DEERFIELD, Ill., July 03, 2024 (GLOBE NEWSWIRE) -- BAB, Inc. (OTCQB: BABB), announced its financial results for the second quarter ended May 31, 2024.
For the quarter ended May 31, 2024 BAB had revenues of $883,000 and net income of $146,000, or $0.02 per share earnings, versus revenues of $864,000 and net income of $127,000, or a $0.02 per share, for the same quarter last year. Royalty revenue, marketing fund revenue, and franchise fee revenue all increased by a total of $41,000 for the second quarter 2024 compared to second quarter 2023. License fee and other revenue decreased $22,000 in the second quarter ended May 31, 2024 compared to same quarter 2023.
For the six months ended May 31, 2024, revenues were $1,719,000 and net income was $244,000, or $0.03 per share, versus revenues of $1,610,000 and net income of $162,000, or $0.02 per share for the same period in 2023. Royalty revenue, marketing fund revenue, licensing fees and other revenue, and franchise fee revenue all increased for the six months ended May 31, 2024 compared to the same period 2023.
Total operating expenses for the quarter ended May 31, 2024, were $696,000, versus $693,000, in 2023. The change in operating expenses for the quarter was primarily due to an increase in marketing fund expenses of $20,000, offset by a decrease in general and administrative expenses of $17,000. Total operating expenses for the six months ended May 31, 2024 were $1,410,000 versus $1,390,000 for May 31, 2023. The $20,000 increase included a $41,000 increase in marketing expenses, offset by a $21,000 decrease in general and administrative expenses in 2024 versus 2023.
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.
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| Contact: | BAB, Inc. Michael K. Murtaugh (847) 948-7520 Fax: (847) 405-8140 www.babcorp.com |
| BAB, INC. | |||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||
| Quarter Ended | Six Months Ended | ||||||||||||||||||||
| 05/31/24 | 05/31/23 | % Change | 05/31/24 | 05/31/23 | % Change | ||||||||||||||||
| REVENUES | |||||||||||||||||||||
| Royalty fees from franchised stores | $513,474 | $494,933 | 3.7 | % | $973,163 | $937,541 | 3.8 | % | |||||||||||||
| Franchise and area development fee revenue | 9,215 | 7,054 | 30.6 | % | 19,461 | 11,401 | 70.7 | % | |||||||||||||
| Licensing fees and other income | 53,513 | 75,674 | -29.3 | % | 160,101 | 135,994 | 17.7 | % | |||||||||||||
| Marketing Fund Revenue | 306,636 | 286,739 | 6.9 | % | 566,047 | 525,057 | 7.8 | % | |||||||||||||
| Total Revenue | 882,838 | 864,400 | 2.1 | % | 1,718,772 | 1,609,993 | 6.8 | % | |||||||||||||
| OPERATING COSTS AND EXPENSES | |||||||||||||||||||||
| Selling, general and administrative | 388,771 | 405,649 | -4.2 | % | 842,334 | 862,602 | -2.3 | % | |||||||||||||
| Depreciation and amortization | 981 | 922 | 6.4 | % | 1,961 | 1,845 | 6.3 | % | |||||||||||||
| Marketing Fund Expenses | 306,636 | 286,739 | 6.9 | % | 566,047 | 525,057 | 7.8 | % | |||||||||||||
| Total Expense | 696,388 | 693,310 | 0.4 | % | 1,410,342 | 1,389,504 | 1.5 | % | |||||||||||||
| Income from operations | 186,450 | 171,090 | 9.0 | % | 308,430 | 220,489 | 39.9 | % | |||||||||||||
| Interest expense | - | - | - | - | - | - | |||||||||||||||
| Interest/other income | 16,735 | 5,438 | 207.7 | % | 32,260 | 5,559 | 480.3 | % | |||||||||||||
| Income taxes | (57,500 | ) | (50,000 | ) | 15.0 | % | (96,500 | ) | (64,200 | ) | 50.3 | % | |||||||||
| NET INCOME | $145,685 | $126,528 | 15.1 | % | $244,190 | $161,848 | 50.9 | % | |||||||||||||
| Earnings per share - basic and diluted | $0.02 | $0.02 | N/M | $0.03 | $0.02 | N/M | |||||||||||||||
| Average number of shares outstanding | 7,263,508 | 7,263,508 | 7,263,508 | 7,263,508 | |||||||||||||||||
