DEERFIELD, Ill., Feb. 09, 2023 (GLOBE NEWSWIRE) — BAB, Inc. (OTCQB: BABB) announced its financial results for its fiscal year-ended November 30, 2023, reporting net income of $651,000, or $0.09 per share. For the year-ended November 30, 2023, BAB, Inc. had revenues of $3,072,000 and net income of $651,000, or $0.09 per share, versus revenues of $2,372,000 and a loss of $66,000, or a loss of $0.01 per share, for the same period ending November 30, 2020.
Income from operations for fiscal 2023 is $542,000 compared to $233,000 in 2020. In fiscal 2023, even though Covid and Covid variants continued through the year, our net operating income before interest, other and taxes, exceeded 2019 by $68,000. The tax provision expense was $119,000 for the year ended November 30, 2023 compared to $300,000 for the year ended November 30, 2020. The expense was $181,000 higher in 2020, due to an adjustment of the estimate of utilizable net operating losses in future years, resulting in a decrease in the related deferred tax asset, and an ending net deferred tax liability as of November 30, 2020.
Total operating expenses for the year ended November 30, 2023, were $2,530,000 versus $2,138,000 for the year ended November 30, 2020. Expenses increased $392,000 in 2023 primarily due to a $309,000 increase in Marketing Fund expenses and the balance in general and administrative expenses.
During fiscal 2020 BAB Systems, Inc., a wholly owned subsidiary of BAB, Inc. received a Paycheck Protection Program loan (“PPP”) in the amount of $228,000 which was forgiven in full on December 8, 2020. In fiscal 2023 the $228,000 was included as other income, classified as debt forgiveness.
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.
| BAB, INC. | ||||||||||
| CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS | ||||||||||
| Fiscal Year Ended | ||||||||||
| 2021 | 2020 | % Change | ||||||||
| REVENUES | ||||||||||
| Royalty fees from franchised stores | $ | 1,678,970 | $ | 1,379,153 | 21.7 | % | ||||
| Franchise and area development fee revenue | 49,595 | 21,955 | 125.9 | % | ||||||
| Licensing fees and other income | 362,943 | 298,766 | 21.5 | % | ||||||
| Marketing Fund revenue | 980,630 | 671,659 | 46.0 | % | ||||||
| Total Revenue | 3,072,138 | 2,371,533 | 29.5 | % | ||||||
| OPERATING COSTS AND EXPENSES | ||||||||||
| Selling, general and administrative | 1,544,668 | 1,462,921 | 5.6 | % | ||||||
| Depreciation and amortization | 5,116 | 3,562 | 43.6 | % | ||||||
| Marketing Fund expenses | 980,630 | 671,659 | 46.0 | % | ||||||
| Total Operating Expense | 2,530,414 | 2,138,142 | 18.3 | % | ||||||
| Income before interest, other and taxes | 541,724 | 233,391 | 132.1 | % | ||||||
| Interest income | 417 | 378 | ||||||||
| Debt forgiveness- Paycheck Protection Program loan | 228,155 | – | ||||||||
| Income before provision for income taxes | 770,296 | 233,769 | 229.5 | % | ||||||
| Current tax expense | (40,000 | ) | (15,000 | ) | 166.7 | % | ||||
| Deferred tax expense | (79,174 | ) | (284,940 | ) | -72.2 | % | ||||
| Total Tax Provision | (119,174 | ) | (299,940 | ) | -60.3 | % | ||||
| Net Income/(Loss) | $ | 651,122 | $ | (66,171 | ) | -1084.0 | % | |||
| Earnings/(Loss) per share – basic and diluted | 0.09 | (0.01 | ) | |||||||
| 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 |
