Noble Roman’s Announces 4th Quarter & 12-Month 2022 Financial Data
INDIANAPOLIS, IN / ACCESSWIRE / March 31, 2023 / 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 results for the year 2022, results for the three-months ended December 31, 2022 and other strategic highlights.
The company reported a net loss for the quarter ended December 31, 2022 of
During the first quarter of 2023 the company calculated the amount of refund due under the Employee Retention Credit ("ERC") of
In 2022, the company opened 31 new non-traditional units compared to 24 in 2021. In the first quarter of 2023, the company has already sold 11 new non-traditional franchises and opened 10, with over two dozen more units in the pipeline that were previously sold and in various stages of readiness to be opened.
Scott Mobley, the company's President & CEO, stated, "With many of the supply chain emergencies now behind us, we are still left with inflationary pressures and residual staffing issues to deal with, but we have been successful in our plan to re-assign staff focus on expanding our non-traditional venue more quickly. New unit development in 2022 surpassed the previous year by about
The following table sets forth the revenue, expense and margin contribution of the company's Craft Pizza & Pub venue and the percent relationship to its revenue:
Three Months ended December 31, | Year-Ended December 31, | ||||||||||||||||||||||||
Description | 2021 | 2022 | 2021 | 2022 | |||||||||||||||||||||
Revenue | $ | 2,443,781 | 100 | % | $ | 2,330,026 | 100 | % | $ | 8,939,569 | 100 | % | $ | 9,704,169 | 100 | % | |||||||||
Cost of sales | 513,848 | 21.0 | 513,636 | 22.0 | 1,868,997 | 20.9 | 2,076,514 | 21.4 | |||||||||||||||||
Salaries and wages | 743,396 | 30.5 | 694,600 | 29.8 | 2,233,376 | 25.0 | 2,850,333 | 29.4 | |||||||||||||||||
Facility cost including rent, common area and utilities | 379,851 | 15.5 | 403,592 | 17.3 | 1,187,984 | 13.3 | 1,635,951 | 16.8 | |||||||||||||||||
Packaging | 87,317 | 3.6 | 85,433 | 3.7 | 271,507 | 3.0 | 344,823 | 3.6 | |||||||||||||||||
All other operating expenses | 442,063 | 18.1 | 402,467 | 17.3 | 1,662,969 | 18.6 | 1,608,784 | 16.5 | |||||||||||||||||
Total expenses | 2,166,475 | 88.7 | 2,099,726 | 90.1 | 7,224,833 | 80.8 | 8,516,405 | 87.7 | |||||||||||||||||
Margin contribution | $ | 277,306 | 11.3 | % | $ | 230,301 | 9.9 | % | $ | 1,714,736 | 19.2 | % | $ | 1,187,764 | 12.3 | % |
The revenue from the CPP decreased from
Cost of sales as a percentage of revenue increased from
Salaries and wages as a percentage of revenue decreased from
Facility costs, including rent, common area maintenance and utilities, as a percentage of revenue increased from
All other operating costs and expenses as a percentage of revenue decreased from
Gross margin contribution decreased from
The following table sets forth the revenue, expense and margin contribution of the company's franchising venue and the percent relationship to its revenue:
Three Months ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||
Description | 2021 | 2022 | 2021 | 2022 | ||||||||||||||||||||||
Total royalties and fees | 1,013,831 | 100 | % | 784,423 | 100 | % | 4,444,826 | 100 | % | 4,002,824 | 100 | % | ||||||||||||||
Salaries and wages | 215,656 | 21.3 | 223,495 | 28.5 | 719,252 | 16.2 | 861,190 | 21.5 | ||||||||||||||||||
Trade show expense | 105,000 | 10.4 | 90,000 | 11.5 | 399,000 | 9.0 | 315,000 | 7.9 | ||||||||||||||||||
Travel and auto | 21,446 | 2.1 | 32,028 | 4.1 | 73,270 | 1.6 | 113,186 | 2.8 | ||||||||||||||||||
All other op. expenses | 154,789 | 15.2 | 396,155 | 50.5 | 618,841 | 13.9 | 896,375 | 22.4 | ||||||||||||||||||
Total expenses | 496,891 | 49.0 | 741,678 | 94.6 | 1,810,363 | 40.7 | 2,185,751 | 54.6 | ||||||||||||||||||
Margin contribution | $ | 516,940 | 51.0 | % | $ | 42,745 | 5.4 | % | $ | 2,634,463 | 59.3 | % | $ | 1,817,073 | 45.4 | % |
Total revenue from this venue declined from
Gross margin in this venue decreased from
The following table sets forth the revenue, expense and margin contribution of the company-owned non-traditional venue and the percent relationship to its revenue:
Three Months ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||||
Description | 2021 | 2022 | 2021 | 2022 | ||||||||||||||||||||||||
Revenue | $ | 131,978 | 100 | % | $ | 206,625 | 100 | % | $ | 485,595 | 100 | % | $ | 712,517 | 100 | % | ||||||||||||
Total expenses | 131,890 | 99.9 | 201,026 | 97.3 | 466,469 | 96.1 | 704,665 | 98.9 | ||||||||||||||||||||
Margin contribution | $ | 88 | .1 | % | $ | 5,599 | 2.7 | % | $ | 19,126 | 3.9 | % | $ | 7,852 | 1.1 | % |
Gross revenue from this venue increased from
Total expenses increased from
Corporate Expenses
Depreciation and amortization decreased from
General and administrative expenses increased from
Interest expense increased from
During the first quarter of 2023 the company determined that it is entitled to an ERC of
The statements contained above 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 indicated by the forward-looking statements due to risks and uncertainties that exist in the Company's operations and business environment, including, but not limited to the effects of the COVID-19 pandemic and its aftermath, competitive factors and pricing and cost pressures, non-renewal of franchise agreements, shifts in market demand, the success of franchise programs, including the Noble Roman's Craft Pizza & Pub format, the Company's ability to successfully operate an increased number of Company-owned restaurants, general economic conditions, changes in demand for the Company's products or franchises, the Company's ability to service its loans, the acceptance of the amended federal Form 941 returns relating to the ERC, the impact of franchise regulation, the success or failure of individual franchisees and inflation and other changes in prices or supplies of food ingredients and labor as well as the factors discussed under "Risk Factors" in the Annual Report on Form 10-K. Should one or more of these risks or uncertainties materialize, or should underlying assumptions or estimates prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected or intended.
Consolidated Balance Sheets
Noble Roman's, Inc. and Subsidiaries
December 31, | ||||||||
Assets | 2021 | 2022 | ||||||
Current assets: | ||||||||
Cash | $ | 1,263,513 | $ | 785,522 | ||||
Accounts receivable - net | 904,474 | 824,091 | ||||||
Inventories | 994,085 | 997,868 | ||||||
Prepaid expenses | 415,309 | 424,822 | ||||||
Total current assets | 3,577,381 | 3,032,303 | ||||||
Property and equipment: | ||||||||
Equipment | 4,216,246 | 4,351,558 | ||||||
Leasehold improvements | 3,065,644 | 3,116,030 | ||||||
Construction and equipment in progress | 235,051 | 63,097 | ||||||
7,516,941 | 7,530,685 | |||||||
Less accumulated depreciation and amortization | 2,366,927 | 2,817,477 | ||||||
Net property and equipment | 5,150,014 | 4,713,208 | ||||||
Deferred tax asset | 3,232,406 | 3,374,841 | ||||||
Deferred contract costs | 810,044 | 934,036 | ||||||
Goodwill | 278,466 | 278,466 | ||||||
Operating lease right of use assets | 6,003,044 | 5,660,155 | ||||||
Other assets including long-term portion of accounts receivable - net | 324,402 | 350,189 | ||||||
Total assets | $ | 19,375,757 | $ | 18,343,198 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued expenses | $ | 919,157 | $ | 650,582 | ||||
Current portion of operating lease liability | 656,146 | 799,164 | ||||||
Current portion of Corbel loan payable | - | 866,667 | ||||||
Total current liabilities | 1,575,303 | 2,316,413 | ||||||
Long-term obligations: | ||||||||
Loan payable to Corbel net of current portion | 7,898,941 | 7,470,900 | ||||||
Corbel warrant value | 29,037 | 29,037 | ||||||
Convertible notes payable | 597,229 | 622,864 | ||||||
Operating lease liabilities - net of current portion | 5,570,639 | 5,103,286 | ||||||
Deferred contract income | 810,044 | 934,036 | ||||||
Total long-term liabilities | 14,905,890 | 14,160,123 | ||||||
Stockholders' equity: | ||||||||
Common Stock - no par value (40,000,000 shares authorized, 22,215,512 issued and outstanding as of December 31, 2021 and December 31, 2022) | 24,791,568 | 24,819,736 | ||||||
Accumulated deficit | (21,897,004 | ) | (22,953,074 | ) | ||||
Total stockholders' equity | 2,894,564 | 1,866,662 | ||||||
Total liabilities and stockholders' equity | $ | 19,375,757 | $ | 18,343,198 |
Consolidated Statements of Operations
Noble Roman's, Inc. and Subsidiaries
Year Ended December 31, | ||||||||||||
2020 | 2021 | 2022 | ||||||||||
Restaurant revenue - company-owned restaurants | $ | 6,209,279 | $ | 8,939,569 | $ | 9,704,169 | ||||||
Restaurant revenue - company-owned non-traditional | 470,846 | 485,595 | 712,517 | |||||||||
Franchising revenue | 4,841,229 | 4,444,826 | 4,002,824 | |||||||||
Administrative fees and other | 14,310 | 14,898 | 33,255 | |||||||||
Total revenue | 11,535,664 | 13,884,888 | 14,452,765 | |||||||||
Operating expenses: | ||||||||||||
Restaurant expenses - company-owned restaurants | 4,938,133 | 7,224,833 | 8,516,405 | |||||||||
Restaurant expenses - company-owned non-traditional | 447,040 | 466,469 | 704,665 | |||||||||
Franchising expenses | 1,736,870 | 1,810,363 | 2,185,751 | |||||||||
Total operating expenses | 7,122,043 | 9,501,665 | 11,406,821 | |||||||||
Depreciation and amortization | 382,368 | 848,913 | 450,550 | |||||||||
General and administrative | 1,717,209 | 1,790,722 | 2,167,678 | |||||||||
Total expenses | 9,221,620 | 12,141,300 | 14,025,049 | |||||||||
Operating income | 2,314,044 | 1,743,588 | 427,716 | |||||||||
Interest expense | 1,914,344 | 1,361,625 | 1,626,221 | |||||||||
Adjust valuation of receivables | 4,941,718 | - | - | |||||||||
Net (loss) income before income taxes | (4,542,018 | ) | 381,963 | (1,198,505 | ) | |||||||
Income tax expense (benefit) | 839,928 | (127,502 | ) | (142,435 | ) | |||||||
Net (loss) income | $ | (5,381,946 | ) | $ | 509,465 | $ | (1,056,070 | ) | ||||
Income (loss)per share - basic: | ||||||||||||
Net income (loss) | $ | (.24 | ) | $ | .02 | $ | (.05 | ) | ||||
Weighted average number of common shares outstanding | 22,215,512 | 22,215,512 | 22,215,512 | |||||||||
Diluted income (loss) per share: | ||||||||||||
Net income (loss) (1) | $ | (.24 | ) | $ | .02 | $ | (.05 | ) | ||||
Weighted average number of common shares outstanding | 23,465,512 | 23,641,678 | 23,512,550 |
- Net loss per share is shown the same as basic loss per share because the underlying dilutive securities have anti-dilutive effect.
FOR ADDITIONAL INFORMATION, CONTACT:
For Media Information:
Scott Mobley, President & CEO (smobley@nobleromans.com)
For Investor Relations:
Paul Mobley, Executive Chairman & CFO (pmobley@nobleromans.com)
Mike Cole, Investor Relations: 949-444-1341 (mike.cole@mzgroup.us)
SOURCE: Noble Romans, Inc.
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