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.
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.
|CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS|
|Quarter Ended||Nine Months Ended|
|08/31/14||08/31/13||% Change||08/31/14||08/31/13||% Change|
|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||%|
|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||%|
|Income before interest, other and taxes||161,676||127,325||27.0||%||481,515||189,816||153.7||%|
|Current tax expense||7,583||(17,795||)||N/M||(7,417||)||(17,795||)||N/M|
|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|
Michael K. Murtaugh
Fax: (847) 405-8140