BAB, Inc. Reports Results for 2nd Quarter FY 2021

Rhea-AI Summary

BAB, Inc. (OTCQB: BABB) reported strong financial results for Q2 2021, with revenues of $749,000 and a net income of $87,000, compared to revenues of $352,000 and a net loss of $72,000 in Q2 2020. For the first six months of 2021, revenues reached $1,472,000 with a net income of $420,000. The improved performance is attributed to lifted COVID-19 restrictions and increased franchise sales, including higher marketing fund revenue. Operating expenses rose to $627,000 in Q2 due to increased marketing efforts as the company recovers from the pandemic.

Positive

• Q2 2021 revenue increased by 113% from Q2 2020.
• Net income for Q2 2021 was $87,000, a turnaround from the $72,000 loss in Q2 2020.
• Six-month revenue rose to $1,472,000, compared to $1,048,000 in the same period in 2020.
• Non-taxable loan forgiveness of $228,155 contributed to net income.

Negative

• Total operating expenses for Q2 2021 increased to $627,000 from $423,000 in Q2 2020.
• Marketing expenses rose by $203,000 mainly due to increased spending compared to pandemic-induced cuts in 2020.

DEERFIELD, Ill., July 08, 2021 (GLOBE NEWSWIRE) -- BAB, Inc. (OTCQB: BABB), announced its financial results for the second quarter ended May 31, 2021.

For the quarter ended May 31, 2021, BAB had revenues of $749,000 and net income of $87,000, or $0.01 per share earnings, versus revenues of $352,000 and a net loss of $72,000, or a $0.01 per share loss, for the same quarter last year. Royalty revenue, license fees and other revenue all increased for the second quarter 2021, primarily because of state restrictions being lifted relating to COVID-19 for restaurants and more on-line, curb-side and delivery options instituted by franchisees in late 2020 and 2021 compared to initial months of the COVID-19 pandemic that occurred in the second quarter 2020. Marketing fund revenue increased not only because of increased sales in 2021, but also because in April and May of 2020 marketing fees were waived to assist franchise locations during the initial COVID-19 impact.

For the six months ended May 31, 2021, revenues were $1,472,000 and net income was $420,000, or $0.06 per share, versus revenues of $1,048,000 and a net loss of $28,000, or $0.00 (zero) per share for the same period in 2020. Net income in 2021 includes $228,155 of non-taxable loan forgiveness from the Payroll Protection Program loan enacted under the CARES Act in 2020. The loan was forgiven in the first quarter of 2021.

Total operating expenses for the quarter ended May 31, 2021, were $627,000, versus $423,000, in 2020. The change in operating expenses for the quarter was primarily due to the increase in marketing fund expenses of $203,000 because of the reduced spending in 2020. Total operating expenses for the six months ended May 31, 2021 were $1,213,000 versus $1,061,000 for the six months ended May 31, 2020 with marketing expenses increasing $177,000 because of the reduced spending related to COVID-19 in the second quarter of 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.

BAB, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
	Quarter Ended								Six Months Ended
	05/31/21			05/31/20			% Change		05/31/21			05/31/20			% Change
REVENUES
Royalty fees from franchised stores	$420,726			$238,491			76.4%		$767,386			$625,830			22.6%
Franchise and area development fee revenue	9,172			3,874			136.8%		26,011			7,524			245.7%
Licensing fees and other income	68,435			62,424			9.6%		226,365			139,598			62.2%
Marketing Fund Revenue	250,486			47,031			432.6%		451,962			274,552			64.6%
Total Revenue	748,819			351,820			112.8%		1,471,724			1,047,504			40.5%
OPERATING COSTS AND EXPENSES
Selling, general and administrative	375,046			375,672			-0.2%		758,294			785,005			-3.4%
Depreciation and amortization	1,119			774			44.6%		2,333			1,514			54.1%
Marketing Fund Expenses	250,486			47,031			432.6%		451,962			274,552			64.6%
Total Expense	626,651			423,477			48.0%		1,212,589			1,061,071			14.3%
Income from operations	122,168			(71,657	)		-270.5%		259,135			(13,567	)		N/M
Interest expense	-			-			-		-			-			-
Interest/other income	111			97			14.4%		234			201			16.4%
Loan Forgiveness	-			-					228,155			-			N/M
Income taxes	(35,500	)		-			N/M		(67,500	)		(15,000	)		350.0%
NET INCOME	$86,779			($71,560	)		-221.3%		$420,024			($28,366	)		N/M
Earnings per share - basic and diluted	$0.01			($0.01	)		N/M		$0.06			($0.00	)		N/M
Average number of shares outstanding	7,263,508			7,263,508					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 Q2 2021 revenues?

BAB, Inc. reported Q2 2021 revenues of $749,000.

How much net income did BAB, Inc. report for Q2 2021?

For Q2 2021, BAB, Inc. reported a net income of $87,000.

What is BAB, Inc.'s stock symbol?

BAB, Inc. is traded on the OTCQB under the symbol BABB.

What were the operating expenses for BAB, Inc. in Q2 2021?

Total operating expenses for Q2 2021 were $627,000.

How did BAB, Inc.'s Q2 2021 performance compare to Q2 2020?

Q2 2021 revenues increased by 113% compared to Q2 2020, which had revenues of $352,000.