BAB, Inc. Reports Profit for 3rd Quarter FY 2013

By: Big Apple Bagels, Inc. (BAB) | 0 Shares 190 Reads

DEERFIELD, Ill. - October 09, 2013 - (BUSINESS WIRE) - BAB, Inc. (OTCBB: BABB) announced its financial results for its third quarter ended August 31, 2013.

For the quarter ended August 31, 2013, BAB had revenues of $617,000 and net income of $108,000, or $0.01 per share, versus revenues of $587,000 and net income of $63,000, or $0.01 per share, for the same quarter last year.

For the nine months ended August 31, 2013, BAB had revenues of $1,810,000 and net income of $168,000, or $0.02 per share, versus revenues of $1,980,000 and net income of $340,000 or $0.05 per share for the same period in 2012. For the nine months ended August 31, 2012, the Company received a $171,000 payment for the buyout of the Franchise Agreement from its Minot, ND franchisee so the franchisee could pursue its other business interests associated with the local energy boom. In that acceptance by the Company of the voluntary buyout is unique, no such transaction occurred nor was such income earned in the nine months ended August 31, 2013.

Total operating expense for the quarter ended August 31, 2013, was $489,000 versus $523,000 in 2012. For the nine months ended August 31, 2013, total operating expense was $1,620,000 versus $1,622,000 in 2012.

About BAB, Inc.

BAB, Inc. franchises and licenses Big Apple Bagels®, My Favorite Muffin®, SweetDuet Frozen Yogurt & Gourmet Muffins® and Brewster’s® Coffee. The Company’s stock is traded on the OTCBB 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
	08/31/13	08/31/12	% Change	08/31/13	08/31/12	% Change

REVENUES

Royalty fees from franchised stores	446,603	463,113	-3.6%	1,334,047	1,395,115	-4.4%
Franchise and area development fee revenue	35,000	5,000	600.0%	45,000	47,500	-5.3%
Licensing fees and other income	135,143	118,826	13.7%	430,935	537,602	-19.8%
Total Revenue	616,746	586,939	5.1%	1,809,982	1,980,217	-8.6%

OPERATING EXPENSES

Selling, general and administrative	485,054	517,961	-6.4%	1,607,088	1,607,508	0.0%
Depreciation and amortization	4,367	4,713	-7.3%	13,078	14,279	-8.4%
Total Operating Expense	489,421	522,674	-6.4%	1,620,166	1,621,787	-0.1%

Income before interest, other and taxes	127,325	64,265	98.1%	189,816	358,430	-47.0%

Interest expense	(1,483)	(1,812)	-18.2%	(4,447)	(5,436)	-18.2%
Interest/other income	213	770	-72.3%	768	2,144	-64.2%

Current tax expense	(17,795)	0	N/M	(17,795)	(15,000)	N/M

NET INCOME	108,260	63,223	71.2%	168,342	340,138	-50.5%

Earnings per share - basic	0.01	0.01	N/M	0.02	0.05	N/M
Average number of shares outstanding	7,263,508	7,263,508		7,263,508	7,263,508

Earnings per share - diluted	0.01	0.01	N/M	0.02	0.05	N/M
Average number of shares outstanding	7,269,680	7,265,934		7,267,880	7,265,786