Rave Restaurant (US:RAVE)2025-05-08 13:01Sales Performance - Total domestic retail sales for Pizza Inn increased by $0.6 million, or 2.3%, for the three months ended March 30, 2025 compared to the same period of the prior year [86]. - Comparable store retail sales for Pizza Inn increased by $0.6 million, or 2.5%, for the three-month period ended March 30, 2025 compared to the same period of the prior fiscal year [86]. - Total domestic retail sales for Pie Five decreased by $1.1 million, or 29.1%, for the three months ended March 30, 2025 compared to the same period of the prior year [91]. - Pie Five total domestic retail sales decreased by $1.1 million, or 28.2%, for the three months ended March 30, 2025 compared to the same period of the prior year [92]. - Comparable store retail sales for Pie Five decreased by $0.2 million, or 5.6%, for the three months ended March 30, 2025 compared to the same period of the prior fiscal year [92]. Unit Count Changes - The number of domestic Pizza Inn units decreased by four during the three months ended March 30, 2025, with a total of 98 units at the end of the period [90]. - International Pizza Inn units decreased by seven during the three months ended March 30, 2025, resulting in a total of 20 units [90]. - The total number of Pie Five units decreased from 24 to 19 during the three months ended March 30, 2025 [91]. - Average units open for Pie Five decreased from 24 to 19 for the three months ended March 30, 2025, contributing to the decline in sales [92]. - There was a net decrease of one unit in the total domestic Pie Five unit count during the three and nine months ended March 30, 2025 [94]. Financial Performance - Adjusted EBITDA for the fiscal quarter ended March 30, 2025 increased by $0.1 million compared to the same period of the prior fiscal year, reaching $953,000 [84]. - Year-to-date Adjusted EBITDA increased by $0.5 million compared to the same period of the prior fiscal year, totaling $2.48 million [84]. - Total revenues for the nine months ended March 30, 2025 were $8.9 million, a slight increase from $8.8 million in the prior fiscal year [99]. - Pizza Inn franchise revenues increased by $0.2 million to $2.7 million for the three months ended March 30, 2025, a 6.5% increase driven by supplier incentives [100]. - Pie Five franchise revenues decreased by $0.1 million to $0.3 million for the three months ended March 30, 2025, representing a 32.6% decrease due to lower domestic royalties [101]. Expenses and Income - General and administrative expenses for the three months ended March 30, 2025 remained stable at $1.3 million, with a 2.4% increase driven by salary increases [102]. - Total franchise expenses decreased by $0.2 million to $2.6 million for the nine months ended March 30, 2025, reflecting an 8.3% decrease due to lower salaries related to franchise operations [103]. - Total income tax expense increased to $228 thousand for the three months ended March 30, 2025, compared to $200 thousand for the same period in the prior fiscal year, driven by higher taxable income [107]. - Basic net income per share increased by $0.01 to $0.05 per share for the three months ended March 30, 2025, with net income of $0.7 million on revenues of $3.0 million [109]. Cash Flow and Investments - Cash provided by operating activities was $2.2 million for the nine months ended March 30, 2025, compared to $1.3 million for the same period in the prior fiscal year, primarily due to increased collections of accounts receivable [113]. - Cash used in investing activities was $2.9 million for the nine months ended March 30, 2025, primarily attributable to increased purchases of U.S. Treasury bills [114]. - Net cash used in financing activities was $1.4 million for the nine months ended March 30, 2025, primarily due to repurchases of the Company's stock [116]. Future Outlook - The company anticipates a modest increase in both domestic and international Pizza Inn units in future periods [90]. - The company anticipates a modest decrease in Pie Five units in future periods [94]. - Management believes that cash and short-term investments on hand, combined with net cash provided by operations, will be sufficient to fund operations for the next 12 months and beyond [117]. Other Financial Metrics - Recoveries for credit losses were $14 thousand for the three months ended March 30, 2025, compared to a provision for credit losses of $11 thousand for the same period in the prior fiscal year [104]. - Interest income increased by $39 thousand to $84 thousand for the three months ended March 30, 2025, primarily driven by interest received on U.S. Treasury bills [105]. - Depreciation and amortization expense decreased by $14 thousand to $44 thousand for the three months ended March 30, 2025, due to lower depreciation of equipment [106]. - The Company recorded $0.7 million of other income for the employee retention credit for the fiscal year ended June 26, 2022, with $0.6 million received and $0.1 million still outstanding as of March 30, 2025 [118].