Jamba, Inc. Provides Update on 2010 "BLEND" Plan
Q410 Company-Owned Comparable Store Sales Increased 0.2%
EMERYVILLE, Calif., Jan 06, 2011 (BUSINESS WIRE) -- Jamba, Inc. (NASDAQ:JMBA) provided an update regarding key accomplishments through the fourth quarter, which ended on December 28, 2010. The Company announced that preliminary company-owned comparable store sales (1) for the fourth quarter of 2010 increased 0.2%, which reflects sequential comparable store sales improvement during the last six of seven quarters. It is also the first positive quarter of company-owned comparable store sales increase since 2007.
"Even though we faced a tough operating environment, particularly in California where the majority of our stores are located, we made significant progress against our 2010 BLEND plan," stated James D. White, chairman, president and CEO, Jamba Juice Company. "We are nearing completion of our refranchising initiative of over 150 stores and we announced expansion into our first two international markets. We have nine license agreements in place, with four Jamba-branded product lines commercialized into retail. We saw increased attachment and traffic as a result of our marketing initiatives and the continued innovation of our menu offerings. We will continue to execute against our BLEND plan and are very excited about what 2011 will bring to Jamba."
Accelerate the Development of Franchise and Non-Traditional Stores
The Company made significant accomplishments in the transition to a more franchise-oriented organization, particularly in non-traditional franchise development. At the close of the fiscal year, Jamba Juice had 743 stores system-wide, consisting of 392 franchise-owned and 351 company-owned and operated stores.
Prior to the end of the year, Jamba completed the refranchise of 15 stores in the Denver market and signed a purchase agreement to refranchise 41 stores in the Chicago/Mid-West market, which is expected to close in the first quarter of 2011. With the execution of this transaction, the Company expects to exceed its goal of refranchising up to 150 stores.
During 2010, Jamba signed a development agreement with SPC, a leading food company with more than 4,500 retail locations, to develop more than 200 stores in South Korea over the next 10 years. The first Jamba location store is set to open in late January 2011. Jamba Juice and International Franchise, Inc. also signed a non- binding letter of intent to open 125 stores in Canada over a 10-year period.
Build a Licensing Growth Platform
At the close of 2010, the Company had nine license agreements in place. These nine agreements include one with Nestlé USA, to introduce a line of all-natural, fruit-based energy drinks. In addition to energy beverages, the Company also signed agreements with One Natural Experience (O.N.E.), to develop a line of fruit-infused coconut water. This new line of Jamba-branded beverages will be brought to market via the O.N.E. distribution system, which includes distribution through the Pepsi Beverage Company. The Company also signed agreements with Zola, for a line of functional wellness Brazilian super fruit shots, and with Sundia Corporation for a line of functionally boosted all-natural fruit cups. These products will be available in select retail outlets in early 2011.
Management continues to seek opportunities to extend the Jamba brand and maximize revenue by leveraging the brand in new and complementary consumer packaged product categories and further commercializing existing products at retail outlets.
Build/Expand Our Beverage and Food Portfolio Across All Day Parts
During 2010, the Company added a grab-and-go complement of items to its oatmeal platform, including wraps, salads, a sandwich and flatbreads. Some component of the grab-and-go offerings are now available in more than 300 locations. The Company also launched an organic hot tea, hot blended beverage and organic brew-by-the-cup coffee platform, which is available in over half of Jamba's stores.
The Company introduced several innovative and creative marketing initiatives, including their Feel Good and Better Start, Better Day campaigns, profiling their broad offering of better-for-you, great tasting beverages and food. Jamba's everyday specials and value-oriented bundle offers, highlight the range of Jamba products, foster attachment and entice customers back to stores.
In addition to these new offerings, the Company also recently launched a line of specialty frozen yogurt treats featuring signature flavors found only at Jamba Juice. The line, called Whirl'ns(TM) Frozen Yogurt, is available in 22 select Northern California locations.
Outlook for 2011
For 2011, Jamba will be building on its 2010 accomplishments with plans to:
- Deliver positive comparable store sales of 2-4% (1);
- Deliver Operating Profit (2) margin of 18-20%;
- Develop 50-70 locations in traditional, non-traditional, and express formats;
- Control G&A in dollars (excluding litigation charges and other one-time expenses) consistent with 2010 levels.
(1) Comparable store sales are calculated using sales of stores open at least thirteen full fiscal periods. Management reviewsthe 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.
(2) The Company uses the non-GAAP financial measures Operating Profit in its statements made in this release. The Company believes that Operating Profit is helpful when used: as indicators of the Company's business performance because they assist us in comparing our business performance on a consistent basis as they remove the impact of items not directly resulting from store operations; for planning purposes, including the preparation of our internal operating budget; and as measurements in assessing the performance of existing store operating income and comparative operating performance. Operating Profit is equal to net loss, less: (a) gain from derivative liabilities; (b) interest income; (c) interest expense; (d) income taxes; (e) depreciation and amortization; (f) impairment of long-lived assets; (g) other operating, net and (h) general and administrative expenses. Operating Profit margin is calculated by dividing Operating Profit by total revenue. Operating Profit margin is not a measurement 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 used by other companies.
About Jamba, Inc.
Jamba, Inc. (NASDAQ: JMBA) is a holding company which through its wholly-owned subsidiary, Jamba Juice Company, owns and franchises JAMBA JUICE(R) stores. Founded in 1990, Jamba Juice is a leading restaurant retailer of better-for-you food and beverage offerings, including great tasting fruit smoothies, juices, and teas, hot oatmeal made with organic steel cut oats, wraps, salads, sandwiches, and California Flatbreads(TM), and a variety of baked goods and snacks. As of December 28, 2010, Jamba Juice had 743 locations consisting of 351 company-owned and operated stores and 392 franchise stores. For the nearest location or a complete menu, visit the Jamba Juice website at www.jambajuice.com or call 1-866-4R-FRUIT (473-7848).
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.
SOURCE: Jamba, Inc.