BAB, Inc. Reports Year-ended 11/30/23 Results

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02/16/2024 - 10:00 AM

DEERFIELD, Ill., Feb. 16, 2024 (GLOBE NEWSWIRE) -- BAB, Inc. (OTCQB: BABB) announced its financial results for its fiscal year-ended November 30, 2023, reporting net income of $467,000, or $0.06 per share. For the year-ended November 30, 2023, BAB, Inc. had revenues of $3,510,000 and net income of $467,000, or $0.06 per share, versus revenues of $3,287,000 and net income of $432,000, or $0.06 per share, for the same period ending November 30, 2022.

Income from operations for fiscal 2023 is $615,000 compared to $608,000 in 2022. The increase in income before interest, other and taxes in fiscal 2023 was $7,000, or 1.2%. The tax provision expense was $183,000 for the year ended November 30, 2023 compared to $176,000 for the year ended November 30, 2022. The tax expense was $7,000 higher in 2023 compared to 2022, primarily because of higher interest income in 2023.

Total operating expenses for the year ended November 30, 2023, were $2,895,000 versus $2,679,000 for the year ended November 30, 2022. Expenses increased $216,000 in 2023 primarily due to a $163,000 increase in Marketing Fund expenses, $43,000 in payroll and payroll related expenses, $6,000 in occupancy expense, $7,000 in travel.

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.

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BAB, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS


	Fiscal Year Ended

		2023			2022		% Change
REVENUES

Royalty fees from franchised stores	$	1,944,894		$	1,838,276		5.8	%
Franchise and area development fee revenue		26,999			53,149		-49.2	%
Licensing fees and other income		294,062			314,342		-6.5	%
Marketing Fund revenue		1,243,890			1,081,320		15.0	%
Total Revenue		3,509,845			3,287,087		6.8	%

OPERATING COSTS AND EXPENSES

Selling, general and administrative		1,647,375			1,593,560		3.4	%
Depreciation and amortization		3,807			4,440		-14.3	%
Marketing Fund expenses		1,243,890			1,081,320		15.0	%
Total Operating Expense		2,895,072			2,679,320		8.1	%
Income before interest, other and taxes		614,773			607,767		1.2	%
Interest income		35,548			412		NM	*
Income before provision for income taxes		650,321			608,179		6.9	%

Current tax expense		(155,407	)		(58,601	)	165.2	%
Deferred tax expense		(27,593	)		(117,586	)	-76.5	%
Total Tax Provision		(183,000	)		(176,187	)	3.9	%

Net Income	$	467,321		$	431,992		8.2	%

Earnings per share - basic and diluted		0.06			0.06
Average number of shares outstanding		7,263,508			7,263,508
* comparison not meaningful