INDIANAPOLIS, March 14 /PRNewswire-FirstCall/ — 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 ended December 31, 2006. Net income was $1.895 million, or $.12 per share, on weighted average number of common shares outstanding of 16.4 million. This compares to net income for the year ended December 31, 2005 of $2.851 million. Results for 2005, however, contained a one-time gain from the settlement with SummitBridge National Investments, LLC of $1.849 million net of tax benefit, or a net income of $1.002 million for 2005 prior to the affect of the one-time gain. The actual net income per share for the year 2005 was $.17 on a weighted average number of common shares outstanding of 16.849 million. Net income per share for 2005, after adjusting for the one-time gain in 2005, was $.06 per share on weighted average common shares outstanding of 16.849 million. Total revenues for the year ended December 31, 2006 were $9.487 million compared to $8.431 million in 2005.
In prior years, the company has focused primarily on selling franchise agreements for non-traditional locations. The company has sold franchises in 45 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. One of the company’s strategies continues to be selling 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.
The company adopted a second growth strategy in 2006 by selling Noble Roman’s Pizza / Tuscano’s Subs franchises as a co-brand for stand-alone traditional locations. During the last few months the company has announced the signing of eight Area Development Agreements for its traditional, dual- branded concept: an agreement for 49 units in 15 counties surrounding Greensboro, Winston-Salem, High Point areas of North Carolina and Virginia, an agreement for 20 units in three counties near Cincinnati, Ohio, an agreement for 25 units in Sacramento County, California, an agreement for an additional 40 units in 21 additional counties surrounding Cincinnati, Ohio, an agreement for 30 units in five counties near Atlanta, Georgia, an agreement for 70 units in three additional counties in Georgia, near Atlanta, an agreement for 52 units in two counties near Dallas, Texas, and an agreement for 25 units for Springfield, Missouri and surrounding counties . Combined, the eight Area Development Agreements in place thus far call for 311 units over the next six years. In addition, to date the company has entered into 58 dual-branded franchise agreements for traditional locations, 23 of which were sold through Area Developers.
The statements contained in this press release 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 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 the company’s products or franchises and the impact of competitors’ actions. Should one or more of these risks or uncertainties adversely affect the company or should underlying assumptions or estimates prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected or intended.