BAB, Inc. Reports Year-ended 11/30/22 Results

Rhea-AI Summary

BAB, Inc. (OTCQB: BABB) reported its fiscal year 2022 financial results, revealing a net income of $432,000, or $0.06 per share, a decline from the previous year's net income of $651,000, or $0.09 per share. Revenues increased to $3,287,000, a 7% rise from $3,072,000 in 2021. Operating income improved to $608,000, up 12.2%, despite total operating expenses rising to $2,679,000 from $2,530,000, largely driven by increased marketing expenses. The tax provision rose to $176,000 from $119,000, influenced by prior year non-taxable income related to a PPP loan forgiveness.

Positive

• Revenue increased by 7% to $3,287,000 from $3,072,000.
• Operating income rose to $608,000, a 12.2% improvement from $542,000.

Negative

• Net income decreased by 33.7% from $651,000 in 2021 to $432,000 in 2022.
• Earnings per share fell from $0.09 to $0.06.

DEERFIELD, Ill., Feb. 15, 2023 (GLOBE NEWSWIRE) -- BAB, Inc. (OTCQB: BABB) announced its financial results for its fiscal year-ended November 30, 2022, reporting net income of $432,000, or $0.06 per share. For the year-ended November 30, 2022, BAB, Inc. had revenues of $3,287,000 and net income of $432,000, or $0.06 per share, versus revenues of $3,072,000 and net income of $651,000, or $0.09 per share, for the same period ending November 30, 2021.

Income from operations for fiscal 2022 is $608,000 compared to $542,000 in 2021. The increase in fiscal 2022 income before interest, other and taxes in 2022 was $66,000, or 12.2%. The tax provision expense was $176,000 for the year ended November 30, 2022 compared to $119,000 for the year ended November 30, 2021. The expense was $57,000 higher in 2022, primarily because prior year net income included nontaxable income of $228,000 related to the forgiveness of a Paycheck Protection Program loan.

Total operating expenses for the year ended November 30, 2022, were $2,679,000 versus $2,530,000 for the year ended November 30, 2021. Expenses increased $149,000 in 2022 primarily due to a $100,000 increase in Marketing Fund expenses, $12,000 in professional service fees, $6,000 in travel, $12,000 in employee benefit expense and the balance in general and administrative expenses.

In fiscal 2021 $228,000 was included as other income, classified as debt forgiveness from a Paycheck Protection Program loan (“PPP”) received in fiscal 2021 and 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.

(TABLE FOLLOWS)

BAB, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
	Fiscal Year Ended
		2022				2021			% Change
REVENUES
Royalty fees from franchised stores	$	1,838,276			$	1,678,970			9.5	%
Franchise and area development fee revenue		53,149				49,595			7.2	%
Licensing fees and other income		314,342				362,943			-13.4	%
Marketing Fund revenue		1,081,320				980,630			10.3	%
Total Revenue		3,287,087				3,072,138			7.0	%
OPERATING COSTS AND EXPENSES
Selling, general and administrative		1,593,560				1,544,668			3.2	%
Depreciation and amortization		4,440				5,116			-13.2	%
Marketing Fund expenses		1,081,320				980,630			10.3	%
Total Operating Expense		2,679,320				2,530,414			5.9	%
Income before interest, other and taxes		607,767				541,724			12.2	%
Interest income		412				417			-1.2	%
Loan forgiveness- Paycheck Protection Program loan		-				228,155			100.0	%
Income before provision for income taxes		608,179				770,296			-21.0	%
Current tax expense		(58,601	)			(40,000	)		46.5	%
Deferred tax expense		(117,586	)			(79,174	)		48.5	%
Total Tax Provision		(176,187	)			(119,174	)		47.8	%
Net Income	$	431,992			$	651,122			-33.7	%
Earnings per share - basic and diluted		0.06				0.09
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 year ended November 30, 2022?

BAB, Inc. reported revenues of $3,287,000 and a net income of $432,000, or $0.06 per share.

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

Revenue increased by 7% from $3,072,000 in the previous fiscal year.

What was the change in net income for BAB, Inc. from 2021 to 2022?

Net income decreased by 33.7%, from $651,000 in 2021 to $432,000 in 2022.

What factors contributed to the increase in BAB, Inc.'s operating expenses?

Increased marketing expenses, professional service fees, and employee benefits contributed to the rise in operating expenses.

What is the stock symbol for BAB, Inc.?

The stock symbol for BAB, Inc. is BABB.