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Noble Roman's Announces Earnings for 2007 Up 31% Over 2006 |
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Noble Roman's, Inc. (BULLETIN BOARD: NROM) , the Indianapolis based franchisor of Noble Roman's Pizza and Tuscano's Italian Style Subs, today announced earnings for the year 2007, which increased 31.3% over the year 2006. |
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Net income was $2.5 million, or $.14 per share basic, on weighted average number of common shares outstanding of l7.7 million, or $.13 per share diluted, on weighted average common shares outstanding of 19.0 million. This compares to net income for the year ended December 31, 2006 of $1.9 million, or $.12 per share basic, on weighted average number of common shares outstanding of 16.4 million, or $.10 per share diluted, on weighted average number of common shares outstanding of 19.7 million. Total revenues for the year ended December 31, 2007 were $11.6 million compared to total revenues of $9.5 million in 2006.
Royalty and fee income from franchising increased to $10.4 million in 2007 compared to $8.1 million in 2006, or an increase of 28.8%. Royalty and fee income, less initial franchise fees and fees for area development agreements, increased to $7.7 million in 2007 compared to $6.4 million in 2006, or an increase of 19.3%.
The company also announced that it temporarily assumed the operations and management of six suburban Indianapolis area franchises on February 1, 2008. The six locations had been operated by a single franchisee and were experiencing management and supervision difficulties. The company's intent is to improve the operations, increase the sales and then re-franchise the operations under new ownership. During the first five weeks under the company's management and supervision, average weekly sales for the six locations were improved by 33.3% over the weekly average sales of the preceding six weeks.
The company is continuing its efforts to market franchises for non- traditional locations which began in 1997, for traditional dual-brand locations which began in early 2006, and for area development territories which began in the third quarter of 2006. Area developers pay a fee for the exclusive right to market the dual-branded traditional concept in their acquired territory, subject to company approval of each franchisee and location, and subject to their continuing compliance with their minimum development schedule. Area developers who maintain their development schedule share in the franchise fees of new units in their territory, and in the royalty income from previously developed units in its territory. If an area developer does not meet its required minimum development schedule, the developer loses the right to the development area as well as their share of royalty income on any of the units that were developed.
In late November 2007, the company created and filled the new position of National Director of Non-Traditional Franchising and will seek to accelerate the company's growth of non-traditional franchise sales. Though there can be no assurance of accelerated growth, management's assessment of market conditions indicated what it considered to be substantial potential for new development. As previously announced on November 26, 2007, the company also instituted more rigorous franchisee selection criteria for potential franchisees of its traditional dual-brand concept, which among other things now includes psychological screening tests and a longer training process. The company also refocused its marketing efforts for potential franchisees of its dual branded concept to candidates with more business or restaurant experience.
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