DEERFIELD, Ill., Oct. 07, 2022 (GLOBE NEWSWIRE) -- BAB, Inc. (OTCQB: BABB), announced its financial results for the third quarter ended August 31, 2022.
For the quarter ended August 31, 2022, BAB had revenues of $882,000 and net income of $164,000, or $0.02 per share earnings, versus revenues of $789,000 and net income of $133,000, or $0.02 per share, for the same quarter last year. Royalty revenue, marketing fund revenue, license fees and other revenue all increased for the third quarter 2022 compared to third quarter 2021.
For the nine months ended August 31, 2022, revenues were $2,445,000 and net income was $321,000, or $0.04 per share, versus revenues of $2,260,000 and net income of $553,000, or $0.08 per share for the same period in 2021. Net income in 2021 includes $228,155 of non-taxable loan forgiveness of the Payroll Protection Program loan, enacted under the CARES Act in 2020. The loan was forgiven in the first quarter of 2021.
Total operating expenses for the quarter ended August 31, 2022, were $653,000, versus $591,000, in 2021. The change in operating expenses for the quarter was primarily due to an increase in payroll and employee benefit related expenses of $29,000, and an increase in marketing fund expenses of $23,000. Total operating expenses for the nine months ended August 31, 2022 were $1,996,000 versus $1,803,000 for August 31, 2021 with an increase in marketing expenses of $92,000 and payroll and employee benefit related expenses of $87,000 for nine months 2022 versus same period 2021.
BAB, Inc. franchises and licenses Big Apple Bagels®, My Favorite Muffin®, SweetDuet® frozen yogurt and Brewster’s® Coffee. The Company’s stock is traded on the OTCQB under the symbol BABB and its website can be visited at www.babcorp.com.
Certain statements in this press release constitute forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “forecast,” “estimate,” “project,” “intend,” “expect,” “should,” “would,” “believe” and similar expressions and all statements which are not historical facts are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors which could cause the company’s actual results, performance (financial or operating), or achievements to differ from the future results, performance (financial or operating), or achievements expressed or implied by such forward-looking statements. The above factors are more fully discussed in the company’s SEC filings.
(TABLE FOLLOWS)
BAB, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Quarter Ended
Nine Months Ended
08/31/22
08/31/21
% Change
08/31/22
08/31/21
% Change
REVENUES
Royalty fees from franchised stores
$481,833
$454,814
5.9
%
$1,361,545
$1,222,200
11.4
%
Franchise and area development fee revenue
15,882
4,274
271.6
%
33,961
30,285
12.1
%
Licensing fees and other income
97,172
66,052
47.1
%
241,244
292,417
-17.5
%
Marketing Fund Revenue
287,402
263,613
9.0
%
808,279
715,575
13.0
%
Total Revenue
882,289
788,753
11.9
%
2,445,029
2,260,477
8.2
%
OPERATING COSTS AND EXPENSES
Selling, general and administrative
365,016
325,583
12.1
%
1,183,767
1,083,877
9.2
%
Depreciation and amortization
923
1,373
-32.8
%
3,517
3,706
-5.1
%
Marketing Fund Expenses
287,402
263,613
9.0
%
808,279
715,575
13.0
%
Total Expense
653,341
590,569
10.6
%
1,995,563
1,803,158
10.7
%
Income from operations
228,948
198,184
15.5
%
449,466
457,319
-1.7
%
Interest expense
-
-
-
-
-
-
Interest/other income
153
98
56.1
%
282
332
-15.1
%
Loan Forgiveness
-
-
228,155
-100.0
%
Income taxes
(64,746
)
(65,520
)
-1.2
%
(128,587
)
(133,020
)
-3.3
%
NET INCOME
$164,355
$132,762
23.8
%
$321,161
$552,786
-41.9
%
Earnings per share - basic and diluted
$0.02
$0.02
N/M
$0.04
$0.08
N/M
Average number of shares outstanding
7,263,508
7,263,508
7,263,508
7,263,508
Contact: BAB, Inc. Michael K. Murtaugh (847) 948-7520 Fax: (847) 405-8140 www.babcorp.com
BAB, Inc. franchises and licenses bagel and muffin retail units under the BAB, MFM and SweetDuet (SD) trade names. The Company has approximately 63 franchise units and four licensed units in operation in 20 states. The BAB franchised brand consists of units operating as Big Apple Bagels, featuring daily baked bagels, flavored cream cheeses, premium coffees, gourmet bagel sandwiches and other related products. BAB units are concentrated in the Midwest and Western United States. The MFM brand consists of units operating as My Favorite Muffin Gourmet Muffin Bakery (MFM Bakery), featuring a variety of freshly baked muffins and coffees and units operating as My Favorite Muffin Your All Day Bakery Cafe, featuring these products and a variety of specialty bagel sandwiches and related products. The SweetDuet is a branded self-serve frozen yogurt that can be added as an additional brand in a BAB location. Its subsidiaries include BAB Systems, Inc., BAB Operations, Inc. and BAB Investments, Inc.