BAB, Inc. Reports Results for 1st Quarter FY 2021

Rhea-AI Summary

BAB, Inc. (OTCQB: BABB) reported first-quarter financial results for the period ending February 28, 2021, with revenues of $723,000 and net income of $333,000, representing earnings of $0.05 per share. This marks a revenue increase of 3.9% compared to $696,000 and net income of $43,000 or $0.01 per share in the same period last year. The net income includes loan forgiveness of $228,000. Operating expenses decreased to $586,000 from $638,000, and the income tax expense rose to $32,000.

Positive

• Net income increased significantly from $43,000 to $333,000, representing a 671.5% growth.
• Earnings per share rose from $0.01 to $0.05, an increase of 400%.
• Total revenues grew by 3.9%, from $696,000 to $723,000.
• Loan forgiveness of $228,000 contributed positively to net income.
• Operating expenses dropped from $638,000 to $586,000, indicating cost management.

Negative

• Royalty fees from franchised stores decreased by 10.5%.
• Marketing fund revenue decreased by 11.4% compared to the previous year.
• Income tax expense increased by 113.3%.

DEERFIELD, Ill., April 12, 2021 (GLOBE NEWSWIRE) -- BAB, Inc. (OTCQB: BABB), announced its financial results for the first quarter ended February 28, 2021.

For the quarter ended February 28, 2021, BAB had revenues of $723,000 and net income of $333,000, or earnings of $0.05 per share, versus revenues of $696,000 and net income of $43,000, or earnings of $0.01 per share for the quarter ended February 29, 2020.

Net income for the quarter ended February 28, 2021 included loan forgiveness of $228,000. This was the Payroll Protection Program loan received May 1, 2020 with notice of forgiveness in full on December 9, 2020. Operating income for the first quarter 2021 was $137,000.

Total operating expenses were $586,000 for the quarter ended February 28, 2021 versus $638,000 for February 29, 2020. For February 28, 2021 there was a $32,000 income tax expense recorded compared to $15,000 for February 29, 2020.

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
	02/28/21				02/29/20				% Change
REVENUES
Royalty fees from franchised stores	$	346,660			$	387,339			-10.5	%
Franchise fees		16,839				3,650			361.3	%
Licensing fees and other income		157,930				77,174			104.6	%
Marketing fund revenue		201,476				227,521			-11.4	%
Total Revenue		722,905				695,684			3.9	%
OPERATING COSTS AND EXPENSES
Selling, general and administrative		584,724				636,854			-8.2	%
Depreciation and amortization		1,214				740			64.1	%
Total Operating Expense		585,938				637,594			-8.1	%
Income before interest, other and taxes		136,967				58,090			135.8	%
Interest income		123				104			18.3	%
Loan forgiveness		228,155				-			NA
Income tax expense		(32,000	)			(15,000	)		113.3	%
Net Income	$	333,245			$	43,194			671.5	%
Earnings per share - basic and diluted	$	0.05			$	0.01
Average number of shares outstanding		7,263,508				7,263,508

FAQ

What were BAB, Inc.'s revenues for the first quarter of 2021?

BAB, Inc. reported revenues of $723,000 for the first quarter ended February 28, 2021.

What was BAB, Inc.'s net income for the first quarter of 2021?

The net income for BAB, Inc. for the first quarter ended February 28, 2021, was $333,000.

What was the earnings per share for BAB, Inc. in Q1 2021?

Earnings per share for BAB, Inc. in the first quarter of 2021 were $0.05.

What significant financial change did BAB, Inc. experience compared to last year?

BAB, Inc. saw a substantial increase in net income from $43,000 in Q1 2020 to $333,000 in Q1 2021.

How did BAB, Inc.'s operating expenses change in Q1 2021?

operating expenses decreased from $638,000 in Q1 2020 to $586,000 in Q1 2021.