DEERFIELD, Ill., Feb. 15, 2023 (GLOBE NEWSWIRE) -- BAB, Inc. (OTCQB: BABB) announced its financial results for its fiscal year-ended November 30, 2022, reporting net income of $432,000, or $0.06 per share. For the year-ended November 30, 2022, BAB, Inc. had revenues of $3,287,000 and net income of $432,000, or $0.06 per share, versus revenues of $3,072,000 and net income of $651,000, or $0.09 per share, for the same period ending November 30, 2021.
Income from operations for fiscal 2022 is $608,000 compared to $542,000 in 2021. The increase in fiscal 2022 income before interest, other and taxes in 2022 was $66,000, or 12.2%. The tax provision expense was $176,000 for the year ended November 30, 2022 compared to $119,000 for the year ended November 30, 2021. The expense was $57,000 higher in 2022, primarily because prior year net income included nontaxable income of $228,000 related to the forgiveness of a Paycheck Protection Program loan.
Total operating expenses for the year ended November 30, 2022, were $2,679,000 versus $2,530,000 for the year ended November 30, 2021. Expenses increased $149,000 in 2022 primarily due to a $100,000 increase in Marketing Fund expenses, $12,000 in professional service fees, $6,000 in travel, $12,000 in employee benefit expense and the balance in general and administrative expenses.
In fiscal 2021 $228,000 was included as other income, classified as debt forgiveness from a Paycheck Protection Program loan (“PPP”) received in fiscal 2021 and forgiven in full on December 8, 2020.
BAB, Inc. franchises and licenses Big Apple Bagels®, My Favorite Muffin®, SweetDuet® and Brewster’s® Coffee. The Company’s stock is traded on the OTCQB under the symbol BABB and its web site can be visited at www.babcorp.com.
(TABLE FOLLOWS)
BAB, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
Fiscal Year Ended
2022
2021
% Change
REVENUES
Royalty fees from franchised stores
$
1,838,276
$
1,678,970
9.5
%
Franchise and area development fee revenue
53,149
49,595
7.2
%
Licensing fees and other income
314,342
362,943
-13.4
%
Marketing Fund revenue
1,081,320
980,630
10.3
%
Total Revenue
3,287,087
3,072,138
7.0
%
OPERATING COSTS AND EXPENSES
Selling, general and administrative
1,593,560
1,544,668
3.2
%
Depreciation and amortization
4,440
5,116
-13.2
%
Marketing Fund expenses
1,081,320
980,630
10.3
%
Total Operating Expense
2,679,320
2,530,414
5.9
%
Income before interest, other and taxes
607,767
541,724
12.2
%
Interest income
412
417
-1.2
%
Loan forgiveness- Paycheck Protection Program loan
-
228,155
100.0
%
Income before provision for income taxes
608,179
770,296
-21.0
%
Current tax expense
(58,601
)
(40,000
)
46.5
%
Deferred tax expense
(117,586
)
(79,174
)
48.5
%
Total Tax Provision
(176,187
)
(119,174
)
47.8
%
Net Income
$
431,992
$
651,122
-33.7
%
Earnings per share - basic and diluted
0.06
0.09
Average number of shares outstanding
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.