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(Indianapolis, Indiana) - November 14, 2005 -- Noble Roman's, Inc. (OTC/BB: NROM), the Indianapolis based franchisor of Noble Roman's Pizza and Tuscano's Italian Style Subs, today announced earnings for the third quarter of 2005.
For the three months ended September 30, 2005, the company reported net income from continuing operations of $2,237,249, or $.13 per share on 16,809,214 weighted average shares outstanding. This compares to a net income from continuing operations of $360,377 or $.02 per share on 16,277,827 weighted average shares outstanding for the three months ended September 30, 2004. The majority of the increase resulted from a net gain on consummating a settlement with SummitBridge National Investments, LLC, as previously announced on August 25, 2005.
For the nine-months ended September 30, 2005, the company reported net income from continuing operations of $3,029,458, or $.18 per share on 17,026,460 weighted average shares outstanding. This compares to a net income from continuing operations of $1,104,497 or $.07 per share on 16,277,827 weighted average shares outstanding for the nine-months ended September 30, 2004. Again, the majority of the increase resulted from a net gain on consummating a settlement with SummitBridge National Investments, LLC, as previously announced on August 25, 2005. System wide sales were approximately $57 million for the nine-month period ended September 30, 2005 compared to approximately $54 million for the nine-month period ended September 30, 2004.
During the three-month and nine-month periods ended September 30, 2005, the company incurred a loss on discontinued operations, primarily from a settlement on a disputed lease agreement and legal fees related to the discontinued operations, in the net amount of $324,711 and $627,410 respectively, or $.02 per share and $.04 per share. The company is not aware of any remaining issues related to the discontinued operations that will result in any significant additional expense in the future.
Noble Roman's has sold franchises in 44 states from coast-to-coast within the United States. In addition, it has sold franchise agreements for military bases in Puerto Rico, Guam and Italy, and for entertainment facilities and convenience stores in Canada. As in the past several years, the company plans to continue 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. In addition, the company recently began offering dual-branded Noble Roman's and Tuscano's for stand-alone, traditional locations.
To provide for more rapid growth, the company also plans to sell development territories to Area Developers for the growth of its traditional dual-branded concept. Area Developers have the exclusive right to develop the dual-branded traditional concept in their area, subject to company approval on each franchisee and location. The Area Development Agents will generally pay a development fee of $.05 per population in their development area and will receive 30% of the initial franchise fee and 2/7 ths of the royalty from the locations developed pursuant to those agreements. In order to maintain the rights to develop the territory, each Development Agent must meet the minimum development schedule stipulated in the Area Development Agreement. Currently, the Company is in negotiations on eight Area Development Agreements and is in discussions with several other potential Area Developers.
The statements contained in this press release concerning Noble Roman'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. Noble Roman'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, general economic conditions and other factors, including (but not limited to) changes in demand for Noble Roman's products or franchises and the impact of competitors' actions and uncertainties. Should one or more of these risks or uncertainties adversely affect Noble Roman's or should underlying assumptions or estimates prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected or intended. |
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