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BAB, Inc. Reports Results for 3rd Quarter FY 2020

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BAB, Inc. (OTCQB: BABB) reported third-quarter results for 2020, with revenues of $624,000 and a net income of $104,000, compared to $793,000 and $149,000 for the same quarter in 2019. The decline is attributed to the Coronavirus pandemic affecting franchisee sales. For the first nine months of 2020, revenues were $1,672,000 with a net income of $75,000, down from $2,280,000 and $374,000 in 2019. Operating expenses decreased to $521,000 from $639,000 in the third quarter of 2019. A Payroll Protection Program loan of $228,000 has been received, which is expected to be forgiven.

Positive
  • Decrease in operating expenses from $639,000 to $521,000 in Q3 2020.
  • Franchise fees increased by $2,000 in Q3 2020 compared to Q3 2019.
  • Projected full forgiveness of the $228,000 Payroll Protection Program loan.
Negative
  • Revenues declined to $624,000 in Q3 2020 from $793,000 in Q3 2019.
  • Net income decreased to $104,000 in Q3 2020 from $149,000 in Q3 2019.
  • Total revenues for the first nine months of 2020 fell to $1,672,000 from $2,280,000 in 2019.

DEERFIELD, Ill., Oct. 06, 2020 (GLOBE NEWSWIRE) -- BAB, Inc. (OTCQB: BABB), announced its financial results for the third quarter ended August 31, 2020.

For the quarter ended August 31, 2020, BAB had revenues of $624,000 and net income of $104,000, or $0.01 per share, versus revenues of $793,000 and net income of $149,000, or earnings of $0.02 per share, for the same quarter last year. Royalty revenue, license fees and other income and marketing fund revenue all decreased for the third quarter 2020 because of the effect of the Coronavirus pandemic on franchisee sales. Franchise fees increased $2,000 for the third quarter 2020 versus the same period 2019.

For the nine months ended August 31, 2020, BAB had revenues of $1,672,000 and net income of $75,000, or $0.01 per share, versus revenues of $2,280,000 and net income of $374,000, or $0.05 per share for the same period in 2019. The Coronavirus pandemic which occurred in the second quarter 2020 has affected the revenues and net income, creating lower revenues and reduced net income in 2020 compared to 2019.

Total operating expenses for the quarter ended August 31, 2020, were $521,000, versus $639,000, in 2019. Total operating expenses for the nine months ended August 31, 2020 were $1,582,000 versus $1,891,000 for the nine months ended August 31, 2019.

On May 1, 2020, BAB Systems, Inc., a wholly owned subsidiary of BAB, Inc. received a Payroll Protection Program loan under the CARES Act in the amount of $228,000. The Company has used the funds for payroll and certain other acceptable expenses and believes is it likely that the loan will be forgiven in full.

While the Coronavirus pandemic has created challenges for restaurants around the country, we are proud of our franchisees as they continue to adapt to changing regulations and government mandates. As states begin to open up and ease restrictions we have seen franchise locations total system-wide sales rebound from down approximately 66.8% in week 20 of our fiscal year to down approximately 9.5% in week 44. We are continuing to evaluate the effects of the Coronavirus Pandemic on our operations.

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)

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 Nine Months Ended
 08/31/20 08/31/19 % Change 08/31/20 08/31/19 % Change
            
REVENUES           
            
Royalty fees from franchised stores$375,282 $435,616  -13.9% $1,001,112  $1,228,471  -18.5%
Franchise and area development fee revenue 4,874  3,455  41.1%  12,398   20,281  -38.9%
Licensing fees and other income 71,541  101,165  -29.3%  211,139   293,378  -28.0%
Marketing Fund Revenue 172,723  253,003  -31.7%  447,275   737,623  -39.4%
Total Revenue 624,420  793,239  -21.3%  1,671,924   2,279,753  -26.7%
            
OPERATING COSTS AND EXPENSES           
            
Selling, general and administrative 347,249  385,392  -9.9%  1,132,254   1,151,873  -1.7%
Depreciation and amortization 928  486  90.9%  2,442   1,286  89.9%
Marketing Fund Expenses 172,723  253,003  -31.7%  447,275   737,623  -39.4%
Total Expense 520,900  638,881  -18.5%  1,581,971   1,890,782  -16.3%
            
Income from operations 103,520  154,358  -32.9%  89,953 { "@context": "https://schema.org", "@type": "FAQPage", "name": "BAB, Inc. Reports Results for 3rd Quarter FY 2020 FAQs", "mainEntity": [ { "@type": "Question", "name": "What were BAB, Inc.'s third-quarter financial results for 2020?", "acceptedAnswer": { "@type": "Answer", "text": "For Q3 2020, BAB, Inc. reported revenues of $624,000 and net income of $104,000." } }, { "@type": "Question", "name": "How did the Coronavirus pandemic affect BAB, Inc.'s performance?", "acceptedAnswer": { "@type": "Answer", "text": "The pandemic caused a decline in franchisee sales, resulting in decreased revenues and net income compared to 2019." } }, { "@type": "Question", "name": "What is the total operating expense for BAB, Inc. in Q3 2020?", "acceptedAnswer": { "@type": "Answer", "text": "Total operating expenses in Q3 2020 were $521,000, down from $639,000 in Q3 2019." } }, { "@type": "Question", "name": "What loan did BAB, Inc. receive under the CARES Act?", "acceptedAnswer": { "@type": "Answer", "text": "BAB received a Payroll Protection Program loan of $228,000, which is believed to be likely forgiven." } }, { "@type": "Question", "name": "What was the revenue for the first nine months of 2020 for BAB, Inc.?", "acceptedAnswer": { "@type": "Answer", "text": "For the nine months ended August 31, 2020, BAB had revenues of $1,672,000." } } ] }

FAQ

What were BAB, Inc.'s third-quarter financial results for 2020?

For Q3 2020, BAB, Inc. reported revenues of $624,000 and net income of $104,000.

How did the Coronavirus pandemic affect BAB, Inc.'s performance?

The pandemic caused a decline in franchisee sales, resulting in decreased revenues and net income compared to 2019.

What is the total operating expense for BAB, Inc. in Q3 2020?

Total operating expenses in Q3 2020 were $521,000, down from $639,000 in Q3 2019.

What loan did BAB, Inc. receive under the CARES Act?

BAB received a Payroll Protection Program loan of $228,000, which is believed to be likely forgiven.

What was the revenue for the first nine months of 2020 for BAB, Inc.?

For the nine months ended August 31, 2020, BAB had revenues of $1,672,000.

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6.12M
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Packaged Foods
Consumer Defensive
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United States of America
Deerfield