BAB, Inc. Reports Profit for 1st Quarter FY 2008

By: Big Apple Bagels, Inc. (BAB) | 0 Shares 67 Reads

DEERFIELD, IL--(Marketwire - April 1, 2008) - BAB, Inc. (OTCBB: BABB) announced its financial results for the first quarter ended February 29, 2008, reporting net income of $143,000, or $0.02 per share, versus $121,000, $0.02 per share, for the same quarter last year.

For the quarter ended February 29, 2008, BAB had revenues of $971,000 and net income of $143,000, or $0.02 per share, versus revenues of $951,000 and net income of $121,000, or $0.02 per share for the quarter ended February 28, 2007.

Total operating expenses of $838,000 were down 1% from $843,000 for the same period in 2007. Total operating expenses as a percent of revenues were 86.2% for the 2008 quarter versus 88.7% in 2007.

BAB, Inc. operates, franchises, and licenses Big Apple Bagels ®, My Favorite Muffin ®, Jacobs Bros. Bagels ® and Brewster's ® Coffee. The Company's stock is traded on the OTCBB under the symbol BABB and its web site 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



                                            02/29/08   02/28/07   % Change



REVENUES



Royalty fees from franchised stores          514,216    527,477       -2.5%

Net sales by company-owned stores            116,186    115,273        0.8%

Franchise and area development fee revenue   105,000     77,500       35.5%

Licensing fees and other income              236,045    230,928        2.2%

                                           ---------  ---------  ---------

                                             971,447    951,178        2.1%



OPERATING COSTS AND EXPENSES



Food, beverage and paper costs                39,681     33,807       17.4%

Store payroll and other operating expenses   118,623    115,340        2.8%

Selling, general and administrative          670,819    679,050       -1.2%

Depreciation and amortization                  8,647     15,155      -42.9%

                                           ---------  ---------  ---------

                                             837,770    843,352       -0.7%



Income before interest, other and taxes      133,677    107,826       24.0%



Interest expense                              (2,987)    (5,024)     -40.5%

Interest income                               12,490     17,778      -29.7%



                                           ---------  ---------  ---------

Net Income                                   143,180    120,580       18.7%

                                           =========  =========  =========



Earnings per share - basic                      0.02       0.02        N/M

Average number of shares outstanding       7,263,508  7,256,855        N/M



Earnings per share - diluted                    0.02       0.02        N/M

Average number of shares outstanding       7,271,335  7,273,812        N/M