DEERFIELD, Ill. - June 30, 2015 - (BUSINESS WIRE) - BAB, Inc. (OTCQB: BABB), announced its financial results for the second quarter ended May 31, 2015.
For the quarter ended May 31, 2015, BAB had revenues of $568,000 and net income of $119,000, or $0.02 per share, versus revenues of $769,000 and net income of $272,000, or $0.04 per share, for the same quarter last year. For the quarter ended May 31, 2014, the Company recognized revenue of $200,000 from an International Master Franchise Agreement which was 99.0% of the revenue change in 2015 compared to the same period in 2014.
For the six months ended May 31, 2015, BAB had revenues of $1,060,000 and a net loss of $126,000, or a loss of $0.02 per share, versus revenues of $1,306,000 and net income of $303,000, or $0.04 per share for the same period in 2014. As noted above, the Company recognized revenue of $200,000 from an International Master Franchise Agreement in 2014 versus no such agreement in the same period in 2015. In addition, an expense of $244,000 was incurred in 2015 relating to the settlement of a lawsuit against BAB Operations, Inc., a wholly owned subsidiary of BAB, Inc., which involved the 2001 lease assignment of a Company-owned store that was subsequently franchised.
Total operating expenses for the quarter ended May 31, 2015, were $448,000, versus $482,000, in 2014. Total operating expenses for the six months ended May 31, 2015 were $1,186,000 versus $986,000 for the six months ended May 31, 2014. The operating expenses for the six months in 2015 include the $244,000 legal settlement as explained in the previous paragraph.
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 OTCQB under the symbol BABB and its web site can be visited at www.babcorp.com.
Certain statements in this press release constitute forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “forecast,” “estimate,” “project,” “intend,” “expect,” “should,” “would,” “believe” and similar expressions and all statements which are not historical facts are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors which could cause the company’s actual results, performance (financial or operating), or achievements to differ from the future results, performance (financial or operating), or achievements expressed or implied by such forward-looking statements. The above factors are more fully discussed in the company’s SEC filings.
|CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS|
|Quarter Ended||Six Months Ended|
|05/31/15||05/31/14||% Change||05/31/15||05/31/14||% Change|
|Royalty fees from franchised stores||$443,660||$456,007||-2.7||%||$837,755||$852,713||-1.8||%|
|Franchise and area development fee revenue||25,000||200,000||-87.5||%||30,000||235,000||-87.2||%|
|Licensing fees and other income||99,102||113,334||-12.6||%||192,395||218,499||-11.9||%|
|OPERATING COSTS AND EXPENSES|
|Selling, general and administrative||442,807||477,174||-7.2||%||933,468||977,259||-4.5||%|
|Depreciation and amortization||4,293||4,553||-5.7||%||8,527||9,114||-6.4||%|
|Income from operations||119,481||287,614||-58.5||%||(126,072||)||319,839||-139.4||%|
|Earnings per share - basic||$0.02||$0.04||N/M||($0.02||)||$0.04||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||$0.04||N/M||($0.02||)||$0.04||N/M|
|Average number of shares outstanding||7,263,508||7,265,931||7,263,508||7,266,091|
SOURCE BAB, Inc.
Michael K. Murtaugh
O: (847) 948-7520
F: (847) 405-8140