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

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

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    

SOURCE BAB, Inc. 

Contact:

Michael K. Murtaugh
BAB, Inc.
(847) 948-7520
Fax: (847) 405-8140
www.babcorp.com

###

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