BAB, Inc. Reports Profit for 2nd Quarter FY 2016

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

BAB, Inc. BABB, announced its financial results for the second quarter ended May 31, 2016.

For the quarter ended May 31, 2016, BAB had revenues of $564,000 and net income of $132,000, or $0.02 per share, versus revenues of $568,000 and net income of $119,000, or $0.02 per share, for the same quarter last year.

For the six months ended May 31, 2016, BAB had revenues of $1,145,000 and net income of $221,000, or $0.03 per share, versus revenues of $1,060,000 and a net loss of $126,000, or a loss of $0.02 per share for the same period in 2015. In 2015, an expense of $243,000 was incurred relating to the settlement of a lawsuit against BAB Operations, Inc., a wholly owned subsidiary of BAB, Inc., which involved the 2001 lease assignment of a Company-owned store that was subsequently franchised.

Total operating expenses for the quarter ended May 31, 2016, were $433,000, versus $448,000, in 2015. Total operating expenses for the six months ended May 31, 2016 were $924,000 versus $1,186,000 for the six months ended May 31, 2015. The operating expenses for the six months in 2015 include the $243,000 legal settlement as explained in the previous paragraph.

BAB, Inc. franchises and licenses Big Apple Bagels®, My Favorite Muffin®, SweetDuet® frozen yogurt and Brewster's® Coffee. The Company's 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 company's 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 company's SEC filings.

(TABLE FOLLOWS)

BAB, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
		Quarter Ended									Six Months Ended
		05/31/16			05/31/15			% Change			05/31/16			05/31/15			% Change
REVENUES
Royalty fees from franchised stores		$449,713			$443,660			1.4	%		$856,613			$837,755			2.3	%
Franchise and area development fee revenue		3,000			25,000			-88.0	%		18,000			30,000			-40.0	%
Licensing fees and other income		111,727			99,102			12.7	%		270,704			192,395			40.7	%
Total Revenue		564,440			567,762			-0.6	%		1,145,317			1,060,150			8.0	%
OPERATING COSTS AND EXPENSES
Selling, general and administrative		427,371			443,988			-3.7	%		914,063			934,649			-2.2	%
Legal Settlement		-			-			N/M			-			243,046			N/M
Depreciation and amortization		5,167			4,293			20.4	%		10,016			8,527			17.5	%
Total Expense		432,538			448,281			-3.5	%		924,079			1,186,222			-22.1	%
Income from operations		131,902			119,481			10.4	%		221,238			(126,072	)		275.5	%
Interest expense		(397	)		(775	)		-48.8	%		(794	)		(1,551	)		-48.8	%
Interest/other income		147			448			-67.2	%		333			1,172			-71.6	%
Current tax		-			-			N/M			-			-			N/M
NET INCOME		$131,652			$119,154			10.5	%		$220,777			($126,451	)		274.6	%
Earnings per share - basic and diluted		$0.02			$0.02			N/M			$0.03			($0.02	)		N/M
Average number of shares outstanding		7,263,508			7,263,508						7,263,508			7,263,508

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