GlobeNewswire Inc | Jul 8, 2021 02:49PM EDT

July 08, 2021

DEERFIELD, Ill., July 08, 2021 (GLOBE NEWSWIRE) -- BAB, Inc. (OTCQB: BABB), announced its financial results for the second quarter ended May 31, 2021.

For the quarter ended May 31, 2021, BAB had revenues of $749,000 and net income of $87,000, or $0.01 per share earnings, versus revenues of $352,000 and a net loss of $72,000, or a $0.01 per share loss, for the same quarter last year. Royalty revenue, license fees and other revenue all increased for the second quarter 2021, primarily because of state restrictions being lifted relating to COVID-19 for restaurants and more on-line, curb-side and delivery options instituted by franchisees in late 2020 and 2021 compared to initial months of the COVID-19 pandemic that occurred in the second quarter 2020. Marketing fund revenue increased not only because of increased sales in 2021, but also because in April and May of 2020 marketing fees were waived to assist franchise locations during the initial COVID-19 impact.

For the six months ended May 31, 2021, revenues were $1,472,000 and net income was $420,000, or $0.06 per share, versus revenues of $1,048,000 and a net loss of $28,000, or $0.00 (zero) per share for the same period in 2020. Net income in 2021 includes $228,155 of non-taxable loan forgiveness from the Payroll Protection Program loan enacted under the CARES Act in 2020. The loan was forgiven in the first quarter of 2021.

Total operating expenses for the quarter ended May 31, 2021, were $627,000, versus $423,000, in 2020. The change in operating expenses for the quarter was primarily due to the increase in marketing fund expenses of $203,000 because of the reduced spending in 2020. Total operating expenses for the six months ended May 31, 2021 were $1,213,000 versus $1,061,000 for the six months ended May 31, 2020 with marketing expenses increasing $177,000 because of the reduced spending related to COVID-19 in the second quarter of 2020.

BAB, Inc. franchises and licenses Big Apple Bagels, My Favorite Muffin, SweetDuet frozen yogurt and Brewsters Coffee. The Companys stock is traded on the OTCQB under the symbol BABB and its website 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 companys 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 companys SEC filings.

BAB, INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Quarter Ended Six Months Ended 05/31/21 05/31/20 % 05/31/21 05/31/20 % Change Change REVENUES Royalty feesfrom $420,726 $238,491 76.4% $767,386 $625,830 22.6%franchisedstoresFranchise andarea 9,172 3,874 136.8% 26,011 7,524 245.7%developmentfee revenueLicensing feesand other 68,435 62,424 9.6% 226,365 139,598 62.2%incomeMarketing Fund 250,486 47,031 432.6% 451,962 274,552 64.6%RevenueTotal Revenue 748,819 351,820 112.8% 1,471,724 1,047,504 40.5% OPERATINGCOSTS AND EXPENSES Selling,general and 375,046 375,672 -0.2% 758,294 785,005 -3.4%administrativeDepreciationand 1,119 774 44.6% 2,333 1,514 54.1%amortizationMarketing Fund 250,486 47,031 432.6% 451,962 274,552 64.6%ExpensesTotal Expense 626,651 423,477 48.0% 1,212,589 1,061,071 14.3% Income from 122,168 (71,657 ) -270.5% 259,135 (13,567 ) N/MoperationsInterest - - - - - -expenseInterest/other 111 97 14.4% 234 201 16.4%incomeLoan - - 228,155 - N/MForgivenessIncome taxes (35,500 ) - N/M (67,500 ) (15,000 ) 350.0% NET INCOME $86,779 ($71,560 ) -221.3% $420,024 ($28,366 ) N/M Earnings pershare - basic $0.01 ($0.01 ) N/M $0.06 ($0.00 ) N/Mand dilutedAverage numberof shares 7,263,508 7,263,508 7,263,508 7,263,508 outstanding

Contact: BAB, Inc. Michael K. Murtaugh (847) 948-7520 Fax: (847) 405-8140 www.babcorp.com