28,
1993 includes the absorption of some administrative costs and amortization of
certain intangibles associated with the Tony Roma's operations. Major expenses
in these costs principally include corporate salaries, amortization of
intangible assets, and bank service charges.
Interest expense rose slightly when comparing the three quarterly periods,
resulting from higher debt levels related to the Tony Roma's acquisition in
June, 1993.
Net income for the thirteen weeks ended December 28, 1993, was $2.7 million, a
20% increase over the $2.3 million reported for the thirteen weeks ended
December 29, 1992. As a result of the increased corporate tax rate to 35% from
34%, the Company raised its effective tax rate to 39.0%, compared with 38.5% for
the quarter ended December 29, 1992. The Company anticipates using a 39.0%
effective tax rate for the remainder of the fiscal year ended March 29, 1994.
Comparison of Operating Results for the Thirty Nine Weeks Ended
December 28, 1993 with the Thirty Nine Weeks Ended December 29, 1992
Sales for the thirty nine weeks ended December 28, 1993 were $250 million, up
$39.1 million from the same thirty nine week period ended December 29, 1992.
More than half of this increase ($25.6 million) is due to new revenues generated
from Tony Roma's, which was acquired June 8, 1993. The remainder is primarily
attributable to increased sales at the Company's Pizza Hut operations and
improving results in the Skipper's operations.
General and Administrative costs rose slightly as a percent of sales for the
three fiscal quarters ended December 28, 1993 (8.0%) when compared with the
three fiscal quarters ended December 29, 1992 (7.5%). In addition, federal and
state taxes rose from 36.0% for the fiscal quarter ended June 30, 1992 to 38.5%
for the fiscal quarter ended December 29, 1992, because of the temporary
suspension of the Targeted Jobs Tax Credit. In this fiscal year, the effective
tax rate was 38.5% for the fiscal quarter ended June 29, 1993, 39.4% for the
fiscal quarter ended September 28, 1993 because of the retroactive change in
statutory corporate income tax rate and 39.0% for the fiscal quarter ended
December 28, 1993.
Liquidity, Capital Resources and Cash Flows
On December 28, 1993, the Company had a working capital deficit of $18.1 million
($14.0 million deficit at December 29, 1992). Like most restaurant businesses,
the Company is able to operate with a working capital deficit because
substantially all of its sales are for cash, while it generally receives credit
from trade suppliers. Further, receivables are not a significant asset in the
restaurant business and inventory turnover is rapid. Therefore, the Company
uses all available liquid assets to reduce borrowings under its line of credit.
Net cash flows from operating activities increased $3.7 million when comparing
the thirteen weeks ended December 28, 1993 with the comparable quarter a year
earlier. This 17% increase is mostly attributable to higher operating income on
greater revenues.
The Company completed the acquisition of NRH Corporation on June 8, 1993, for an
aggregate cash consideration of $20.4 million plus operating cash flow
subsequent to the date of the preliminary agreement. The Company increased its
line of credit to $45.0 million on June 11, 1993 and funded the transaction
through borrowings available under the line.
The Company anticipates cash flow from operations will provide sufficient
capital to fund continuing expansion and improvements, to service debt
obligations and to develop new restaurants in existing territories. Future
acquisitions may require additional debt or capital resources.
Seasonality and Effects of Inflation
The Company's highest revenues and earnings occur historically in its first and
second fiscal quarters, April through September. During fiscal 1992 and 1993,
however, the Company experienced its highest level of revenue during the fourth
fiscal quarter.
Inflationary factors such as increases in food and labor costs directly affect
the Company's operations. Because most of the Company's employees are paid
hourly rates related to federal and state minimum wage and tip credit laws,
changes in these laws will result in increases in the Company's labor costs.
Legislation mandating health coverage for employees, if passed, will increase
benefit costs since most hourly restaurant employees are not currently covered
under Company plans. The Company cannot always effect immediate price increases
to offset higher costs, and no assurance can be given that the Company will be
able to do so in the future.
Increases in interest rates could directly affect the Company's operations.
<PAGE>
PART II. OTHER INFORMATION
Item 6. Exhibits filed as part of this Report and Reports on Form 8-K
(a) Exhibits
The following Exhibit is filed as part of this Report:
Exhibit 11 - Statement Regarding Computation of Per Share Earnings - Page 14
(b) Reports on Forms 8-K
No reports on Forms 8-K were filed during the quarter ended December 28, 1993:
Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
NATIONAL PIZZA COMPANY
(Registrant)
DATE: February 8, 1994 _____/s James K. Schwartz_________________
James K. Schwartz
Vice President, Chief Financial Officer
Principal Financial Officer
DATE: February 8, 1994 _____/s Douglas K. Stuckey________________
Douglas K. Stuckey
Corporate Controller, Chief Accounting Officer
Principal Accounting Officer
<PAGE>
<TABLE>
Exhibit 11
National Pizza Company
Statement Regarding Computation of Per Share Earnings
<CAPTION>
Thirteen Weeks Ending Thirty Nine Weeks Ended
Dec. 28, Dec. 29, Dec. 28, Dec. 29,
1993 1992 1993 1992
PRIMARY
<S> <C> <C> <C> <C>
Shares outstanding
at beginning of period 25,026,493 26,172,494 25,284,622 26,367,194
Weighted average of
shares issued and
(reacquired) during period (14,670) (361,904) (164,687) (374,580)
Assuming exercise of
options and warrants
reduced by the number
of shares which could have
been purchased with the
proceeds from exercise 56,535 40,487 61,077 61,080
Shares outstanding
for computation of
per share earnings 25,068,358 25,851,077 25,181,012 26,053,694
Net income $2,740,000 $2,294,000 $7,936,000 $6,620,000
Earnings per share $ 0.11 $ 0.09 $ 0.32 $ 0.25
FULLY DILUTED
Shares outstanding at
beginning of period 25,026,493 26,172,494 25,284,622 26,367,194
Weighted average of
shares issued and
(reacquired) during period (14,670) (361,904) (164,687) (374,580)
Assuming exercise of
options and warrants
reduced by the number
of shares which could
have been purchased with
the proceeds from exercise 71,266 40,487 66,283 61,080
Shares outstanding
for computation of
per share earnings 25,083,088 25,851,077 25,186,218 26,053,694
Net income $2,740,000 $2,294,000 $7,936,000 $6,620,000
Earnings per share $ 0.11 $ 0.09 $ 0.32 $ 0.25
</TABLE>
