BAB, Inc. Reports Profit for 3rd Quarter FY 2014

By: Big Apple Bagels, Inc. (BAB) | 2 Shares 167 Reads

DEERFIELD, Ill. - October 02, 2014 - (BUSINESS WIRE) - BAB, Inc. (OTCBB: BABB), announced its financial results for the third quarter ended August 31, 2014.

For the quarter ended August 31, 2014, BAB had revenues of $600,000 and net income of $168,000, or $0.02 per share, versus revenues of $617,000 and net income of $108,000, or $0.01 per share, for the same quarter last year.

For the nine months ended August 31, 2014, BAB had revenues of $1,906,000 and net income of $471,000, or $0.06 per share, versus revenues of $1,810,000 and net income of $168,000, or $0.02 per share for the same period in 2013. The Company received a $200,000 International Master Franchise Agreement in March 2014 versus no such agreement in the same period in 2013.

Total operating expenses for the quarter ended August 31, 2014, were $439,000, versus $489,000, in 2013. The primary cost reductions for the third quarter 2014 compared to 2013 have been payroll and payroll related expenses and reduced SweetDuet franchise expenses. Total operating expenses for the nine months ended August 31, 2014 were $1,425,000 versus $1,620,000 for the nine months ended August 31, 2013. The primary cost reductions for 2014 have been payroll and payroll related expenses and a reduction in SweetDuet franchise expenses.

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.

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BAB, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS


	Quarter Ended						Nine Months Ended
	08/31/14		08/31/13		% Change		08/31/14		08/31/13		% Change

REVENUES

Royalty fees from franchised stores	458,656		446,603		2.7	%	1,311,369		1,334,047		-1.7	%
Franchise and area development fee revenue	37,500		35,000		7.1	%	272,500		45,000		505.6	%
Licensing fees and other income	104,060		135,143		-23.0	%	322,559		430,935		-25.1	%
	600,216		616,746		-2.7	%	1,906,428		1,809,982		5.3	%

OPERATING COSTS AND EXPENSES
Selling, general and administrative	434,018		485,054		-10.5	%	1,411,277		1,607,088		-12.2	%
Depreciation and amortization	4,522		4,367		3.5	%	13,636		13,078		4.3	%
	438,540		489,421		-10.4	%	1,424,913		1,620,166		-12.1	%

Income before interest, other and taxes	161,676		127,325		27.0	%	481,515		189,816		153.7	%

Interest expense	(1,138	)	(1,483	)	-23.3	%	(3,412	)	(4,447	)	-23.3	%
Interest/other income	87		213		-59.2	%	353		768		-54.0	%

Current tax expense	7,583		(17,795	)	N/M		(7,417	)	(17,795	)	N/M

NET INCOME	168,208		108,260		55.4	%	471,039		168,342		179.8	%

Earnings per share - basic	0.02		0.01		N/M		0.06		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	0.02		0.01		N/M		0.06		0.02		N/M
Average number of shares outstanding	7,263,508		7,269,680				7,263,508		7,267,880