GlobeNewswire

BAB, Inc. Reports Results for 2nd Quarter FY 2022

DEERFIELD, Ill., July 08, 2022 (GLOBE NEWSWIRE) -- BAB, Inc. (OTCQB: BABB), announced its financial results for the second quarter ended May 31, 2022.

For the quarter ended May 31, 2022, BAB had revenues of $824,000 and net income of $94,000, or $0.01 per share earnings, versus revenues of $749,000 and net income of $87,000, or a $0.01 per share, for the same quarter last year. Royalty revenue, marketing fund revenue, license fees and other revenue all increased for the second quarter 2022 compared to 2nd quarter 2021, primarily because during 2020 and 2021 franchisees began using more of the on-line, curb-side and delivery options, and they continue to use these options as more in person customers return in the 2nd quarter 2022.

For the six months ended May 31, 2022, revenues were $1,563,000 and net income was $157,000, or $0.02 per share, versus revenues of $1,472,000 and net income of $420,000, or $0.06 per share for the same period in 2021. Net income in 2021 includes $228,155 of non-taxable loan forgiveness of 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 May 31, 2022, were $692,000, versus $627,000, in 2021. The change in operating expenses for the quarter was primarily due to an increase in payroll and payroll related expenses of $27,000, an increase in marketing fund expenses of $26,000, and an increase in general expenses in travel and advertising of $14,000. Total operating expenses for the six months ended May 31, 2022 were $1,342,000 versus $1,213,000 for May 31, 2021. The change was primarily due to an increase in marketing expenses of $69,000 and payroll and payroll related expenses of $58,000 in the six months ended May 31, 2022 versus same period 2021.

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 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.

(TABLE FOLLOWS)

 
BAB, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
            
            
 Quarter Ended Six Months Ended
 05/31/22 05/31/21 % Change 05/31/22 05/31/21 % Change
            
REVENUES           
            
Royalty fees from franchised stores$465,491  $420,726  10.6% $879,712  $767,386  14.6%
Franchise and area development fee revenue 9,102   9,172  -0.8%  18,079   26,011  -30.5%
Licensing fees and other income 73,729   68,435  7.7%  144,072   226,365  -36.4%
Marketing Fund Revenue 276,110   250,486  10.2%  520,845   451,962  15.2%
Total Revenue 824,432   748,819  10.1%  1,562,708   1,471,724  6.2%
            
OPERATING COSTS AND EXPENSES           
            
Selling, general and administrative 415,089   375,046  10.7%  818,751   758,294  8.0%
Depreciation and amortization 1,284   1,119  14.7%  2,594   2,333  11.2%
Marketing Fund Expenses 276,110   250,486  10.2%  520,845   451,962  15.2%
Total Expense 692,483   626,651  10.5%  1,342,190   1,212,589  10.7%
            
Income from operations 131,949   122,168  8.0%  220,518   259,135  -14.9%
Interest expense -   -  -   -   -  - 
Interest/other income 58   111  -47.7%  129   234  -44.9%
Loan Forgiveness -   -       228,155  -100.0%
Income taxes (38,091)  (35,500) 7.3%  (63,841)  (67,500) -5.4%
            
NET INCOME$93,916  $86,779  8.2% $156,806  $420,024  -62.7%
            
Earnings per share - basic and diluted$0.01  $0.01  N/M  $0.02  $0.06  N/M 
Average number of shares outstanding 7,263,508   7,263,508     7,263,508   7,263,508   
                    

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