BAB, Inc. Reports Profit for 2nd Quarter FY 2013

BAB, Inc. Reports Profit for 2nd Quarter FY 2013

DEERFIELD, Ill.--(BUSINESS WIRE)-- BAB, Inc. (OTCBB: BABB), announced its financial results for the second quarter ended May 31, 2013.

For the quarter ended May 31, 2013, BAB had revenues of $658,000 and net income of $125,000, or $0.02 per share, versus revenues of $826,000 and net income of $267,000, or $0.04 per share, for the same quarter last year. For the quarter ended May 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 quarter ended May 31, 2013.


For the six months ended May 31, 2013, BAB had revenues of $1,193,000 and net income of $60,000, or $0.01 per share, versus revenues of $1,393,000 and net income of $277,000, or $0.04 per share for the same period in 2012. As noted above, the Company received a $171,000 buyout from its Minot, ND franchisee during the six months ended May 31, 2012 versus no such income in the same period in 2013.

Total operating expenses for the quarter ended May 31, 2013, were $531,000, versus $543,000, in 2012. The Company spent $31,000 on the SweetDuet® concept for the quarter ended May 31, 2013, versus $16,000 for the same quarter in 2012. Total operating expenses for the six months ended May 31, 2013 were $1,131,000 versus $1,099,000 for the six months ended May 31, 2012. The Company spent $68,000 on the SweetDuet concept for the six months ended May 31, 2013, versus $16,000 for the same period in 2012.

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

Six Months Ended

05/31/13

05/31/12

% Change

05/31/13

05/31/12

% Change

REVENUES

Royalty fees from franchised stores

$467,525

$489,081

-4.4

%

$887,444

$932,002

-4.8

%

Franchise and area development fee revenue

10,000

37,500

-73.3

%

10,000

42,500

-76.5

%

Licensing fees and other income

180,632

299,205

-39.6

%

295,793

418,776

-29.4

%

Total Revenue

658,157

825,786

-20.3

%

1,193,237

1,393,278

-14.4

%

OPERATING COSTS AND EXPENSES

Selling, general and administrative

527,118

537,766

-2.0

%

1,122,034

1,089,547

3.0

%

Depreciation and amortization

4,367

4,782

-8.7

%

8,711

9,566

-8.9

%

Total Expense

531,485

542,548

-2.0

%

1,130,745

1,099,113

2.9

%

Income from operations

126,672

283,238

-55.3

%

62,492

294,165

-78.8

%

Interest expense

(1,482

)

(1,812

)

-18.2

%

(2,965

)

(3,624

)

-18.2

%

Interest/other income

248

668

-62.9

%

555

1,374

-59.6

%

Current tax

0

(15,000

)

N/M

0

(15,000

)

N/M

NET INCOME

$125,438

$267,094

-53.0

%

$60,082

$276,915

-78.3

%

Earnings per share - basic

$0.02

$0.04

N/M

$0.01

$0.04

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

$0.04

N/M

$0.01

$0.04

N/M

Average number of shares outstanding

7,267,558

7,265,510

7,266,718

7,265,707



BAB, Inc.
Michael K. Murtaugh (847) 948-7520
Fax: (847) 405-8140
www.babcorp.com

KEYWORDS: United States North America Illinois

INDUSTRY KEYWORDS:

The article BAB, Inc. Reports Profit for 2nd Quarter FY 2013 originally appeared on Fool.com.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.