BAB, Inc. Reports Results for 3rd Quarter FY 2020
DEERFIELD, Ill., Oct. 06, 2020 (GLOBE NEWSWIRE) -- BAB, Inc. (OTCQB: BABB), announced its financial results for the third quarter ended August 31, 2020.
For the quarter ended August 31, 2020, BAB had revenues of $624,000 and net income of $104,000, or $0.01 per share, versus revenues of $793,000 and net income of $149,000, or earnings of $0.02 per share, for the same quarter last year. Royalty revenue, license fees and other income and marketing fund revenue all decreased for the third quarter 2020 because of the effect of the Coronavirus pandemic on franchisee sales. Franchise fees increased $2,000 for the third quarter 2020 versus the same period 2019.
For the nine months ended August 31, 2020, BAB had revenues of $1,672,000 and net income of $75,000, or $0.01 per share, versus revenues of $2,280,000 and net income of $374,000, or $0.05 per share for the same period in 2019. The Coronavirus pandemic which occurred in the second quarter 2020 has affected the revenues and net income, creating lower revenues and reduced net income in 2020 compared to 2019.
Total operating expenses for the quarter ended August 31, 2020, were $521,000, versus $639,000, in 2019. Total operating expenses for the nine months ended August 31, 2020 were $1,582,000 versus $1,891,000 for the nine months ended August 31, 2019.
On May 1, 2020, BAB Systems, Inc., a wholly owned subsidiary of BAB, Inc. received a Payroll Protection Program loan under the CARES Act in the amount of $228,000. The Company has used the funds for payroll and certain other acceptable expenses and believes is it likely that the loan will be forgiven in full.
While the Coronavirus pandemic has created challenges for restaurants around the country, we are proud of our franchisees as they continue to adapt to changing regulations and government mandates. As states begin to open up and ease restrictions we have seen franchise locations total system-wide sales rebound from down approximately 66.8% in week 20 of our fiscal year to down approximately 9.5% in week 44. We are continuing to evaluate the effects of the Coronavirus Pandemic on our operations.
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.
|Michael K. Murtaugh (847) 948-7520|
|Fax: (847) 405-8140|
|CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS|
|Quarter Ended||Nine Months Ended|
|08/31/20||08/31/19||% Change||08/31/20||08/31/19||% Change|
|Royalty fees from franchised stores||$||375,282||$||435,616||-13.9||%||$||1,001,112||$||1,228,471||-18.5||%|
|Franchise and area development fee revenue||4,874||3,455||41.1||%||12,398||20,281||-38.9||%|
|Licensing fees and other income||71,541||101,165||-29.3||%||211,139||293,378||-28.0||%|
|Marketing Fund Revenue||172,723||253,003||-31.7||%||447,275||737,623||-39.4||%|
|OPERATING COSTS AND EXPENSES|
|Selling, general and administrative||347,249||385,392||-9.9||%||1,132,254||1,151,873||-1.7||%|
|Depreciation and amortization||928||486||90.9||%||2,442||1,286||89.9||%|
|Marketing Fund Expenses||172,723||253,003||-31.7||%||447,275||737,623||-39.4||%|
|Income from operations||103,520||154,358||-32.9||%||89,953||388,971||-76.9||%|
|Earnings per share - basic and diluted||$||0.01||$||0.02||N/M||$||0.01||$||0.05||N/M|
|Average number of shares outstanding||7,263,508||7,263,508||7,263,508||7,263,508|