BAB, Inc. (OTCQB: BABB), announced its financial results for the third quarter ended August 31, 2016.
For the quarter ended August 31, 2016, BAB had revenues of $616,000 and net income of $165,000, or $0.02 per share, versus revenues of $609,000 and net income of $135,000, or $0.02 per share, for the same quarter last year.
For the nine months ended August 31, 2016, BAB had revenues of $1,761,000 and net income of $386,000, or $0.05 per share, versus revenues of $1,669,000 and net income of $9,000, which resulted in no earnings per share for the same period in 2015. In 2015, an expense of $243,000 was incurred relating to the settlement of a lawsuit against BAB Operations, Inc., a wholly owned subsidiary of BAB, Inc., which involved the 2001 lease assignment of a Company-owned store that was subsequently franchised.
Total operating expenses for the quarter ended August 31, 2016, were $451,000, versus $482,000, in 2015. Total operating expenses for the nine months ended August 31, 2016 were $1,375,000 versus $1,668,000 for the nine months ended August 31, 2015. The operating expenses for the nine months in 2015 include the $243,000 legal settlement as explained in the previous paragraph.
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)
| BAB, INC. | ||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS | ||||||||||||||||||
| Quarter Ended | Nine Months Ended | |||||||||||||||||
| 08/31/16 | 08/31/15 | % Change | 08/31/16 | 08/31/15 | % Change | |||||||||||||
| REVENUES | ||||||||||||||||||
| Royalty fees from franchised stores | $441,949 | $440,960 | 0.2% | $1,298,562 | $1,278,715 | 1.6% | ||||||||||||
| Franchise and area development fee revenue | 60,000 | 50,000 | 20.0% | 78,000 | 80,000 | -2.5% | ||||||||||||
| Licensing fees and other income | 114,181 | 118,351 | -3.5% | 384,885 | 310,746 | 23.9% | ||||||||||||
| Total Revenue | 616,130 | 609,311 | 1.1% | 1,761,447 | 1,669,461 | 5.5% | ||||||||||||
| OPERATING COSTS AND EXPENSES | ||||||||||||||||||
| Selling, general and administrative | 445,412 | 477,890 | -6.8% | 1,359,475 | 1,412,539 | -3.8% | ||||||||||||
| Legal Settlement | - | - | N/M | * | - | 243,046 | N/M | * | ||||||||||
| Depreciation and amortization | 5,167 | 4,176 | 23.7% | 15,183 | 12,703 | 19.5% | ||||||||||||
| Total Expense | 450,579 | 482,066 | -6.5% | 1,374,658 | 1,668,288 | -17.6% | ||||||||||||
| Income from operations | 165,551 | 127,245 | 30.1% | 386,789 | 1,173 | N/M | * | |||||||||||
| Interest expense | (396 | ) | (776 | ) | -49.0% | (1,190 | ) | (2,327 | ) | -48.9% | ||||||||
| Interest/other income | 90 | 306 | -70.6% | 423 | 1,478 | -71.4% | ||||||||||||
| Current tax benefit | - | 8,500 | N/M | * | - | 8,500 | N/M | * | ||||||||||
| NET INCOME | $165,245 | $135,275 | 22.2% | $386,022 | $8,824 | N/M | * | |||||||||||
| Earnings per share - basic and diluted | $0.02 | $0.02 | $0.05 | $0.00 | ||||||||||||||
| Average number of shares outstanding | 7,263,508 | 7,263,508 | 7,263,508 | 7,263,508 | ||||||||||||||
| * N/M not measurable | ||||||||||||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20161007005717/en/
Contacts:
Michael K. Murtaugh, (847) 948-7520
Fax: (847)
405-8140
www.babcorp.com
