Fri, Apr 11, 4:07 PM (88 days ago)
**BAB, Inc. (BABB) Q1 2025 Financial Summary** **Company Overview:** BAB, Inc. franchises and licenses bagel and muffin retail units under the Big Apple Bagels, My Favorite Muffin, and SweetDuet brands. As of Q1 2025, the company operates 61 franchised and 4 licensed units across 18 states, with 4 units under development. **Financial Performance (Q1 2025 vs. Q1 2024):** - **Revenue:** Total revenue decreased by 9.4% to $757,201 from $835,934. Royalty fees slightly decreased by 0.7% to $457,194. Franchise fees and licensing fees also saw declines. - **Expenses:** Total operating expenses decreased by 14.6% to $610,022 from $713,954, primarily due to reductions in marketing fund expenses, provision for credit losses, and health benefit expenses. - **Net Income:** Net income increased by 17.6% to $116,267 from $98,505, despite the revenue decline, due to significant expense reductions. - **Earnings per Share (EPS):** Basic and diluted EPS increased to $0.02 from $0.01. - **Cash Flow:** Net cash provided by operating activities decreased to $104,543 from $192,322. Cash distributions/dividends used in financing activities increased to $217,906 from $145,270. **Liquidity and Capital Resources:** As of Q1 2025, BAB had working capital of $1,662,000 and unrestricted cash of $2,005,000. The company's cash position remains strong, supporting its ongoing operations and future growth. **Future Outlook:** BAB expects to continue realizing efficiencies in servicing its franchise base and exploring new growth opportunities. The company will consider future cash distributions/dividends based on profitability expectations and financing needs. **Uncertainties and Risks:** BAB faces risks related to franchisee success, competition, economic conditions, regulatory changes, and integration of acquired concepts. The company's forward-looking statements should be considered in light of these risks. **Ticker:** BABB **Note:** Amounts are in thousands, 000s.