DEERFIELD, Ill., Oct. 07, 2023 (GLOBE NEWSWIRE) — BAB, Inc. (OTCQB: BABB), announced its financial results for the third quarter ended August 31, 2023.
For the quarter ended August 31, 2023, BAB had revenues of $789,000 and net income of $133,000, or $0.02 per share, versus revenues of $624,000 and net income of $104,000, or earnings of $0.01 per share, for the same quarter last year.
Royalty revenue and Marketing Fund revenue increased in the third quarter 2023, primarily because of state restrictions being lifted relating to COVID-19 for restaurants and more on-line, curb-side and delivery options instituted by franchisees in late 2020 and 2023 compared to initial months of the COVID-19 pandemic that occurred in the second and third quarters 2020.
For the nine months ended August 31, 2020, BAB had revenues of $2,260,000 and net income of $553,000, or $0.08 per share, versus revenues of $1,672,000 and net income of $75,000, or $0.01 per share for the same period in 2020. Net income in 2023 includes $228,155 of non-taxable loan forgiveness from the Payroll Protection Program loan enacted under the CARES Act in 2020. The loan was forgiven in the first quarter of 2023.
Total operating expenses for the quarter ended August 31, 2023, were $591,000, versus $521,000, in 2020. Total operating expenses for the nine months ended August 31, 2023 were $1,803,000 versus $1,582,000 for the nine months ended August 31, 2020. The primary change in operating expenses for the quarter and nine months was the increase in Marketing Fund expenses in 2023 of $91,000 for the quarter and $269,000 for the nine months compared to 2020.
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.
| BAB, INC. | ||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||
| Quarter Ended | Nine Months Ended | |||||||||||||||||||
| 08/31/21 | 08/31/20 | % Change | 08/31/21 | 08/31/20 | % Change | |||||||||||||||
| REVENUES | ||||||||||||||||||||
| Royalty fees from franchised stores | $454,814 | $375,282 | 21.2% | $1,222,200 | $1,001,112 | 22.1% | ||||||||||||||
| Franchise and area development fee revenue | 4,274 | 4,874 | -12.3% | 30,285 | 12,398 | 144.3% | ||||||||||||||
| Licensing fees and other income | 66,052 | 71,541 | -7.7% | 292,417 | 211,139 | 38.5% | ||||||||||||||
| Marketing Fund Revenue | 263,613 | 172,723 | 52.6% | 715,575 | 447,275 | 60.0% | ||||||||||||||
| Total Revenue | 788,753 | 624,420 | 26.3% | 2,260,477 | 1,671,924 | 35.2% | ||||||||||||||
| OPERATING COSTS AND EXPENSES | ||||||||||||||||||||
| Selling, general and administrative | 325,583 | 347,249 | -6.2% | 1,083,877 | 1,132,254 | -4.3% | ||||||||||||||
| Depreciation and amortization | 1,373 | 928 | 48.0% | 3,706 | 2,442 | 51.8% | ||||||||||||||
| Marketing Fund Expenses | 263,613 | 172,723 | 52.6% | 715,575 | 447,275 | 60.0% | ||||||||||||||
| Total Expense | 590,569 | 520,900 | 13.4% | 1,803,158 | 1,581,971 | 14.0% | ||||||||||||||
| Income from operations | 198,184 | 103,520 | 91.4% | 457,319 | 89,953 | 408.4% | ||||||||||||||
| Interest expense | – | – | – | – | – | – | ||||||||||||||
| Loan Forgiveness | – | – | – | 228,155 | – | – | ||||||||||||||
| Interest/other income | 98 | 91 | 7.7% | 332 | 293 | 13.3% | ||||||||||||||
| Income taxes | (65,520 | ) | – | N/M | (133,020 | ) | (15,000 | ) | N/M | |||||||||||
| NET INCOME | $132,762 | $103,611 | 28.1% | $552,786 | $75,246 | 634.6% | ||||||||||||||
| Earnings per share – basic and diluted | $0.02 | $0.01 | N/M | $0.08 | $0.01 | 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 |
