DEERFIELD, Ill., Feb. 12, 2021 (GLOBE NEWSWIRE) -- BAB, Inc. (OTCQB: BABB) announced its financial results for its fiscal year-ended November 30, 2020, reporting a loss of $66,000, or $0.01 per share. For the year-ended November 30, 2020, BAB, Inc. had revenues of $2,372,000 and a loss of $66,000, or $0.01 per share, versus revenues of $3,070,000 and net income of $449,000, or $0.06 per share, for the same period in 2019.
Income from operations for fiscal 2020 is $233,000 compared to $473,000 in 2019. In fiscal 2020 a deferred tax asset was reversed in the amount of $200,000 and a deferred tax liability was recorded in the amount of $85,000 creating a noncash deferred tax expense of $285,000 which reduced the operating income from $233,000 to a net loss of $66,000. The tax adjustments that affected net income were due to Federal net operating losses (NOLs) that were unused and expired in 2020. All NOLs did not expire in 2020.
Total operating expenses for the year ended November 30, 2019, were $2,138,000 versus $2,596,000 for the year ended November 30, 2019.
During fiscal 2020 BAB Systems, Inc., a wholly owned subsidiary of BAB, Inc. received a Payroll Protection Program loan (“PPP”) in the amount of $228,000 which was 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.
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| Contact: | BAB, Inc. |
| Michael K. Murtaugh (847) 948-7520 | |
| Fax: (847) 405-8140 | |
| www.babcorp.com |
| BAB, INC. | |||||||||||
| CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS | |||||||||||
| Fiscal Year Ended | |||||||||||
| 2020 | 2019 | % Change | |||||||||
| REVENUES | |||||||||||
| Royalty fees from franchised stores | $ | 1,379,153 | $ | 1,645,639 | -16.2 | % | |||||
| Franchise and area development fee revenue | 21,955 | 33,817 | -35.1 | % | |||||||
| Licensing fees and other income | 298,766 | 402,293 | -25.7 | % | |||||||
| Marketing Fund revenue | 671,659 | 987,943 | -32.0 | % | |||||||
| Total Revenue | 2,371,533 | 3,069,692 | -22.7 | % | |||||||
| OPERATING COSTS AND EXPENSES | |||||||||||
| Selling, general and administrative | 1,462,921 | 1,606,211 | -8.9 | % | |||||||
| Depreciation and amortization | 3,562 | 2,057 | 73.2 | % | |||||||
| Marketing Fund expenses | 671,659 | 987,943 | -32.0 | % | |||||||
| Total Operating Expense | 2,138,142 | 2,596,211 | -17.6 | % | |||||||
| Income before interest, other and taxes | 233,391 | 473,481 | -50.7 | % | |||||||
| Interest and other income | 378 | 612 | |||||||||
| Income before provision for income taxes | 233,769 | 474,093 | -50.7 | % | |||||||
| Current tax expense | (15,000 | ) | (25,000 | ) | -40.0 | % | |||||
| Deferred tax expense | (284,940 | ) | - | NA | |||||||
| Total Tax Provision | (299,940 | ) | (25,000 | ) | |||||||
| Net (Loss)/Income | $ | (66,171 | ) | $ | 449,093 | -114.7 | % | ||||
| (Loss)/Earnings per share - basic and diluted | (0.01 | ) | 0.06 | ||||||||
| Average number of shares outstanding | 7,263,508 | 7,263,508 | |||||||||