Jamba, Inc. Reports Results for the First, Second, and Third Quarters of Fiscal 2017, and Updates 2017 and 2018 Guidance

FRISCO, Texas - (BUSINESS WIRE) - Mar. 15, 2018 - Jamba, Inc. (NASDAQ:JMBA) (“the Company”) today announced financial results for the fiscal quarters ended April 4, 2017 (“first quarter”), July 4, 2017 (“second quarter”), and October 3, 2017 (“third quarter”), and updated its fiscal 2017 and 2018 financial guidance.

Highlights for the 39-week period ended October 3, 2017 compared to the 39-week period ended September 27, 2016:

  • Total Revenue declined $6.1 million to $56.3 million, primarily due to the Company’s transition to an asset light business model and the exit of non-core business units.
  • Domestic system-wide sales increased $7.1 million to $392.9 million.
  • Net Income (Loss) improved $5.4 million, to a loss of $1.9 million.
  • Non-GAAP Adjusted EBITDA increased 39.2% to $12.8 million.
  • Non-GAAP Adjusted EBITDA Margin increased to 22.8%, compared to 14.8%.
  • Opened 35 new stores, of which 27 were domestic and eight international.
  • Completed portfolio optimization transactions in Chicago, Phoenix, and Seattle, including development agreements for 32 new stores across the three markets.

CEO Comments

Dave Pace, President and Chief Executive Officer, noted: “Along with the filing of the 2016 10-K on February 12th, completion of the 2017 10-Qs meets an important filing deadline, and accelerates our return to a standard reporting cadence.”

Pace continued: “Financial results for the first three quarters of 2017 reflect our concrete actions to reinvigorate the Jamba business. We enhanced our organization with experienced additions to the leadership team, exited non-core and underperforming business units to improve profitability, and launched innovative new products. Together, these changes elevated the customer experience in our stores. We saw sequential improvements in comparable store sales through 2017, culminating in our previously reported 5.3% increase in the fourth quarter. The fourth quarter also marked the seventh consecutive quarter in which our comparable store sales beat the industry benchmark. Adjusted EBITDA grew 39% through the first three quarters of 2017.”

Pace concluded: “Jamba is an iconic brand. We have positioned it for sustainable growth and significant value-creation for our shareholders and are optimistic about our performance in 2018.”

KEY OPERATING METRICS FOR THE 39-WEEKS ENDED OCTOBER 3, 2017
 
    First quarter, ended   Second quarter, ended   Third quarter, ended   Year to date, ended
    April 4,
2017
  March 29,
2016
  July 4,
2017
  June 28,
2016
  October 3,
2017
  September 27,
2016
  October 3,
2017
  September 27,
2016
Number of system-wide stores

open at end of period

  868     842     870     842     866     849     866     849  
New store openings   15     13     10     11     10     16     35     40  
Domestic system-wide

comparable store sales change (a)

  (5.8 )%   (2.1 )%   (0.0 )%   4.2 %   (0.2 )%   (1.1 )%   (1.9 )%   0.4 %
Domestic system-wide sales

(in thousands)

  117,034     115,503     139,822     137,389     136,088     132,918     392,944     385,810  
Blended royalty rate   5.1 %   5.2 %   5.0 %   5.1 %   4.9 %   5.1 %   5.0 %   5.1 %
Net Income (in thousands)   (3,152 )   (2,820 )   1,725     (2,479 )   (457 )   (1,964 )   (1,884 )   (7,263 )
Adjusted EBITDA (in thousands)   3,005     1,283     5,081     3,811     4,727     4,111     12,813     9,206  
Adjusted EBITDA

margin percent

  17.1 %   6.8 %   24.8 %   17.7 %   26.0 %   18.6 %   22.8 %   14.8 %
                                 
(a) Due to a 53 week fiscal 2016, 2017 year-over-year fiscal comparisons are offset by one week. Comparable calendar period is presented above. Using comparable calendar periods balances the one week shift and provides a clearer year over year comparison. 2016 fiscal and calendar comparisons are the same.
 

Liquidity

As previously disclosed, the Company held cash of $11.9 million as of October 3, 2017, $11.2 million as of July 4, 2017, $8.2 million as of April 4, 2017, and $7.1 million as of January 3, 2017.

On February 12, 2018, the Company provided additional information. As of January 2, 2018, the Company held cash of $10.0 million, including restricted cash of $0.3 million.

The Company used approximately $5.7 million of cash during fiscal 2017 to pay audit and related expenses. The Company anticipates audit and related expenses will continue into 2018 and result in additional use of cash, and financial statement expense, though at a reduced level as compared to 2017.

The Company had not drawn against its line of credit, and had no outstanding principal balance as of the end of fiscal 2017.

Reported balances are unaudited.

Fiscal 2017 Financial Guidance

The Company expects to achieve the following results for fiscal 2017:

         
Metric  

Initial Guidance
Issued March 20, 2017

  Current Outlook
Total Revenue   $75 to $77 million   Approximately $71 million
Annual system-wide comparable sales   Flat, to slightly positive   -0.4% (a)
New store openings   65 to 75 new store openings; 25 to 35 openings, net of closures   50 new store openings; 11 openings, net of closures (a)
Non-GAAP Adjusted G&A expense   Approximately $21 million, exiting 2017 with a run rate of no more than $20 million   Approximately $18 million; exiting 2017 with a run rate of no more than $20 million
Non-GAAP Adjusted EBITDA   $13 million to $15 million   At least $14.5 million
         

(a) Actual results as reported February 12, 2018

 

Marie Perry, Executive Vice President and Chief Financial Officer, noted: “We expect 2017 to be a year of strong profit growth. The transition to an asset-light model, along with a strategic refocusing on the core retail business, will cause revenue to decline in a predictable fashion. On this reduced revenue base, however, we expect significant improvements in profitability. Specifically, we anticipate an improvement of approximately $3.5 million in Adjusted EBITDA in fiscal 2017 as compared to fiscal 2016.”

Total Revenue guidance issued March 20, 2017 included 13 stores in the greater Chicago area as Company-owned for the full year. Subsequent to this guidance, in June 2017, these 13 stores were successfully refranchised to an existing franchisee. As a result of this transaction, 2017 Revenue declined by approximately $3.8 million relative to the March 20, 2017 guidance expectation.

Fiscal 2018 Financial Guidance

The Company expects to achieve the following results for fiscal 2018:

         
Metric  

Initial Guidance
Issued February 12, 2018

  Current Outlook
Total Revenue   $68 million to $70 million   $68 million to $70 million
Annual system-wide comparable sales   Positive   Positive
New store openings   n.a.   Approximately 50 new store openings
Non-GAAP Adjusted G&A expense   n.a.   Under $20 million
Non-GAAP Adjusted EBITDA   $15 million to $16 million   $15 million to $16 million
Adjusted EBITDA margin percent   n.a.   22% to 23%
         


At a future date, the Company will provide an update to this guidance to include the necessary adjustments for the new revenue recognition standard. The Fiscal 2018 Financial Guidance currently excludes the impact of this new standard.

Non-GAAP Adjusted G&A Expense, Non-GAAP Adjusted EBITDA and Non-GAAP Adjusted EBITDA Margin Percent set forth above are forward looking Non-GAAP measures which the Company is not able to provide comparable GAAP forward-looking estimate of net income without unreasonable effort, as information needed to make a reasonable forward-looking estimate is difficult to predict and estimate and dependent on future events which are uncertain or outside the Company’s control. The probable significance of such adjustments is also similarly difficult to estimate for the same reasons.

Fiscal 2017 Form 10-K Filing

As previously disclosed, the delay in completion of the Company’s financial statements resulted from changes the Company underwent in the past several years, including:

  • transitioning to a franchise focused, asset light business model
  • significant changes in leadership and key personnel
  • relocating its corporate office from California to Texas in 2016
  • accounting for an unusually high number of non-routine transactions impacting its existing financial reporting processes
  • executing against a reduced materiality threshold resulting from the changes in its business model referenced above

The Company continues to work diligently with Jamba’s newly appointed auditor, Whitley Penn LLP to complete fiscal 2017 financial statements and their subsequent audit, and to thereafter file the 2017 Form 10-K as soon as practicable.

Anticipated Expenses

As previously disclosed, the Company expects to record additional expenses (collectively, “audit and related expenses”) resulting from efforts to complete 2016 financial statements, their subsequent audit and review, and remediation efforts related to the anticipated Material Weakness disclosed in the Company’s Form 12b-25 filed with the Securities and Exchange Commission on May 15, 2017. As a result of the ongoing nature of this work, the Company expects to record expenses in its 2017 and 2018 financial statements in addition to expenses in 2016 as reflected in its 2016 Form 10-K. Due to the unusual and non-recurring nature of these expenses, the Company anticipates adjusting for them in its Non-GAAP financial measures.

Conference Call

The Company will host a conference call Friday, March 16 at 8:30 a.m. Eastern Time. The call will be webcast live from the Company’s website at www.jambajuice.com under the Corporate Investor Relations section or directly at http://ir.jambajuice.com. The conference call can also be accessed live over the phone by dialing (877) 407-3982. A replay will be available at 11:30 a.m. Eastern Time and can be accessed by dialing (844) 512-2921; the pin number is 13677475. The replay will be available until Friday, April 6, 2018.

About Jamba, Inc.

Jamba, Inc. (Nasdaq: JMBA) through its wholly-owned subsidiary, Jamba Juice Company, is a global healthy lifestyle brand that inspires and simplifies healthful living through freshly blended whole fruit and vegetable smoothies, bowls, juices, cold-pressed shots, boosts, snacks, and meal replacements. Jamba’s blends are made with premium ingredients free of artificial flavors and preservatives so guests can feel their best and blend the most into life.

Jamba Juice® has more than 800 franchised and company-owned locations worldwide, as of January 2, 2018. For more information, visit jambajuice.com.

Forward-Looking Statements

This press release (including information incorporated or deemed incorporated by reference herein) contains “forward-looking statements” within the meaning of the Private Securities 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 projections as well as the current beliefs and assumptions of the Company’s management. Words such as “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 from those expressed in any forward-looking statements. These statements include, but are not limited to, statements referenced under the caption “Fiscal 2017 Financial Guidance” and “Fiscal 2018 Financial Guidance” above, risks and uncertainties relating to the Company’s ability to file its periodic reports with the Securities and Exchange Commission and hold its annual meeting in a manner to regain and continue to maintain compliance with Nasdaq listing rules, the Company’s business strategy and financial performance, its revenue and customer volatility based upon weather and general economic conditions, the operating results of the Company’s franchisees, additional costs expected to be incurred as a result of ongoing work relating to the Company’s financial statements, including anticipated remediation efforts relating to the material weakness disclosed in the Company’s Form 10-K, the fluctuations in various food and supply costs, competition and other risks related to the food services business, the Company’s ability to retain its executive management team and key employees and other factors discussed under the section entitled “Risk Factors” in the Company’s reports filed with the SEC. Many of such factors relate to events and circumstances that are beyond the Company’s 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.

Non-GAAP Financial Measures

The Company provides certain forward-looking Non-GAAP financial measures to its investors. The Company believes that providing these forward-looking Non-GAAP measures to its investors provides investors the benefit of viewing the Company's performance using the same financial metrics that the management team uses in making many key decisions and understanding how the Company's core business operations may perform and may look in the future. The Non-GAAP financial measures are discussed further below.

Non-GAAP financial measures are not in accordance with, or an alternative for, generally accepted accounting principles in the United States of America. Non-GAAP measures should not be considered in isolation from or as a substitute for financial information presented in accordance with generally accepted accounting principles, and may be different from Non-GAAP measures used by other companies.

The following definitions apply to these terms as used in this release:

Blended royalty rate is defined as total royalty dollars divided by total franchise sales dollars, as reported by franchisees.

Company-owned comparable store sales represents the change in year-over-year sales for Company-owned stores opened for at least one full year. Franchise-operated comparable store sales, a Non-GAAP financial measure, represents the change in year-over-year sales for all Franchise Stores opened for at least one full year, as reported by franchisees, and excludes International Stores and Express format. System-wide comparable store sales, a Non-GAAP financial measure, represents the change in year-over-year sales for all Company and Franchise Stores opened for at least one full year, as reported by franchisees, and excludes International Stores and Express format. Comparable store sales includes closed locations for the periods in which they have comparable sales. Company-owned comparable store sales percentages as used herein may not be equivalent to Company-owned comparable store sales as defined or used by other companies. Franchise-operated comparable store sales percentages and System-wide comparable stores sales percentages as used herein are Non-GAAP financial measures and should not be considered in isolation or as substitute for other measures of performance prepared in accordance with generally accepted accounting principles in the United States. 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 believes the data is useful in assessing the overall performance of the Jamba® brand and, ultimately, the performance of the Company, the Company-owned stores, and Franchise-operated stores.

Domestic system-wide sales are the sum of company-operated restaurant revenue and sales from domestic franchised stores. Our total revenue in our consolidated statements of operations is limited to company-operated store revenue, franchise revenue from our franchisees, and other revenue. Accordingly, domestic system-wide sales should not be considered in isolation or as a substitute for our results as reported under GAAP. Management believes that domestic system-wide sales are an important figure for investors, because they are widely used in the restaurant industry, including by our management, to evaluate brand scale and market penetration. We have included a reconciliation of domestic system-wide sales to total revenue.

New store openings, net of closures is defined as the count of new store openings, minus the count of store closures.

Non-GAAP Adjusted EBITDA is equal to net income, adjusted for: (a) depreciation and amortization; (b) interest income; (c) interest expense; (d) income taxes; (e) impairment expense; (f) stock based compensation expense; and (g) other one-time or extraordinary items that are not reflective of the ongoing business such as legal settlements, expenses related to the extended audit and gain or loss resulting from refranchising activities. The Company believes this metric is useful in measuring the operating performance of the Company.

Non-GAAP Adjusted EBITDA margin percent is defined as Adjusted EBITDA divided by Total Revenue.

Non-GAAP Adjusted General and Administrative (“G&A”) expense is calculated as general and administrative expense in accordance with GAAP excluding refranchise and severance costs associated with the move to an asset-light business model, charges related to the executive organization changes, costs due to the Company’s corporate office relocation to Frisco, Texas, and other non-recurring general and administrative expenses. The Company believes that general and administrative expense adjusted to exclude the costs of such items is a helpful indicator of the Company's operating performance in that it shows the net expense without the impact of what the Company believes to be upfront transitional costs. Management does not believe such costs are reflective of the Company's ongoing performance and accordingly excludes those items from Non-GAAP Adjusted General and Administrative Expense.

 
JAMBA, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per value data)
(Unaudited)
 
    13-Week Period Ended
    April 4,   March 29,
    2017   2016
Revenue:        
Company stores   $ 11,107     $ 11,953  
Franchise and other revenue     6,506       6,801  
Total revenue     17,613       18,754  
         
Costs and operating expenses:        
Cost of sales     2,662       2,962  
Labor     4,288       4,158  
Occupancy     1,763       2,036  
Store operating     1,798       2,021  
Depreciation and amortization     881       1,502  
General and administrative     8,601       7,610  
Loss on disposal of assets     162       109  
Store pre-opening     238       324  
Store lease termination and closure     181       120  
Other operating, net     76       612  
Total costs and operating expenses     20,650       21,454  
Income (loss) from operations     (3,037 )     (2,700 )
         
Other income (expenses):        
Interest income     54       71  
Interest expense     (83 )     (59 )
Total other income (expenses), net     (29 )     12  
         
Income (loss) before income taxes     (3,066 )     (2,688 )
Income tax expense     (86 )     (132 )
Net income (loss)   $ (3,152 )   $ (2,820 )
         
Share Data:        
Weighted-average shares used in the computation of income (loss) per share:        
Basic     15,411,695       15,084,037  
Diluted     15,411,695       15,084,037  
Income (loss) per share:        
Basic   $ (0.20 )   $ (0.19 )
Diluted   $ (0.20 )   $ (0.19 )
                 
 
JAMBA, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
(unaudited)
 
    April 4,   January 3,
    2017   2017
ASSETS        
Current Assets:        
Cash and cash equivalents   $ 8,192     $ 7,133  
Receivables, net of allowances of $705 and $1,808     8,951       11,778  
Inventories     465       534  
Prepaid rent     815       1,053  
Assets held for sale     136       206  
Prepaid expenses and other current assets     3,495       3,000  
Total current assets     22,054       23,704  
Property, fixtures and equipment, net of accumulated depreciation of $30,869 and $38,645     11,844       12,512  
Goodwill     1,183       1,183  
Trademarks and other intangible assets, net of accumulated amortization of $785 and $2,606     1,299       1,327  
Notes receivable and other long-term assets     2,822       2,894  
Total assets   $ 39,202     $ 41,620  
LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY        
Current Liabilities:        
Accounts payable   $ 12,861     $ 10,407  
Accrued compensation and benefits     3,678       4,255  
Accrued gift card liability     21,733       24,131  
Other current liabilities     8,682       7,664  
Total current liabilities     46,954       46,457  
Deferred rent and other long-term liabilities     8,964       8,940  
Total liabilities     55,918       55,397  
Commitments and contingencies        
Shareholders’ (deficit) equity:        
Common stock, $0.001 par value—30,000,000 shares authorized; 18,281,474 and 15,422,657 shares issued and outstanding, respectively, at April 4, 2017, and 18,268,885 and 15,410,068 shares issued and outstanding, respectively, at January 3, 2017     18       18  
Additional paid-in capital     407,786       407,273  
Treasury shares, at cost, 2,858,817     (40,009 )     (40,009 )
Accumulated deficit     (384,511 )     (381,059 )
Total shareholders’ (deficit) equity     (16,716 )     (13,777 )
Total liabilities and shareholders' (deficit) equity   $ 39,202     $ 41,620  
                 
 
JAMBA, INC.
(Unaudited)
REVENUE
         
    13-Week Period Ended
    April 4, 2017   March 29, 2016
Revenue (in thousands):        
Company stores   $ 11,107     $ 11,953  
Franchise revenue     5,752       5,610  
Other revenue     754       1,191  
Total revenue   $ 17,613     $ 18,754  
         
JAMBA, INC.
(Unaudited)
RECONCILIATION OF GENERAL AND ADMINISTRATIVE TO NON-GAAP ADJUSTED GENERAL AND ADMINISTRATIVE
         
    13-Week Period Ended
    April 4, 2017   March 29, 2016
General and administrative (in thousands):   $ 8,601     $ 7,610  
Corporate relocation expenses     (1,295 )    
Audit related expenses     (571 )    
Other non-recurring expenses     (2,294 )     (1,650 )
Non-GAAP Adjusted General and administrative   $ 4,441     $ 5,960  
         
JAMBA, INC.
(Unaudited)
RECONCILIATION OF NET LOSS TO NON-GAAP ADJUSTED EBITDA
         
    13-Week Period Ended
    April 4, 2017   March 29, 2016
Net Loss (in thousands):   $ (3,152 )   $ (2,820 )
Depreciation and amortization     881       1,502  
Interest income     (54 )     (71 )
Interest expense     83       59  
Income taxes     86       132  
Stock based compensation     148       831  
Other non-recurring expenses     5,013       1,650  
Non-GAAP Adjusted EBITDA   $ 3,005     $ 1,283  
         
JAMBA, INC.
(Unaudited)
RECONCILIATION OF NON-GAAP DOMESTIC SYSTEMWIDE SALES
         
    13-Week Period Ended
    April 4, 2017   March 29, 2016
Total Revenue (in thousands):   $ 17,613     $ 18,754  
Franchise and other revenue     (6,506 )     (6,801 )
Domestic franchise sales     105,928       103,550  
Non-GAAP domestic system-wide sales   $ 117,035     $ 115,503  
                 
 
JAMBA, INC.
(Unaudited)
 
COMPARABLE STORE SALES        
         

Fiscal Calendar Basis

  13-Weeks Ended
    April 4, 2017 vs   March 29, 2016 vs
Increase/(Decrease)   March 29, 2016   March 31, 2015
Percentage Change in Comparable store sales        
Company stores   (4.5 )%   0.2 %
Franchise stores   (2.2 )%   (2.4 )%
System-wide   (2.5 )%   (2.1 )%
         

Comparable Calendar Basis (a)

  13-Weeks Ended
    April 4, 2017 vs   March 29, 2016 vs
Increase/(Decrease)   April 5, 2016   March 31, 2015
Percentage Change in Comparable store sales        
Company stores   (7.3 )%   0.2 %
Franchise stores   (5.6 )%   (2.4 )%
System-wide   (5.8 )%   (2.1 )%
         
Percentage Change in Comparable calendar

Company store sales

       
Traffic   (9.9 )%   (4.5 )%
Average check   2.6 %   4.7 %
Total Comparable Company store sales   (7.3 )%   0.2 %
         

(a) Due to a 53 week fiscal 2016, year-over-year fiscal comparisons are offset by one week. Using comparable calendar periods balances the one week shift and provides a clearer year over year comparison. 2016 fiscal and calendar comparisons are the same.

 
 
JAMBA, INC.
(Unaudited)
                 
STORE COUNT
    NUMBER OF STORES
    COMPANY   FRANCHISE   TOTAL
        Domestic   International    
For the Quarter Ended April 4, 2017                
At January 3, 2017   66     726     70     862  
Opened       13     2     15  
Acquired                
Closed       (5 )   (4 )   (9 )
Refranchised                
At April 4, 2017   66     734     68     868  
                 
For the Quarter Ended March 29, 2016(a)                
At December 29, 2015   70     706     75     851  
Opened       10     3     13  
Acquired                
Closed   (2 )   (7 )   (13 )   (22 )
Refranchised                
At March 29, 2016   68     709     65     842  
                 
(a) As communicated on March 20, 2017, the Company now excludes Express format stores from store counts. Store counts exclude Express in both 2016 and 2017 for comparability.
 
 
JAMBA, INC.
(Unaudited)
 
NEW STORE OPENINGS, NET OF CLOSURES
    13-Weeks Ended
    April 4, 2017   March 29, 2016 (a)
Openings        
Traditional   11     7  
Non-traditional   1     3  
Drive thru   1      
International   2     3  
Total   15     13  
         
Closures        
Traditional   (2 )   (2 )
Non-traditional   (3 )   (7 )
Drive thru        
International   (4 )   (13 )
Total   (9 )   (22 )
         
Openings, Net of Closures(b)        
Traditional   9     5  
Non-traditional   (2 )   (4 )
Drive thru   1      
International   (2 )   (10 )
Total   6     (9 )
         
(a) As communicated on March 20, 2017, the Company now excludes Express format stores from store counts. Store counts exclude Express in both 2016 and 2017 for comparability.
(b) New store openings, net of closures is defined as the count of new store openings, minus the count of store closures.
 
 
JAMBA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per value data)
(Unaudited)
                 
    13-Week Period Ended   26-Week Period Ended
   

July 4, 2017

 

June 28, 2016

 

July 4, 2017

 

June 28, 2016

Revenue:                
Company stores   $ 13,262     $ 13,874     $ 24,369     $ 25,827  
Franchise and other revenue     7,252       7,666       13,758       14,467  
Total revenue     20,514       21,540       38,127       40,294  
                 
Costs and operating expenses:                
Cost of sales     2,928       3,321       5,590       6,283  
Labor     4,281       4,668       8,569       8,826  
Occupancy     1,711       1,900       3,474       3,936  
Store operating     2,531       2,272       4,329       4,293  
Depreciation and amortization     899       1,674       1,780       3,176  
General and administrative     6,757       9,423       15,358       17,033  
Loss (gain) on disposal of assets     392       188       554       297  
Store pre-opening     105       326       343       650  
Impairment of long-lived assets           127             127  
Store lease termination and closure     57       (56 )     238       64  
Other operating, net     (867 )     245       (791 )     857  
Total costs and operating expenses     18,794       24,088       39,444       45,542  
Income (loss) from operations     1,720       (2,548 )     (1,317 )     (5,248 )
                 
Other income (expenses):                
Interest income     41       74       95       145  
Interest expense     (83 )     (59 )     (166 )     (118 )
Total other income (expenses), net     (42 )     15       (71 )     27  
                 
Income (loss) before income taxes     1,678       (2,533 )     (1,388 )     (5,221 )
Income tax (expense) benefit     47       54       (39 )     (78 )
Net income (loss)   $ 1,725     $ (2,479 )   $ (1,427 )   $ (5,299 )
                 
Share Data:                
Weighted-average shares used in the computation of income (loss) per share:                
Basic     15,472,137       15,168,348       15,441,916       15,126,192  
Diluted     15,867,544       15,168,348       15,441,916       15,126,192  
Income (loss) per share:                
Basic   $ 0.11     $ (0.16 )   $ (0.09 )   $ (0.35 )
Diluted   $ 0.11     $ (0.16 )   $ (0.09 )   $ (0.35 )
                                 
 
JAMBA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
(unaudited)
 
    July 4,   January 3,
    2017   2017
ASSETS        
Current Assets:        
Cash and cash equivalents   $ 11,246     $ 7,133  
Receivables, net of allowances of $789 and $1,808     9,993       11,778  
Inventories     469       534  
Prepaid rent     778       1,053  
Assets held for sale     18       206  
Prepaid expenses and other current assets     3,234       3,000  
Total current assets     25,738       23,704  
Property, fixtures and equipment, net of accumulated depreciation of $31,772 and $38,645     11,026       12,512  
Goodwill     1,181       1,183  
Trademarks and other intangible assets, net of accumulated amortization of $813 and $2,606     1,270       1,327  
Notes receivable and other long-term assets     914       2,894  
Total assets   $ 40,129     $ 41,620  
LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY        
Current Liabilities:        
Accounts payable   $ 11,092     $ 10,407  
Accrued compensation and benefits     1,991       4,255  
Accrued gift card liability     23,526       24,131  
Other current liabilities     9,152       7,664  
Total current liabilities     45,761       46,457  
Deferred rent and other long-term liabilities     8,383       8,940  
Total liabilities     54,144       55,397  
Commitments and contingencies        
Shareholders’ (deficit) equity:        
Common stock, $0.001 par value—30,000,000 shares authorized; 18,427,023 and 15,568,206 shares issued and outstanding, respectively, at July 4, 2017, and 18,268,885 and 15,410,068 shares issued and outstanding, respectively, at January 3, 2017     18       18  
Additional paid-in capital     408,762       407,273  
Treasury shares, at cost, 2,858,817     (40,009 )     (40,009 )
Accumulated deficit     (382,786 )     (381,059 )
Total shareholders’ (deficit) equity     (14,015 )     (13,777 )
Total liabilities and shareholders' (deficit) equity   $ 40,129     $ 41,620  
                 
 
JAMBA, INC.
(Unaudited)
REVENUE
                 
    13-Week Period Ended   26-Week Period Ended
    July 4, 2017   June 28, 2016   July 4, 2017   June 28, 2016
Revenue (in thousands):                
Company stores   $ 13,262     $13,874     $24,369     $25,827  
Franchise revenue     6,951     6,441     12,704     11,922  
Other revenue     301     1,225     1,054     2,545  
Total revenue   $ 20,514     $21,540     $38,127     $40,294  
                 
JAMBA, INC.
(Unaudited)

RECONCILIATION OF GENERAL AND ADMINISTRATIVE TO NON-GAAP ADJUSTED GENERAL
AND ADMINISTRATIVE

       
                 
    13-Week Period Ended   26-Week Period Ended
    July 4, 2017   June 28, 2016   July 4, 2017   June 28, 2016
General and administrative (in thousands):   $ 6,757     $9,423     $15,358     $ 17,033  
Corporate relocation expenses     (380 )   (2,722 )   (1,675 )     (2,722 )
Audit related expenses     (863 )       (1,434 )      
Other non-recurring expenses     (195 )   (1,096 )   (2,489 )     (2,747 )
Non-GAAP Adjusted General and administrative   $ 5,319     $5,605     $9,760     $ 11,564  
                 
JAMBA, INC.
(Unaudited)
RECONCILIATION OF NET INCOME (LOSS) TO NON-GAAP ADJUSTED EBITDA
                 
    13-Week Period Ended   26-Week Period Ended
    July 4, 2017   June 28, 2016   July 4, 2017   June 28, 2016
Net Income (Loss) (in thousands):   $ 1,725     $(2,479 )   $(1,427 )   $(5,299 )
Depreciation and amortization     899     1,674     1,780     3,176  
Interest income     (41 )   (74 )   (95 )   (145 )
Interest expense     83     59     166     118  
Income taxes     (47 )   (54 )   39     78  
Stock based compensation     497     867     645     1,698  
Other non-recurring expenses     1,965     3,818     6,978     5,469  
Non-GAAP Adjusted EBITDA   $ 5,081     $3,811     $8,086     $5,095  
                 
JAMBA, INC.
(Unaudited)
RECONCILIATION OF NON-GAAP DOMESTIC SYSTEMWIDE SALES
         
    13-Week Period Ended
    July 4, 2017   June 28, 2016
Total Revenue (in thousands):   $20,514     $21,540  
Franchise and other revenue   (7,252 )   (7,666 )
Domestic franchise sales   126,559     123,515  
Non-GAAP domestic system-wide sales   $139,821     $137,389  
             
 
JAMBA, INC.
(Unaudited)
                 
COMPARABLE STORE SALES
                 

Fiscal Calendar Basis

  13-Weeks Ended   26-Weeks Ended
    July 4, 2017 vs   June 28, 2016 vs   July 4, 2017 vs   June 28, 2016 vs
Increase/(Decrease)   June 28, 2016   June 30, 2015   June 28, 2016   June 30, 2015
Percentage Change in Comparable store sales                
Company stores   0.9 %   5.7 %   (1.6 )%   3.0 %
Franchise stores   (1.0 )%   4.0 %   (1.5 )%   1.1 %
System-wide   (0.8 )%   4.2 %   (1.5 )%   1.3 %
                 

Comparable Calendar Basis (a)

  13-Weeks Ended   26-Weeks Ended
    July 4, 2017 vs   June 28, 2016 vs   July 4, 2017 vs   June 28, 2016 vs
Increase/(Decrease)   July 5, 2016   June 30, 2015   July 5, 2016   June 30, 2015
Percentage Change in Comparable store sales                
Company stores   1.0 %   5.7 %   (3.0 )%   3.0 %
Franchise stores   (0.2 )%   4.0 %   (2.7 )%   1.1 %
System-wide   (0.0 )%   4.2 %   (2.7 )%   1.3 %
                 
Percentage Change in Comparable calendar Company store sales                
Traffic   (2.9 )%   1.4 %   (6.2 )%   (1.6 )%
Average check   3.9 %   4.3 %   3.3 %   4.6 %
Total Comparable Company store sales   1.0 %   5.7 %   (3.0 )%   3.0 %
                 
(a) Due to a 53 week fiscal 2016, year-over-year fiscal comparisons are offset by one week. Using comparable calendar periods balances the one week shift and provides a clearer year over year comparison. 2016 fiscal and calendar comparisons are the same.
 
 
JAMBA, INC.
(Unaudited)
                 
STORE COUNT                
    NUMBER OF STORES
    COMPANY   FRANCHISE   TOTAL
        Domestic   International    
For the Quarter Ended July 4, 2017                
At April 4, 2017   66     734     68     868  
Opened       6     4     10  
Acquired                
Closed       (8 )       (8 )
Refranchised   (13 )   13          
At July 4, 2017   53     745     72     870  
                 
For the Quarter Ended June 28, 2016 (a)
At March 29, 2016   68     709     65     842  
Opened   1     8     2     11  
Acquired                
Closed   (1 )   (9 )   (1 )   (11 )
Refranchised                
At June 28, 2016   68     708     66     842  
                 
(a) As communicated on March 20, 2017, the Company now excludes Express format stores from store counts. Store counts exclude Express in both 2016 and 2017 for comparability.
 
 
JAMBA, INC.
(Unaudited)
                 
NEW STORE OPENINGS, NET OF CLOSURES
    13-Weeks Ended   26-Weeks Ended
    July 4, 2017   June 28, 2016 (a)   July 4, 2017   June 28, 2016 (a)
Openings                
Traditional   4     4     15     11  
Non-traditional       4     1     7  
Drive thru   2     1     3     1  
International   4     2     6     5  
Total   10     11     25     24  
                 
Closures                
Traditional   (3 )   (3 )   (5 )   (5 )
Non-traditional   (5 )   (7 )   (8 )   (14 )
Drive thru                
International       (1 )   (4 )   (14 )
Total   (8 )   (11 )   (17 )   (33 )
                 
Openings, Net of Closures(b)                
Traditional   1     1     10     6  
Non-traditional   (5 )   (3 )   (7 )   (7 )
Drive thru   2     1     3     1  
International   4     1     2     (9 )
Total   2         8     (9 )
                 
(a) As communicated on March 20, 2017, the Company now excludes Express format stores from store counts. Store counts exclude Express in both 2016 and 2017 for comparability.
(b) New store openings, net of closures is defined as the count of new store openings, minus the count of store closures.
 
 
JAMBA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per value data)
(Unaudited)
 
    13-Week Period Ended   39-Week Period Ended
   

October 3,
2017

 

September 27,
2016

 

October 3,
2017

 

September 27,
2016

Revenue:                
Company stores   $ 11,222     $ 14,350     $ 35,591     $ 40,177  
Franchise and other revenue     6,934       7,711       20,692       22,178  
Total revenue     18,156       22,061       56,283       62,355  
                 
Costs and operating expenses:                
Cost of sales     2,460       3,437       8,050       9,720  
Labor     3,589       4,644       12,158       13,470  
Occupancy     1,504       1,879       4,978       5,815  
Store operating     1,988       2,381       6,317       6,674  
Depreciation and amortization     897       1,068       2,677       4,244  
General and administrative     6,505       9,699       21,863       26,732  
Loss (gain) on disposal of assets     117       204       671       501  
Store pre-opening     150       210       493       860  
Impairment of long-lived assets           229             356  
Store lease termination and closure     (29 )     178       209       242  
Other operating, net     1,336       104       545       961  
Total costs and operating expenses     18,517       24,033       57,961       69,575  
Income (loss) from operations     (361 )     (1,972 )     (1,678 )     (7,220 )
                 
Other income (expenses):                
Interest income     2       50       97       195  
Interest expense     (81 )     (51 )     (247 )     (169 )
Total other income (expenses), net     (79 )     (1 )     (150 )     26  
                 
Income (loss) before income taxes     (440 )     (1,973 )     (1,828 )     (7,194 )
Income tax (expense) benefit     (17 )     9       (56 )     (69 )
Net income (loss)   $ (457 )   $ (1,964 )   $ (1,884 )   $ (7,263 )
                 
Share Data:                
Weighted-average shares used in the computation of income (loss) per share:                
Basic     15,580,074       15,292,699       15,487,969       15,181,695  
Diluted     15,580,074       15,292,699       15,487,969       15,181,695  
Income (loss) per share:                
Basic   $ (0.03 )   $ (0.13 )   $ (0.12 )   $ (0.48 )
Diluted   $ (0.03 )   $ (0.13 )   $ (0.12 )   $ (0.48 )
                                 
 
JAMBA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
(unaudited)
 
    October 3,   January 3,
    2017   2017
ASSETS        
Current Assets:        
Cash and cash equivalents   $ 11,871     $ 7,133  
Receivables, net of allowances of $877 and $1,808     7,270       11,778  
Inventories     466       534  
Prepaid rent     779       1,053  
Assets held for sale           206  
Prepaid expenses and other current assets     2,972       3,000  
Total current assets     23,358       23,704  
Property, fixtures and equipment, net of accumulated depreciation of $31,942 and $38,645     10,991       12,512  
Goodwill     1,181       1,183  
Trademarks and other intangible assets, net of accumulated amortization of $828 and $2,606     1,239       1,327  
Notes receivable and other long-term assets     923       2,894  
Total assets   $ 37,692     $ 41,620  
LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY        
Current Liabilities:        
Accounts payable   $ 9,630     $ 10,407  
Accrued compensation and benefits     2,430       4,255  
Accrued gift card liability     22,381       24,131  
Other current liabilities     9,368       7,664  
Total current liabilities     43,809       46,457  
Deferred rent and other long-term liabilities     7,819       8,940  
Total liabilities     51,628       55,397  
Commitments and contingencies        
Shareholders’ (deficit) equity:        
Common stock, $0.001 par value—30,000,000 shares authorized; 18,447,023 and 15,588,206 shares issued and outstanding, respectively, at October 3, 2017, and 18,268,885 and 15,410,068 shares issued and outstanding, respectively, at January 3, 2017     18       18  
Additional paid-in capital     409,298       407,273  
Treasury shares, at cost 2,858,817     (40,009 )     (40,009 )
Accumulated deficit     (383,243 )     (381,059 )
Total shareholders’ (deficit) equity     (13,936 )     (13,777 )
Total liabilities and shareholders' (deficit) equity   $ 37,692     $ 41,620  
                 
 
JAMBA, INC.
(Unaudited)
REVENUE
                 
    13-Week Period Ended   39-Week Period Ended
    October 3, 2017   September 27, 2016   October 3, 2017   September 27, 2016
Revenue (in thousands):                
Company stores   $ 11,222     $14,350     $35,591     $ 40,177  
Franchise revenue     6,673     6,220     19,376       18,142  
Other revenue     261     1,491     1,316       4,036  
Total revenue   $ 18,156     $22,061     $56,283     $ 62,355  
                 
JAMBA, INC.
(Unaudited)
RECONCILIATION OF GENERAL AND ADMINISTRATIVE TO NON-GAAP ADJUSTED GENERAL AND ADMINISTRATIVE
                 
    13-Week Period Ended   39-Week Period Ended
    October 3, 2017   September 27, 2016   October 3, 2017   September 27, 2016
General and administrative (in thousands):   $ 6,505     $9,699     $21,863     $ 26,732  
Corporate relocation expenses     (69 )   (2,880 )   (1,741 )     (5,602 )
Audit related expenses     (1,936 )       (3,369 )      
Other non-recurring expenses     (531 )   (1,538 )   (3,020 )     (4,285 )
Non-GAAP Adjusted General and administrative   $ 3,969     $5,281     $13,733     $ 16,845  
                 
JAMBA, INC.
(Unaudited)
RECONCILIATION OF NET LOSS TO NON-GAAP ADJUSTED EBITDA
                 
    13-Week Period Ended   39-Week Period Ended
    October 3, 2017   September 27, 2016   October 3, 2017   September 27, 2016
Net Loss (in thousands):   $ (457 )   $(1,964 )   $(1,884 )   $ (7,263 )
Depreciation and amortization     897     1,068     2,677       4,244  
Interest income     (2 )   (50 )   (97 )     (195 )
Interest expense     81     51     247       169  
Income taxes     17     (9 )   56       69  
Stock based compensation     374     668     1,020       2,366  
Other non-recurring expenses     3,817     4,347     10,794       9,816  
Non-GAAP Adjusted EBITDA   $ 4,727     $4,111     $12,813     $ 9,206  
                 
JAMBA, INC.
(Unaudited)
RECONCILIATION OF NON-GAAP DOMESTIC SYSTEMWIDE SALES
         
    13-Week Period Ended
    October 3, 2017   September 27, 2016
Total Revenue (in thousands):   $18,156     $22,061  
Franchise and other revenue   (6,934 )   (7,711 )
Domestic franchise sales   124,866     118,568  
Non-GAAP domestic system-wide sales   $136,088     $132,918  
             
 
JAMBA, INC.
(Unaudited)
                 
COMPARABLE STORE SALES
                 

Fiscal Calendar Basis

  13-Weeks Ended   39-Weeks Ended
    October 3, 2017 vs   September 27, 2016 vs   October 3, 2017 vs   September 27, 2016 vs
Increase/(Decrease)   September 27, 2016   September 29, 2015   September 27, 2016   September 29, 2015
Percentage Change in Comparable

store sales

               
Company stores   (3.8 )%   (0.8 )%   (2.3 )%   1.6 %
Franchise stores   (0.6 )%   (1.1 )%   (1.2 )%   0.2 %
System-wide   (0.9 )%   (1.1 )%   (1.3 )%   0.4 %
                 

Comparable Calendar Basis(a)

  13-Weeks Ended   39-Weeks Ended
    October 3, 2017 vs   September 27, 2016 vs   October 3, 2017 vs   September 27, 2016 vs
Increase/(Decrease)   October 4, 2016   September 29, 2015   October 4, 2016   September 29, 2015
Percentage Change in Comparable

store sales

               
Company stores   (3.9 )%   (0.8 )%   (3.3 )%   1.6 %
Franchise stores   0.2 %   (1.1 )%   (1.7 )%   0.2 %
System-wide   (0.2 )%   (1.1 )%   (1.9 )%   0.4 %
                 
Percentage Change in Comparable

calendar Company store sales

               
Traffic   (7.2 )%   (1.8 )%   (6.5 )%   (1.6 )%
Average check   3.3 %   0.9 %   3.3 %   3.2 %
Total Comparable Company store sales   (3.9 )%   (0.8 )%   (3.3 )%   1.6 %
                 
(a) Due to a 53 week fiscal 2016, year-over-year fiscal comparisons are offset by one week. Using comparable calendar periods balances the one week shift and provides a clearer year over year comparison. 2016 fiscal and calendar comparisons are the same.
 
 
JAMBA, INC.
(Unaudited)
                 
STORE COUNT                
    NUMBER OF STORES
    COMPANY   FRANCHISE   TOTAL
        Domestic   International    
For the Quarter Ended October 3, 2017                
At July 4, 2017   53     745     72     870  
Opened       8     2     10  
Acquired                
Closed   (1 )   (10 )   (3 )   (14 )
Refranchised                
At October 3, 2017   52     743     71     866  
                 
For the Quarter Ended September 27, 2016 (a)                
At June 28, 2016   68     708     66     842  
Opened   1     10     5     16  
Acquired                
Closed       (6 )   (3 )   (9 )
Refranchised                
At September 27, 2016   69     712     68     849  
                 
(a) As communicated on March 20, 2017, the Company now excludes Express format stores from store counts. Store counts exclude Express in both 2016 and 2017 for comparability.
 
 
JAMBA, INC.
(Unaudited)
                 
NEW STORE OPENINGS, NET OF CLOSURES
    13-Weeks Ended   39-Weeks Ended
    October 3, 2017   September 27, 2016(a)   October 3, 2017   September 27, 2016(a)
Openings                
Traditional   3     9     18     20  
Non-traditional   4     1     5     8  
Drive thru   1     1     4     2  
International   2     5     8     10  
Total   10     16     35     40  
                 
Closures                
Traditional   (5 )   (5 )   (10 )   (10 )
Non-traditional   (6 )   (1 )   (14 )   (15 )
Drive thru                
International   (3 )   (3 )   (7 )   (17 )
Total   (14 )   (9 )   (31 )   (42 )
                 
Openings, Net of Closures(b)                
Traditional   (2 )   4     8     10  
Non-traditional   (2 )       (9 )   (7 )
Drive thru   1     1     4     2  
International   (1 )   2     1     (7 )
Total   (4 )   7     4     (2 )
                 
(a) As communicated on March 20, 2017, the Company now excludes Express format stores from store counts. Store counts exclude Express in both 2016 and 2017 for comparability.
(b) New store openings, net of closures is defined as the count of new store openings, minus the count of store closures.
 
 
JAMBA, INC.
(Unaudited)
     
RECONCILIATION OF 2017 GUIDANCE GENERAL AND ADMINISTRATIVE TO NON-GAAP ADJUSTED GENERAL AND ADMINISTRATIVE
     
(in millions)   Approximately
     
General and Administrative   $ 28.7  
Corporate relocation expenses     (1.8 )
Audit related expenses     (5.3 )
Other non-recurring expenses     (3.6 )
Non-GAAP Adjusted General and Administrative   $ 18.0  
         
 
JAMBA, INC.
(Unaudited)
     
RECONCILIATION OF 2017 GUIDANCE NET LOSS TO NON-GAAP ADJUSTED EBITDA
     
(in millions)   Approximately
Net Loss   $ (4.0 )
Depreciation and amortization     3.5  
Interest income     (0.1 )
Interest expense     0.3  
Income taxes     (0.0 )
Stock based compensation     1.2  
Other non-recurring expenses     13.6  
Non-GAAP Adjusted EBITDA   $ 14.5  

View source version on businesswire.com: http://www.businesswire.com/news/home/20180315006472/en/

Contact:

Dara Dierks
Jamba, Inc.
Investor Relations
646-277-1212
investors@jambajuice.com

Source: Jamba, Inc.

###

Comments:

comments powered by Disqus

Franchise News Room »


News By Industry »


Featured Opportunities

Lightbridge Academy
Lightbridge Academy has a way of making parents and children feel like they’re special. Here, they are surrounded by a Circle of Care that’s more...
Massage Envy
Massage Envy clinics are designed to provide a compelling image, an inviting and functional environment and the highest degree of operational...
Elements Massage
When simplicity is the essence of your business model, clients and owners benefit. Clients want a predictably wonderful experience with every visit....
Uberrito Fresh Mex
Our customers want more than food. They want unique flavors, variety, and a great experience.
Tony Roma's
After two decades of fast-paced international expansion, we are introducing a new generation of domestic customers to the Tony Roma’s experience....
Share This Page

Subscribe to Franchising Express

A Franchise Update Media Production
Franchise Update Media
P.O. Box 20547
San Jose, CA 95160
PH. (408) 402-5681
In Loving Memory Of Timothy Gardner (1987-2014)

Copyright © 2001 - 2018.
All Rights Reserved.