DEERFIELD, Ill., Feb. 15, 2023 (GLOBE NEWSWIRE) -- BAB, Inc. (OTCQB: BABB) announced its financial results for its fiscal year-ended November 30, 2022, reporting net income of $432,000, or $0.06 per share. For the year-ended November 30, 2022, BAB, Inc. had revenues of $3,287,000 and net income of $432,000, or $0.06 per share, versus revenues of $3,072,000 and net income of $651,000, or $0.09 per share, for the same period ending November 30, 2021.
Income from operations for fiscal 2022 is $608,000 compared to $542,000 in 2021. The increase in fiscal 2022 income before interest, other and taxes in 2022 was $66,000, or 12.2%. The tax provision expense was $176,000 for the year ended November 30, 2022 compared to $119,000 for the year ended November 30, 2021. The expense was $57,000 higher in 2022, primarily because prior year net income included nontaxable income of $228,000 related to the forgiveness of a Paycheck Protection Program loan.
Total operating expenses for the year ended November 30, 2022, were $2,679,000 versus $2,530,000 for the year ended November 30, 2021. Expenses increased $149,000 in 2022 primarily due to a $100,000 increase in Marketing Fund expenses, $12,000 in professional service fees, $6,000 in travel, $12,000 in employee benefit expense and the balance in general and administrative expenses.
In fiscal 2021 $228,000 was included as other income, classified as debt forgiveness from a Paycheck Protection Program loan (“PPP”) received in fiscal 2021 and forgiven in full on December 8, 2020.
BAB, Inc. franchises and licenses Big Apple Bagels®, My Favorite Muffin®, SweetDuet® and Brewster’s® Coffee. The Company’s stock is traded on the OTCQB under the symbol BABB and its web site can be visited at www.babcorp.com.
(TABLE FOLLOWS)
| BAB, INC. | |||||||||||
| CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS | |||||||||||
| Fiscal Year Ended | |||||||||||
| 2022 | 2021 | % Change | |||||||||
| REVENUES | |||||||||||
| Royalty fees from franchised stores | $ | 1,838,276 | $ | 1,678,970 | 9.5 | % | |||||
| Franchise and area development fee revenue | 53,149 | 49,595 | 7.2 | % | |||||||
| Licensing fees and other income | 314,342 | 362,943 | -13.4 | % | |||||||
| Marketing Fund revenue | 1,081,320 | 980,630 | 10.3 | % | |||||||
| Total Revenue | 3,287,087 | 3,072,138 | 7.0 | % | |||||||
| OPERATING COSTS AND EXPENSES | |||||||||||
| Selling, general and administrative | 1,593,560 | 1,544,668 | 3.2 | % | |||||||
| Depreciation and amortization | 4,440 | 5,116 | -13.2 | % | |||||||
| Marketing Fund expenses | 1,081,320 | 980,630 | 10.3 | % | |||||||
| Total Operating Expense | 2,679,320 | 2,530,414 | 5.9 | % | |||||||
| Income before interest, other and taxes | 607,767 | 541,724 | 12.2 | % | |||||||
| Interest income | 412 | 417 | -1.2 | % | |||||||
| Loan forgiveness- Paycheck Protection Program loan | - | 228,155 | 100.0 | % | |||||||
| Income before provision for income taxes | 608,179 | 770,296 | -21.0 | % | |||||||
| Current tax expense | (58,601 | ) | (40,000 | ) | 46.5 | % | |||||
| Deferred tax expense | (117,586 | ) | (79,174 | ) | 48.5 | % | |||||
| Total Tax Provision | (176,187 | ) | (119,174 | ) | 47.8 | % | |||||
| Net Income | $ | 431,992 | $ | 651,122 | -33.7 | % | |||||
| Earnings per share - basic and diluted | 0.06 | 0.09 | |||||||||
| Average number of shares outstanding | 7,263,508 | 7,263,508 | |||||||||
Contact:
BAB, Inc.
Michael K. Murtaugh (847) 948-7520
Fax: (847) 405-8140
www.babcorp.com
