BAB, Inc. Reports Profit for 3rd Quarter FY 2016

DEERFIELD, Ill.--()--BAB, Inc. (OTCQB: BABB), announced its financial results for the third quarter ended August 31, 2016.

For the quarter ended August 31, 2016, BAB had revenues of $616,000 and net income of $165,000, or $0.02 per share, versus revenues of $609,000 and net income of $135,000, or $0.02 per share, for the same quarter last year.

For the nine months ended August 31, 2016, BAB had revenues of $1,761,000 and net income of $386,000, or $0.05 per share, versus revenues of $1,669,000 and net income of $9,000, which resulted in no earnings per share for the same period in 2015. In 2015, an expense of $243,000 was incurred relating to the settlement of a lawsuit against BAB Operations, Inc., a wholly owned subsidiary of BAB, Inc., which involved the 2001 lease assignment of a Company-owned store that was subsequently franchised.

Total operating expenses for the quarter ended August 31, 2016, were $451,000, versus $482,000, in 2015. Total operating expenses for the nine months ended August 31, 2016 were $1,375,000 versus $1,668,000 for the nine months ended August 31, 2015. The operating expenses for the nine months in 2015 include the $243,000 legal settlement as explained in the previous paragraph.

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 STATEMENT OF OPERATIONS
 
                       
Quarter Ended Nine Months Ended
08/31/16   08/31/15   % Change 08/31/16   08/31/15   % Change
       
REVENUES
 
Royalty fees from franchised stores $441,949 $440,960 0.2% $1,298,562 $1,278,715 1.6%
Franchise and area development fee revenue 60,000 50,000 20.0% 78,000 80,000 -2.5%
Licensing fees and other income 114,181     118,351   -3.5% 384,885     310,746   23.9%
Total Revenue 616,130 609,311 1.1% 1,761,447 1,669,461 5.5%
 
OPERATING COSTS AND EXPENSES
 
Selling, general and administrative 445,412 477,890 -6.8% 1,359,475 1,412,539 -3.8%
Legal Settlement - - N/M * - 243,046 N/M *
Depreciation and amortization 5,167     4,176   23.7% 15,183     12,703   19.5%
Total Expense 450,579 482,066 -6.5% 1,374,658 1,668,288 -17.6%
           
Income from operations 165,551   127,245   30.1% 386,789   1,173   N/M *
Interest expense (396 ) (776 ) -49.0% (1,190 ) (2,327 ) -48.9%
Interest/other income 90 306 -70.6% 423 1,478 -71.4%
Current tax benefit - 8,500 N/M * - 8,500 N/M *
               
NET INCOME $165,245     $135,275   22.2% $386,022     $8,824   N/M *
 
Earnings per share - basic and diluted $0.02 $0.02 $0.05 $0.00
Average number of shares outstanding 7,263,508 7,263,508 7,263,508 7,263,508
 
* N/M not measurable

Contacts

BAB, Inc.
Michael K. Murtaugh, (847) 948-7520
Fax: (847) 405-8140
www.babcorp.com

Release Summary

BAB, Inc. reports profit for third quarter 2016.

Contacts

BAB, Inc.
Michael K. Murtaugh, (847) 948-7520
Fax: (847) 405-8140
www.babcorp.com