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Noble Roman's Announces Third Quarter 2024 Financial Data

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Noble Roman's (OTCQB:NROM) reported Q3 2024 financial results with net income of $193,000 and operating income of $417,000. Franchising revenue increased to $1.4 million from $1.3 million in 2023. Company-owned Craft Pizza & Pub restaurants saw same-store sales rise nearly 1% in Q3, with recent weeks showing a 5.2% increase. For the nine-month period, the company reported net income of $164,000 and franchising revenue of $4.3 million, up from $3.7 million in 2023. Ongoing royalty income increased 22.5% to $3.9 million. The company opened approximately 53 new franchise locations with plans for 20 more this year.

Noble Roman's (OTCQB:NROM) ha riportato i risultati finanziari del terzo trimestre 2024 con un utile netto di 193.000 dollari e un utile operativo di 417.000 dollari. I ricavi da franchising sono aumentati a 1,4 milioni di dollari, rispetto a 1,3 milioni di dollari nel 2023. I ristoranti Craft Pizza & Pub di proprietà dell'azienda hanno registrato un incremento delle vendite nei negozi comparabili di quasi l'1% nel terzo trimestre, con le ultime settimane che mostrano un aumento del 5,2%. Per il periodo di nove mesi, l'azienda ha riportato un utile netto di 164.000 dollari e ricavi da franchising di 4,3 milioni di dollari, in aumento rispetto a 3,7 milioni di dollari nel 2023. I redditi da royalty in corso sono aumentati del 22,5% a 3,9 milioni di dollari. L'azienda ha aperto circa 53 nuove sedi in franchising, con piani per altre 20 quest'anno.

Noble Roman's (OTCQB:NROM) publicó los resultados financieros del tercer trimestre de 2024 con un ingreso neto de 193,000 dólares y un ingreso operativo de 417,000 dólares. Los ingresos por franquicias aumentaron a 1.4 millones de dólares desde 1.3 millones de dólares en 2023. Los restaurantes Craft Pizza & Pub de propiedad de la empresa vieron un aumento en las ventas de tiendas comparables de casi el 1% en el tercer trimestre, mostrando en las últimas semanas un incremento del 5.2%. Durante el período de nueve meses, la empresa reportó un ingreso neto de 164,000 dólares y ingresos por franquicias de 4.3 millones de dólares, en comparación con 3.7 millones de dólares en 2023. Los ingresos por regalías en curso aumentaron un 22.5% hasta 3.9 millones de dólares. La empresa abrió aproximadamente 53 nuevas ubicaciones de franquicia con planes para 20 más este año.

노블 로마인(Noble Roman's) (OTCQB:NROM)은 2024년 3분기 재무 결과를 발표하며 순이익 193,000달러영업이익 417,000달러을 기록했습니다. 프랜차이즈 수익은 2023년 1.3백만 달러에서 1.4백만 달러로 증가했습니다. 회사 소유의 크래프트 피자 & 퍼브 레스토랑은 3분기 동안 동종 점포 매출이 거의 1% 증가했으며, 최근 몇 주 동안에는 5.2% 증가했습니다. 9개월 동안 회사는 순이익 164,000달러프랜차이즈 수익 4.3백만 달러를 보고했으며, 이는 2023년의 3.7백만 달러에서 증가한 수치입니다. 진행 중인 로열티 수익은 22.5% 증가하여 3.9백만 달러에 도달했습니다. 회사는 올해 20개의 추가 계획과 함께 약 53개의 새로운 프랜차이즈 지점을 열었습니다.

Noble Roman's (OTCQB:NROM) a annoncé les résultats financiers du troisième trimestre 2024 avec un revenu net de 193 000 dollars et un revenu d'exploitation de 417 000 dollars. Les revenus de franchise ont augmenté à 1,4 million de dollars, contre 1,3 million de dollars en 2023. Les restaurants Craft Pizza & Pub appartenant à l'entreprise ont enregistré une augmentation des ventes des mêmes magasins de près de 1% au troisième trimestre, les dernières semaines montrant une augmentation de 5,2%. Pour la période de neuf mois, l'entreprise a déclaré un revenu net de 164 000 dollars et des revenus de franchise de 4,3 millions de dollars, en hausse par rapport à 3,7 millions de dollars en 2023. Les revenus de redevance continus ont augmenté de 22,5% pour atteindre 3,9 millions de dollars. L'entreprise a ouvert environ 53 nouveaux emplacements de franchise avec des plans pour 20 autres cette année.

Noble Roman's (OTCQB:NROM) berichtete über die finanziellen Ergebnisse des 3. Quartals 2024 mit einem Nettoeinkommen von 193.000 US-Dollar und einem Betriebsergebnis von 417.000 US-Dollar. Die Franchise-Einnahmen stiegen von 1,3 Millionen US-Dollar im Jahr 2023 auf 1,4 Millionen US-Dollar. Die unternehmenseigenen Craft Pizza & Pub-Restaurants verzeichneten im dritten Quartal einen Anstieg der Same-Store-Verkäufe von fast 1%, wobei in den letzten Wochen ein Anstieg von 5,2% zu verzeichnen war. Für den neunjährigen Zeitraum meldete das Unternehmen ein Nettoeinkommen von 164.000 US-Dollar und Franchise-Einnahmen von 4,3 Millionen US-Dollar, was einer Steigerung gegenüber 3,7 Millionen US-Dollar im Jahr 2023 entspricht. Die fortlaufenden Lizenzgebühren stiegen um 22,5% auf 3,9 Millionen US-Dollar. Das Unternehmen eröffnete etwa 53 neue Franchise-Standorte mit Plänen für 20 weitere in diesem Jahr.

Positive
  • Q3 2024 net income of $193,000
  • Franchising revenue increased 22.5% to $4.3 million for nine months
  • Ongoing royalty income up 22.5% to $3.9 million
  • 53 new franchise locations opened with 20 more planned
  • Recent 6-week sales up 5.2% for company-owned restaurants
  • Labor costs in Craft Pizza & Pub decreased from 29.6% to 28.8%
Negative
  • Nine-month same-store sales decreased 3.4% for company-owned restaurants
  • Cost of sales increased from 19.8% to 21.4% due to higher cheese prices
  • Initial franchise fee income decreased from $327,000 to $193,000
  • Company-owned non-traditional venue showing operating loss of $51,481 in Q3 2024

INDIANAPOLIS, IN / ACCESSWIRE / November 13, 2024 / Noble Roman's, Inc. (OTCQB:NROM), the Indianapolis based franchisor and licensor of Noble Roman's Pizza and Noble Roman's Craft Pizza & Pub ("CPP"), today announced financial data for the third quarter 2024 and other company highlights.

Financial highlights from the 3rd quarter 2024 include:

  • Net Income of $193,000

  • Operating Income of $417,000

  • Franchising Revenue of $1.4 million compared to $1.3 million in 2023

  • Same store sales for company-owned CPP restaurants increased almost 1%

  • Average store sales for company-owned CPP restaurants for the last 6 operational weeks (prior to this release date) increased approximately 5.2% over the same operational weeks in 2023

  • Cost of sales in the Craft Pizza & Pub increased from 19.8% to 21.4% due primarily to elevated cheese prices and the promotion of the company's value-oriented XL Pizza

  • Labor in the Craft Pizza & Pub decreased from 29.6% to 28.8% despite market pressures on management salaries

  • Franchising labor increased from 14.8% to 15.5% reflecting an abnormally low expense rate in 2023

  • Net income for the quarter benefited from the revaluation of the warrant liability by $192 thousand using the Black-Scholes method of calculation

  • The company continues to progress on obtaining new financing to repay its senior note and subordinated notes

Financial highlights from the nine-month period 2024 include:

  • Net Income of $164,000.

  • Operating Income of $1.4 million

  • Franchising Revenue of $4.3 million compared to $3.7 million in 2023

  • Same store sales from company-owned Craft Pizza & Pub restaurants decreased approximately 3.4% primarily due to weather conditions in the 1st quarter and soft consumer spending throughout, slightly offset by an approximate 1% same store sales increase in the 3rd quarter

  • Average store sales for company-owned CPP restaurants for the last 6 operational weeks (prior to this release date) increased approximately 5.2% over the same operational weeks in 2023

  • Cost of sales in the Craft Pizza & Pub increased from 20.5% to 21.1% due primarily to elevated cheese prices and the promotion of the company's value-oriented XL Pizza

  • Labor in the Craft Pizza & Pub remained nearly unchanged at 28.9% compared to 28.8% a year ago despite market pressures on management salaries

  • Franchising labor decreased from 17.7% to 15.9% reflecting the overhead efficiencies inherent in adding new units

  • Franchising ongoing royalty income increased to $3.9 million from $3.2 million, or a 22.5% increase

  • Initial franchise fee income decreased from $327 thousand to $193 thousand as additional franchise fees for new franchise locations now get deferred and amortized over the period of the franchise agreement

  • Comparability of 2024 results to 2023 results for year-to-date is obscured due to the one-time recording of $1.46 million in income during the first quarter of 2023 from ERTC refund recognition

Further details:

The company had a net income for the nine-months ended September 30, 2024 of approximately $164,000 compared to a net income of approximately $1.3 million for the comparable period in 2023. The $164,000 net income was after a $1,800 decrease during the nine months for the market value of the outstanding warrant, a non-cash charge of $29,000 to close out the asset ledger for dormant subsidiary, and a non-cash adjustment for allowance receivables from a prior period of $32,000. Excluding those one-time charges, the company would have reported a net income of approximately $223,000. The comparability of the two nine-month periods of September 30, 2024 and 2023 is reduced because the net income of $1.3 million in 2023 was after recording $1.46 million of income from the ERTC refund. The ERTC refund was expenses and lost revenue, due to COVID restrictions, incurred by the company in periods prior to March 31, 2023. Excluding the ERTC refund recorded in the first quarter of 2023, the company would have reported a net loss of approximately $160,000 for the nine-month period ended September 30, 2023.

The revenue from the non-traditional franchising venue increased to $4.3 million from $3.7 million, or a 22.5% increase. By adding in the $180,000 in deferred initial franchise fees received in the current nine-month period (which were actually received in cash but deferred for future income recognition, which is a different accounting treatment than applied the previous year) and the non-cash adjustments, detailed above, of $61,000, the increase in franchising revenue would have been $930,000, or 25.3%. The company currently has a significant pipeline of prospects for additional franchise sales and a significant number of franchised locations sold but not yet open. The company has opened approximately 53 new franchise locations and has plans to open approximately 20 additional franchise locations this year. The company anticipates that this source of revenue will increase significantly through the rest of 2024 and beyond. Salaries and wages from the franchising venue decreased to 15.9% of revenue from 17.7% of revenue in the comparable period in 2023. The labor was reduced as a percentage of revenue primarily related to the growing number of franchises sold and opened without adding additional staff.

The total revenue from the company-owned restaurants was $7.1 million for the nine months ended September 30, 2024 compared to $7.4 million in the corresponding period in 2023. Same store sales for the CPP restaurants declined during the 9-month period by approximately 3.4% in part due to localized bad weather in the first quarter and sluggish consumer spending throughout. Same store CPP sales in the 3rd quarter increased nearly 1%, and have continued that trend after the quarter-end with the margin also increasing over last year. The company's single company-owned non-traditional operation is located in a hospital which is adding a new wing. During portions of the 3rd quarter, the hospital upgraded infra-structure in the foodservice area as part of the construction process, and the company's operation during that time was heavily restricted to reduced hours and a remote location for grab-n-go service only. The operation has since resumed normal operations and enjoying increased sales to nearly $24,000 per week.

As previously announced, the company is pursuing plans to obtain new financing to repay the Corbel loan prior to its maturity in February 2025 and to repay the subordinated notes as well when the Corbel loan is repaid. Based on the company's credit metrics and conversations currently taking place, the company believes its financing efforts will be successful. The company expects the new financing will result in some reduction in the effective interest rate that it currently pays and will not include equity-dilutive components like those in the current Corbel financing.

The following table sets forth the revenue, expense and margin contribution of the company's Craft Pizza & Pub venue and the percentage relationship to its revenue:

Description

Three months ended September 30,

Nine months ended September 30,

2023

2024

2023

2024

Revenue

$

2,175,219

100

%

$

2,195,167

100

%

$

6,639,213

100

%

$

6,413,242

100

%

Cost of sales

430,826

19.8

469,197

21.4

1,359,126

20.5

1,350,131

21.1

Salaries and wages

643,081

29.6

632,823

28.8

1,913,450

28.8

1,855,157

28.9

Facility cost including rent, common area and utilities

399,684

18.4

410,624

18.7

1,210,276

18.2

1,191,496

18.6

Packaging

71,586

3.3

70,765

3.2

220,694

3.4

199,838

3.1

Third-party delivery fees

26,227

1.2

45,156

2.1

86,444

1.3

146,640

2.3

All other operating expenses

403,230

18.5

393,263

17.9

1,124,658

16.9

1,088,282

16.9

Total expenses

1,974,635

90.8

2,021,828

92.1

5,914,648

89.1

5,831,544

90.9

Margin contribution

$

200,584

9.2

%

$

173,339

7.9

%

$

724,565

10.9

%

$

581,698

9.1

%

The following table sets forth the revenue, expense and margin contribution of the company's franchising venue and the percentage relationship to its revenue:

Description

Three months ended September 30,

Nine months ended September 30,

2023

2024

2023

2024

Royalties and fees franchising

$

1,310,284

100

%

$

1,437,697

100

%

$

3,671,160

100

%

$

4,298,735

100

%

Salaries and wages

193,781

14.8

222,910

15.5

648,342

17.7

685,321

15.9

Franchise promotion expense

44,936

3.4

60,105

4.2

229,056

6.2

180,682

4.2

Travel and auto

37,908

2.9

40,038

2.8

96,057

2.6

122,404

2.8

All other operating expenses (benefit)

119,152

9.1

176,728

12.3

(1,009,710

)

(27.5

)

461,736

10.8

Total expenses

395,777

30.2

499,781

34.8

(36,255

)

(1.0

)

1,450,143

33.7

Margin contribution

$

914,507

69.8

%

$

937,916

65.2

%

$

3,707,415

101

%

$

2,848,592

66.3

%

The following table sets forth the revenue, expense and margin contribution of the company-owned non-traditional venue and the percentage relationship to its revenue:

Description

Three months ended September 30,

Nine months ended September 30,

2023

2024

2023

2024

Revenue

$

247,252

100

%

$

218,193

100

%

$

707,217

100

%

$

693,045

100

%

Total expenses

240,245

97.2

269,674

123.6

566,225

80.1

730,723

105.4

Margin contribution (loss)

$

7,007

2.8

%

$

(51,481

)

(23.6

)%

$

140,992

19.9

%

$

(37,676

)

(5.4

)%



View the original press release on accesswire.com

FAQ

What was Noble Roman's (NROM) net income for Q3 2024?

Noble Roman's reported a net income of $193,000 for Q3 2024.

How many new franchise locations did Noble Roman's (NROM) open in 2024?

Noble Roman's opened approximately 53 new franchise locations in 2024, with plans to open approximately 20 additional locations by year-end.

What was Noble Roman's (NROM) franchising revenue for Q3 2024?

Noble Roman's franchising revenue for Q3 2024 was $1.4 million, compared to $1.3 million in Q3 2023.

How did Noble Roman's (NROM) same-store sales perform in Q3 2024?

Noble Roman's company-owned Craft Pizza & Pub restaurants saw same-store sales increase by almost 1% in Q3 2024.

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8.00M
17.50M
22.03%
Restaurants
Consumer Cyclical
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United States of America
Indianapolis