BAB, Inc. Reports Results for 3RD Quarter FY 2021
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BAB, Inc. Reports Results for 3RD Quarter FY 2021

DEERFIELD, Ill., Oct. 07, 2021 // GLOBE NEWSWIRE // - BAB, Inc. (OTCQB: BABB), announced its financial results for the third quarter ended August 31, 2021.

For the quarter ended August 31, 2021, BAB had revenues of $789,000 and net income of $133,000, or $0.02 per share, versus revenues of $624,000 and net income of $104,000, or earnings of $0.01 per share, for the same quarter last year.

Royalty revenue and Marketing Fund revenue increased in the third quarter 2021, primarily because of state restrictions being lifted relating to COVID-19 for restaurants and more on-line, curb-side and delivery options instituted by franchisees in late 2020 and 2021 compared to initial months of the COVID-19 pandemic that occurred in the second and third quarters 2020.

For the nine months ended August 31, 2020, BAB had revenues of $2,260,000 and net income of $553,000, or $0.08 per share, versus revenues of $1,672,000 and net income of $75,000, or $0.01 per share for the same period in 2020. Net income in 2021 includes $228,155 of non-taxable loan forgiveness from the Payroll Protection Program loan enacted under the CARES Act in 2020. The loan was forgiven in the first quarter of 2021.

Total operating expenses for the quarter ended August 31, 2021, were $591,000, versus $521,000, in 2020. Total operating expenses for the nine months ended August 31, 2021 were $1,803,000 versus $1,582,000 for the nine months ended August 31, 2020. The primary change in operating expenses for the quarter and nine months was the increase in Marketing Fund expenses in 2021 of $91,000 for the quarter and $269,000 for the nine months compared to 2020.

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 website.

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.

BAB, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                       
  Quarter Ended   Nine Months Ended
  08/31/21   08/31/20   % Change   08/31/21   08/31/20   % Change
                       
REVENUES                      
                       
Royalty fees from franchised stores $454,814     $375,282   21.2%     $1,222,200     $1,001,112     22.1%  
Franchise and area development fee revenue   4,274       4,874   -12.3%       30,285       12,398     144.3%  
Licensing fees and other income   66,052       71,541   -7.7%       292,417       211,139     38.5%  
Marketing Fund Revenue   263,613       172,723   52.6%       715,575       447,275     60.0%  
Total Revenue   788,753       624,420   26.3%       2,260,477       1,671,924     35.2%  
                       
OPERATING COSTS AND EXPENSES                      
                       
Selling, general and administrative   325,583       347,249   -6.2%       1,083,877       1,132,254     -4.3%  
Depreciation and amortization   1,373       928   48.0%       3,706       2,442     51.8%  
Marketing Fund Expenses   263,613       172,723   52.6%       715,575       447,275     60.0%  
Total Expense   590,569       520,900   13.4%       1,803,158       1,581,971     14.0%  
                       
Income from operations   198,184       103,520   91.4%       457,319       89,953     408.4%  
Interest expense   -       -   -       -       -     -  
Loan Forgiveness   -       -   -       228,155       -     -  
Interest/other income   98       91   7.7%       332       293     13.3%  
Income taxes   (65,520 )     -   N/M       (133,020 )     (15,000 )   N/M  
                       
NET INCOME $132,762     $103,611   28.1%     $552,786     $75,246     634.6%  
                       
Earnings per share - basic and diluted $0.02     $0.01   N/M     $0.08     $0.01     N/M  
Average number of shares outstanding   7,263,508       7,263,508         7,263,508       7,263,508      

SOURCE BAB, Inc.

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