INDIANAPOLIS, May 13 /PRNewswire-FirstCall/ -- Noble Roman's, Inc. (OTC Bulletin Board: NROM), the Indianapolis based franchisor of Noble Roman's Pizza and Tuscano's Italian Style Subs, today announced earnings for the quarter ended March 31, 2008. For the quarter the company reported net income of $321,431, or $.02 per share, on 19.2 million weighted shares outstanding. This compares to a net income of $703,003, or $.04 per share, on 16.7 million weighted shares outstanding for the quarter ended March 31, 2007. Total revenues for the quarter ended March 31, 2008 were $2.4 million compared to $2.9 million for the corresponding period in 2007. Slower growth for the company's traditional co-brand franchise concept during the first quarter more than accounted for the decrease in first quarter revenue; royalty and fee income from existing franchises apart from new franchise and development related fees actually increased from $1,551,997 during the first quarter of 2007 to $1,702,178 for the first quarter of 2008. Program enhancements previously announced in November 2007 were in full implementation during the first quarter of 2008. These enhancements include: more rigorous franchisee selection criteria; a longer, more robust training period for new franchisees; more direct franchisee involvement in the construction and marketing process; and intensified monitoring and enforcement of operating standards and unit performance. As previously forecast, these enhancements have initially resulted in slower growth in the company's traditional concept, but the company believes they ultimately will provide for a stronger base of future growth. The company is also continuing its focus on awarding franchise agreements for both Noble Roman's Pizza and Tuscano's Italian Style Subs in non- traditional venues such as hospitals, military bases, universities, convenience stores, attractions, entertainment facilities, casinos, airports, travel plazas, office complexes and hotels. The non-traditional franchising program has been the company's predominant growth vehicle for the last several years, and it has recently increased its sales staff to facilitate faster growth. Recent economic conditions, such as record oil prices and difficult credit markets, have hampered the pace of growth in certain non-traditional venues, but the company remains positive on the longer-term outlook for these venues as the economic disruptions begin to stabilize and resolve. 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, shifts in market demand, the ability to successfully operate certain franchises on a temporary basis and to re-franchise them, general economic conditions and other factors, including (but not limited to) changes in demand for the company's products or franchises, the success or failure of individual franchisees, the success or failure of area developers who may or may not maintain their minimum development schedule, and the impact of competitors' actions. Should one or more of these risks or uncertainties adversely affect the company or should underlying assumptions or estimates prove incorrect, actual results may vary 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.
Noble Roman's, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) Assets December 31, March 31, 2007 2008 Current assets: Cash $832,207 $2,990,315 Accounts and notes receivable (net of allowances of $106,712 as of December 31, 2007 and March 31, 2008) 1,770,994 2,058,725 Inventories 310,362 329,733 Assets held for resale 643,915 1,182,509 Prepaid expenses 175,022 230,115 Current portion of long-term notes receivable 133,736 84,373 Deferred tax asset - current portion 1,971,875 1,588,000 Total current assets 5,838,111 8,463,770 Property and equipment: Equipment 1,289,795 1,291,901 Leasehold improvements 107,729 107,729 1,397,524 1,399,630 Less accumulated depreciation and amortization 755,987 782,733 Net property and equipment 641,537 616,897 Deferred tax asset (net of current portion) 9,106,008 9,324,298 Other assets including long-term portion of notes receivable less allowances of $550,000 as of December 31, 2007 and March 31, 2008 1,883,644 1,936,308 Total assets $17,469,300 $20,311,273 Liabilities and Stockholders' Equity Current liabilities: Accounts payable and accrued expenses $532,264 455,283 Current portion of long-term note payable 1,500,000 1,500,000 Total current liabilities 2,032,264 1,955,283 Long-term obligations: Note payable to bank (net of current portion) 4,125,000 6,750,000 Total long-term liabilities 4,125,000 6,750,000 Stockholders' equity: Common stock - no par value (25,000,000 shares authorized, 19,187,499 issued and outstanding as of December 31, 2007 and 19,197,499 issued and outstanding as of March 31, 2008) 22,905,617 22,924,775 Preferred stock (5,000,000 shares authorized and 20,625 issued and outstanding as of December 31, 2007 and March 31, 2008) 800,250 800,250 Accumulated deficit (12,393,830)(12,089,035) Total stockholders' equity 11,312,036 11,635,990 Total liabilities and stockholders' equity $17,469,300 $20,341,273 Noble Roman's, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (Unaudited) Three Months Ended March 31, 2007 2008 Royalties and fees $2,585,407 $1,948,153 Administrative fees and other 18,347 13,441 Restaurant revenue 251,585 388,841 Total revenue 2,855,339 2,350,435 Operating expenses: Salaries and wages 377,544 381,092 Trade show expense 137,786 123,473 Travel expense 79,239 113,581 Sales commissions 114,988 31,688 Other operating expenses 226,020 237,474 Restaurant expenses 234,407 374,427 Depreciation and amortization 21,347 25,318 General and administrative 425,032 422,302 Operating income 1,238,976 641,080 Interest and other expense 173,819 154,063 Income before income taxes 1,065,157 487,016 Income tax expense 362,154 165,586 Net income 703,003 321,431 Cumulative preferred dividends 41,135 16,636 Net income available to common stockholders $661,868 $304,795 Earnings per share - basic: Net income $.04 $.02 Net income available to common stockholders .04 .02 Weighted average number of common shares outstanding 16,668,018 19,196,395 Diluted earnings per share: Net income $.04 $.02 Weighted average number of common shares outstanding 20,046,737 20,297,994
SOURCE Noble Roman's, Inc.