BAB, Inc. Reports Profit for 2nd Quarter FY 2009

By: Big Apple Bagels, Inc. (BAB) | 1,023 Shares 100 Reads

DEERFIELD, Ill.--(BUSINESS WIRE)--BAB, Inc. (OTCBB: BABB), announced its financial results for its second quarter ended May 31, 2009, reporting net income of $111,000, or $0.02 per share, versus net income of $177,000, or $0.02 per share, for the same quarter last year.

For the quarter ended May 31, 2009, BAB had revenues of $797,000 and net income of $111,000, or $0.02 per share, versus revenues of $945,000 and net income of $177,000, or $0.02 per share, for the same quarter last year.

For the six months ended May 31, 2009, BAB had revenues of $1,575,000 and a net loss of $2,283,000, or ($0.31) per share, versus revenues of $1,917,000 and net income of $320,000, or $0.04 per share for the same period in 2008. Excluding the first quarter 2009 noncash impairment charge for goodwill and other intangibles of $2,399,000, the six months ended May 31, 2009 net income would have been $116,000. There was no impairment charge in 2008.

Total operating expenses for the quarter ended May 31, 2009, were $687,000 versus $772,000 in 2008. YTD May 31, 2009, total operating expenses, excluding the $2,399,000 impairment charge, were $1,462,000 versus $1,610,000 in 2008.

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.

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BAB, INC.

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS





                                   Quarter Ended                  Six Months Ended

                       05/31/09     05/31/08   % Change      05/31/09    05/31/08   % Change

REVENUES

Royalty fees from

franchised stores      $484,037     $558,487     -13.3%      $926,672  $1,072,703     -13.6%

Franchise and area

development fee revenue   5,000       35,000     -85.7%        50,000     140,000     -64.3%

Net sales by

company-owned stores    118,103      137,655     -14.2%       226,532     253,841     -10.8%

Licensing fees and

other income            190,055      213,951     -11.2%       371,861     449,997     -17.4%

                        797,195      945,093     -15.6%     1,575,065   1,916,541     -17.8%



OPERATING COSTS AND EXPENSES

Food, beverage and

 paper costs             35,872       45,110     -20.5%        69,252      84,791     -18.3%

Store payroll and

other operating

expenses                109,958      107,528       2.3%       224,923     226,152      -0.5%

Selling, general

and administrative      532,089      609,841     -12.7%     3,547,628   1,280,659     177.0%

Depreciation and

amortization              9,556        9,937      -3.8%        18,828      18,584       1.3%

                        687,475      772,416     -11.0%     3,860,631   1,610,186     139.8%



Income from operations  109,720      172,677       N/M     (2,285,566)    306,355       N/M



Interest expense         (2,714)      (2,987)     -9.1%        (5,427)     (5,975)     -9.2%

Interest/other income     4,446        7,425     -40.1%         7,748      19,915     -61.1%



NET INCOME             $111,452     $177,115       N/M    ($2,283,245)   $320,295       N/M



Earnings per share -

basic                     $0.02        $0.02       N/M         ($0.31)      $0.04       N/M

Average number of

shares outstanding    7,263,508    7,263,508                7,263,508   7,263,508



Earnings per share

 - diluted                $0.02        $0.02       N/M         ($0.31)      $0.04       N/M

Average number of

shares outstanding    7,263,508    7,273,305                7,263,508   7,273,579