Jamba, Inc. (NASDAQ:JMBA) today reported preliminary unaudited financial
results for the fourth fiscal quarter and year ended December 30, 2014
and an update on strategic initiatives. Jamba demonstrated continued
momentum driven by the 2014 launch of made-to-order juices and energy
bowls that helped drive increased same store sales for the quarter and
for the year, the fourth consecutive year of comparable store sales
growth. For the fourth quarter, Jamba reported comparable store sales
increases for the system of 4.9%, company-owned stores of 4.2%, and
franchise-operated stores of 5.4%. For the full year, the comparable
store sales increases were 2.7% for the system, 2.8% for company-owned
stores and 2.7% for franchise-operated stores. On a GAAP basis, for the
full year, net loss attributable to Jamba, Inc. was approximately $(3.6)
million, or $(0.21) diluted loss per share, which included upfront costs
for the launch of Jamba’s juice platforms, costs incurred in the
transition of certain administrative functions to third party service
provider Capgemini, the purchase of 23 net operating stores from a
franchisee and costs incurred in the move to an asset-light business
model. On a non-GAAP basis, which excludes the upfront costs, adjusted
net income attributable to Jamba, Inc.(2) was approximately
$3.6 million or $0.20 diluted earnings per share.
Overview and update on strategic initiatives
“We made significant progress in transforming Jamba with value creating
initiatives to introduce innovative products and marketing, reduce costs
and enhance productivity, accelerate our move to an asset-light model
with expanded refranchising, increase our store growth with renewed
franchise recruiting, return capital to shareholders through our
first-ever share re-purchase program, and add new perspectives and
strength to our Board with our proposed new directors” said James D.
White, chairman, president and CEO of Jamba, Inc.
“Our overall results reflect the successful launch of our juice and
Energy Bowl platforms. We anticipate that our expanded franchise
recruiting and development efforts will generate store openings in 2015
in key new markets. The net impact of these efforts will double our
annual store openings with a target of 100 to 125 in 2015 and the goal
of adding up to 500 new stores in the next five years domestically.”
Mr. White indicated that Jamba is firmly committed to an asset-light
strategy and identified a near-term objective to refranchise
approximately 114 company-owned stores by mid-2015, which would take the
franchise/company store mix to over 80%/20%. “Our accelerated
refranchising initiative should enable further cost savings beyond those
previously announced. We will provide updates as these initiatives
develop,” he said.
Highlights for the 52 weeks ended December 30, 2014, compared to the
52 weeks ended December 31, 2013:
-
Reflecting the traction gained by juice, Company-owned comparable
store sales(1) increased 2.8% while franchise-operated
comparable store sales(1)were up 2.7% and system-wide
comparable sales(1) grew 2.7% for the fiscal year ended
December 30, 2014 compared to the prior year.
-
Juice sales grew throughout the year, and from May to December they
increased from 7.0% to 13.4% of Company-store revenue, making Jamba
the leading retailer of premium fresh juices in the country.
-
Net loss attributable to Jamba, Inc. was approximately $(3.6) million,
or $(0.21) diluted loss per share. Adjusted net income attributable to
Jamba, Inc.(2) on a non-GAAP basis was approximately $3.6
million, or $0.20 diluted earnings per share, excluding $7.3 million
in upfront costs for the launch of the Company’s juice platforms,
costs for the transition of administrative functions to Capgemini, the
purchase of 23 net operating franchise stores and costs incurred in
the transition to an asset-light business model.
-
Total revenue decreased 4.9% to $218.0 million compared to $229.2
million for the prior year, primarily resulting from a decrease in
company-owned stores due to ongoing refranchising initiatives.
-
General and administration expense decreased slightly to $37.3 million
compared to $37.8 million for the prior year. On a non-GAAP basis,
adjusted general and administration expense(2) was $33.7
million, which excludes upfront general and administration expense,
primarily related to the Company’s organizational restructuring,
expenses for the transition of certain administrative functions to
Capgemini and the purchase of 23 net operating stores in the Midwest
from a franchisee, which stores the Company expects to refranchise. We
expect general and administrative expense for 2015 to be approximately
$30 million.
-
Shares repurchased during the year were 910,813, utilizing $12.0
million under our $25 million share repurchase plan.
-
Plans were set for the refranchising of 114 Company-owned stores by
mid-2015 to accelerate Jamba’s move to an asset-light business model.
-
Global development continued with franchisees opening 67 Jamba Juice
stores; 24 traditional, eight non-traditional, 11 Smoothie Stations,
and 24 units in International markets, of which 15 are non-traditional
and nine traditional. At fiscal year-end, there were 868 stores
globally; 263 company stores, 543 domestic franchise stores and 62
international franchise stores.
Highlights for the 13 weeks ended December 30, 2014, compared to the
13 weeks ended December 31, 2013:
-
Driven by the growth in juice and Energy Bowls, Company-owned
comparable store sales(1) increased 4.2%,
franchise-operated comparable store sales(1) were up 5.4%
and system-wide comparable store sales(1) grew 4.9% for the
13 weeks ended December 30, 2014 compared to the prior year.
-
Net loss attributable to Jamba, Inc. was approximately $(8.0) million,
or $(0.47) diluted loss per share. On a non-GAAP basis, adjusted net
loss attributable to Jamba, Inc.(2) was approximately
$(4.7) million, or $(0.27) diluted loss per share, excluding $3.3
million in up-front costs resulting from the launch of the Company’s
juice platforms, the transition of administrative functions to
Capgemini, the purchase of 23 net operating franchise stores and costs
incurred in the transition to an asset-light business model.
-
Total revenue remained relatively flat at $43.9 million compared to
total revenue of $44.1 million for the prior year.
-
General and administration expense remained relatively flat at $9.9
million compared to $10.0 million for the prior year. On a non-GAAP
basis, adjusted general and administration expense(2) was
$7.8 million, which excludes upfront general and administration
expense, primarily related to the Company’s organizational
restructuring, expenses for the transition of certain administrative
functions to Capgemini and the purchase of 23 net operating stores in
the Midwest from a franchisee which stores the Company expects to
refranchise.
Results for Fiscal Year 2014
Revenue
For the fiscal year ended December 30, 2014, total revenue decreased
4.9% to $218.0 million from $229.2 million in the prior year. The
decrease is primarily caused by the reduction in the number of
Company-owned stores due to Jamba’s refranchising strategy, partially
offset by the 2.8% increase in Company-owned comparable store sales(1).
Jamba had 263 Company-owned stores at the end of the 2014 fiscal year
compared with 268 at the end of 2013. The increase in Company-owned
comparable store sales(1) of 2.8% was driven primarily by an
increase in average check of 470 basis points, partially offset by a
decrease in transaction count of 190 basis points. During the fiscal
year, franchise-operated comparable store sales(1) increased
2.7%.
Top line revenue drivers were the strong performances in fresh and
ready-to-drink juice and the new Energy Bowl platforms that Jamba
introduced in the second half of the fiscal year. Franchise and other
revenue increased 18.0% to $19.3 million from $16.4 million in the prior
year. JambaGO® and CPG revenue was $5.0 million for the 2014 fiscal year
compared to $3.8 million for the prior year.
(Loss) Income from Operations and Operating Margin
For the full year, loss from operations was approximately $(3.3)
million, which included upfront costs for the launch of Jamba’s juice
platforms, the transition of certain administrative functions to
Capgemini, the purchase of 23 net operating stores from a franchisee and
the move to an asset-light business model. On a non-GAAP basis which
excludes the upfront costs, adjusted income from operations(2)
was approximately $3.8 million or 1.7% compared to 1.0% from the prior
year. Operating margins were impacted by higher labor costs and cost of
goods sold, due to the accelerated launch of the juice and Energy Bowl
platforms. High consumer demand and competitive advantage gained by
having a leading national presence led Jamba to move up the launch dates
for these product offerings. There are plans in place to optimize the
costs of goods related to the fresh produce supply that will start to
impact operating margins by the second quarter of 2015. In addition,
process improvements around store efficiencies are in test and we expect
those to be implemented during the same time frame.
Fourth Quarter Fiscal 2014 Results
Revenue
For the fourth quarter ended December 30, 2014, total revenue was
essentially flat at $43.9 million compared to the $44.1 million in the
prior year period. The slight decrease is primarily caused by the
reduction in Company-owned stores due to Jamba’s refranchising strategy,
partially offset by the 4.2% increase in Company-owned comparable store
sales(1),which was driven primarily by an increase in average
check of 370 basis points and a 50 basis point increase in traffic.
Franchise and other revenue increased 20.7% to $4.5 million from $3.7
million in the prior year period. The increase was attributable to an
increase in franchise revenue due to nine new and five refranchised
domestic stores and seven new international franchise-operated stores, a
50.8% increase in CPG and JambaGO revenue, and the 5.4% increase in
franchise-operated comparable store sales(1). Jamba’s CPG and
JambaGO revenue was $1.3 million in the fourth quarter of 2014, compared
to $0.9 million in the prior year period.
(Loss) from Operations and Operating Margin
For the fourth quarter, loss from operations was approximately $(7.9)
million, which included upfront costs for the launch of Jamba’s juice
platforms, the transition of administrative functions to Capgemini, the
purchase of 23 net operating stores from a franchisee and the move to an
asset-light business model. On a non-GAAP basis which excludes the
upfront costs, adjusted loss from operations(2) was
approximately $(4.6) million or (10.4)% compared to (14.3)% from the
prior year. Operating margins were impacted by higher labor costs and
cost of goods sold, due to the accelerated launch of the juice and
Energy Bowl platforms.
Retail Growth
At December 30, 2014, system-wide, Jamba® had 806 stores in the United
States, of which 543 are franchise-operated stores and 263 are
Company-owned stores. Franchise-operated stores include 39 Smoothie
Stations™, Jamba’s limited menu express format. On an international
basis, Jamba had 62 stores at the end of the fiscal year, all franchise
operated.
During 2014, Jamba opened 43 domestic franchise-operated stores, of
which 19 are non-traditional and 24 traditional and 24 international
franchise-operated stores, of which 15 are non-traditional and nine
traditional. In 2014, Jamba signed agreements to enter the Middle East
and Taiwan with plans for a total of 1,400 stores in 10 years.
Internationally, there are 28 Jamba stores in South Korea, 16 in the
Philippines, 15 in Canada, two in Mexico, and one in the Middle East.
No new Company-owned stores opened during the fiscal year, and Jamba
acquired 23 net operating stores in the Midwest from a franchise partner
as of September 28, 2014, with plans to re-franchise these stores by
mid-2015. 50 stores were closed globally. Growth continues at JambaGO®
with units in operation approaching 2,000.
Liquidity
On December 30, 2014, the Company held $17.8 million in cash and cash
equivalents compared to cash and cash equivalents of $32.4 million at
December 31, 2013. As of December 30, 2014 the Company did not have any
restricted cash. During the year, the Company repurchased 910,813 shares
of common stock on the open market at an average price of $13.17.
Guidance for 2015
The Company looks to 2015 as a year of earnings growth, cost reduction
and value creation in which it will continue to aggressively return
capital to shareholders through its stock repurchase program. Jamba set
preliminary annual targets of:
-
Company-owned comparable store sales(1) of 3%-5% ;
-
Operating margin of 4%-6% of revenue;
-
100-125 new U.S. and international store locations;
-
G&A at $30 million
-
Continued pursuit of the asset-light strategy, with the refranchising
of 114 stores by mid-2015.
Webcast and Conference Call Information
A conference call to review the preliminary unaudited fourth quarter and
fiscal year 2014 results will be held today, March 12, 2015 at 5:00 p.m.
ET. The conference call can be accessed live over the phone by dialing
(877) 407-3982 or for international callers by dialing (201) 493-6780. 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 13602547. The replay will be available until April 2, 2015.
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. 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 teas and a variety of food
items including, Energy Bowls™, hot oatmeal, breakfast wraps,
sandwiches, Artisan Flatbreads™, baked goods and snacks. As of December
30, 2014, there were 868 store locations globally. There were 263
Company-owned and operated stores and 543 franchise-operated stores in
the United States, and 62 franchise-operated international stores. Jamba
Juice Company expands the Jamba® brand by direct selling of consumer
packaged goods (“CPG”) and licensing its trademarks. CPG products for
at-home enjoyment are 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 “Guidance for 2015” 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. In addition, the
unaudited financial results are preliminary, and, therefore, subject to
the Company’s completion of the customary year end closing and audit
procedures. 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 supplemental non-GAAP financial measures to
its investors as a complement to the most comparable GAAP measures. The
Company believes that providing these non-GAAP measures to its
investors, in addition to corresponding GAAP income statement measures,
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 in Footnotes 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.
Footnotes
(1) Comparable store sales are calculated using sales of
Jamba Juice® stores open more than one full 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 year 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.
(2) Non-GAAP adjusted net income attributable to Jamba, Inc.
is calculated as net income attributable to Jamba, Inc. as determined in
accordance with GAAP excluding the cost items as specifically identified
in the non-GAAP reconciliation schedules set forth below associated with
the Company’s juice launch, transition and legal costs related to the
Company’s move to outsource specified services to Capgemini, costs
associated with the purchase of 23 net operating stores from an existing
franchisee in the Midwest and transition costs accompanying the move to
an asset-light business model. Non-GAAP general and administration
expense is calculated as general and administration expense in
accordance with GAAP excluding $3.6 million of the portion of such
transitional costs in general and administration expenses. The Company
believes that net income attributable to Jamba, Inc. and general and
administration 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 gain/loss 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 net income/loss attributable
to Jamba, Inc. and general and administration expense.
|
JAMBA, INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Preliminary - Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13 Week
|
|
|
13 Week
|
|
|
52 Week
|
|
|
52 Week
|
|
|
|
Period Ended
|
|
|
Period Ended
|
|
|
Period Ended
|
|
|
Period Ended
|
(In thousands except share and per share amounts)
|
|
|
December 30, 2014
|
|
|
December 31, 2013
|
|
|
December 30, 2014
|
|
|
December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Company stores
|
|
|
$
|
39,456
|
|
|
|
$
|
40,348
|
|
|
|
$
|
198,737
|
|
|
|
$
|
212,887
|
|
Franchise and other revenue
|
|
|
|
4,477
|
|
|
|
|
3,708
|
|
|
|
|
19,311
|
|
|
|
|
16,362
|
|
Total revenue
|
|
|
|
43,933
|
|
|
|
|
44,056
|
|
|
|
|
218,048
|
|
|
|
|
229,249
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
|
12,456
|
|
|
|
|
10,357
|
|
|
|
|
52,236
|
|
|
|
|
52,211
|
|
Labor
|
|
|
|
14,383
|
|
|
|
|
13,548
|
|
|
|
|
61,749
|
|
|
|
|
62,015
|
|
Occupancy
|
|
|
|
6,847
|
|
|
|
|
7,250
|
|
|
|
|
27,630
|
|
|
|
|
29,350
|
|
Store operating
|
|
|
|
7,792
|
|
|
|
|
7,656
|
|
|
|
|
33,089
|
|
|
|
|
34,802
|
|
Depreciation and amortization
|
|
|
|
2,169
|
|
|
|
|
2,626
|
|
|
|
|
10,084
|
|
|
|
|
10,974
|
|
General and administrative
|
|
|
|
9,859
|
|
|
|
|
10,004
|
|
|
|
|
37,278
|
|
|
|
|
37,771
|
|
Other operating, net
|
|
|
|
(1,693
|
)
|
|
|
|
(1,089
|
)
|
|
|
|
(718
|
)
|
|
|
|
(242
|
)
|
Total costs and operating expenses
|
|
|
|
51,813
|
|
|
|
|
50,352
|
|
|
|
|
221,348
|
|
|
|
|
226,881
|
|
(Loss) Income from operations
|
|
|
|
(7,880
|
)
|
|
|
|
(6,296
|
)
|
|
|
|
(3,300
|
)
|
|
|
|
2,368
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense), net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
|
19
|
|
|
|
|
8
|
|
|
|
|
74
|
|
|
|
|
9
|
|
Interest expense
|
|
|
|
(52
|
)
|
|
|
|
(51
|
)
|
|
|
|
(195
|
)
|
|
|
|
(242
|
)
|
Total other expense, net
|
|
|
|
(33
|
)
|
|
|
|
(43
|
)
|
|
|
|
(121
|
)
|
|
|
|
(233
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income before income taxes
|
|
|
|
(7,913
|
)
|
|
|
|
(6,339
|
)
|
|
|
|
(3,421
|
)
|
|
|
|
2,135
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (expense ) benefit
|
|
|
|
(106
|
)
|
|
|
|
616
|
|
|
|
|
(168
|
)
|
|
|
|
(55
|
)
|
Net (loss) income
|
|
|
|
(8,019
|
)
|
|
|
|
(5,723
|
)
|
|
|
|
(3,589
|
)
|
|
|
|
2,080
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable preferred stock dividends and deemed dividends
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(588
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income attributable to noncontrolling interest
|
|
|
|
4
|
|
|
|
|
-
|
|
|
|
|
43
|
|
|
|
|
-
|
|
Net (loss) income attributable to Jamba, Inc.
|
|
|
$
|
(8,023
|
)
|
|
|
$
|
(5,723
|
)
|
|
|
$
|
(3,632
|
)
|
|
|
$
|
1,492
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares used in computation of (loss) earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
17,134,490
|
|
|
|
|
17,133,479
|
|
|
|
|
17,197,904
|
|
|
|
|
16,793,235
|
|
Diluted
|
|
|
|
17,134,490
|
|
|
|
|
17,133,479
|
|
|
|
|
17,197,904
|
|
|
|
|
17,222,030
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings per share attributable to Jamba, Inc. common
shareholders:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
(0.47
|
)
|
|
|
$
|
(0.33
|
)
|
|
|
$
|
(0.21
|
)
|
|
|
$
|
0.09
|
|
Diluted
|
|
|
$
|
(0.47
|
)
|
|
|
$
|
(0.33
|
)
|
|
|
$
|
(0.21
|
)
|
|
|
$
|
0.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JAMBA, INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Preliminary - Unaudited)
|
Adjusted for Transitional Costs Associated with Juice Launch and
Shift to Asset Light Business Model Transition Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
|
|
|
|
|
As Adjusted
|
|
|
|
|
|
|
|
13 Week
|
|
|
|
|
|
13 Week
|
|
|
13 Week
|
|
|
|
|
Period Ended
|
|
|
Transitional
|
|
|
Period Ended
|
|
|
Period Ended
|
(In thousands except share and per share amounts)
|
|
|
December 30, 2014
|
|
|
Costs
|
|
|
December 30, 2014
|
|
|
December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company stores
|
|
|
$
|
39,456
|
|
|
|
$
|
157
|
|
|
|
$
|
39,613
|
|
|
|
$
|
40,348
|
|
Franchise and other revenue
|
|
|
|
4,477
|
|
|
|
|
330
|
|
|
|
|
4,807
|
|
|
|
|
3,708
|
|
Total revenue
|
|
|
|
43,933
|
|
|
|
|
487
|
|
|
|
|
44,420
|
|
|
|
|
44,056
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
|
12,456
|
|
|
|
|
(314
|
)
|
|
|
|
12,142
|
|
|
|
|
10,357
|
|
Labor
|
|
|
|
14,383
|
|
|
|
|
-
|
|
|
|
|
14,383
|
|
|
|
|
13,548
|
|
Occupancy
|
|
|
|
6,847
|
|
|
|
|
-
|
|
|
|
|
6,847
|
|
|
|
|
7,250
|
|
Store operating
|
|
|
|
7,792
|
|
|
|
|
(290
|
)
|
|
|
|
7,502
|
|
|
|
|
7,656
|
|
Depreciation and amortization
|
|
|
|
2,169
|
|
|
|
|
-
|
|
|
|
|
2,169
|
|
|
|
|
2,626
|
|
General and administrative
|
|
|
|
9,859
|
|
|
|
|
(2,040
|
)
|
|
|
|
7,819
|
|
|
|
|
10,004
|
|
Other operating, net
|
|
|
|
(1,693
|
)
|
|
|
|
(117
|
)
|
|
|
|
(1,810
|
)
|
|
|
|
(1,089
|
)
|
Total costs and operating expenses
|
|
|
|
51,813
|
|
|
|
|
(2,761
|
)
|
|
|
|
49,052
|
|
|
|
|
50,352
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Income from operations
|
|
|
|
(7,880
|
)
|
|
|
|
3,248
|
|
|
|
|
(4,632
|
)
|
|
|
|
(6,296
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense), net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
|
19
|
|
|
|
|
-
|
|
|
|
|
19
|
|
|
|
|
8
|
|
Interest expense
|
|
|
|
(52
|
)
|
|
|
|
-
|
|
|
|
|
(52
|
)
|
|
|
|
(51
|
)
|
Total other expense, net
|
|
|
|
(33
|
)
|
|
|
|
0
|
|
|
|
|
(33
|
)
|
|
|
|
(43
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income before income taxes
|
|
|
|
(7,913
|
)
|
|
|
|
3,248
|
|
|
|
|
(4,665
|
)
|
|
|
|
(6,339
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (expense ) benefit
|
|
|
|
(106
|
)
|
|
|
|
65
|
|
|
|
|
(41
|
)
|
|
|
|
616
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
|
|
|
|
(8,019
|
)
|
|
|
|
3,313
|
|
|
|
|
(4,706
|
)
|
|
|
|
(5,723
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable preferred stock dividends and deemed dividends
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income attributable to noncontrolling interest
|
|
|
|
4
|
|
|
|
|
-
|
|
|
|
|
4
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income attributable to Jamba, Inc.
|
|
|
$
|
(8,023
|
)
|
|
|
$
|
3,313
|
|
|
|
$
|
(4,710
|
)
|
|
|
$
|
(5,723
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares used in computation of (loss) earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
17,134,490
|
|
|
|
|
|
|
|
17,134,490
|
|
|
|
|
17,133,479
|
|
Diluted
|
|
|
|
17,134,490
|
|
|
|
|
|
|
|
17,134,490
|
|
|
|
|
17,133,479
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings per share attributable to Jamba, Inc. common
shareholders:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
(0.47
|
)
|
|
|
|
|
|
$
|
(0.27
|
)
|
|
|
$
|
(0.33
|
)
|
Diluted
|
|
|
$
|
(0.47
|
)
|
|
|
|
|
|
$
|
(0.27
|
)
|
|
|
$
|
(0.33
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JAMBA, INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Preliminary - Unaudited)
|
Adjusted for Transitional Costs Associated with Juice Launch and
Shift to Asset Light Business Model Transition Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
|
|
|
|
|
As Adjusted
|
|
|
|
|
|
|
|
52 Week
|
|
|
|
|
|
52 Week
|
|
|
52 Week
|
|
|
|
|
Period Ended
|
|
|
Transitional
|
|
|
Period Ended
|
|
|
Period Ended
|
(In thousands except share and per share amounts)
|
|
|
December 30, 2014
|
|
|
Costs
|
|
|
December 30, 2014
|
|
|
December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company stores
|
|
|
$
|
198,737
|
|
|
|
$
|
168
|
|
|
|
$
|
198,905
|
|
|
|
$
|
212,887
|
|
Franchise and other revenue
|
|
|
|
19,311
|
|
|
|
$
|
945
|
|
|
|
|
20,256
|
|
|
|
|
16,362
|
|
Total revenue
|
|
|
|
218,048
|
|
|
|
$
|
1,113
|
|
|
|
|
219,161
|
|
|
|
|
229,249
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
|
52,236
|
|
|
|
|
(921
|
)
|
|
|
|
51,315
|
|
|
|
|
52,211
|
|
Labor
|
|
|
|
61,749
|
|
|
|
|
(523
|
)
|
|
|
|
61,226
|
|
|
|
|
62,015
|
|
Occupancy
|
|
|
|
27,630
|
|
|
|
|
-
|
|
|
|
|
27,630
|
|
|
|
|
29,350
|
|
Store operating
|
|
|
|
33,089
|
|
|
|
|
(715
|
)
|
|
|
|
32,374
|
|
|
|
|
34,802
|
|
Depreciation and amortization
|
|
|
|
10,084
|
|
|
|
|
-
|
|
|
|
|
10,084
|
|
|
|
|
10,974
|
|
General and administrative
|
|
|
|
37,278
|
|
|
|
|
(3,602
|
)
|
|
|
|
33,676
|
|
|
|
|
37,771
|
|
Other operating, net
|
|
|
|
(718
|
)
|
|
|
|
(235
|
)
|
|
|
|
(953
|
)
|
|
|
|
(242
|
)
|
Total costs and operating expenses
|
|
|
|
221,348
|
|
|
|
|
(5,996
|
)
|
|
|
|
215,352
|
|
|
|
|
226,881
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Income from operations
|
|
|
|
(3,300
|
)
|
|
|
|
7,109
|
|
|
|
|
3,809
|
|
|
|
|
2,368
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense), net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
|
74
|
|
|
|
|
-
|
|
|
|
|
74
|
|
|
|
|
9
|
|
Interest expense
|
|
|
|
(195
|
)
|
|
|
|
-
|
|
|
|
|
(195
|
)
|
|
|
|
(242
|
)
|
Total other expense, net
|
|
|
|
(121
|
)
|
|
|
|
-
|
|
|
|
|
(121
|
)
|
|
|
|
(233
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income before income taxes
|
|
|
|
(3,421
|
)
|
|
|
|
7,109
|
|
|
|
|
3,688
|
|
|
|
|
2,135
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (expense ) benefit
|
|
|
|
(168
|
)
|
|
|
|
142
|
|
|
|
|
(26
|
)
|
|
|
|
(55
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
|
|
|
|
(3,589
|
)
|
|
|
|
7,251
|
|
|
|
|
3,662
|
|
|
|
|
2,080
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable preferred stock dividends and deemed dividends
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(588
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income attributable to noncontrolling interest
|
|
|
|
43
|
|
|
|
|
-
|
|
|
|
|
43
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income attributable to Jamba, Inc.
|
|
|
$
|
(3,632
|
)
|
|
|
$
|
7,251
|
|
|
|
$
|
3,619
|
|
|
|
$
|
1,492
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares used in computation of (loss) earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
17,197,904
|
|
|
|
|
|
|
|
17,197,904
|
|
|
|
|
16,793,235
|
|
Diluted
|
|
|
|
17,197,904
|
|
|
|
|
|
|
|
17,653,716
|
|
|
|
|
17,222,030
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings per share attributable to Jamba, Inc. common
shareholders:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
(0.21
|
)
|
|
|
|
|
|
$
|
0.21
|
|
|
|
$
|
0.09
|
|
Diluted
|
|
|
$
|
(0.21
|
)
|
|
|
|
|
|
$
|
0.20
|
|
|
|
$
|
0.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JAMBA, INC.
|
(Preliminary - Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STORE COUNT
|
|
|
|
NUMBER OF STORES
|
|
|
|
COMPANY
|
|
|
FRANCHISE
|
|
|
TOTAL
|
|
|
|
|
|
|
Domestic
|
|
|
International
|
|
|
|
Fiscal year ended December 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31, 2013
|
|
|
268
|
|
|
|
535
|
|
|
|
48
|
|
|
|
851
|
|
Opened
|
|
|
-
|
|
|
|
43
|
|
|
|
24
|
|
|
|
67
|
|
Closed
|
|
|
(13
|
)
|
|
|
(27
|
)
|
|
|
(10
|
)
|
|
|
(50
|
)
|
Acquired
|
|
|
26
|
|
|
|
(26
|
)
|
|
|
|
|
|
-
|
|
Refranchised
|
|
|
(18
|
)
|
|
|
18
|
|
|
|
|
|
|
-
|
|
At December 30, 2014
|
|
|
263
|
|
|
|
543
|
|
|
|
62
|
|
|
|
868
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal year ended December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
At January 1, 2013
|
|
|
301
|
|
|
|
473
|
|
|
|
35
|
|
|
|
809
|
|
Opened
|
|
|
2
|
|
|
|
52
|
|
|
|
15
|
|
|
|
69
|
|
Closed
|
|
|
(4
|
)
|
|
|
(21
|
)
|
|
|
(2
|
)
|
|
|
(27
|
)
|
Refranchised
|
|
|
(31
|
)
|
|
|
31
|
|
|
|
|
|
|
-
|
|
At December 31, 2013
|
|
|
268
|
|
|
|
535
|
|
|
|
48
|
|
|
|
851
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPARABLE STORE SALES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13 Week
|
|
|
13 Week
|
|
|
52 Week
|
|
|
52 Week
|
|
|
|
Period Ended
|
|
|
Period Ended
|
|
|
Period Ended
|
|
|
Period Ended
|
|
|
|
December 30, 2014
|
|
|
December 31, 2013
|
|
|
December 30, 2014
|
|
|
December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage Change in Comparable store sales
|
|
|
|
|
|
|
|
|
|
|
|
|
Company stores
|
|
|
4.2
|
%
|
|
|
3.4
|
%
|
|
|
2.8
|
%
|
|
|
0.5
|
%
|
Franchise stores
|
|
|
5.4
|
%
|
|
|
-2.1
|
%
|
|
|
2.7
|
%
|
|
|
-0.6
|
%
|
System-wide
|
|
|
4.9
|
%
|
|
|
0.3
|
%
|
|
|
2.7
|
%
|
|
|
-0.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage Change in Comparable Company store sales
|
|
|
|
|
|
|
|
|
|
|
|
|
Traffic effect
|
|
|
0.5
|
%
|
|
|
-1.5
|
%
|
|
|
-1.8
|
%
|
|
|
-1.9
|
%
|
Average check effect
|
|
|
3.7
|
%
|
|
|
4.9
|
%
|
|
|
4.6
|
%
|
|
|
2.4
|
%
|
Total Comparable Company store sales
|
|
|
4.2
|
%
|
|
|
3.4
|
%
|
|
|
2.8
|
%
|
|
|
0.5
|
%
|
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