Noble Roman’s Announces Second Quarter 2024 Financial Data
Rhea-AI Summary
Noble Roman's, Inc. (OTCQB:NROM) announced Q2 2024 financial results. Key highlights include:
- Net income of $57,000 (including $66,000 non-cash expense for warrant valuation)
- Operating Income of $558,000
- 22% increase in Franchising Revenue to $1.4 million
- $151,000 decrease in Company-operated Restaurant Revenue
- Slight increases in Craft Pizza & Pub cost of sales and labor cost
For the six-month period:
- Net loss of $30,000 (including non-cash expenses)
- Operating Income of $990,000
- 32.2% increase in Franchising Revenue to $2.9 million
The company is progressing on new financing to repay senior and subordinated notes, expecting a significant reduction in interest rates.
Positive
- 22% increase in Franchising Revenue to $1.4 million in Q2 2024
- 32.2% increase in Franchising Revenue to $2.9 million for six-month period
- Quarterly Operating Income of $558,000
- Six-month Operating Income of $990,000
- Franchise venue salaries and wages decreased 2% points from 2023
- Significant pipeline of prospects for additional franchise sales
- Generated net cash from operations of nearly $500,000 in first half of 2024
Negative
- $151,000 decrease in Company-operated Restaurant Revenue in Q2 2024
- $231,000 decrease in Company-operated Restaurant Revenue for six-month period
- Net loss of $30,000 for six-month period 2024
- Same store sales declined approximately 4.7% in first half of 2024
- High interest rate on Corbel loan (over 16% combined rate)
- Slight increases in Craft Pizza & Pub cost of sales and labor cost
News Market Reaction
On the day this news was published, NROM declined 5.41%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
INDIANAPOLIS, IN / ACCESSWIRE / August 14, 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 results for the second quarter 2024 and other company highlights.
Financial highlights from the second quarter 2024 include:
Net income of
$57,000 , which includes a non-cash expense of approximately$66,000 for change in theoretical fair value of warrants.A quarterly Operating Income of
$558,000 A
22% increase in Franchising Revenue from the same period in 2023 to$1.4 million . By adding in the$75,000 in deferred initial franchise fees in the current quarter, which were actually received in cash but deferred for future income recognition, which is different accounting treatment than was applied the previous year, the increase would have been$334,000 , or28.4% .A
$151,000 decrease in Company-operated Restaurant Revenue (Craft Pizza & Pub and Non-Traditional combined) from the comparable period in 2023.An increase of only .
7% points in Craft Pizza & Pub cost of sales and a .7% point increase in labor cost from the comparable period in 2023 despite the inflationary pressures on ingredient costs and cost of labor with no menu price increases. The variable portion of labor cost actually decreased by .2% points compared to last year.The company continues to progress on the process of new financing to repay its senior note and subordinated notes.
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.
Financial highlights from the six-month period 2024 include:
Net loss of
$30,000 , which includes a non-cash expense of approximately$190,000 for change in theoretical fair value of warrants, a non-cash expense of$29,000 t o close out the asset ledger for dormant subsidiary and a non-cash adjustment for allowance receivables of$32,000. Excluding these non-cash expenses, which did not pertain to this period's activity, the company would have reported a net income of approximately$225,000. A six-month Operating Income of
$990,000 A
32.2% increase in Franchising Revenue from the comparable period in 2023 to$2.9 million . By adding in the$127,500 in deferred initial franchise fees in the current period the increase would have been$825,000 , or38.1% , which were actually received in cash but deferred for future income recognition, which is different accounting treatment than was applied the previous year.Franchise venue salaries and wages decreased
2% points from 2023 reflecting economies of scale due to new non-traditional franchise openings.A
$231,000 decrease in Company-operated Restaurant Revenue (Craft Pizza & Pub and Non-Traditional combined) from the same period in 2023.An increase of only .
1% points in Craft Pizza & Pub cost of sales and a .5% point increase in labor cost from the same period in 2023 despite the inflationary pressures on ingredient costs and cost of labor with no menu price increases.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 loss for the six-months ended June 30, 2024 of approximately
The revenue from the non-traditional franchising venue increased to
The total revenue from the company-owned restaurants was
During the six-month period ended June 30, 2024, the company generated net cash from operations of nearly
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 the company believes its financing efforts will be successful. The company expects the new financing will result in a significant reduction in the interest rate that it currently pays, with the structure of the loan being a full amortization over a longer term and at a lower rate of interest.
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:
|
| Three Months Ended June 30, |
|
| Six Months Ended June 30, |
| ||||||||||||||||||||||
Description |
| 2023 |
|
| 2024 |
|
| 2023 |
|
| 2024 |
| ||||||||||||||||
Revenue |
| $ | 2,373,652 |
|
| 100 | % |
| $ | 2,222,551 |
|
| 100 | % |
| $ | 4,463,994 |
|
| 100 | % |
| $ | 4,218,075 |
|
| 100 | % |
Cost of sales |
|
| 476,942 |
|
| 20.1 |
|
|
| 463,324 |
|
| 20.8 |
|
|
| 928,300 |
|
| 20.8 |
|
|
| 880,934 |
|
| 20.9 |
|
Salaries and wages |
|
| 652,905 |
|
| 27.5 |
|
|
| 627,292 |
|
| 28.2 |
|
|
| 1,270,369 |
|
| 28.5 |
|
|
| 1,222,334 |
|
| 29.0 |
|
Facility cost including rent, common area and utilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Packaging |
|
| 77,080 |
|
| 3.2 |
|
|
| 66,563 |
|
| 3.0 |
|
|
| 149,108 |
|
| 3.3 |
|
|
| 129,073 |
|
| 3.1 |
|
Delivery fees |
|
| 29,095 |
|
| 1.2 |
|
|
| 64,424 |
|
| 2.9 |
|
|
| 60,217 |
|
| 1.3 |
|
|
| 101,484 |
|
| 2.4 |
|
All other operating expenses |
|
| 383,402 |
|
| 16.1 |
|
|
| 365,183 |
|
| 16.4 |
|
|
| 721,428 |
|
| 16.2 |
|
|
| 695,020 |
|
| 16.5 |
|
Total expenses |
|
| 2,025,192 |
|
| 85.3 |
|
|
| 1,978,273 |
|
| 89.0 |
|
|
| 3,940,014 |
|
| 88.3 |
|
|
| 3,809,717 |
|
| 90.3 |
|
Margin contribution |
| $ | 348,460 |
|
| 14.7 | % |
|
| 244,278 |
|
| 11.0 | % |
| $ | 523,980 |
|
| 11.7 | % |
| $ | 408,358 |
|
| 9.7 | % |
View the original press release on accesswire.com
FAQ
What was Noble Roman's (NROM) net income for Q2 2024?
How much did Noble Roman's (NROM) Franchising Revenue increase in Q2 2024?
What was Noble Roman's (NROM) Operating Income for the first six months of 2024?
How did Noble Roman's (NROM) Company-operated Restaurant Revenue perform in the first half of 2024?
What is Noble Roman's (NROM) plan regarding its current debt?
