BAB, Inc. reported its financial results for the three and nine months ended August 31, 2024, revealing a mixed performance in revenue and profitability compared to the previous fiscal period. For the three months, total revenues decreased to $871,935, down 6.9% from $936,651 in the same period of 2023. In contrast, for the nine months, total revenues increased to $2,590,707, a rise of 1.7% from $2,546,644 in the prior year.

The company's operating expenses for the three months ended August 31, 2024, were $667,011, a decrease from $717,847 in 2023, while for the nine months, operating expenses fell to $2,077,353 from $2,107,351. This reduction in expenses contributed to an increase in income from operations for the nine-month period, which rose to $513,354 from $439,293 in 2023. However, income from operations for the three months declined to $204,924 from $218,804 year-over-year.

Net income for the three months ended August 31, 2024, was $160,327, slightly lower than $167,758 in 2023. Conversely, net income for the nine months increased to $404,518 from $329,606 in the previous year. Earnings per share remained stable at $0.02 for the three months and increased to $0.06 for the nine months, compared to $0.05 in 2023.

The company’s cash position improved, with cash and cash equivalents rising to $1,930,770 as of August 31, 2024, compared to $1,713,798 a year earlier. Total current assets also increased to $2,405,312 from $2,261,792, while total assets grew to $4,781,203 from $4,298,504. However, total liabilities increased significantly, with total long-term liabilities rising to $795,137 from $471,319.

Strategically, BAB, Inc. operates 64 franchise units and 4 licensed units across 20 states, with 4 additional units under development. The company has not made any acquisitions to date and continues to focus on its franchise and licensing operations. The primary revenue sources include ongoing royalties from franchisees and initial franchise fees, with royalty fees set at 5% of net retail and wholesale sales.

The company declared a $0.01 quarterly cash distribution on September 6, 2024, reflecting its commitment to returning value to shareholders. Overall, while BAB, Inc. faced challenges in quarterly revenue, it demonstrated resilience with year-to-date growth in net income and effective cost management.

About BAB, INC.

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