GlobeNewswire Inc | Oct 7, 2021 01:07PM EDT

October 07, 2021

DEERFIELD, Ill., Oct. 07, 2021 (GLOBE NEWSWIRE) -- BAB, Inc. (OTCQB: BABB), announced its financial results for the third quarter ended August 31, 2021.

For the quarter ended August 31, 2021, BAB had revenues of $789,000 and net income of $133,000, or $0.02 per share, versus revenues of $624,000 and net income of $104,000, or earnings of $0.01 per share, for the same quarter last year.

Royalty revenue and Marketing Fund revenue increased in the third 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 and third quarters 2020.

For the nine months ended August 31, 2020, BAB had revenues of $2,260,000 and net income of $553,000, or $0.08 per share, versus revenues of $1,672,000 and net income of $75,000, or $0.01 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 August 31, 2021, were $591,000, versus $521,000, in 2020. Total operating expenses for the nine months ended August 31, 2021 were $1,803,000 versus $1,582,000 for the nine months ended August 31, 2020. The primary change in operating expenses for the quarter and nine months was the increase in Marketing Fund expenses in 2021 of $91,000 for the quarter and $269,000 for the nine months compared to 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 Nine Months Ended 08/31/21 08/31/20 % Change 08/31/21 08/31/20 % Change REVENUES Royalty feesfrom $454,814 $375,282 21.2% $1,222,200 $1,001,112 22.1% franchisedstoresFranchise andarea 4,274 4,874 -12.3% 30,285 12,398 144.3% developmentfee revenueLicensing feesand other 66,052 71,541 -7.7% 292,417 211,139 38.5% incomeMarketing Fund 263,613 172,723 52.6% 715,575 447,275 60.0% RevenueTotal Revenue 788,753 624,420 26.3% 2,260,477 1,671,924 35.2% OPERATINGCOSTS AND EXPENSES Selling,general and 325,583 347,249 -6.2% 1,083,877 1,132,254 -4.3% administrativeDepreciationand 1,373 928 48.0% 3,706 2,442 51.8% amortizationMarketing Fund 263,613 172,723 52.6% 715,575 447,275 60.0% ExpensesTotal Expense 590,569 520,900 13.4% 1,803,158 1,581,971 14.0% Income from 198,184 103,520 91.4% 457,319 89,953 408.4% operationsInterest - - - - - - expenseLoan - - - 228,155 - - ForgivenessInterest/other 98 91 7.7% 332 293 13.3% incomeIncome taxes (65,520 ) - N/M (133,020 ) (15,000 ) N/M NET INCOME $132,762 $103,611 28.1% $552,786 $75,246 634.6% Earnings pershare - basic $0.02 $0.01 N/M $0.08 $0.01 N/M and 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