BAB, Inc. (OTCQB: BABB), announced its financial results for the third quarter ended August 31, 2016.
For the quarter ended August 31, 2016, BAB had revenues of $616,000 and net income of $165,000, or $0.02 per share, versus revenues of $609,000 and net income of $135,000, or $0.02 per share, for the same quarter last year.
For the nine months ended August 31, 2016, BAB had revenues of $1,761,000 and net income of $386,000, or $0.05 per share, versus revenues of $1,669,000 and net income of $9,000, which resulted in no earnings per share for the same period in 2015. In 2015, an expense of $243,000 was incurred 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, 2016, were $451,000, versus $482,000, in 2015. Total operating expenses for the nine months ended August 31, 2016 were $1,375,000 versus $1,668,000 for the nine months ended August 31, 2015. 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.
|CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS|
|Quarter Ended||Nine Months Ended|
|08/31/16||08/31/15||% Change||08/31/16||08/31/15||% Change|
|Royalty fees from franchised stores||$441,949||$440,960||0.2%||$1,298,562||$1,278,715||1.6%|
|Franchise and area development fee revenue||60,000||50,000||20.0%||78,000||80,000||-2.5%|
|Licensing fees and other income||114,181||118,351||-3.5%||384,885||310,746||23.9%|
|OPERATING COSTS AND EXPENSES|
|Selling, general and administrative||445,412||477,890||-6.8%||1,359,475||1,412,539||-3.8%|
|Depreciation and amortization||5,167||4,176||23.7%||15,183||12,703||19.5%|
|Income from operations||165,551||127,245||30.1%||386,789||1,173||N/M||*|
|Current tax benefit||-||8,500||N/M||*||-||8,500||N/M||*|
|Earnings per share - basic and diluted||$0.02||$0.02||$0.05||$0.00|
|Average number of shares outstanding||7,263,508||7,263,508||7,263,508||7,263,508|
|* N/M not measurable|
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