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BAB, Inc. Reports Profit for 2nd Quarter FY 2009

Thu Jul 2, 1:58 PM

DEERFIELD, Ill.--(BUSINESS WIRE)--BAB, Inc. (OTCBB: BABB.OB), announced its financial results for its second quarter ended May 31, 2009, reporting net income of $111,000, or $0.02 per share, versus net income of $177,000, or $0.02 per share, for the same quarter last year.

For the quarter ended May 31, 2009, BAB had revenues of $797,000 and net income of $111,000, or $0.02 per share, versus revenues of $945,000 and net income of $177,000, or $0.02 per share, for the same quarter last year.

For the six months ended May 31, 2009, BAB had revenues of $1,575,000 and a net loss of $2,283,000, or ($0.31) per share, versus revenues of $1,917,000 and net income of $320,000, or $0.04 per share for the same period in 2008. Excluding the first quarter 2009 noncash impairment charge for goodwill and other intangibles of $2,399,000, the six months ended May 31, 2009 net income would have been $116,000. There was no impairment charge in 2008.

Total operating expenses for the quarter ended May 31, 2009, were $687,000 versus $772,000 in 2008. YTD May 31, 2009, total operating expenses, excluding the $2,399,000 impairment charge, were $1,462,000 versus $1,610,000 in 2008.

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.

(TABLE FOLLOWS)

BAB, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS


	Quarter Ended						Six Months Ended
	05/31/09		05/31/08		% Change		05/31/09		05/31/08		% Change

REVENUES

Royalty fees from franchised stores	$484,037		$558,487		-13.3	%	$926,672		$1,072,703		-13.6	%
Franchise and area development fee revenue	5,000		35,000		-85.7	%	50,000		140,000		-64.3	%
Net sales by company-owned stores	118,103		137,655		-14.2	%	226,532		253,841		-10.8	%
Licensing fees and other income	190,055		213,951		-11.2	%	371,861		449,997		-17.4	%
	797,195		945,093		-15.6	%	1,575,065		1,916,541		-17.8	%

OPERATING COSTS AND EXPENSES
Food, beverage and paper costs	35,872		45,110		-20.5	%	69,252		84,791		-18.3	%
Store payroll and other operating expenses	109,958		107,528		2.3	%	224,923		226,152		-0.5	%
Selling, general and administrative	532,089		609,841		-12.7	%	3,547,628		1,280,659		177.0	%
Depreciation and amortization	9,556		9,937		-3.8	%	18,828		18,584		1.3	%
	687,475		772,416		-11.0	%	3,860,631		1,610,186		139.8	%

Income from operations	109,720		172,677		N/M		(2,285,566	)	306,355		N/M

Interest expense	(2,714	)	(2,987	)	-9.1	%	(5,427	)	(5,975	)	-9.2	%
Interest/other income	4,446		7,425		-40.1	%	7,748		19,915		-61.1	%

NET INCOME	$111,452		$177,115		N/M		($2,283,245	)	$320,295		N/M

Earnings per share - basic	$0.02		$0.02		N/M		($0.31	)	$0.04		N/M
Average number of shares outstanding	7,263,508		7,263,508				7,263,508		7,263,508

Earnings per share - diluted	$0.02		$0.02		N/M		($0.31	)	$0.04		N/M
Average number of shares outstanding	7,263,508		7,273,305				7,263,508		7,273,579