DEERFIELD, Ill., Oct. 07, 2022 (GLOBE NEWSWIRE) -- BAB, Inc. (OTCQB: BABB), announced its financial results for the third quarter ended August 31, 2022.
For the quarter ended August 31, 2022, BAB had revenues of $882,000 and net income of $164,000, or $0.02 per share earnings, versus revenues of $789,000 and net income of $133,000, or $0.02 per share, for the same quarter last year. Royalty revenue, marketing fund revenue, license fees and other revenue all increased for the third quarter 2022 compared to third quarter 2021.
For the nine months ended August 31, 2022, revenues were $2,445,000 and net income was $321,000, or $0.04 per share, versus revenues of $2,260,000 and net income of $553,000, or $0.08 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 August 31, 2022, were $653,000, versus $591,000, in 2021. The change in operating expenses for the quarter was primarily due to an increase in payroll and employee benefit related expenses of $29,000, and an increase in marketing fund expenses of $23,000. Total operating expenses for the nine months ended August 31, 2022 were $1,996,000 versus $1,803,000 for August 31, 2021 with an increase in marketing expenses of $92,000 and payroll and employee benefit related expenses of $87,000 for nine months 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 | Nine Months Ended | ||||||||||||||||||||
| 08/31/22 | 08/31/21 | % Change | 08/31/22 | 08/31/21 | % Change | ||||||||||||||||
| REVENUES | |||||||||||||||||||||
| Royalty fees from franchised stores | $481,833 | $454,814 | 5.9 | % | $1,361,545 | $1,222,200 | 11.4 | % | |||||||||||||
| Franchise and area development fee revenue | 15,882 | 4,274 | 271.6 | % | 33,961 | 30,285 | 12.1 | % | |||||||||||||
| Licensing fees and other income | 97,172 | 66,052 | 47.1 | % | 241,244 | 292,417 | -17.5 | % | |||||||||||||
| Marketing Fund Revenue | 287,402 | 263,613 | 9.0 | % | 808,279 | 715,575 | 13.0 | % | |||||||||||||
| Total Revenue | 882,289 | 788,753 | 11.9 | % | 2,445,029 | 2,260,477 | 8.2 | % | |||||||||||||
| OPERATING COSTS AND EXPENSES | |||||||||||||||||||||
| Selling, general and administrative | 365,016 | 325,583 | 12.1 | % | 1,183,767 | 1,083,877 | 9.2 | % | |||||||||||||
| Depreciation and amortization | 923 | 1,373 | -32.8 | % | 3,517 | 3,706 | -5.1 | % | |||||||||||||
| Marketing Fund Expenses | 287,402 | 263,613 | 9.0 | % | 808,279 | 715,575 | 13.0 | % | |||||||||||||
| Total Expense | 653,341 | 590,569 | 10.6 | % | 1,995,563 | 1,803,158 | 10.7 | % | |||||||||||||
| Income from operations | 228,948 | 198,184 | 15.5 | % | 449,466 | 457,319 | -1.7 | % | |||||||||||||
| Interest expense | - | - | - | - | - | - | |||||||||||||||
| Interest/other income | 153 | 98 | 56.1 | % | 282 | 332 | -15.1 | % | |||||||||||||
| Loan Forgiveness | - | - | 228,155 | -100.0 | % | ||||||||||||||||
| Income taxes | (64,746 | ) | (65,520 | ) | -1.2 | % | (128,587 | ) | (133,020 | ) | -3.3 | % | |||||||||
| NET INCOME | $164,355 | $132,762 | 23.8 | % | $321,161 | $552,786 | -41.9 | % | |||||||||||||
| Earnings per share - basic and diluted | $0.02 | $0.02 | N/M | $0.04 | $0.08 | N/M | |||||||||||||||
| Average number of shares outstanding | 7,263,508 | 7,263,508 | 7,263,508 | 7,263,508 | |||||||||||||||||
