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

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

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.

(TABLE FOLLOWS)

 
 
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        

Contact:

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

 

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