BAB, Inc. Reports Profit for 3rd Quarter FY 2013

BAB, Inc. Reports Profit for 3rd Quarter FY 2013

DEERFIELD, Ill. - October 09, 2013 - (BUSINESS WIRE) - BAB, Inc. (OTCBB: BABB) announced its financial results for its third quarter ended August 31, 2013.

For the quarter ended August 31, 2013, BAB had revenues of $617,000 and net income of $108,000, or $0.01 per share, versus revenues of $587,000 and net income of $63,000, or $0.01 per share, for the same quarter last year.

For the nine months ended August 31, 2013, BAB had revenues of $1,810,000 and net income of $168,000, or $0.02 per share, versus revenues of $1,980,000 and net income of $340,000 or $0.05 per share for the same period in 2012. For the nine months ended August 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 nine months ended August 31, 2013.

Total operating expense for the quarter ended August 31, 2013, was $489,000 versus $523,000 in 2012. For the nine months ended August 31, 2013, total operating expense was $1,620,000 versus $1,622,000 in 2012.

About BAB, Inc.

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.

Table Follows

BAB, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
                         
                         
    Quarter Ended   Nine Months Ended
   


08/31/13

 


08/31/12

  % Change  


08/31/13

 


08/31/12

  % Change
                         
REVENUES                        
                         
Royalty fees from franchised stores   446,603   463,113   -3.6%   1,334,047   1,395,115   -4.4%
Franchise and area development fee revenue   35,000   5,000   600.0%   45,000   47,500   -5.3%
Licensing fees and other income   135,143   118,826   13.7%   430,935   537,602   -19.8%
Total Revenue   616,746   586,939   5.1%   1,809,982   1,980,217   -8.6%
                         
OPERATING EXPENSES                        
                         
Selling, general and administrative   485,054   517,961   -6.4%   1,607,088   1,607,508   0.0%
Depreciation and amortization   4,367   4,713   -7.3%   13,078   14,279   -8.4%
Total Operating Expense   489,421   522,674   -6.4%   1,620,166   1,621,787   -0.1%
                         
Income before interest, other and taxes   127,325   64,265   98.1%   189,816   358,430   -47.0%
                         
Interest expense   (1,483)   (1,812)   -18.2%   (4,447)   (5,436)   -18.2%
Interest/other income   213   770   -72.3%   768   2,144   -64.2%
                         
Current tax expense   (17,795)   0   N/M   (17,795)   (15,000)   N/M
                         
NET INCOME   108,260   63,223   71.2%   168,342   340,138   -50.5%
                         
Earnings per share - basic   0.01   0.01   N/M   0.02   0.05   N/M
Average number of shares outstanding   7,263,508   7,263,508       7,263,508   7,263,508    
                         
Earnings per share - diluted   0.01   0.01   N/M   0.02   0.05   N/M
Average number of shares outstanding   7,269,680   7,265,934       7,267,880   7,265,786    
                         

Contact:

BAB, Inc.
Michael K. Murtaugh
(847) 948-7520
F: (847) 405-8140

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