DEERFIELD, Ill., Oct. 04, 2024 (GLOBE NEWSWIRE) -- BAB, Inc. (OTCQB: BABB), announced its financial results for the third quarter ended August 31, 2024.
For the quarter ended August 31, 2024 BAB had revenues of $872,000 and net income of $160,000, or $0.02 per share earnings, versus revenues of $937,000 and net income of $168,000, or a $0.02 per share, for the same quarter last year. Royalty revenue increased for the third quarter 2024 compared to third quarter 2023. Franchise fee revenue and License fee and other income and Marketing Fund revenue decreased in the third quarter ended August 31, 2024 compared to same quarter 2023.
For the nine months ended August 31, 2024, revenues were $2,591,000 and net income was $405,000, or $0.06 per share, versus revenues of $2,547,000 and net income of $330,000, or $0.05 per share for the same period in 2023. Royalty revenue, franchise fee revenue, and License fee and other income increased for the nine months ended August 31, 2024 compared to same period 2023. Marketing Fund revenue decreased for the nine months ended August 31, 2024 compared to same period 2023.
Total operating expenses for the quarter ended August 31, 2024, were $667,000, versus $718,000, in 2023. The change in operating expenses for the quarter was primarily due to a decrease in marketing fund expenses of $52,000, a decrease in occupancy expense of $5,000, and a $2,000 decrease each in advertising and promotion and travel, offset by an increase in payroll and payroll related expenses of $3,000, and increase of $3,000 in professional service fees and an increase in employee benefits of $5,000. Total operating expenses for the nine months ended August 31, 2024 were $2,077,000 versus $2,107,000 for August 31, 2023 with a decrease in marketing expenses of $11,000, a decrease in payroll and payroll related expenses of $13,000, a decrease in occupancy expense of $11,000 and advertising and promotion expense of $10,000 in 2024 compared to 2023, offset by an increase in professional fees of $14,000 and an increase of $4,000 in general expenses for the nine months in 2024 compared to 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 | Nine Months Ended | ||||||||||||||||||||||
| 08/31/24 | 08/31/23 | % Change | 08/31/24 | 08/31/23 | % Change | ||||||||||||||||||
| REVENUES | |||||||||||||||||||||||
| Royalty fees from franchised stores | $ | 519,299 | $ | 515,970 | 0.6 | % | $ | 1,492,463 | $ | 1,453,511 | 2.7 | % | |||||||||||
| Franchise and area development fee revenue | 9,298 | 11,306 | -17.8 | % | 28,759 | 22,707 | 26.7 | % | |||||||||||||||
| Licensing fees and other income | 49,869 | 63,889 | -21.9 | % | 209,969 | 199,883 | 5.0 | % | |||||||||||||||
| Marketing Fund Revenue | 293,469 | 345,486 | -15.1 | % | 859,516 | 870,543 | -1.3 | % | |||||||||||||||
| Total Revenue | 871,935 | 936,651 | -6.9 | % | 2,590,707 | 2,546,644 | 1.7 | % | |||||||||||||||
| OPERATING COSTS AND EXPENSES | |||||||||||||||||||||||
| Selling, general and administrative | 372,561 | 371,380 | 0.3 | % | 1,211,895 | 1,233,982 | -1.8 | % | |||||||||||||||
| Depreciation and amortization | 981 | 981 | 0.0 | % | 5,942 | 2,826 | 110.3 | % | |||||||||||||||
| Marketing Fund Expenses | 293,469 | 345,486 | -15.1 | % | 859,516 | 870,543 | -1.3 | % | |||||||||||||||
| Total Expense | 667,011 | 717,847 | -7.1 | % | 2,077,353 | 2,107,351 | -1.4 | % | |||||||||||||||
| Income from operations | 204,924 | 218,804 | -6.3 | % | 513,354 | 439,293 | 16.9 | % | |||||||||||||||
| Interest/other income | 17,903 | 15,054 | 18.9 | % | 50,164 | 20,613 | 143.4 | % | |||||||||||||||
| Income taxes | (62,500 | ) | (66,100 | ) | -5.4 | % | (159,000 | ) | (130,300 | ) | 22.0 | % | |||||||||||
| NET INCOME | $ | 160,327 | $ | 167,758 | -4.4 | % | $ | 404,518 | $ | 329,606 | 22.7 | % | |||||||||||
| Earnings per share - basic and diluted | $ | 0.02 | $ | 0.02 | N/M | $ | 0.06 | $ | 0.05 | N/M | |||||||||||||
| Average number of shares outstanding | 7,263,508 | 7,263,508 | 7,263,508 | 7,263,508 | |||||||||||||||||||
