BAB, Inc. Results

BAB, Inc. Reports Profit for 3rd Quarter FY 2016

BAB, Inc.

BAB, Inc. (OTCQB: BABB), announced its financial results for the third quarter ended August 31, 2016.

For the quarter ended August 31, 2016, BAB had revenues of $616,000 and net income of $165,000, or $0.02 per share, versus revenues of $609,000 and net income of $135,000, or $0.02 per share, for the same quarter last year.

For the nine months ended August 31, 2016, BAB had revenues of $1,761,000 and net income of $386,000, or $0.05 per share, versus revenues of $1,669,000 and net income of $9,000, which resulted in no earnings per share for the same period in 2015. In 2015, an expense of $243,000 was incurred 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, 2016, were $451,000, versus $482,000, in 2015. Total operating expenses for the nine months ended August 31, 2016 were $1,375,000 versus $1,668,000 for the nine months ended August 31, 2015. 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.

 

BAB, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
 
                       
Quarter Ended Nine Months Ended
08/31/16   08/31/15   % Change 08/31/16   08/31/15   % Change
       
REVENUES
 
Royalty fees from franchised stores $441,949 $440,960 0.2% $1,298,562 $1,278,715 1.6%
Franchise and area development fee revenue 60,000 50,000 20.0% 78,000 80,000 -2.5%
Licensing fees and other income 114,181     118,351   -3.5% 384,885     310,746   23.9%
Total Revenue 616,130 609,311 1.1% 1,761,447 1,669,461 5.5%
 
OPERATING COSTS AND EXPENSES
 
Selling, general and administrative 445,412 477,890 -6.8% 1,359,475 1,412,539 -3.8%
Legal Settlement - - N/M * - 243,046 N/M *
Depreciation and amortization 5,167     4,176   23.7% 15,183     12,703   19.5%
Total Expense 450,579 482,066 -6.5% 1,374,658 1,668,288 -17.6%
           
Income from operations 165,551   127,245   30.1% 386,789   1,173   N/M *
Interest expense (396 ) (776 ) -49.0% (1,190 ) (2,327 ) -48.9%
Interest/other income 90 306 -70.6% 423 1,478 -71.4%
Current tax benefit - 8,500 N/M * - 8,500 N/M *
               
NET INCOME $165,245     $135,275   22.2% $386,022     $8,824   N/M *
 
Earnings per share - basic and diluted $0.02 $0.02 $0.05 $0.00
Average number of shares outstanding 7,263,508 7,263,508 7,263,508 7,263,508
 
* N/M not measurable



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