BAB, Inc. Reports Year-ended 11/30/21 Results

Rhea-AI Summary

BAB, Inc. (OTCQB: BABB) reported financial results for the fiscal year ending November 30, 2021, with revenues of $3,072,000 and net income of $651,000 ($0.09 per share), a significant turnaround from a loss of $66,000 in the prior year. Operating income improved to $542,000 from $233,000. Total operating expenses rose to $2,530,000, mainly due to increased marketing costs. The company also recognized $228,000 in debt forgiveness from the Paycheck Protection Program. The results reflect resilience, overcoming ongoing Covid-19 challenges.

Positive

• Revenues increased by 29.5% YoY to $3,072,000.
• Net income turned positive at $651,000 compared to a loss of $66,000 in the previous year.
• Operating income improved significantly from $233,000 to $542,000.
• Debt forgiveness of $228,000 positively impacted other income.

Negative

• Total operating expenses increased by $392,000 to $2,530,000, primarily driven by higher marketing costs.

DEERFIELD, Ill., Feb. 09, 2022 (GLOBE NEWSWIRE) -- BAB, Inc. (OTCQB: BABB) announced its financial results for its fiscal year-ended November 30, 2021, reporting net income of $651,000, or $0.09 per share. For the year-ended November 30, 2021, BAB, Inc. had revenues of $3,072,000 and net income of $651,000, or $0.09 per share, versus revenues of $2,372,000 and a loss of $66,000, or a loss of $0.01 per share, for the same period ending November 30, 2020.

Income from operations for fiscal 2021 is $542,000 compared to $233,000 in 2020. In fiscal 2021, even though Covid and Covid variants continued through the year, our net operating income before interest, other and taxes, exceeded 2019 by $68,000. The tax provision expense was $119,000 for the year ended November 30, 2021 compared to $300,000 for the year ended November 30, 2020. The expense was $181,000 higher in 2020, due to an adjustment of the estimate of utilizable net operating losses in future years, resulting in a decrease in the related deferred tax asset, and an ending net deferred tax liability as of November 30, 2020.

Total operating expenses for the year ended November 30, 2021, were $2,530,000 versus $2,138,000 for the year ended November 30, 2020. Expenses increased $392,000 in 2021 primarily due to a $309,000 increase in Marketing Fund expenses and the balance in general and administrative expenses.

During fiscal 2020 BAB Systems, Inc., a wholly owned subsidiary of BAB, Inc. received a Paycheck Protection Program loan (“PPP”) in the amount of $228,000 which was forgiven in full on December 8, 2020. In fiscal 2021 the $228,000 was included as other income, classified as debt forgiveness.

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.

BAB, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
	Fiscal Year Ended
		2021				2020			% Change
REVENUES
Royalty fees from franchised stores	$	1,678,970			$	1,379,153			21.7	%
Franchise and area development fee revenue		49,595				21,955			125.9	%
Licensing fees and other income		362,943				298,766			21.5	%
Marketing Fund revenue		980,630				671,659			46.0	%
Total Revenue		3,072,138				2,371,533			29.5	%
OPERATING COSTS AND EXPENSES
Selling, general and administrative		1,544,668				1,462,921			5.6	%
Depreciation and amortization		5,116				3,562			43.6	%
Marketing Fund expenses		980,630				671,659			46.0	%
Total Operating Expense		2,530,414				2,138,142			18.3	%
Income before interest, other and taxes		541,724				233,391			132.1	%
Interest income		417				378
Debt forgiveness- Paycheck Protection Program loan		228,155				-
Income before provision for income taxes		770,296				233,769			229.5	%
Current tax expense		(40,000	)			(15,000	)		166.7	%
Deferred tax expense		(79,174	)			(284,940	)		-72.2	%
Total Tax Provision		(119,174	)			(299,940	)		-60.3	%
Net Income/(Loss)	$	651,122			$	(66,171	)		-1084.0	%
Earnings/(Loss) per share - basic and diluted		0.09				(0.01	)
Average number of shares outstanding		7,263,508				7,263,508

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

FAQ

What were BAB, Inc.'s financial results for the fiscal year ending November 30, 2021?

BAB, Inc. reported revenues of $3,072,000 and net income of $651,000, or $0.09 per share.

How did BAB, Inc.'s revenues change compared to the previous year?

Revenues increased by 29.5% from $2,372,000 in the previous year.

What was the net income for BAB, Inc. for the fiscal year 2021?

The net income for BAB, Inc. was $651,000, a significant improvement from a loss of $66,000 in fiscal 2020.

Did BAB, Inc. receive any financial assistance during fiscal 2021?

Yes, BAB, Inc. recognized $228,000 in debt forgiveness from the Paycheck Protection Program in fiscal 2021.

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

Total operating expenses were $2,530,000, up from $2,138,000 in fiscal 2020.