BAB, Inc. Reports Results for 1st Quarter FY 2022

Rhea-AI Summary

BAB, Inc. (OTCQB: BABB) reported its first-quarter financial results for the period ending February 28, 2022. The company achieved revenues of $738,000, an increase of 2.1% from $723,000 in Q1 2021. Net income declined significantly to $63,000, or $0.01 per share, compared to $333,000, or $0.05 per share, last year, affected by prior debt forgiveness of $228,000. Operating expenses rose by 10.9% to $650,000 from $586,000. The company franchises Big Apple Bagels, My Favorite Muffin, SweetDuet frozen yogurt, and Brewster's Coffee.

Positive

• Revenues increased by 2.1% year-over-year.
• Franchise revenue from Royalty fees rose by 19.5%.
• Net income was $63,000 despite a significant prior year's debt forgiveness.

Negative

• Net income decreased by 81.1% from $333,000 in Q1 2021 to $63,000.
• Operating expenses increased by 10.9% year-over-year.

DEERFIELD, Ill., April 08, 2022 (GLOBE NEWSWIRE) -- BAB, Inc. (OTCQB: BABB), announced its financial results for the first quarter ended February 28, 2022.

For the quarter ended February 28, 2022, BAB had revenues of $738,000 and net income of $63,000, or $0.01 per share, versus revenues of $723,000 and net income of $333,000, or earnings of $0.05 per share, for the same quarter last year. Earnings in the first quarter of 2021 included debt forgiveness from a Payroll Protection Program loan received in 2020 of $228,000.

Total operating expenses for the quarter ended February 28, 2022, were $650,000, versus $586,000, in 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.

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

BAB, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
		Fiscal Quarter Ended
		02/28/22				02/28/21				% Change
REVENUES
Royalty fees from franchised stores		$	414,221			$	346,660			19.5	%
Franchise fees			8,977				16,839			-46.7	%
Licensing fees and other income			70,343				157,930			-55.5	%
Marketing fund revenue			244,735				201,476			21.5	%
Total Revenue			738,276				722,905			2.1	%
OPERATING COSTS AND EXPENSES
Selling, general and administrative			648,398				584,724			10.9	%
Depreciation and amortization			1,310				1,214			7.9	%
Total Operating Expense			649,708				585,938			10.9	%
Income before interest, other and taxes			88,568				136,967			-35.3	%
Interest income			71				123			-42.3	%
Loan forgiveness			-				228,155			NA
Income tax expense			(25,750	)			(32,000	)		-19.5	%
Net Income		$	62,889			$	333,245			-81.1	%
Earnings per share - basic and diluted		$	0.01			$	0.05
Average number of shares outstanding			7,263,508				7,263,508

FAQ

What are the latest financial results for BAB, Inc. (BABB) as of April 8, 2022?

BAB, Inc. reported revenues of $738,000 and net income of $63,000 for Q1 2022.

How did BAB, Inc.'s revenues change compared to the same quarter last year?

Revenues increased by 2.1% from $723,000 in Q1 2021 to $738,000 in Q1 2022.

What was the net income for BAB, Inc. in Q1 2022?

The net income for Q1 2022 was $63,000, significantly down from $333,000 in Q1 2021.

What caused the decrease in net income for BAB, Inc. in Q1 2022?

The decrease was primarily due to a prior year's debt forgiveness of $228,000, impacting the comparison.

What were BAB, Inc.'s operating expenses in Q1 2022?

Operating expenses rose to $650,000 in Q1 2022, compared to $586,000 in Q1 2021.