BAB, Inc. (OTCQB: BABB), announced its financial results for the third quarter ended August 31, 2015.
For the quarter ended August 31, 2015, BAB had revenues of $609,000 and net income of $135,000, or $0.02 per share, versus revenues of $600,000 and net income of $168,000, or $0.02 per share, for the same quarter last year.
For the nine months ended August 31, 2015, BAB had revenues of $1,669,000 and a net income of $9,000, with $0.00 (zero) earnings per share, versus revenues of $1,906,000 and net income of $471,000, or $0.06 per share for the same period in 2014. The Company recognized revenue of $200,000 from an International Master Franchise Agreement in 2014 versus no such agreement in the same period in 2015. In addition, an expense of $243,000 was incurred in 2015 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, 2015, were $482,000, versus $439,000, in 2014. Total operating expenses for the nine months ended August 31, 2015 were $1,668,000 versus $1,425,000 for the nine months ended August 31, 2014. 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 web site can be visited at www.babcorp.com.
(TABLE FOLLOWS)
| BAB, INC. | ||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS | ||||||||||||||||||
| Quarter Ended | Nine Months Ended | |||||||||||||||||
| 08/31/15 | 08/31/14 | % Change | 08/31/15 | 08/31/14 | % Change | |||||||||||||
| REVENUES | ||||||||||||||||||
| Royalty fees from franchised stores | 440,960 | 458,656 | -3.9 | % | 1,278,715 | 1,311,369 | -2.5 | % | ||||||||||
| Franchise and area development fee revenue | 50,000 | 37,500 | 33.3 | % | 80,000 | 272,500 | -70.6 | % | ||||||||||
| Licensing fees and other income | 118,351 | 104,060 | 13.7 | % | 310,746 | 322,559 | -3.7 | % | ||||||||||
| 609,311 | 600,216 | 1.5 | % | 1,669,461 | 1,906,428 | -12.4 | % | |||||||||||
| OPERATING COSTS AND EXPENSES | ||||||||||||||||||
| Selling, general and administrative | 477,890 | 434,018 | 10.1 | % | 1,655,585 | 1,411,277 | 17.3 | % | ||||||||||
| Depreciation and amortization | 4,176 | 4,522 | -7.7 | % | 12,703 | 13,636 | -6.8 | % | ||||||||||
| 482,066 | 438,540 | 9.9 | % | 1,668,288 | 1,424,913 | 17.1 | % | |||||||||||
| Income before interest, other and taxes | 127,245 | 161,676 | -21.3 | % | 1,173 | 481,515 | -99.8 | % | ||||||||||
| Interest expense | (776 | ) | (1,138 | ) | -31.8 | % | (2,327 | ) | (3,412 | ) | -31.8 | % | ||||||
| Interest/other income | 306 | 87 | 251.7 | % | 1,478 | 353 | 318.7 | % | ||||||||||
| Current tax benefit/(expense) | 8,500 | 7,583 | N/M | 8,500 | (7,417 | ) | N/M | |||||||||||
| NET INCOME | 135,275 | 168,208 | -19.6 | % | 8,824 | 471,039 | -98.1 | % | ||||||||||
| Earnings per share - basic | 0.02 | 0.02 | N/M | 0.00 | 0.06 | N/M | ||||||||||||
| Average number of shares outstanding | 7,263,508 | 7,263,508 | 7,263,508 | 7,263,508 | ||||||||||||||
| Earnings per share - diluted | 0.02 | 0.02 | N/M | 0.00 | 0.06 | N/M | ||||||||||||
| Average number of shares outstanding | 7,263,508 | 7,263,508 | 7,263,508 | 7,263,508 | ||||||||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20151006005415/en/
Contacts:
Michael K. Murtaugh, (847) 948-7520
Fax: (847)
405-8140
www.babcorp.com
