BAB, Inc. Reports Results for 1st Quarter FY 2023

Rhea-AI Summary

BAB, Inc. (OTCQB: BABB) reported its first-quarter financial results for the period ending February 28, 2023. The company achieved revenues of $746,000, marking a 1.0% increase from $738,000 in the same quarter of the previous year. However, net income decreased by 43.8% to $35,000, or $0.00 per share, down from $63,000 or $0.01 per share last year. Total operating expenses rose to $696,000 compared to $650,000 in the prior year, largely due to a holiday bonus increasing payroll expenses by $36,000. Additionally, the company set aside $14,000 for income tax, a decrease from $26,000 the previous year.

Positive

• Revenues increased by 1.0% to $746,000 compared to $738,000 in Q1 2022.
• Despite a decline in net income, operational stability is indicated by revenue growth.

Negative

• Net income decreased by 43.8%, dropping to $35,000 from $63,000 in Q1 2022.
• Operating expenses increased by 7.1% to $696,000 from $650,000 in Q1 2022.

DEERFIELD, Ill., April 06, 2023 (GLOBE NEWSWIRE) -- BAB, Inc. (OTCQB: BABB), announced its financial results for the first quarter ended February 28, 2023.

For the quarter ended February 28, 2023, BAB had revenues of $746,000 and net income of $35,000, or $0.00 per share, versus revenues $738,000 and net income of $63,000, or earnings of $0.01 per share, for the same quarter last year.

Total operating expenses for the quarter ended February 28, 2023, were $696,000, versus $650,000, in same period 2022. Employees received a Holiday bonus in December 2022, increasing fiscal 2023 payroll expense by $36,000 and there was no employee Holiday bonus in the same period 2022. For February 28, 2023 there was a $14,000 income tax provision versus a $26,000 income tax provision for same period 2022.

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 STATEMENT OF OPERATIONS
	Fiscal Quarter Ended
	02/28/23				02/28/22				% Change
REVENUES
Royalty fees from franchised stores	$	442,608			$	414,221			6.9	%
Franchise fees		4,347				8,977			-51.6	%
Licensing fees and other income		60,320				70,343			-14.2	%
Marketing fund revenue		238,318				244,735			-2.6	%
Total Revenue		745,593				738,276			1.0	%
OPERATING COSTS AND EXPENSES
Selling, general and administrative		695,271				648,398			7.2	%
Depreciation and amortization		923				1,310			-29.5	%
Total Operating Expense		696,194				649,708			7.2	%
Income before interest, other and taxes		49,399				88,568			-44.2	%
Interest income		121				71			70.4	%
Income tax expense		(14,200	)			(25,750	)		-44.9	%
Net Income	$	35,320			$	62,889			-43.8	%
Earnings per share - basic and diluted	$	0.00			$	0.01
Average number of shares outstanding		7,263,508				7,263,508

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

FAQ

What were BAB, Inc.'s revenues for the first quarter of 2023?

BAB, Inc. reported revenues of $746,000 for the first quarter ended February 28, 2023.

How much did BAB, Inc.'s net income change in Q1 2023?

Net income for BAB, Inc. declined by 43.8% to $35,000 in Q1 2023.

What are the operating expenses for BAB, Inc. in Q1 2023?

Operating expenses for BAB, Inc. increased to $696,000 in Q1 2023.

What was the earnings per share for BAB, Inc. in Q1 2023?

BAB, Inc. reported earnings of $0.00 per share for the first quarter of 2023.