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BAB, Inc. Reports Profit for 2nd Quarter FY 2012

By: Big Apple Bagels, Inc. (BAB) |  6 Shares     169 Reads

DEERFIELD, Ill.--(BUSINESS WIRE)--BAB, Inc. (OTCBB: BABB), announced its financial results for the second quarter ended May 31, 2012.

For the quarter ended May 31, 2012, BAB had revenues of $826,000 and net income of $267,000, or $0.04 per share, versus revenues of $793,000 and net income of $144,000, or $0.02 per share, for the same quarter last year. The Company received $172,000 of franchise settlement revenue of which $171,000 was from a single settlement in the quarter ended May 31, 2012 versus $12,000 in 2011. The Company had no company-owned store sales for the quarter ended May 31, 2012 versus $106,000 for the quarter ended May 31, 2011.

For the six months ended May 31, 2012, BAB had revenues of $1,393,000 and net income of $277,000, or $0.04 per share, versus revenues of $1,512,000 and net income of $179,000, or $0.02 per share for the same period in 2011. The Company received $173,000 for settlement fees in the six months ended May 31, 2012 versus $26,000 of such revenues in 2011. The Company had no company-owned store sales for the six months ended May 31, 2012 versus $200,000 for the six months ended May 31, 2011.

Total operating expenses for the quarter ended May 31, 2012, were $543,000, 65.7% of net sales, versus $648,000, 81.7% of net sales, in 2011. There were no company-owned store expenses in the quarter ended May 31, 2012 versus $102,000 in quarter ended May 31, 2011. Total operating expenses for the six months ended May 31, 2012 were $1,099,000, 78.9% of net sales, versus $1,331,000, 88.0% of net sales, for six months ended May 31, 2011. There were no company-owned store expenses in the six months ended May 31, 2012 versus $202,000 for the six months ended May 31, 2011.

BAB, Inc. operates, franchises, and licenses Big Apple Bagels®, My Favorite Muffin® SweetDuet Frozen Yogurt & Gourmet Muffins™, 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.

(TABLE FOLLOWS)

BAB, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
		Quarter Ended									Six Months Ended
		05/31/12			05/31/11			% Change			05/31/12			05/31/11			% Change
REVENUES
Royalty fees from franchised stores		$489,081			$463,424			5.5	%		$932,002			$862,644			8.0	%
Franchise and area development fee revenue		37,500			60,000			N/M			42,500			144,300			-70.5	%
Net sales by company-owned stores		0			105,962			-100.0	%		0			199,695			-100.0	%
Licensing fees and other income		299,205			163,383			83.1	%		418,776			305,742			37.0	%
		825,786			792,769			4.2	%		1,393,278			1,512,381			-7.9	%
OPERATING COSTS AND EXPENSES
Food, beverage and paper costs		0			36,291			-100.0	%		0			69,153			-100.0	%
Store payroll and other operating expenses		0			65,605			-100.0	%		0			132,851			-100.0	%
Selling, general and administrative		537,766			538,684			-0.2	%		1,089,547			1,114,874			-2.3	%
Depreciation and amortization		4,782			6,963			-31.3	%		9,566			14,386			-33.5	%
		542,548			647,543			-16.2	%		1,099,113			1,331,264			-17.4	%
Income from operations		283,238			145,226			95.0	%		294,165			181,117			62.4	%
Interest expense		(1,812	)		(2,127	)		-14.8	%		(3,624	)		(4,253	)		-14.8	%
Interest/other income		668			958			-30.3	%		1,374			2,048			-32.9	%
Current tax		15,000			0			N/M			15,000			0			N/M
NET INCOME		$267,094			$144,057			85.4	%		$276,915			$178,912			54.8	%
Earnings per share - basic		$0.04			$0.02			N/M			$0.04			$0.02			N/M
Average number of shares outstanding		7,263,508			7,263,508						7,263,508			7,263,508
Earnings per share - diluted		$0.04			$0.02			N/M			$0.04			$0.02			N/M
Average number of shares outstanding		7,265,510			7,264,945						7,265,707			7,264,240

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