BAB, Inc. Reports Results for 3RD Quarter FY 2021

Rhea-AI Summary

BAB, Inc. (OTCQB: BABB) reported its financial results for the third quarter ended August 31, 2021. Revenues reached $789,000, an increase from $624,000 in Q3 2020, with net income rising to $133,000 or $0.02 per share compared to $104,000 or $0.01 per share last year. The surge in revenue is attributed to the lifting of COVID-19 restrictions and enhanced delivery options. For the nine-month period, revenues grew to $2.26 million, up from $1.67 million. Operating expenses increased to $591,000 in Q3 2021, primarily due to marketing costs.

Positive

• Revenue increased by 26.3% in Q3 2021 compared to Q3 2020.
• Net income rose to $133,000 in Q3 2021, a 28% increase year-over-year.
• Significant increase in royalty revenue from franchised stores, up 21.2%.

Negative

• Operating expenses rose to $591,000 in Q3 2021, up from $521,000 in Q3 2020.
• Franchise area development fee revenue decreased by 12.3%.

DEERFIELD, Ill., Oct. 07, 2021 (GLOBE NEWSWIRE) -- BAB, Inc. (OTCQB: BABB), announced its financial results for the third quarter ended August 31, 2021.

For the quarter ended August 31, 2021, BAB had revenues of $789,000 and net income of $133,000, or $0.02 per share, versus revenues of $624,000 and net income of $104,000, or earnings of $0.01 per share, for the same quarter last year.

Royalty revenue and Marketing Fund revenue increased in the third 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 and third quarters 2020.

For the nine months ended August 31, 2020, BAB had revenues of $2,260,000 and net income of $553,000, or $0.08 per share, versus revenues of $1,672,000 and net income of $75,000, or $0.01 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 August 31, 2021, were $591,000, versus $521,000, in 2020. Total operating expenses for the nine months ended August 31, 2021 were $1,803,000 versus $1,582,000 for the nine months ended August 31, 2020. The primary change in operating expenses for the quarter and nine months was the increase in Marketing Fund expenses in 2021 of $91,000 for the quarter and $269,000 for the nine months compared to 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										Nine Months Ended
	08/31/21				08/31/20			% Change			08/31/21				08/31/20				% Change
REVENUES
Royalty fees from franchised stores	$454,814				$375,282			21.2%			$1,222,200				$1,001,112				22.1%
Franchise and area development fee revenue		4,274				4,874		-12.3%				30,285				12,398			144.3%
Licensing fees and other income		66,052				71,541		-7.7%				292,417				211,139			38.5%
Marketing Fund Revenue		263,613				172,723		52.6%				715,575				447,275			60.0%
Total Revenue		788,753				624,420		26.3%				2,260,477				1,671,924			35.2%
OPERATING COSTS AND EXPENSES
Selling, general and administrative		325,583				347,249		-6.2%				1,083,877				1,132,254			-4.3%
Depreciation and amortization		1,373				928		48.0%				3,706				2,442			51.8%
Marketing Fund Expenses		263,613				172,723		52.6%				715,575				447,275			60.0%
Total Expense		590,569				520,900		13.4%				1,803,158				1,581,971			14.0%
Income from operations		198,184				103,520		91.4%				457,319				89,953			408.4%
Interest expense		-				-		-				-				-			-
Loan Forgiveness		-				-		-				228,155				-			-
Interest/other income		98				91		7.7%				332				293			13.3%
Income taxes		(65,520	)			-		N/M				(133,020	)			(15,000	)		N/M
NET INCOME	$132,762				$103,611			28.1%			$552,786				$75,246				634.6%
Earnings per share - basic and diluted	$0.02				$0.01			N/M			$0.08				$0.01				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 are the latest financial results for BAB, Inc. (BABB)?

BAB, Inc. reported Q3 2021 revenues of $789,000 and net income of $133,000.

How did BAB, Inc.'s revenue change in Q3 2021 compared to Q3 2020?

Revenue increased by 26.3% in Q3 2021 compared to Q3 2020.

What is BAB, Inc.'s net income for Q3 2021?

The net income for Q3 2021 is $133,000, or $0.02 per share.

What were the operating expenses for BAB, Inc. in Q3 2021?

Operating expenses were $591,000 in Q3 2021, compared to $521,000 in Q3 2020.

Has BAB, Inc. seen any changes in franchise fees?

Yes, franchise area development fee revenue decreased by 12.3%.