Jamba Inc. today provided an update on key business initiatives,
preliminary fiscal year 2014 guidance and adjusted estimates for fiscal
year 2013.
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JambaGo express smoothie units are now opening in over 1,000 food
courts at a major retailer across the country. The partnership
represents the largest single expansion of JambaGo to date and will
bring the total units to over 1,800.
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International markets for Jamba are expected to grow from four
countries currently to between seven and nine by year-end 2015. The
estimated potential for international stores has therefore increased
from 1,000 to 1,500.
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A newly launched cost and productivity improvement program is expected
to yield savings of 100-200 basis points in operating margin once
fully operationalized.
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The ISIS mobile wallet that enables payment via phone is now rolling
out nationally to Jamba stores. Jamba’s new loyalty program,
partnering with SpendGo, is scheduled to follow in the first quarter
of 2014.
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As a result of constraints on consumer spending, adverse weather in
key markets and increased competition, Jamba adjusted several
estimates for 2013. The Company now expects system-wide same store
sales to be flat to 1%, store-level margins to be 16% to 17% and
operating margin to be 1% to 2%.
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Preliminary forecasts for 2014 show solid growth with system-wide same
store sales of 2% to 4%; store-level margin of 18% to 19%; operating
margin of 2% to 3%; domestic and international openings of 60 to 80
new stores; and up to 1,000 new JambaGo installations.
“Our analysis shows that a consumer spending slowdown reduced third
quarter comparable store sales comparisons for company stores by 3% to
4%. We believe that current campaigns did not have the same impact as
the prior year, impacting the comparison by 1% to 2%, and adverse
weather in key markets caused a further reduction of approximately 1% to
2%. Preliminary results for third quarter same store sales reflect a
decrease in system-wide comparable store sales of -3.4%, company-owned
stores of -5.5%, and franchise stores of-1.3%.(1)” said James
D. White, chairman, president and CEO of Jamba. “Jamba’s adjusted
targets for 2013 and preliminary forecasts for 2014 represent a
realistic and balanced approach to achieve sustained, long-term growth
and also drive significant gains this year in operating margin, net
income and other key metrics.”
“Our JambaGo initiative is a good example of robust growth. We are
delighted to broaden our distribution to many other customers who will
now have the opportunity to experience our delicious Jamba smoothies,
which not only taste great but also have inspired millions of fans to
pursue active healthy life styles,” concluded Mr. White.
Conference Call
A conference call to review the following items will be held today,
October 7, 2013 at 5:00 p.m. ET. The conference call can be accessed
live over the phone by dialing (877) 941-1427 or for international
callers by dialing (480) 629-9664 . The financial information that the
Company intends to discuss during the conference call is included in
this press release and will be available on the “Investors” link of the
Company’s website at www.jambajuice.com.
Prior to the conference call, the Company will post supplemental
financial information that will be discussed during the call and live
webcast. A replay will be available at 8:00 p.m. ET and can be accessed
by dialing (877) 870-5176 or (858) 384-5517 for international callers;
the pin number is 4643036 . The replay will be available until October
28, 2013. The call can be accessed from the Company’s website at www.jambajuice.com
under the Corporate Investor Relations section or directly at http://ir.jambajuice.com.
About Jamba, Inc.
Jamba, Inc., (the “Company”) owns and franchises Jamba Juice stores
through its wholly-owned subsidiary, Jamba Juice Company. Jamba Juice
Company is a leading restaurant retailer of better-for-you, specialty
beverage and food offerings, which include great tasting, whole fruit
smoothies, fresh-squeezed juices and juice blends, hot coffee and teas,
hot oatmeal, breakfast wraps, sandwiches and mini-wraps, California
Flatbreads™, frozen yogurt, and a variety of baked goods and snacks. As
of July 2, 2013, there were 829 store locations globally. There were 295
Company-owned and operated stores and 492 franchise-operated stores in
the United States, and 42 international stores. Jamba Juice Company has
expanded the Jamba brand by direct selling of consumer packaged goods
(“CPG”) and licensing its trademark. CPG products for at-home enjoyment
are also available online, through select retailers across the nation
and in Jamba outlets in the United States.
Fans of Jamba Juice can find out more about Jamba Juice's locations as
well as specific offerings and promotions by visiting the Jamba Juice
website at www.JambaJuice.com or
by contacting Jamba’s Guest Services team at 1-866-4R-FRUIT (473-7848).
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 “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 the statements made under the
caption “Outlook for 2013” and any other 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 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.
Footnote:
(1) Comparable store sales are calculated using
sales of Jamba Juice stores open more than one full fiscal year.
Company-owned comparable store sales percentages are based on sales from
company-owned stores included in our store base. Franchise-operated
comparable store sales percentages are based on sales from franchised
stores, as reported by franchisees, which are included in our store
base. System-wide sales percentages are based on sales by both
company-owned and franchise-operated stores, as reported by our
franchisees, which are included in our store base. Company-owned stores
that were sold in refranchising transactions are included in the
Company-owned store base for each accounting period of the fiscal
quarter to the extent the sale is consummated at least three days prior
to the end of such accounting period, but only for the days such stores
have been company-owned. Thereafter, such stores are excluded from the
store base until such stores have been franchise-operated for at least
one full fiscal period, at which point such stores are included in the
franchise-operated store base and compared to sales in the comparable
period of the prior year. Comparable store sales exclude closed
locations. 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 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 company-owned comparable
store sales, franchise-operated comparable store sales and system-wide
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.
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