BAB, Inc. Reports Profit for 3rd Quarter FY 2015

DEERFIELD, Ill. - October 06, 2015 - (BUSINESS WIRE) - BAB, Inc. (OTCQB: BABB), announced its financial results for the third quarter ended August 31, 2015.

For the quarter ended August 31, 2015, BAB had revenues of $609,000 and net income of $135,000, or $0.02 per share, versus revenues of $600,000 and net income of $168,000, or $0.02 per share, for the same quarter last year.

For the nine months ended August 31, 2015, BAB had revenues of $1,669,000 and a net income of $9,000, with $0.00 (zero) earnings per share, versus revenues of $1,906,000 and net income of $471,000, or $0.06 per share for the same period in 2014. 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 $243,000 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 August 31, 2015, were $482,000, versus $439,000, in 2014. Total operating expenses for the nine months ended August 31, 2015 were $1,668,000 versus $1,425,000 for the nine months ended August 31, 2014. The operating expenses for the nine months in 2015 include the $243,000 legal settlement as explained in the previous paragraph.

BAB, Inc. franchises and licenses Big Apple Bagels®, My Favorite Muffin®, SweetDuet® frozen yogurt 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.

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BAB, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS


	Quarter Ended						Nine Months Ended
	08/31/15		08/31/14		% Change		08/31/15		08/31/14		% Change

REVENUES

Royalty fees from franchised stores	440,960		458,656		-3.9	%	1,278,715		1,311,369		-2.5	%
Franchise and area development fee revenue	50,000		37,500		33.3	%	80,000		272,500		-70.6	%
Licensing fees and other income	118,351		104,060		13.7	%	310,746		322,559		-3.7	%
	609,311		600,216		1.5	%	1,669,461		1,906,428		-12.4	%

OPERATING COSTS AND EXPENSES
Selling, general and administrative	477,890		434,018		10.1	%	1,655,585		1,411,277		17.3	%
Depreciation and amortization	4,176		4,522		-7.7	%	12,703		13,636		-6.8	%
	482,066		438,540		9.9	%	1,668,288		1,424,913		17.1	%

Income before interest, other and taxes	127,245		161,676		-21.3	%	1,173		481,515		-99.8	%

Interest expense	(776	)	(1,138	)	-31.8	%	(2,327	)	(3,412	)	-31.8	%
Interest/other income	306		87		251.7	%	1,478		353		318.7	%

Current tax benefit/(expense)	8,500		7,583		N/M		8,500		(7,417	)	N/M

NET INCOME	135,275		168,208		-19.6	%	8,824		471,039		-98.1	%

Earnings per share - basic	0.02		0.02		N/M		0.00		0.06		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		0.02		N/M		0.00		0.06		N/M
Average number of shares outstanding	7,263,508		7,263,508				7,263,508		7,263,508