BAB, Inc. Reports Results for 2nd Quarter FY 2024

Rhea-AI Summary

BAB announced its Q2 FY 2024 financial results, reporting revenue of $883,000 and net income of $146,000 ($0.02 per share), compared to $864,000 in revenue and $127,000 in net income ($0.02 per share) in Q2 FY 2023. The six-month period ending May 31, 2024, saw revenues of $1,719,000 and net income of $244,000 ($0.03 per share), versus $1,610,000 in revenue and $162,000 in net income ($0.02 per share) for the same period in 2023. Royalty, marketing fund, and franchise fee revenues increased by $41,000, but license fee and other revenues decreased by $22,000. Total operating expenses for Q2 FY 2024 were $696,000, a slight increase from $693,000 in the same quarter last year. The six-month period saw operating expenses rise to $1,410,000 from $1,390,000, primarily due to a $41,000 increase in marketing expenses, offset by a $21,000 decrease in general and administrative expenses.

Positive

• Q2 FY 2024 revenue increased to $883,000 from $864,000 in Q2 FY 2023.
• Net income for Q2 FY 2024 rose to $146,000 from $127,000 in Q2 FY 2023.
• Six-month revenue ending May 31, 2024, increased to $1,719,000 from $1,610,000 for the same period in 2023.
• Six-month net income increased to $244,000 from $162,000 for the same period in 2023.
• Royalty, marketing fund, and franchise fee revenues rose by $41,000 in Q2 FY 2024 compared to Q2 FY 2023.

Negative

• License fee and other revenues decreased by $22,000 in Q2 FY 2024 compared to Q2 FY 2023.
• Total operating expenses for Q2 FY 2024 increased to $696,000 from $693,000 in Q2 FY 2023.

DEERFIELD, Ill., July 03, 2024 (GLOBE NEWSWIRE) -- BAB, Inc. (OTCQB: BABB), announced its financial results for the second quarter ended May 31, 2024.

For the quarter ended May 31, 2024 BAB had revenues of $883,000 and net income of $146,000, or $0.02 per share earnings, versus revenues of $864,000 and net income of $127,000, or a $0.02 per share, for the same quarter last year. Royalty revenue, marketing fund revenue, and franchise fee revenue all increased by a total of $41,000 for the second quarter 2024 compared to second quarter 2023. License fee and other revenue decreased $22,000 in the second quarter ended May 31, 2024 compared to same quarter 2023.

For the six months ended May 31, 2024, revenues were $1,719,000 and net income was $244,000, or $0.03 per share, versus revenues of $1,610,000 and net income of $162,000, or $0.02 per share for the same period in 2023. Royalty revenue, marketing fund revenue, licensing fees and other revenue, and franchise fee revenue all increased for the six months ended May 31, 2024 compared to the same period 2023.

Total operating expenses for the quarter ended May 31, 2024, were $696,000, versus $693,000, in 2023. The change in operating expenses for the quarter was primarily due to an increase in marketing fund expenses of $20,000, offset by a decrease in general and administrative expenses of $17,000. Total operating expenses for the six months ended May 31, 2024 were $1,410,000 versus $1,390,000 for May 31, 2023. The $20,000 increase included a $41,000 increase in marketing expenses, offset by a $21,000 decrease in general and administrative expenses in 2024 versus 2023.

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 STATEMENTS OF OPERATIONS
	Quarter Ended											Six Months Ended
	05/31/24				05/31/23				% Change			05/31/24				05/31/23				% Change
REVENUES
Royalty fees from franchised stores	$513,474				$494,933				3.7	%		$973,163				$937,541				3.8	%
Franchise and area development fee revenue		9,215				7,054			30.6	%			19,461				11,401			70.7	%
Licensing fees and other income		53,513				75,674			-29.3	%			160,101				135,994			17.7	%
Marketing Fund Revenue		306,636				286,739			6.9	%			566,047				525,057			7.8	%
Total Revenue		882,838				864,400			2.1	%			1,718,772				1,609,993			6.8	%
OPERATING COSTS AND EXPENSES
Selling, general and administrative		388,771				405,649			-4.2	%			842,334				862,602			-2.3	%
Depreciation and amortization		981				922			6.4	%			1,961				1,845			6.3	%
Marketing Fund Expenses		306,636				286,739			6.9	%			566,047				525,057			7.8	%
Total Expense		696,388				693,310			0.4	%			1,410,342				1,389,504			1.5	%
Income from operations		186,450				171,090			9.0	%			308,430				220,489			39.9	%
Interest expense		-				-			-				-				-			-
Interest/other income		16,735				5,438			207.7	%			32,260				5,559			480.3	%
Income taxes		(57,500	)			(50,000	)		15.0	%			(96,500	)			(64,200	)		50.3	%
NET INCOME	$145,685				$126,528				15.1	%		$244,190				$161,848				50.9	%
Earnings per share - basic and diluted	$0.02				$0.02				N/M			$0.03				$0.02				N/M
Average number of shares outstanding		7,263,508				7,263,508							7,263,508				7,263,508

FAQ

What were BAB's financial results for Q2 FY 2024?

BAB reported revenues of $883,000 and net income of $146,000 ($0.02 per share) for Q2 FY 2024.

How did BAB's Q2 FY 2024 results compare to Q2 FY 2023?

Q2 FY 2024 revenues were $883,000 compared to $864,000 in Q2 FY 2023. Net income was $146,000 compared to $127,000 in Q2 FY 2023.

What is BAB's stock symbol?

BAB's stock is traded on the OTCQB under the symbol BABB.

How did BAB's six-month financial results ending May 31, 2024, compare to the same period in 2023?

For the six-month period ending May 31, 2024, BAB's revenues were $1,719,000 and net income was $244,000 ($0.03 per share), compared to revenues of $1,610,000 and net income of $162,000 ($0.02 per share) for the same period in 2023.

What changes occurred in BAB's operating expenses for Q2 FY 2024?

Total operating expenses for Q2 FY 2024 were $696,000, a slight increase from $693,000 in Q2 FY 2023.

What factors contributed to BAB's revenue increase in Q2 FY 2024?

Royalty, marketing fund, and franchise fee revenues increased by $41,000 in Q2 FY 2024 compared to Q2 FY 2023.

Why did BAB's license fee and other revenues decrease in Q2 FY 2024?

License fee and other revenues decreased by $22,000 in Q2 FY 2024 compared to Q2 FY 2023.

What was BAB's net income per share for Q2 FY 2024?

BAB's net income per share for Q2 FY 2024 was $0.02.