SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: February 16, 1995
NPC INTERNATIONAL, INC.
(Exact name of registrant as specified in its charter)
Kansas
(State of incorporation)
0-13007 48-0817298
(Commission (IRS Employer
File Number) Identification No.)
720 W. 20th Street, Pittsburg, Kansas 66762
(Address of principal executive office) (Zip Code)
Registrant's telephone number: (316-231-3390)
Item 5. Other events
On January 25, 1995, the company announced that it
would take a charge of up to $35,000,000 before taxes in its
fourth quarter to reserve for costs associated with the
closure of approximately 95 Skipper's locations.
On February 3, 1995, the company announced that James
K. Schwartz has been promoted to President and Chief
Operating Officer following the resignation of Mitch Boyd,
formerly the President and Chief Executive Officer. Mr.
Gene Bicknell has reassumed the position of Chief Executive
Officer.
Additionally, Mr. Frank Brown, formerly President of
Skipper's Operations, has resigned as part of Skipper's
restructuring effort and has been replaced by Mr. Jerry
Brunotts, who helped integrate the Company's Tony Roma
acquisition in 1993. Mr. Troy Cook has been appointed Vice
President, Finance and Chief Financial Officer of NPC
International, Inc.
The following exhibits are attached:
Exhibit 1 - Press release from January 27, 1995
Exhibit 2 - Press release from February 3, 1995
SIGNATURES
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.
NPC INTERNATIONAL, INC.
Date: February 16, 1995 By: Troy Cook
Vice President and
Chief Financial Officer
Contact: James K. Schwartz
Vice President Finance and
Chief Financial Officer
(316) 231-3390
FOR IMMEDIATE RELEASE
NPC INTERNATIONAL ANNOUNCES SKIPPER'S CLOSURES
AND THIRD QUARTER EARNINGS
PITTSBURG, Kansas, (January 27, 1995) - NPC
International, Inc. (NPCIA/NPCIB) today announced that it
would take a charge against earnings of up to $35 million,
or approximately $.85 per share after taxes, in its fourth
quarter to reserve for costs associated with the closure of
approximately 95 Skipper's locations. A final decision as
to the locations to be closed is scheduled to be made prior
to the end of the company's fiscal year. Due to this
charge, the company expects its operating results and
earnings per share for the fourth quarter and full fiscal
year 1995 to be substantially below amounts generated in
fiscal year 1994. The Company also announced earnings for
the third quarter ended December 27, 1994.
The board determined that its implementation of a
product and service improvement and building renovation
program were not having the desired effects of reversing
falling sales at many Skipper's locations. According to
management, the decline in sales, customer counts and
operating income is attributable to, among other things,
increased food product costs and the inability to pass
through these costs to consumers. Additionally management
cited that changing demographics in those areas where many
of the Skipper's units are located and changing dietary
considerations by its customers of fried products, which
represents the majority of Skipper's sales, also negatively
impacted Skipper's operations.
Continued operating losses in the Skipper's division
affected the company's third quarter earnings. Revenues for
the fiscal quarter ended December 27, 1994, of $77,159,000
were down 7.4% from the $83,287,000 reported in the prior
years' third quarter. Comparable sales in the Pizza Hut
operations for the 13 weeks ended were down 5.1%.
Comparable sales in Skipper's were off 6.8% while customer
counts were down 6.0%. Comparable sales at Tony Roma's
turned positive for the quarter, up 2.2%.
Revenues for the 39 weeks ended December 27, 1994, of
$240,088,000 were down 3.8% from the $249,488,000 reported
for the similar 39 weeks in the prior fiscal year.
Earnings for the recent fiscal quarter of $2,158,000,
or $.09 per share, were down from the $2,740,000, or $.11
per share, reported in the similar quarter of the prior
year. Net income for the 39 weeks ended December 27, 1994,
of $8,868,000, or $.36 per share, was up from the
$7,936,000, or $.32 per share, reported for the three fiscal
quarters of the prior year.
Gene Bicknell, Chairman stated, "This quarter's
earnings were negatively impacted by the disappointing
performance of our Skipper's division. That, coupled with
softer sales at Pizza Hut, overshadowed the positive
performance of Tony Roma's. We expect Pizza Hut's new
marketing campaign, which began in January, will improve
future earnings."
Mitch Boyd, President and CEO said, "During the
quarter, our Pizza Hut division implemented a new Pizza
production system designed to give our customers a more
consistently prepared pizza. While this process slightly
increased costs, we believe Pizza Hut will benefit with more
satisfied customers."
Mr. Bicknell added, "The decision to close a number of
Skipper's units was difficult but necessary. The closings
will allow us to eliminate those units which would continue
to adversely affect the company's future financial results
and focus on those remaining Skipper's units which are
profitable."
The company also announced that James K. Schwartz, was
appointed Executive Vice President, Chief Operating Officer
of NPC International, Inc. A successor for Mr. Schwartz's
position as Vice President Finance and Chief Financial
Officer will be named shortly.
NPC International, Inc. is the world's largest Pizza
Hut franchisee and operates 345 Pizza Hut restaurants and
delivery kitchens in nine states. Additionally, the Company
operates and franchises 197 Skipper's quick service seafood
restaurants in 12 western states and British Columbia.
Skipper's is the third largest quick service seafood chain
in the nation. The Company also operates and franchises 171
Tony Roma's restaurants, the casual theme restaurant famous
for ribs.
The Company's stock is traded on the NASDAQ Market
under the symbols "NPCIA/NPCIB."
FINANCIAL RESULTS
(Unaudited)
Fiscal Quarter Three Fiscal
Ended Quarters Ended
Dec. 27, Dec. 28, Dec. 27, Dec. 28,
1994 1993 1994 1993
Net revenue $77,159,000 $83,287,000 $240,088,000 $249,488,000
Net income $2,158,000 $2,740,000 $8,868,000 $7,936,000
Earnings per share $.09 $.11 $.36 $.32
Weighted average
shares outstanding 24,545,988 25,083,088 24,847,608 25,186,218
For more information contact James K. Schwartz, Vice
President Finance and Chief Financial Officer, NPC
International, Inc., 720 W. 20th Street, Pittsburg, Kansas
66762. Telephone Number: (316) 231-3390.
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95-01
DRAFT
NPC International, Inc.
Condensed Consolidated Statements of Income
(Unaudited)
For the Thirteen For the Thirty Nine
Weeks Ended Weeks Ended
Dec. 27, Dec. 28, Dec. 27, Dec. 28,
1994 1993 1994 1993
Net sales $75,610,000 $81,922,000 $235,839,000 $246,521,000
Franchise revenues 1,549,000 1,365,000 4,249,000 2,967,000
Total revenues 77,159,000 83,287,000 240,088,000 249,488,000
Cost of sales 22,894,000 24,174,000 69,815,000 73,466,000
54,265,000 59,113,000 170,273,000 176,022,000
Direct labor costs 22,287,000 23,945,000 68,721,000 72,257,000
Operating expenses 20,862,000 22,236,000 64,224,000 65,590,000
General and
administrative expenses 6,118,000 6,848,000 18,375,000 20,082,000
49,267,000 53,029,000 151,320,000 157,929,000
Operating income 4,998,000 6,084,000 18,953,000 18,093,000
Interest expense (1,545,000) (1,729,000) (4,589,000) (5,014,000)
Other income (expense) 71,000 136,000 104,000 (79,000)
Income before
income taxes 3,524,000 4,491,000 14,468,000 13,000,000
Provision for
income taxes 1,366,000 1,751,000 5,600,000 5,064,000
Net income $2,158,000 $2,740,000 $8,868,000 $7,936,000
Earnings per share $0.09 $0.11 $0.36 $0.32
Weighted average
shares outstanding 24,545,988 25,083,088 24,847,608 25,186,218
Note: Certain reclasses were made to prior year balances to
conform to current year presentation.
Contact: James K. Schwartz
President and Chief
Operating Officer
(316) 231-3390
FOR IMMEDIATE RELEASE
NPC INTERNATIONAL ANNOUNCES APPOINTMENT
OF NEW PRESIDENT
PITTSBURG, Kansas (February 3, 1995) - NPC
International, Inc. (NPCIA/NPCIB) today announced that J.
Mitchell Boyd has resigned as President and Chief Executive
Officer. James K. Schwartz, formerly the Company's Chief
Financial Officer and recently appointed Chief Operating
Officer has been named President and Chief Operating
Officer. O. Gene Bicknell has reassumed the position of
Chief Executive Officer.
NPC International, Inc. is the world's largest Pizza
Hut franchisee and operates 345 Pizza Hut restaurants and
delivery kitchens in nine states. The Company also operates
and franchises 171 Tony Roma's restaurants, the casual theme
restaurant famous for ribs. Additionally, the Company
operates and franchises Skipper's quick service seafood
restaurants in the western United States and British
Columbia. The Company recently announced that it would
close a portion of its Skipper's chain.
The Company's stock is traded on the NASDAQ Market
under the symbols "NPCIA/NPCIB".
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95-02
