Replies to post #162790 on Value Microcaps Motherboard

[hweb2]

BABB had a solid earnings report this week. Fiscal Q3 earnings of .02/share vs. .01/share last year. Stock is near the bottom of its 52-week range and pays out a very attractive 5.5% dividend yield.


BAB, Inc. Reports Profit for 3rd Quarter FY 2014
Business Wire
BAB, Inc. October 2, 2014 12:54 PM


DEERFIELD, Ill.--(BUSINESS WIRE)--

BAB, Inc. (BABB), announced its financial results for the third quarter ended August 31, 2014.

For the quarter ended August 31, 2014, BAB had revenues of $600,000 and net income of $168,000, or $0.02 per share, versus revenues of $617,000 and net income of $108,000, or $0.01 per share, for the same quarter last year.

For the nine months ended August 31, 2014, BAB had revenues of $1,906,000 and net income of $471,000, or $0.06 per share, versus revenues of $1,810,000 and net income of $168,000, or $0.02 per share for the same period in 2013. The Company received a $200,000 International Master Franchise Agreement in March 2014 versus no such agreement in the same period in 2013.

Total operating expenses for the quarter ended August 31, 2014, were $439,000, versus $489,000, in 2013. The primary cost reductions for the third quarter 2014 compared to 2013 have been payroll and payroll related expenses and reduced SweetDuet franchise expenses. Total operating expenses for the nine months ended August 31, 2014 were $1,425,000 versus $1,620,000 for the nine months ended August 31, 2013. The primary cost reductions for 2014 have been payroll and payroll related expenses and a reduction in SweetDuet franchise expenses.

BAB, Inc. franchises and licenses Big Apple Bagels®, My Favorite Muffin®, SweetDuet Frozen Yogurt & Gourmet Muffins® 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.

(TABLE FOLLOWS)


BAB, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS


Quarter Ended Nine Months Ended
08/31/14 08/31/13 % Change 08/31/14 08/31/13 % Change

REVENUES

Royalty fees from franchised stores 458,656 446,603 2.7 % 1,311,369 1,334,047 -1.7 %
Franchise and area development fee revenue 37,500 35,000 7.1 % 272,500 45,000 505.6 %
Licensing fees and other income 104,060 135,143 -23.0 % 322,559 430,935 -25.1 %
600,216 616,746 -2.7 % 1,906,428 1,809,982 5.3 %

OPERATING COSTS AND EXPENSES
Selling, general and administrative 434,018 485,054 -10.5 % 1,411,277 1,607,088 -12.2 %
Depreciation and amortization 4,522 4,367 3.5 % 13,636 13,078 4.3 %
438,540 489,421 -10.4 % 1,424,913 1,620,166 -12.1 %

Income before interest, other and taxes 161,676 127,325 27.0 % 481,515 189,816 153.7 %

Interest expense (1,138 ) (1,483 ) -23.3 % (3,412 ) (4,447 ) -23.3 %
Interest/other income 87 213 -59.2 % 353 768 -54.0 %

Current tax expense 7,583 (17,795 ) N/M (7,417 ) (17,795 ) N/M

NET INCOME 168,208 108,260 55.4 % 471,039 168,342 179.8 %

Earnings per share - basic 0.02 0.01 N/M 0.06 0.02 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 0.01 N/M 0.06 0.02 N/M
Average number of shares outstanding 7,263,508 7,269,680 7,263,508 7,267,880

Contact:
BAB, Inc.
Michael K. Murtaugh, [phone]
Fax: [phone]
www.babcorp.com