BAB, Inc. Reports Profit for 1st Quarter FY 2012

By: Big Apple Bagels, Inc. (BAB) | 5 Shares 70 Reads

DEERFIELD, Ill.--(BUSINESS WIRE)--BAB, Inc. (OTCBB: BABB), announced its financial results for the first quarter ended February 29, 2012.

For the quarter ended February 29, 2012, BAB had revenues of $567,000 and net income of $10,000, or $0.001 per share, versus revenues of $720,000 and net income of $35,000, or $0.005 per share, for the quarter ended February 28, 2011.

Revenues for the quarter ended February 29, 2012 were down $153,000 from the prior year's same quarter. Of this decrease, $94,000 was due to the fact that on November 30, 2011 BAB converted its Company-owned store to a franchise unit, resulting in no Company-owned store sales in 2012.

Total operating expenses were $557,000 for the quarter ended February 29, 2012, versus $684,000 for the same period in 2011. Of the $127,000 decrease in expenses in 2012 vs. 2011, $100,000 was due to the conversion of the Company-owned store to a franchise unit.

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.


BAB, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS


	QUARTER ENDED

	02/29/12		02/28/11		% Change

REVENUES

Royalty fees from franchised stores	442,921		399,220		10.9	%
Net sales by company-owned stores	0		93,733		N/M
Franchise and area development fee revenue	5,000		84,300		-94.1	%
Licensing fees and other income	119,571		142,359		-16.0	%
	567,492		719,612		-21.1	%

OPERATING COSTS AND EXPENSES

Food, beverage and paper costs	0		32,862		N/M
Store payroll and other operating expenses	0		67,246		N/M
Selling, general and administrative	551,781		576,189		-4.2	%
Depreciation and amortization	4,784		7,423		-35.6	%
	556,565		683,720		-18.6	%

Income before interest, other and taxes	10,927		35,892		-69.6	%

Interest expense	(1,812	)	(2,127	)	-14.8	%
Interest income	706		1,090		-35.2	%

Net Income	9,821		34,855		-71.8	%

Earnings per share - basic	0.001		0.005		N/M
Average number of shares outstanding	7,263,508		7,263,508		N/M

Earnings per share - diluted	0.001		0.005		N/M
Average number of shares outstanding	7,265,265		7,264,561		N/M