Franchisors - Transcend The Ordinary! Reach Your Target Audience With The Franchise Marketing Solutions Network! learn more

BAB, Inc. Reports Results for 3RD Quarter FY 2021

DEERFIELD, Ill., Oct. 07, 2021 // FranchiseMarketingSolutions.com // – BAB, Inc. (OTCQB: BABB), announced its financial results for the third quarter ended August 31, 2021.

For the quarter ended August 31, 2021, BAB had revenues of $789,000 and net income of $133,000, or $0.02 per share, versus revenues of $624,000 and net income of $104,000, or earnings of $0.01 per share, for the same quarter last year.

Royalty revenue and Marketing Fund revenue increased in the third quarter 2021, primarily because of state restrictions being lifted relating to COVID-19 for restaurants and more on-line, curb-side and delivery options instituted by franchisees in late 2020 and 2021 compared to initial months of the COVID-19 pandemic that occurred in the second and third quarters 2020.

For the nine months ended August 31, 2020, BAB had revenues of $2,260,000 and net income of $553,000, or $0.08 per share, versus revenues of $1,672,000 and net income of $75,000, or $0.01 per share for the same period in 2020. Net income in 2021 includes $228,155 of non-taxable loan forgiveness from the Payroll Protection Program loan enacted under the CARES Act in 2020. The loan was forgiven in the first quarter of 2021.

Total operating expenses for the quarter ended August 31, 2021, were $591,000, versus $521,000, in 2020. Total operating expenses for the nine months ended August 31, 2021 were $1,803,000 versus $1,582,000 for the nine months ended August 31, 2020. The primary change in operating expenses for the quarter and nine months was the increase in Marketing Fund expenses in 2021 of $91,000 for the quarter and $269,000 for the nine months compared to 2020.

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.

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.

BAB, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

	Quarter Ended						Nine Months Ended
	08/31/21			08/31/20		% Change	08/31/21			08/31/20			% Change

REVENUES

Royalty fees from franchised stores	$454,814			$375,282		21.2%	$1,222,200			$1,001,112			22.1%
Franchise and area development fee revenue		4,274			4,874	-12.3%		30,285			12,398		144.3%
Licensing fees and other income		66,052			71,541	-7.7%		292,417			211,139		38.5%
Marketing Fund Revenue		263,613			172,723	52.6%		715,575			447,275		60.0%
Total Revenue		788,753			624,420	26.3%		2,260,477			1,671,924		35.2%

OPERATING COSTS AND EXPENSES

Selling, general and administrative		325,583			347,249	-6.2%		1,083,877			1,132,254		-4.3%
Depreciation and amortization		1,373			928	48.0%		3,706			2,442		51.8%
Marketing Fund Expenses		263,613			172,723	52.6%		715,575			447,275		60.0%
Total Expense		590,569			520,900	13.4%		1,803,158			1,581,971		14.0%

Income from operations		198,184			103,520	91.4%		457,319			89,953		408.4%
Interest expense		–			–	–		–			–		–
Loan Forgiveness		–			–	–		228,155			–		–
Interest/other income		98			91	7.7%		332			293		13.3%
Income taxes		(65,520	)		–	N/M		(133,020	)		(15,000	)	N/M

NET INCOME	$132,762			$103,611		28.1%	$552,786			$75,246			634.6%

Earnings per share – basic and diluted	$0.02			$0.01		N/M	$0.08			$0.01			N/M
Average number of shares outstanding		7,263,508			7,263,508			7,263,508			7,263,508

SOURCE BAB, Inc.

###

The franchising information contained in this website is not intended as an offer to sell a franchise or the solicitation of an offer to buy a franchise. The following states and provinces regulate the offer and sale of franchises and/or business opportunities: Alabama, California, Connecticut, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Michigan, Minnesota, Nebraska, New Hampshire, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Rhode Island, South Carolina, South Dakota, Texas, Utah, Virginia, Washington and Wisconsin in the United States, and the provinces of Alberta, Ontario, New Brunswick, and Prince Edward Island in Canada. If you are a resident of one of these states or provinces, our sponsors will not offer or sell you a franchise unless and until they have complied with the applicable pre-sale registration and disclosure requirements in your state or province. Franchise Marketing Solutions does not sell or endorse any franchise company that may appear on or be recommended by the services provided by this website.