Message #7 From:
Stock News Bot Date: October 7, 2005 03:08:00 AM
BABB News BAB, Inc. Reports Profit for 3rd Quarter 2005
DEERFIELD, Ill.--(BUSINESS WIRE)--Oct. 7, 2005--BAB, Inc. (OTCBB:BABB), operator and franchisor of Big Apple Bagels, My Favorite Muffin and Brewster's Coffee, today announced the financial results for its third quarter ended August 31, 2005, reporting net income of $147,600.
For the quarter ended August 31, 2005, BAB had revenues of $1,265,600 and net income of $147,600, or $0.02 per share, versus revenues of $1,411,000 and net income of $308,400, or $0.04 per share, for the same quarter last year. This is the 16th consecutive quarter BAB earned a net profit.
For the nine months ended August 31, 2005, BAB had revenues of $3,913,900 and net income of $530,300, or $0.07 per share, versus revenues of $4,292,800 and net income of $520,500, or $0.07 per share for the same period in 2004. YTD August 31, 2005, total operating costs were $3,355,800, or 85.7% of revenues, versus $3,714,600, or 86.5% in 2004.
The Company paid cash dividends of $717,200 and reduced debt by $248,400 over the past year ending August 31, 2005, while maintaining its cash position - cash was $2,213,300 at August 31, 2005 versus $2,266,400 at August 31, 2004.
BAB, Inc. operates, franchises, and licenses Big Apple Bagels (R), My Favorite Muffin (R) and Brewster's (R) 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
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Quarter Ended
08/31/05 08/31/04 % Change
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REVENUES
Net sales by company-owned stores 370,594 395,463 -6.3%
Royalty fees from franchised stores 581,675 596,574 -2.5%
Franchise and area development fee
revenue 40,000 145,235 -72.5%
Licensing fees and other income 273,368 273,758 -0.1%
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1,265,637 1,411,030 -10.3%
OPERATING COSTS AND EXPENSES
Food, beverage and paper costs 136,030 132,054 3.0%
Store payroll and other operating
expenses 316,565 389,824 -18.8%
Selling, general and administrative 635,903 534,580 19.0%
Depreciation and amortization 21,106 26,385 -20.0%
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1,109,604 1,082,843 2.5%
Income before interest, other and
taxes 156,033 328,187 N/M
Interest expense 10,696 22,498 -52.5%
Interest/other income 2,249 2,728 -17.6%
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NET INCOME 147,586 308,417 N/M
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Earnings per share - basic 0.02 0.04 N/M
Average number of shares outstanding 7,208,946 7,021,373
Earnings per share - diluted 0.02 0.04 N/M
Average number of shares outstanding 7,250,558 7,187,315
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Nine Months Ended
08/31/05 08/31/04 % Change
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REVENUES
Net sales by company-owned stores 1,115,622 1,404,043 -20.5%
Royalty fees from franchised stores 1,703,786 1,750,789 -2.7%
Franchise and area development fee
revenue 147,500 293,680 -49.8%
Licensing fees and other income 946,969 844,324 12.2%
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3,913,877 4,292,836 -8.8%
OPERATING COSTS AND EXPENSES
Food, beverage and paper costs 388,332 464,520 -16.4%
Store payroll and other operating
expenses 939,213 1,302,678 -27.9%
Selling, general and administrative 1,964,747 1,816,042 8.2%
Depreciation and amortization 63,507 131,386 -51.7%
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3,355,799 3,714,626 -9.7%
Income before interest, other and
taxes 558,078 578,210 N/M
Interest expense 34,363 69,208 -50.3%
Interest/other income 6,592 11,451 -42.4%
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NET INCOME 530,307 520,453 N/M
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Earnings per share - basic 0.07 0.07 N/M
Average number of shares outstanding 7,175,427 6,940,199
Earnings per share - diluted 0.07 0.07 N/M
Average number of shares outstanding 7,245,677 7,106,141
