ADVERTISEMENT
Press release content from Globe Newswire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Globe Newswire
Press release content from Globe Newswire. The AP news staff was not involved in its creation.

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

October 7, 2021 GMT

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.

ADVERTISEMENT

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 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.

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