NPC International, Inc. Reports First Quarter 2012 Results

Overland Park, KS  (RestaurantNews.com)  NPC International, Inc. (the “Company”), today reported results for its first fiscal quarter ended March 27, 2012.

FIRST QUARTER HIGHLIGHTS:

• Comparable store sales increased 5.1% rolling over a decrease of (4.7)% last year.
• Adjusted EBITDA (reconciliation attached) of $38.9MM was $6.3MM or 19% greater than last year, primarily on the strength of Adjusted EBITDA Margin expansion of 150 basis points over last year.
• Net income of $9.0MM was $0.5 million below last year.
• Adjusted Free Cash Flow (reconciliation attached) was $31.7MM or 82% of Adjusted EBITDA.
• Cash balances were $23.7 million, an increase of $11.8MM from our opening balance sheet, despite investing $19.3MM in the acquisition of 36 units in Florida.
• The Company’s leverage ratio was 4.44X Consolidated EBITDA, net of cash balances of $20.7MM as defined in our Credit Agreement, compared to pro-forma leverage of 4.85X at the closing of the transaction on December 28, 2011.

NPC’s President and CEO Jim Schwartz said, “We are extremely pleased to report exceptional results for our first quarter of 2012. This quarter’s results were marked by continued strong sales momentum, significant margin expansion due to our margin improvement initiatives and sales leverage and excellent controls by our operators, resulting in record quarterly Adjusted EBITDA.

The brand brought compelling value and bundling innovation to the category this quarter with our $10 Any Pizza promotion and the $10 Dinner Box. These promotions extended the tremendous sales momentum that we experienced in the fourth quarter of fiscal 2011 into our first quarter of 2012 resulting in strong comparable store sales growth of 5.1%.

Our recent acquisition in Jacksonville, Florida is off to a terrific start and our planned organic growth through delco lite development is yielding compelling results. We continue to fill out the pipeline of new units in order to achieve our planned development target for 2012.

We are very pleased with this quarter’s strong results allowing us to significantly deleverage our balance sheet since December 28, 2011 as our leverage ratio was reduced to 4.44X. We believe the brand is very well positioned in the marketplace and our messaging is meeting the consumer’s needs head on. We remain very focused on our key initiatives as well as meeting the needs of our customers in order to continue to deliver strong results for the balance of 2012.”

The Company is a wholly owned subsidiary of NPC Acquisition Holdings, LLC (“Parent”), which guaranteed the Company’s 10.50% Senior Notes due 2020. As a result of its guarantee, Parent is required to file reports with the Securities and Exchange Commission which include consolidated financial statements of Parent and its subsidiaries (including the Company). Parent’s only material asset is all of the stock of the Company. The quarterly financial statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations for Parent and the Company on a consolidated basis are set forth in Parent’s Form 10-Q for the fiscal quarter ended March 27, 2012 which can be accessed at www.sec.gov.

CONFERENCE CALL INFORMATION:

The Company’s first quarter earnings conference call will be held Monday, May 14, 2012 at 9:00 am CDT. You can access this call by dialing 800-573-4842. The international number is 617-224-4327. The access code for the call is 64060598.

For those unable to participate live, a replay of the call will be available until May 21, 2012 by dialing 888-286-8010 or by dialing international at 617-801-6888. The access code for the replay is 19427853.

A replay of the call will also be available at the Company’s website at www.npcinternational.com.

NPC International, Inc. is the world’s largest Pizza Hut franchisee and currently operates 1,189 Pizza Hut restaurants and delivery units in 28 states.

For more complete information regarding the Company’s financial position and results of operations, investors are encouraged to review the Parent’s quarterly financial statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations, incorporated into the Parent’s Form 10-Q which can be accessed at www.sec.gov.

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995

Certain statements contained in this news release that do not relate to historical or current facts constitute forward-looking statements. These include statements regarding our plans and expectations. Forward-looking statements are subject to inherent risks and uncertainties and there can be no assurance that such statements will prove to be correct. NPC’s actual results may vary materially from those anticipated in such forward-looking statements as a result of a number of factors, including lower than anticipated consumer discretionary spending; deterioration in general economic conditions; competition in the quick service restaurant market; adverse changes in food, labor and other costs; price inflation or deflation; and other factors. These risks and other risks are described in NPC’s filings with the Securities and Exchange Commission, including Parent’s and NPC’s Post Effective Amendment No. 1 to Form S-4 Registration Statement, Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Copies of these filings may be obtained by contacting NPC. All forward-looking statements made in this news release are made as of the date hereof. NPC does not intend to update these forward-looking statements and undertakes no duty to any person to provide any such update under any circumstances. Investors are cautioned not to place undue reliance on any forward-looking statements.

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