Noble Roman's Announces Continued Growth, Profitability for Second Quarter 2013 USA - English English
Eight Stand-Alone Take-n-Bake Locations Open with 13 Additional Locations Under Development; Grocery Take-n-Bake Program Continues to Expand with Approximately 1,675 Grocery License Agreements; and 30 New Non-Traditional Franchise Agreements Signed Thus Far in 2013
INDIANAPOLIS, Aug. 12, 2013 /PRNewswire/ -- Noble Roman's, Inc. (OTC/BB: NROM), the Indianapolis based franchisor and licensor of Noble Roman's Pizza and Tuscano's Italian Style Subs, today announced results for the quarterly period ended June 30, 2013.
Second Quarter 2013 Financial and Operational Highlights Compared to Second Quarter 2012
- Net income before taxes was $754,467, or $0.04 per share, compared to $466,520, or $0.02 per share. The company will pay no income taxes on approximately the next $25 million in net income.
- Net income was $455,622, or $0.02 per share, compared to $242,122, or $0.01 per share.
- Operating margin on total revenue was 40.5% compared to 37.1%.
- Total revenue was $1.99 million, up 10.8% compared to $1.79 million.
- Upfront franchisee fees and commissions were $241,726 compared to $63,489.
- Royalties and fees less upfront fees were $1.62 million compared to $1.60 million.
- Royalties and fees from non-traditional franchises other than grocery stores were $1.11 million compared to $1.15 million
- Royalties and fees from grocery store take-n-bake locations were $374,085 compared to $370,825.
- Royalties and fees from traditional locations were $81,033 compared to $80,329.
- Royalties and fees from stand alone take n bake locations were $53,000 compared to none.
For purposes of comparing current operating results, the 2012 amounts above were adjusted, where appropriate, for the $100,000 reduction in reserve for collectability of receivables from the Heyser Plaintiffs, which resulted in increasing revenues for the 2012 period shown for units no longer operating. Details regarding the adjustment for the reserve are provided in the company's Form 10-Q filed with the Securities and Exchange Commission.
Financial and Operational Highlights for the First Six-Months in 2013 Compared to Comparable Period in 2012
- Net income before taxes was $1.45 million, or $0.07 per share, compared to $871,000, or $0.04 per share. The company will pay no income taxes on approximately the next $25 million in net income.
- Net income was $874,000, or $0.04 per share, compared to $526,000, or $0.03 per share.
- Operating margin on total revenue was 40.0% compared to 31.2%.
- Total revenue was $3.88 million, up 13.0% compared to $3.43 million.
- Upfront franchisee fees and commissions were $365,000 compared to $148,000.
- Royalties and fees less upfront fees were $3.27 million compared to $3.02 million.
- Royalties and fees from non-traditional franchises other than grocery stores were $2.27 million compared to $2.17 million
- Royalties and fees from grocery store take-n-bake locations were $771,000 compared to $695,000.
- Royalties and fees from traditional locations were $158,000 compared to $160,000.
- Royalties and fees from stand alone take n bake locations were $77,000 compare to none.
For purposes of comparing current operating results, the 2012 amounts above were adjusted, where appropriate, for the $300,000 reduction in reserve for collectability of receivables from the Heyser Plaintiffs, which resulted in increasing revenues for the 2012 period shown for units no longer operating. Details regarding the adjustment for the reserve are provided in the company's Form 10-Q filed with the Securities and Exchange Commission.
"We continue to successfully leverage the opportunities for revenue growth while maintaining control over operating expenses by maintaining focus on our primary growth engines through our take-n-bake initiatives," said Paul Mobley, Chairman and CEO of Noble Roman's, Inc. "This success is reflected in our growth in revenue, growth in operating margin and increase in net income before taxes. We have built a profitable platform for growth, benefitting from the increasing popularity of the take-n-bake concept, and as we expand both the stand-alone franchise concept and our network of grocery customers, we expect accelerated top- and bottom-line growth. We are well on our way to achieving our growth initiatives for the year in both areas."
The company has entered into agreements for 21 stand-alone take-n-bake locations. The first two stand-alone take-n-bake pizza locations opened in October and December 2012 and, to date, a total of eight have been opened with 12 under development and expected to open in the next few months. The company's stand-alone take-n-bake program features the chain's popular traditional Hand-Tossed Style pizza, Deep-Dish Sicilian pizza, SuperThin pizza, all with a choice of three different types of sauce, and Noble Roman's famous breadsticks with spicy cheese sauce, all in a convenient cook-at-home format. Additional menu items include such items as fresh salads, cookie dough, cinnamon rounds, bake-able pasta and more. The company is currently in discussions with many other prospects for its stand-alone program and is advertising for additional franchisees through various web-based franchise referral systems, which began in late January 2013. The Company expects to sign several more agreements for the stand-alone take-n-bake franchise yet this month.
Thus far in 2013, the company has signed 30 additional new franchise agreements for non-traditional locations and is in discussion with numerous other convenience store chains and entertainment facilities for additional non-traditional locations. The primary source of growth in this segment comes from existing franchisees and exhibiting in various industry trade shows including the National Association of Convenience Stores, Western Petroleum Marketers Association, International Association of Amusement Parks and Attractions, and selected state convenience store associations.
Balance Sheet Summary
Cash and cash equivalents totaled approximately $265,000 as of June 30, 2013 compared to $144,000 as of December 31, 2012. Total bank debt was $3.6 million as of June 30, 2013 compared to $4.3 million as of December 31, 2012. Total stockholders' equity as of June 30, 2013 was approximately $13.3 million compared to $12.4 million as of December 31, 2012.
Teleconference
Management will conduct a live teleconference to discuss its financial results at 4:30 p.m. ET on Monday, August 12, 2013. Anyone interested in participating should call 1-877-941-1427 if calling from the United States, or 1-480-629-9664 if dialing internationally. A replay will be available until August 19, 2013, which can be accessed by dialing 1-877-870-5176 within the United States and 1-858-384-5517 if dialing internationally. Please use passcode 4633992 to access the replay. In addition, the call will be webcast and will be available on the Company's website at www.nobleromans.com or by visiting http://public.viavid.com/index.php?id=105613.
The statements contained in this press release concerning the company's future revenues, profitability, financial resources, market demand and product development are forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) relating to the company that are based on the beliefs of the management of the company, as well as assumptions and estimates made by and information currently available to the company's management. The company's actual results in the future may differ materially from those projected in the forward-looking statements due to risks and uncertainties that exist in the company's operations and business environment, including, but not limited to, competitive factors and pricing pressures, non-renewal of franchise agreements, shifts in market demand, general economic conditions, changes in purchases of or demand for the company's products, licenses or franchises, the success or failure of individual franchisees and licensees, changes in prices or supplies of food ingredients and labor, and the success or failure of its recently developed stand-alone take-n-bake operation. Should one or more of these risks or uncertainties materialize, or should underlying assumptions or estimates prove incorrect, actual results may differ materially from those described herein as anticipated, believed, estimated, expected or intended. The company undertakes no obligations to update the information in this press release for subsequent events.
FOR ADDITIONAL INFORMATION, CONTACT:
For Media Information: Scott Mobley, President 317/634-3377
For Investor Relations: Paul Mobley, Chairman & CEO 317/634-3377
or Brett Maas, Hayden IR, 646/536-7331 or [email protected]
| Noble Roman's, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) |
||
| Assets |
December 31, |
June 30, |
| Current assets: |
||
| Cash |
$ 144,354 |
$ 265,463 |
| Accounts and notes receivable - net |
1,080,362 |
1,387,029 |
| Inventories |
460,839 |
477,929 |
| Assets held for resale |
259,579 |
259,579 |
| Prepaid expenses |
379,669 |
541,596 |
| Deferred tax asset - current portion |
1,400,000 |
1,400,000 |
| Total current assets |
3,724,803 |
4,331,596 |
| Property and equipment: |
||
| Equipment |
1,166,103 |
1,170,627 |
| Leasehold improvements |
12,283 |
12,283 |
| 1,178,386 |
1,182,910 |
|
| Less accumulated depreciation and amortization |
905,376 |
931,131 |
| Net property and equipment |
273,010 |
251,779 |
| Deferred tax asset (net of current portion) |
9,238,536 |
8,665,308 |
| Other assets |
3,924,404 |
4,068,828 |
| Total assets |
$ 17,160,753 |
$ 17,317,511 |
| Liabilities and Stockholders' Equity |
||
| Current liabilities: |
||
| Current portion of long-term note payable to bank |
$ 1,250,000 |
1,250,000 |
| Accounts payable and accrued expenses |
510,710 |
410,665 |
| Total current liabilities |
1,760,710 |
1,660,665 |
| Long-term obligations: |
||
| Note payable to bank (net of current portion) |
3,020,833 |
2,395,833 |
| Total long-term liabilities |
3,020,833 |
2,395,833 |
| Stockholders' equity: |
||
| Common stock – no par value (25,000,000 shares authorized, 19,516,589 issued and outstanding as of December 31, 2012 and June 30, 2013) |
23,366,058 |
23,423,273 |
| Preferred stock (5,000,000 shares authorized and 20,625 issued and outstanding as of December 31, 2012 and June 30, 2013) |
800,250 |
800,250 |
| Accumulated deficit |
(11,787,098) |
(10,962,510) |
| Total stockholders' equity |
12,379,210 |
13,261,013 |
| Total liabilities and stockholders' equity |
$ 17,160,753 |
$ 17,317,511 |
| Noble Roman's, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (Unaudited) |
||||
| Three Months Ended |
Six Months Ended June 30, |
|||
| 2012 |
2013 |
2012 |
2013 |
|
| Royalties and fees |
$ 1,767,414 |
$ 1,857,503 |
$3,470,980 |
3,639,809 |
| Administrative fees and other |
5,496 |
7,600 |
12,743 |
8,876 |
| Restaurant revenue |
120,680 |
122,275 |
247,529 |
229,431 |
| Total revenue |
1,893,590 |
1,987,378 |
3,731,252 |
3,878,116 |
| Operating expenses: |
||||
| Salaries and wages |
253,524 |
262,827 |
496,983 |
512,030 |
| Trade show expense |
123,127 |
129,991 |
244,124 |
259,540 |
| Travel expense |
45,459 |
55,240 |
94,374 |
99,555 |
| Other operating expenses |
172,008 |
182,957 |
350,209 |
364,320 |
| Restaurant expenses |
113,029 |
109,742 |
232,272 |
214,850 |
| Depreciation and amortization |
28,561 |
28,343 |
59,225 |
56,689 |
| General and administrative |
392,670 |
413,564 |
788,387 |
820,548 |
| Total expenses |
1,128,378 |
1,182,664 |
2,265,574 |
2,327,532 |
| Operating income |
765,212 |
804,714 |
1,465,678 |
1,550,584 |
| Interest and other expense |
198,692 |
50,247 |
294,621 |
103,404 |
| Income before income taxes |
566,520 |
754,467 |
1,171,057 |
1,447,180 |
| Income tax expense |
224,398 |
298,845 |
463,856 |
573,228 |
| Net income |
342,122 |
455,622 |
707,201 |
873,952 |
| Cumulative preferred dividends |
24,683 |
24,411 |
49,636 |
49,364 |
| Net income available to common stockholders |
$ 317,439 |
$ 431,211 |
$ 657,565 |
$ 824,588 |
| Earnings per share – basic: |
||||
| Net income |
$ .02 |
$ .02 |
$ .04 |
$ .04 |
| Net income available to common stockholders |
$ .02 |
$ .02 |
$ .03 |
$ .04 |
| Weighted average number of common shares outstanding |
19,489,317 |
19,516,589 |
19,483,383 |
19,516,589 |
| Diluted earnings per share: |
||||
| Net income |
$ .02 |
$ .02 |
$ .04 |
$ .04 |
| Net income available to common stockholders |
$ .02 |
$ .02 |
$ .03 |
$ .04 |
| Weighted average number of common shares outstanding |
20,041,048 |
20,290,932 |
20,035,114 |
20,290,932 |
SOURCE Noble Roman's, Inc.
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