BAB, Inc. Reports Profit for 2nd Quarter FY 2014

By: Big Apple Bagels, Inc. (BAB) | 0 Shares 204 Reads

DEERFIELD, Ill. - July 07, 2014 - (BUSINESS WIRE) BAB, Inc. (OTCBB: BABB), announced its financial results for the second quarter ended May 31, 2014.

For the quarter ended May 31, 2014, BAB had revenues of $769,000 and net income of $272,000, or $0.04 per share, versus revenues of $658,000 and net income of $125,000, or $0.02 per share, for the same quarter last year. For the quarter ended May 31, 2014, the Company received a $200,000 International Master Franchise Agreement.

For the six months ended May 31, 2014, BAB had revenues of $1,306,000 and net income of $303,000, or $0.04 per share, versus revenues of $1,193,000 and net income of $60,000, or $0.01 per share for the same period in 2013. As noted above, the Company received a $200,000 International Master Franchise Agreement in 2014 versus no such agreement in the same period in 2013.

Total operating expenses for the quarter ended May 31, 2014, were $482,000, versus $531,000, in 2013. The primary cost reduction for the second quarter 2014 compared to 2013 has been payroll and payroll related expenses. Total operating expenses for the six months ended May 31, 2014 were $986,000 versus $1,131,000 for the six months ended May 31, 2013. The primary cost reduction for 2014 has been payroll and payroll related expenses.

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.


BAB, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS


	Quarter Ended						Six Months Ended
	05/31/14		05/31/13		% Change		05/31/14		05/31/13		% Change

REVENUES

Royalty fees from franchised stores	$456,007		$467,525		-2.5	%	$852,713		$887,444		-3.9	%
Franchise and area development fee revenue	200,000		10,000		1900.0	%	235,000		10,000		2250.0	%
Licensing fees and other income	113,334		180,632		-37.3	%	218,499		295,792		-26.1	%
Total Revenue	769,341		658,157		16.9	%	1,306,212		1,193,236		9.5	%

OPERATING COSTS AND EXPENSES

Selling, general and administrative	477,174		527,118		-9.5	%	977,259		1,122,034		-12.9	%
Depreciation and amortization	4,553		4,367		4.3	%	9,114		8,711		4.6	%
Total Expense	481,727		531,485		-9.4	%	986,373		1,130,745		-12.8	%

Income from operations	287,614		126,672		127.1	%	319,839		62,491		411.8	%

Interest expense	(1,137	)	(1,482	)	-23.3	%	(2,274	)	(2,964	)	-23.3	%
Interest/other income	118		248		-52.4	%	266		555		-52.1	%
Current tax	(15,000	)	0		N/M		(15,000	)	0		N/M

NET INCOME	$271,595		$125,438		116.5	%	$302,831		$60,082		404.0	%

Earnings per share - basic	$0.04		$0.02		N/M		$0.04		$0.01		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		$0.01		N/M
Average number of shares outstanding	7,265,931		7,267,558				7,266,091		7,266,718