EMERYVILLE, Calif.--(BUSINESS WIRE)--Jamba, Inc. (NASDAQ:JMBA; NASDAQ:JMBAU; NASDAQ:JMBAW) today reported unaudited financial results for the fiscal second quarter ended July 15, 2008. The Company's financial statements include the results of its wholly owned subsidiary, Jamba Juice Company.
Fiscal second quarter 2008 (2Q08), 12-week period ended July 15, 2008, compared to fiscal second quarter 2007 (2Q07), 12-week period ended July 24, 2007:
"In my first three weeks here, our leadership team has reviewed Jamba's business plan and all of our assumptions in an effort to re-focus on the best strategic opportunities to leverage our brand and improve our store performance as we navigate the current challenging environment. We are working diligently to improve operating performance and long-term shareholder value by taking some key initial steps to alter our operating strategy," said Steven R. Berrard, the Chief Executive Officer and President.
Mr. Berrard continued, "Our plan going forward assumes that the head winds will remain through the middle of 2009, if not longer. As such, our strategy is focused on changes in our business model shifting our focus from corporate store growth to franchising and in some cases re-franchising. We are seeking to maximize revenue streams from the Jamba brand based on our initial results from our relationship with Nestle. We are also focused on improving store performance through various initiatives while we continue to work to reduce general and administrative expenses and ensure our resources are effectively and efficiently being used."
The economy's negative impact on consumers' discretionary spending is expected to present a challenge to sales growth through the remainder of 2008. Accordingly, in the coming months, management will focus on areas they believe they can control, such as targeting a reduction in cost of sales as a percentage of Company Store revenue to at or below 26% and targeting a reduction in labor costs as a percentage of Company Store revenue to at or below 32%. In addition, management plans to implement the strategies described above, and more fully in the Company's filings with the Securities and Exchange Commission, in order to manage and enhance liquidity and demonstrate a path back to profitability and sustained and long-term profitable growth.
As previously disclosed, a new management team has been put in place in order to aggressively pursue all avenues to create shareholder value from both an operational and financial perspective. These management changes and other subsequent events are outlined below.
(1)Comparable store sales are calculated using sales of stores open at least thirteen full fiscal periods. Management reviews the increase or decrease in comparable store sales compared with the same period in the prior year to assess business trends and make certain business decisions.
The Company uses non-GAAP financial measures in its statements made in this release. Income (loss) from operations and net income (loss) are presented excluding certain non-cash activities, which presentation the Company believes is a helpful indicator of the Company's financial performance. The statements are reconciled to the GAAP presentation of income (loss) from operations and net income (loss) in the same statement in which the non-GAAP financial measures are presented. In addition, the Company uses the non-GAAP financial measures of store-level EBITDA. The Company defines store-level EBITDA as net income (loss) from operations, plus franchisee reimbursements and other income less: (a) depreciation and amortization, (b) general and administrative expenses; (c) store pre-opening expenses; (d) trademark impairment; (e) store lease termination and closure expenses; (f) other operating expenses and (g) income taxes. The Company believes that store-level EBITDA is an important measure of financial performance because it is widely regarded in the restaurant industry as a useful metric by which to evaluate continuing store-level operating efficiency and performance. For a reconciliation of Store-level EBITDA to net income (loss), please see the table at the end of this release. The adjusted income (loss) from operations, net income (loss) and Store-level EBITDA are not measurements determined in accordance with GAAP and should not be considered in isolation or as an alternative to income (loss) from operations or net income (loss) as indicators of financial performance. Each non-GAAP financial measure used as presented may not be comparable to other similarly titled measures of other companies.
Jamba will host a conference call to discuss second quarter 2008 results on Thursday, August 28, 2008 at 5:00 p.m. ET. The earnings call can be accessed live over the phone by dialing 866.578.5788 or 617.213.8057 for international callers; the passcode is 34782800. A simultaneous web cast of the call will be available by visiting www.jamba.com. A replay will be available at 8:00 p.m. ET and can be accessed by dialing 888.286.8010 or 617.801.6888 for international callers; the passcode is 77206017. The replay will be available until September 10, 2008.
Jamba, Inc. (NASDAQ:JMBA; NASDAQ:JMBAU; NASDAQ:JMBAW) is a holding company and through its wholly-owned subsidiary, Jamba Juice Company, owns and franchises JAMBA JUICE® stores. JAMBA JUICE is the leading blender of fruit and other naturally healthy ingredients. Founded in 1990, Jamba strives to inspire and simplify healthy living for its customers and employees. As of July 15, 2008, JAMBA JUICE had 736 stores, of which 518 were company-owned and operated. For the nearest location or a complete menu including our breakfast smoothies with organic granola, please call: 1-866-4R-FRUIT or visit the JAMBA JUICE website at www.jamba.com. Look for Jamba's ready-to-drink Jamba® bottled Smoothies and Juicies on grocery store shelves.
This press release (including information incorporated or deemed incorporated by reference herein) contains "forward-looking statements" within the meaning of the Private Litigation Reform Act of 1995. Forward-looking statements are those involving future events and future results that are based on current expectations, estimates, forecasts, and projects as well as the current beliefs and assumptions of our management. Words such as "outlook", "believes", "expects", "appears", "may", "will", "should", "anticipates", or the negative thereof or comparable terminology, are intended to identify such forward looking statements. Any statement that is not a historical fact, including estimates, projections, future trends and the outcome of events that have not yet occurred, is a forward-looking statement. Forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions that are difficult to predict. Therefore actual results may differ materially and adversely from those expressed in any forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to, those discussed under the section entitled "Risk Factors" in our reports filed with the SEC. Many of such factors relate to events and circumstances that are beyond our control. You should not place undue reliance on forward-looking statements. The Company does not assume any obligation to update the information contained in this press release.
JAMBA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share and per share amounts)
July 15, January 1,
2008 2008
ASSETS
Current assets:
Cash and cash equivalents $9,460 $23,016
Restricted cash 914 1,916
Receivables, net of
allowances of $595 and $133 3,597 6,402
Inventories 4,133 3,582
Deferred income taxes - 6,928
Prepaid and refundable income taxes 5,546 5,814
Prepaid rent 1,838 3,261
Prepaid expenses and other current assets 1,205 1,607
Total current assets 26,693 52,526
Property, fixtures and equipment, net 127,036 128,861
Trademarks and other intangible assets, net 4,074 87,599
Restricted cash 3,434 2,950
Deferred income taxes 344 -
Other long-term assets 3,685 3,066
Total assets $165,266 $275,002
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $9,946 $14,487
Accrued compensation and benefits 9,073 6,490
Workers' compensation and
health self-insurance reserves 1,776 1,796
Accrued jambacard liability 24,394 28,576
Current portion of capital lease obligations 241 -
Other accrued expenses 10,858 8,277
Derivative liabilities 1,160 9,290
Total current liabilities 57,448 68,916
Long-term workers' compensation
and health insurance reserves 3,434 2,950
Capital lease obligations 405 -
Deferred income tax - 7,269
Deferred rent and other long-term liabilities 14,353 12,359
Commitments and contingencies - -
Stockholders' equity:
Common stock, $0.001 par value,
authorized 150,000,000 shares:
52,638,228 and 52,637,131 issued and
outstanding at July 15, 2008
and January 1, 2008, respectively 53 53
Additional paid-in-capital 353,928 352,184
Accumulated deficit (264,355) (168,729)
Total stockholders' equity 89,626 183,508
Total liabilities and stockholders' equity $165,266 $275,002
JAMBA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except share and per share amounts)
Twelve Week Twenty-eight Week
Period Ended Period Ended
July 15, July 24, July 15, July 24,
2008 2007 2008 2007
Revenue:
Company stores $96,311 $86,213 $194,943 $172,374
Franchise and
other revenue 2,287 3,396 5,208 6,621
Total revenue 98,598 89,609 200,151 178,995
Operating expenses:
Cost of sales 25,334 23,659 51,713 47,211
Labor costs 31,420 26,477 69,419 55,342
Occupancy costs 10,556 8,592 23,935 19,543
Store operating 10,760 10,871 24,584 21,923
Depreciation and
amortization 5,682 4,013 13,495 9,264
General and administrative 9,850 10,491 25,146 25,494
Store pre-opening 549 1,462 1,700 2,625
Store impairment 3,260 98 7,297 198
Store lease termination
and closure costs 2,235 33 2,548 41
Trademark impairment 82,600 - 82,600 -
Other 1,219 1,272 2,136 2,760
Total operating expenses 183,465 86,968 304,573 184,401
Income (loss) from
operations (84,867) 2,641 (104,422) (5,406)
Other income (expense):
Gain from derivative
liabilities 2,488 329 8,130 15,480
Interest income 59 921 246 2,316
Interest expense (106) (24) (218) (135)
Total other income 2,441 1,226 8,158 17,661
Income (loss)
before income tax (82,426) 3,867 (96,264) 12,255
Income tax (expense)
benefit (6,769) (1,539) 638 2,023
Net income (loss) $(89,195) $2,328 $(95,626) $14,278
Weighted-average shares used
in computation of earnings (loss) per share:
Basic 52,637,209 52,391,434 52,637,165 52,100,109
Diluted 52,637,209 58,903,104 52,637,165 58,703,021
Earnings (loss) per share:
Basic $(1.69) $0.04 $(1.82) $0.27
Diluted $(1.69) $0.04 $(1.82) $0.24
JAMBA, INC.
Reconciliation of GAAP Income (Loss) from Operations to Store Level EBITDA
(Unaudited)
(In thousands) Twelve Week Period Ended
July 15, 2008 July 24, 2007
Company store revenue $96,311 $86,213
Franchise revenue
(excluding franchisee reimbursement) 1,654 2,683
Cost of sales (25,334) (23,659)
Labor costs (31,420) (26,477)
Occupancy costs (10,556) (8,592)
Store operating (10,760) (10,871)
Store Level EBITDA $19,895 $19,297
Store Level EBITDA $19,895 $19,297
Add: Franchisee reimbursement 633 713
Less: Depreciation and amortization (5,682) (4,013)
Less: General and administrative (9,850) (10,491)
Less: Store pre-opening (549) (1,462)
Less: Trademark impairment (82,600) -
Less: Store lease
termination and closure costs (2,235) (33)
Less: Other (4,479) (1,370)
Add: Other income 2,441 1,226
Less: Income tax expense (6,769) (1,539)
Net income (loss) $(89,195) $2,328
SOURCE: Jamba, Inc.
Jamba is the global lifestyle brand leader serving on-the-go freshly blended fruit and vegetable smoothies, made-to-order bowls, fresh-squeezed juices and shots, boosts and bites.