DEERFIELD, Ill.--(BUSINESS WIRE)--BAB, Inc. (OTCBB: BABB), announced its financial results for the second quarter ended May 31, 2011.
For the quarter ended May 31, 2011, BAB had revenues of $793,000 and net income of $144,000, or $0.02 per share, versus revenues of $710,000 and net income of $111,000, or $0.02 per share, for the same quarter last year.
For the six months ended May 31, 2011, BAB had revenues of $1,512,000 and net income of $179,000, or $0.02 per share, versus revenues of $1,357,000 and net income of $131,000, or $0.02 per share for the same period in 2010.
Total operating expenses for the quarter ended May 31, 2011, were $648,000, 81.7% of net sales, versus $598,000, 84.2% of net sales, in 2010. For the six months ended May 31, 2011 total operating expenses were $1,331,000, 88.0% of net sales, versus $1,224,000, 90.2% of net sales, YTD 5/31/10.
BAB, Inc. operates, franchises, and licenses Big Apple Bagels ®, My Favorite Muffin ® Jacobs Bros. Bagels ® 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.
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 STATEMENT OF OPERATIONS | ||||||||||||||||||
| Quarter Ended | Six Months Ended | |||||||||||||||||
| 05/31/11 | 05/31/10 | % Change | 05/31/11 | 05/31/10 | % Change | |||||||||||||
| REVENUES | ||||||||||||||||||
| Royalty fees from franchised stores | $463,424 | $449,936 | 3.0 | % | $862,644 | $857,551 | 0.6 | % | ||||||||||
| Franchise and area development fee revenue | 60,000 | 0 | N/M | 144,300 | 25,000 | 477.2 | % | |||||||||||
| Net sales by company-owned stores | 105,962 | 116,138 | -8.8 | % | 199,695 | 220,868 | -9.6 | % | ||||||||||
| Licensing fees and other income | 163,383 | 143,715 | 13.7 | % | 305,742 | 253,951 | 20.4 | % | ||||||||||
| 792,769 | 709,789 | 11.7 | % | 1,512,381 | 1,357,370 | 11.4 | % | |||||||||||
| OPERATING COSTS AND EXPENSES | ||||||||||||||||||
| Food, beverage and paper costs | 36,291 | 34,321 | 5.7 | % | 69,153 | 64,063 | 7.9 | % | ||||||||||
| Store payroll and other operating expenses | 65,605 | 68,194 | -3.8 | % | 132,851 | 152,006 | -12.6 | % | ||||||||||
| Selling, general and administrative | 538,684 | 488,769 | 10.2 | % | 1,114,874 | 995,093 | 12.0 | % | ||||||||||
| Depreciation and amortization | 6,963 | 6,951 | 0.2 | % | 14,386 | 13,052 | 10.2 | % | ||||||||||
| 647,543 | 598,235 | 8.2 | % | 1,331,264 | 1,224,214 | 8.7 | % | |||||||||||
| Income from operations | 145,226 | 111,554 | 30.2 | % | 181,117 | 133,156 | 36.0 | % | ||||||||||
| Interest expense | (2,127 | ) | (2,427 | ) | -12.4 | % | (4,253 | ) | (4,854 | ) | -12.4 | % | ||||||
| Interest/other income | 958 | 1,414 | -32.2 | % | 2,048 | 2,993 | -31.6 | % | ||||||||||
| NET INCOME | $144,057 | $110,541 | 30.3 | % | $178,912 | $131,295 | 36.3 | % | ||||||||||
| Earnings per share - basic and fully diluted | $0.02 | $0.02 | N/M | $0.02 | $0.02 | N/M | ||||||||||||
| Average number of shares outstanding | 7,263,508 | 7,263,508 | 7,263,508 | 7,263,508 | ||||||||||||||