BAB, Inc. Reports Year-ended 11/30/20 Results

Rhea-AI Summary

BAB, Inc. (OTCQB: BABB) reported a financial loss of $66,000, or $0.01 per share, for the fiscal year ending November 30, 2020, compared to a profit of $449,000 or $0.06 per share in 2019. Revenues decreased by 22.7% to $2,372,000, primarily due to declines in royalty fees and licensing income. Operating income fell to $233,000, adversely impacted by a noncash deferred tax expense of $285,000. The company received and fully forgave a Payroll Protection Program loan of $228,000. Total operating expenses increased to $2,596,000 from $2,138,000 in the previous year.

Positive

• Total operating expenses decreased by 17.6% to $2,138,142.
• Received and forgave a Payroll Protection Program loan of $228,000.

Negative

• Reported a net loss of $66,000 compared to a net income of $449,000 in the prior year.
• Total revenues declined by 22.7% to $2,372,000 from $3,070,000.
• Income from operations decreased by 50.7% to $233,000.
• Deferred tax adjustments resulted in a noncash expense of $285,000.

DEERFIELD, Ill., Feb. 12, 2021 (GLOBE NEWSWIRE) -- BAB, Inc. (OTCQB: BABB) announced its financial results for its fiscal year-ended November 30, 2020, reporting a loss of $66,000, or $0.01 per share. For the year-ended November 30, 2020, BAB, Inc. had revenues of $2,372,000 and a loss of $66,000, or $0.01 per share, versus revenues of $3,070,000 and net income of $449,000, or $0.06 per share, for the same period in 2019.

Income from operations for fiscal 2020 is $233,000 compared to $473,000 in 2019. In fiscal 2020 a deferred tax asset was reversed in the amount of $200,000 and a deferred tax liability was recorded in the amount of $85,000 creating a noncash deferred tax expense of $285,000 which reduced the operating income from $233,000 to a net loss of $66,000. The tax adjustments that affected net income were due to Federal net operating losses (NOLs) that were unused and expired in 2020. All NOLs did not expire in 2020.

Total operating expenses for the year ended November 30, 2019, were $2,138,000 versus $2,596,000 for the year ended November 30, 2019.

During fiscal 2020 BAB Systems, Inc., a wholly owned subsidiary of BAB, Inc. received a Payroll Protection Program loan (“PPP”) in the amount of $228,000 which was forgiven in full on December 8, 2020.

BAB, Inc. franchises and licenses Big Apple Bagels®, My Favorite Muffin®, SweetDuet® and Brewster’s® Coffee. The Company’s stock is traded on the OTCQB under the symbol BABB and its web site can be visited at www.babcorp.com.

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Contact:	BAB, Inc.
	Michael K. Murtaugh (847) 948-7520
	Fax: (847) 405-8140
	www.babcorp.com

BAB, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
	Fiscal Year Ended
		2020				2019			% Change
REVENUES
Royalty fees from franchised stores	$	1,379,153			$	1,645,639			-16.2	%
Franchise and area development fee revenue		21,955				33,817			-35.1	%
Licensing fees and other income		298,766				402,293			-25.7	%
Marketing Fund revenue		671,659				987,943			-32.0	%
Total Revenue		2,371,533				3,069,692			-22.7	%
OPERATING COSTS AND EXPENSES
Selling, general and administrative		1,462,921				1,606,211			-8.9	%
Depreciation and amortization		3,562				2,057			73.2	%
Marketing Fund expenses		671,659				987,943			-32.0	%
Total Operating Expense		2,138,142				2,596,211			-17.6	%
Income before interest, other and taxes		233,391				473,481			-50.7	%
Interest and other income		378				612
Income before provision for income taxes		233,769				474,093			-50.7	%
Current tax expense		(15,000	)			(25,000	)		-40.0	%
Deferred tax expense		(284,940	)			-			NA
Total Tax Provision		(299,940	)			(25,000	)
Net (Loss)/Income	$	(66,171	)		$	449,093			-114.7	%
(Loss)/Earnings per share - basic and diluted		(0.01	)			0.06
Average number of shares outstanding		7,263,508				7,263,508

FAQ

What were BAB, Inc.'s financial results for the fiscal year ended November 30, 2020?

BAB, Inc. reported a net loss of $66,000, or $0.01 per share, with revenues of $2,372,000.

How much did BAB, Inc. earn in the previous year compared to 2020?

In 2019, BAB, Inc. reported a net income of $449,000, indicating a significant decline in 2020.

What contributed to the losses reported by BAB, Inc. in 2020?

The losses were primarily due to a 22.7% drop in revenues and a significant deferred tax expense.

Did BAB, Inc. receive any financial assistance during 2020?

Yes, BAB, Inc. received a Payroll Protection Program loan of $228,000, which was fully forgiven.

What is the stock symbol for BAB, Inc.?

The stock symbol for BAB, Inc. is BABB, traded on the OTCQB.