For the quarter ended August 31, 2007, BAB had revenues of $982,000 and net income of $237,000, or $0.03 per share, versus revenues of $945,000 and restated net income of $242,000, or $0.03 per share, for the same quarter last year.
The Company had to restate its quarter ending August 31, 2006, for comparability purposes as a result of adopting SEC Staff Accounting Bulletin No. 108 (SAB 108), which resulted in decreasing selling, general and administrative expenses for the quarter ending August 31, 2006, by $5,000 with a corresponding increase in net income of $5,000. This had no impact on earnings per share. In addition, the Company recorded a $9,000 non-cash expense in the quarter ended August 31, 2007, for adoption of SFAS 123 (R) related to stock options.
For the nine months ended August 31, 2007, BAB had revenues of $2,970,000 and net income of $598,000, or $0.08 per share, versus revenues of $2,970,000 and restated net income of $624,000, or $0.09 per share for the same period in 2006. In addition, the Company recorded a $26,000 non-cash expense for the nine months ended August 31, 2007, for adoption of SFAS 123 (R) related to stock options.
Total operating expenses for the quarter ended August 31, 2007, were $758,000 versus $717,000 in 2006. Total operating expenses for the nine months ended August 31, 2007, were $2,412,000 versus $2,357,000 in 2006.
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 | Nine Months Ended | ||||||||||
| 08/31/07 | 08/31/06 |
% |
08/31/07 | 08/31/06 |
% | ||||||
| REVENUES | |||||||||||
| Net sales by company-owned stores | 124,408 | 116,282 | 7.0% | 357,770 | 384,523 | -7.0% | |||||
| Royalty fees from franchised stores | 557,467 | 591,519 | -5.8% | 1,656,363 | 1,715,490 | -3.4% | |||||
| Franchise and area development fee revenue | 70,000 | 20,000 | 250.0% | 195,000 | 225,500 | -13.5% | |||||
| Licensing fees and other income | 230,147 | 217,158 | 6.0% | 761,365 | 644,153 | 18.2% | |||||
| 982,022 | 944,959 | 3.9% | 2,970,498 | 2,969,666 | 0.0% | ||||||
| OPERATING COSTS AND EXPENSES | |||||||||||
| Food, beverage and paper costs | 41,120 | 35,893 | 14.6% | 113,069 | 123,779 | -8.7% | |||||
| Store payroll and other operating expenses | 111,481 | 108,822 | 2.4% | 335,525 | 369,815 | -9.3% | |||||
| Selling, general and administrative | 597,341 | 554,698 | 7.7% | 1,927,691 | 1,811,634 | 6.4% | |||||
| Depreciation and amortization | 8,432 | 17,229 | -51.1% | 35,227 | 51,797 | -32.0% | |||||
| 758,374 | 716,642 | 5.8% | 2,411,512 | 2,357,025 | 2.3% | ||||||
| Income before interest, other and taxes | 223,648 | 228,317 | -2.0% | 558,986 | 612,641 | -8.8% | |||||
| Interest expense | 3,357 | 7,067 | -52.5% | 12,531 | 23,686 | -47.1% | |||||
| Interest/other income | 16,618 | 20,421 | -18.6% | 51,337 | 34,713 | 47.9% | |||||
| NET INCOME | 236,909 | 241,671 | -2.0% | 597,792 | 623,668 | -4.1% | |||||
| Earnings per share - basic | 0.03 | 0.03 | N/M | 0.08 | 0.09 | N/M | |||||
| Average number of shares outstanding | 7,263,099 | 7,222,932 | 7,261,048 | 7,222,436 | |||||||
| Earnings per share - diluted | 0.03 | 0.03 | N/M | 0.08 | 0.09 | N/M | |||||
| Average number of shares outstanding | 7,282,574 | 7,255,733 | 7,278,535 | 7,258,862 | |||||||
BAB, Inc.
Michael K. Murtaugh, 847-948-7520
Fax: 847-405-8140
www.babcorp.com