BAB, Inc. Reports Profit for 2nd Quarter FY 2008

By: Big Apple Bagels, Inc. (BAB) | 0 Shares 76 Reads

DEERFIELD, Ill.--(BUSINESS WIRE)--BAB, Inc. (OTCBB: BABB), announced its financial results for its second quarter ended May 31, 2008.

For the quarter ended May 31, 2008, BAB had revenues of $945,000 and net income of $177,000, or $0.02 per share, versus revenues of $1,037,000 and net income of $240,000, or $0.03 per share, for the same quarter last year.

For the six months ended May 31, 2008, BAB had revenues of $1,917,000 and net income of $320,000, or $0.04 per share, versus revenues of $1,988,000 and net income of $361,000, or $0.05 per share for the same period in 2007.

Total operating expenses for the quarter ended May 31, 2008, were $772,000 versus $810,000 in 2007. YTD May 31, 2008, total operating expenses were $1,610,000 versus $1,653,000 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                  Six Months Ended

                          05/31/08  05/31/07 %Change     05/31/08  05/31/07  %Change



REVENUES



Royalty fees

from franchised stores   $558,487   $571,419   -2.3%     $1,072,703 $1,098,895   -2.4%

Franchise and area

development fee revenue    35,000     47,500  -26.3%        140,000    125,000   12.0%

Net sales by

company-owned stores      137,655    118,088   16.6%        253,841    233,362    8.8%

Licensing fees

and other income          213,951    300,291  -28.8%        449,997    531,219  -15.3%

                          945,093  1,037,298   -8.9%      1,916,541  1,988,476   -3.6%



OPERATING COSTS AND EXPENSES

Food, beverage

and paper costs            45,110     38,141   18.3%         84,791     71,948   17.9%



Store payroll and

other operating expenses  107,528    108,704   -1.1%        226,152    224,044    0.9%

Selling, general

and administrative        609,841    651,301   -6.4%      1,280,659  1,330,351   -3.7%

Depreciation

and amortization            9,937     11,641  -14.6%         18,584     26,795  -30.6%

                          772,416    809,787   -4.6%      1,610,186  1,653,138   -2.6%



Income from operations    172,677    227,511    N/M         306,355    335,338    N/M



Interest expense           (2,987)    (4,150) -28.0%         (5,975)    (9,174) -34.9%

Interest/other income       7,425     16,942  -56.2%         19,915     34,719  -42.6%



NET INCOME               $177,115   $240,303    N/M        $320,295   $360,883    N/M



Earnings

per share - basic          $0.02      $0.03     N/M          $0.04      $0.05     N/M

Average number

of shares outstanding   7,263,508  7,263,099              7,263,508  7,260,011



Earnings

per share - diluted        $0.02      $0.03     N/M          $0.04      $0.05     N/M

Average number

of shares outstanding   7,273,305  7,278,712              7,273,579  7,276,332