BAB, Inc. Reports Results for 2nd Quarter FY 2023

DEERFIELD, Ill., July 06, 2023 (GLOBE NEWSWIRE) -- BAB, Inc. (OTCQB: BABB), announced its financial results for the second quarter ended May 31, 2023.

For the quarter ended May 31, 2023 BAB had revenues of $864,000 and net income of $127,000, or $0.02 per share earnings, versus revenues of $824,000 and net income of $94,000, or a $0.01 per share, for the same quarter last year. Royalty revenue, marketing fund revenue, license fees and other revenue all increased for the second quarter 2023 compared to second quarter 2022. Franchise fee revenue decreased slightly in the second quarter ended May 31, 2023 compared to same quarter 2022.

For the six months ended May 31, 2023, revenues were $1,610,000 and net income was $162,000, or $0.02 per share, versus revenues of $1,563,000 and net income of $157,000, or $0.02 per share for the same period in 2022.

Total operating expenses for the quarter ended May 31, 2023, were $693,000, versus $692,000, in 2022. The change in operating expenses for the quarter was primarily due to an increase in marketing fund expenses of $11,000, an increase in professional fees of $6,000, an increase in employee benefit expense of $3,000 and an increase in travel and other of $3,000 each, offset by a decrease in payroll and payroll related expenses of $22,000. Total operating expenses for the six months ended May 31, 2023 were $1,390,000 versus $1,342,000 for May 31, 2022 with an increase in marketing expenses of $4,000, payroll and payroll related expenses of $14,000, professional fee expense increased $15,000 and general expenses increased $15,000 for six months 2023 versus 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 STATEMENTS OF OPERATIONS
	Quarter Ended											Six Months Ended
	05/31/23				05/31/22				% Change			05/31/23				05/31/22				% Change
REVENUES
Royalty fees from franchised stores	$	494,933			$	465,491			6.3	%		$	937,541			$	879,712			6.6	%
Franchise and area development fee revenue		7,054				9,102			-22.5	%			11,401				18,079			-36.9	%
Licensing fees and other income		75,674				73,729			2.6	%			135,994				144,072			-5.6	%
Marketing Fund Revenue		286,739				276,110			3.8	%			525,057				520,845			0.8	%
Total Revenue		864,400				824,432			4.8	%			1,609,993				1,562,708			3.0	%
OPERATING COSTS AND EXPENSES
Selling, general and administrative		405,649				415,089			-2.3	%			862,602				818,751			5.4	%
Depreciation and amortization		922				1,284			-28.2	%			1,845				2,594			-28.9	%
Marketing Fund Expenses		286,739				276,110			3.8	%			525,057				520,845			0.8	%
Total Expense		693,310				692,483			0.1	%			1,389,504				1,342,190			3.5	%
Income from operations		171,090				131,949			29.7	%			220,489				220,518			-0.0	%
Interest expense		-				-			-				-				-			-
Interest/other income		5,438				58			9275.9	%			5,559				129			4209.3	%
Income taxes		(50,000	)			(38,091	)		31.3	%			(64,200	)			(63,841	)		0.6	%
NET INCOME	$	126,528			$	93,916			34.7	%		$	161,848			$	156,806			3.2	%
Earnings per share - basic and diluted	$	0.02			$	0.01			N/M			$	0.02			$	0.02			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