BAB, Inc. Reports Profit for 2nd Quarter FY 2013

By: Big Apple Bagels, Inc. (BAB) | 0 Shares 181 Reads

DEERFIELD, Ill. - July 1, 2013 - (BUSINESS WIRE) - BAB, Inc. (OTCBB: BABB), announced its financial results for the second quarter ended May 31, 2013.

For the quarter ended May 31, 2013, BAB had revenues of $658,000 and net income of $125,000, or $0.02 per share, versus revenues of $826,000 and net income of $267,000, or $0.04 per share, for the same quarter last year. For the quarter ended May 31, 2012, the Company received a $171,000 payment for the buyout of the Franchise Agreement from its Minot, ND franchisee so the franchisee could pursue its other business interests associated with the local energy boom. In that acceptance by the Company of the voluntary buyout is unique, no such transaction occurred nor was such income earned in the quarter ended May 31, 2013.

For the six months ended May 31, 2013, BAB had revenues of $1,193,000 and net income of $60,000, or $0.01 per share, versus revenues of $1,393,000 and net income of $277,000, or $0.04 per share for the same period in 2012. As noted above, the Company received a $171,000 buyout from its Minot, ND franchisee during the six months ended May 31, 2012 versus no such income in the same period in 2013.

Total operating expenses for the quarter ended May 31, 2013, were $531,000, versus $543,000, in 2012. The Company spent $31,000 on the SweetDuet® concept for the quarter ended May 31, 2013, versus $16,000 for the same quarter in 2012. Total operating expenses for the six months ended May 31, 2013 were $1,131,000 versus $1,099,000 for the six months ended May 31, 2012. The Company spent $68,000 on the SweetDuet concept for the six months ended May 31, 2013, versus $16,000 for the same period in 2012.

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

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BAB, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS


	Quarter Ended						Six Months Ended
	05/31/13		05/31/12		% Change		05/31/13		05/31/12		% Change

REVENUES

Royalty fees from franchised stores	$467,525		$489,081		-4.4	%	$887,444		$932,002		-4.8	%
Franchise and area development fee revenue	10,000		37,500		-73.3	%	10,000		42,500		-76.5	%
Licensing fees and other income	180,632		299,205		-39.6	%	295,793		418,776		-29.4	%
Total Revenue	658,157		825,786		-20.3	%	1,193,237		1,393,278		-14.4	%

OPERATING COSTS AND EXPENSES

Selling, general and administrative	527,118		537,766		-2.0	%	1,122,034		1,089,547		3.0	%
Depreciation and amortization	4,367		4,782		-8.7	%	8,711		9,566		-8.9	%
Total Expense	531,485		542,548		-2.0	%	1,130,745		1,099,113		2.9	%

Income from operations	126,672		283,238		-55.3	%	62,492		294,165		-78.8	%

Interest expense	(1,482	)	(1,812	)	-18.2	%	(2,965	)	(3,624	)	-18.2	%
Interest/other income	248		668		-62.9	%	555		1,374		-59.6	%
Current tax	0		(15,000	)	N/M		0		(15,000	)	N/M

NET INCOME	$125,438		$267,094		-53.0	%	$60,082		$276,915		-78.3	%

Earnings per share - basic	$0.02		$0.04		N/M		$0.01		$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		$0.04		N/M		$0.01		$0.04		N/M
Average number of shares outstanding	7,267,558		7,265,510				7,266,718		7,265,707