Noble Roman's Inc., the Indianapolis-based franchisor of Noble Roman's Pizza and Tuscano's Italian Style Subs, has announced results for the year 2011. Net income from continuing operations was $1.5 million, or $.08 per share basic and diluted, compared to a net income from the prior year of the same.
For the year ended Dec. 31, 2011, the company recorded a loss on discontinued operations in the amount of $710,000, resulting in a net income of $819,000, or $.04 per share. This compares to a loss on discontinued operations in 2010 of $1.2 million, resulting in net income for 2010 of $310,000, or $.02 per share.
Total revenue increased from $7.2 million in 2010 to $7.3 million in 2011.
Focus on two revenue streams
Looking forward, the company is focused on revenue expansion through two primary growth vehicles: sales of non-traditional franchises and licenses, and licensing its take-n-bake program.
In terms of non-traditional venues, particularly convenience stores, travel plazas and entertainment facilities, the company believes it has an opportunity for increasing unit growth and revenue.
The company's franchises in non-traditional locations are foodservice providers within a host business, and usually require a substantially lower investment compared to a stand-alone, traditional location.
The company is partnering with The Pantry Inc., a convenience-store chain of more than 1,650 locations, and will be opening a pilot location in Raleigh, N.C., within the next few weeks. In addition, the company has signed an agreement with Huck's, a 110-unit convenience-store chain in five states, for eight pilot locations throughout Indiana, Illinois and Kentucky, to be opened in the second quarter.
Also, in September 2009, the company introduced a take-n-bake pizza as an addition to its menu offering. Since introducing the take-n-bake pizza in grocery store chains, through March 8, 2012, the company has signed agreements for 1,016 grocery store locations to operate the take-n-bake pizza program and has opened take-n-bake pizza programs in approximately 833 of those locations.
In August 2011, the company introduced six new "Signature Specialty Take-N-Bake Pizza" combinations to its current standard offerings. The offerings include Hawaiian pizza, Four Cheese pizza, BBQ Pork pizza, BBQ Chicken pizza, Hoppin' Jalapeno pizza and Parmesan Tomato pizza.
The company's strategy with these new combinations is to secure more shelf space in existing locations, to add to the appeal of the program in order to attract new locations, and to generally increase sales of the company's products, according to company executives.
To further accelerate the growth of take-n-bake pizza in grocery stores, the company has focused on signing agreements with various grocery store distributors to market the take-n-bake pizza program to the distributors' current customer base. As of March 8, 2012, the company had signed 11 grocery distributors to the program, and continues to pursue others as well.
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