Refranchising Agreements Accelerate Move to Asset-Light Model
G&A Cost Reductions Continue
$40 million Share Repurchase Program Continues
Provides 2016 and Long-term Outlook
Jamba, Inc. (NASDAQ:JMBA) today reported unaudited financial results for
the second fiscal quarter ended June 30, 2015. The Company advanced its
priority to transform Jamba to an asset-light model, moving forward with
domestic refranchising agreements and signing master partnership
franchise agreements for two new international markets. During the
quarter, Jamba’s smoothies, juices and energy bowls held their strong
market share positions although less promotional activity compared to
the prior year and unusually cool weather in California during May
reduced comparable store sales(1) for the quarter.
“We have now closed deals to refranchise 150 stores, which is well above
our initial goal of 114 stores. We plan to refranchise an additional 76
company-owned stores in three California markets this year and in the
Chicago/Midwest market by the end of the first quarter next year. By the
end of 2015, we expect to be a 90% plus franchise organization” said
James D. White, chairman, president and chief executive officer of
Jamba, Inc.
“This transition period lays the groundwork for Jamba’s focus on
increasing shareholder value through profitable growth for our expanding
franchisee network, ongoing reduction of our cost structure to a
best-in-sector level and innovative product development to accelerate
the growth of our on-trend juices, smoothies and energy bowls while we
continue with our robust share-repurchase program,” said Mr. White.
”Jamba made excellent progress during the quarter in its cost reduction
efforts, which lowered G&A to $7.8 million on a non-GAAP basis(2)
for the quarter as compared to $9.6 million in the second quarter of
2014. Same store sales for the quarter were hurt by weather conditions
during May in California, where Jamba has a concentration of stores.
Strong sales in April and June could not offset the impact of the severe
shortfall in May, but positive sales trends have resumed with third
quarter-to-date same store sales up 6.0% in company-owned units and 3.8
% system-wide,” Mr. White concluded.
Second Quarter Highlights
-
Company-owned comparable store sales(1) decreased 5.9% in
the second quarter compared to the prior year period due primarily to
decreased transactions resulting from less discounting and poor
weather compared to the prior year period.
-
System-wide comparable store sales(1) decreased 3.9% and
franchise-operated comparable store sales(1) decreased 2.6%
for the second quarter of 2015 compared to the prior year period.
-
Opened 16 stores, which included ten domestic and six international.
Total net openings were eight.
-
Net income attributable to Jamba, Inc. was $6.3 million, or $0.38
diluted earnings per share for the second quarter of 2015, which
includes a gain of $4.5 million related to the refranchising
initiative, compared to a net income attributable to Jamba, Inc. of
$6.3 million or $0.36 diluted earnings per share for the prior year
period, which included a gain on disposal of assets of $1.0 million.
-
Non-GAAP Adjusted Net Income attributable to Jamba, Inc.(2)
adjusted for costs associated with the shift to the asset-light
business model and the gain associated with refranchising was $3.1
million for the second quarter, or $0.19 diluted earnings per share
compared to non-GAAP Adjusted Net Income attributable to Jamba, Inc.(2)
of $4.8 million, or $0.27 diluted earnings per share for the prior
year period.
-
Total revenue for the second quarter of 2015 was $54.1 million
compared to total revenue of $64.2 million for the prior year period,
primarily as a result of the reduced store count and reduced
comparable store sales.
-
Generated non-GAAP Adjusted EBITDA(3) of $6.1 million for
the second quarter
-
The Company repurchased 195,171 shares during the quarter for $3.1
million.
G&A Optimization Continues
-
Jamba expects $30 million of G&A expense (adjusted for transition
costs) in 2015 down from $33.7 million (adjusted for transition costs)
of G&A in 2014.
-
Jamba expects to further reduce G&A expense to $25-26 million in 2016,
which is expected to be 4.0% of system-wide sales for the core store
operations.
-
Jamba’s long-term goal is G&A of 3% or less of system-wide sales for
the core store operations.
Refranchising Continues with Cash Proceeds Expected in Q3
-
Plans were accelerated to move to a greater than 90% franchise system
by the end of fiscal 2015.
-
Subsequent to the second quarter, two refranchising transactions
closed totaling 97 company-owned stores and Jamba expects to close two
to three additional transactions during the remainder of this fiscal
year.
-
On a global basis, the company expects to have approximately 885-900
franchise-owned and operated stores and 50-60 company-owned stores by
end of fiscal 2015.
-
Jamba projects total proceeds of $60-70 million from refranchising
transactions in 2015, with the majority of the proceeds to be received
in Q3.
Capital Allocation Update
-
The Company’s board of directors authorized a $25 million share
repurchase program in October 2014 and increased the authorization to
$40 million in May 2015.
-
During the quarter, the Company repurchased 195,171 shares of common
stock on the open market at an average price of $16.09 per share for a
total of $3.1 million.
-
Cumulatively through the end of the second quarter, 1,551,398 shares
have been repurchased under this plan for a total cost of $21.8
million, reducing share count by approximately 8.8% since inception of
plan.
-
There is $18.2 million of capacity left under the current repurchase
authorization
Second Quarter Fiscal 2015 Results
Revenue
For the 13 weeks ended June 30, 2015, total revenue decreased 15.7% to
$54.1 million from $64.2 million in the prior year period. The decrease
is primarily due to the reduction in the number of company-owned stores
pursuant to the company’s refranchising strategy and additionally due to
the 5.9% decrease in company-owned comparable store sales(1).
The decrease in company-owned comparable store sales(1) of
5.9% consists of a decrease in transaction count of 1,150 basis points,
of which approximately 500 basis points was due to the strategic
decision to reduce the amount of promotional activity during the period
and approximately 300 basis points was due to the cool weather this year
compared to the prior year, partially offset by an increase in average
check of 560 basis points. Franchise and other revenue increased 3.6% to
$5.8 million from $5.6 million in the prior year period, primarily due
to increased royalties resulting from the increase in franchise-operated
stores partially offset by a decline in franchise-operated comparable
store sales(1) of 2.6% during the 13 week period ended June
30, 2015. Other revenue, which includes JambaGO® and CPG was $1.2
million and $1.5 million in the 13 week periods ended June 30, 2015 and
July 1, 2014, respectively. The decrease was due to timing of the new
SKU rollout for JambaGO® and to the discontinuation of two CPG product
lines.
Income from Operations and Operating Margin
Jamba’s operating margin was 11.9% for the second quarter of 2015
compared to 10.3% for the quarter ended July 1, 2014. Income from
Operations was $6.5 million for the second quarter of 2015 compared to
$6.6 million in 2014. Included in the results are gains on disposal of
assets of $4.5 million and $1.0 million for the second quarter of 2015
and 2014, respectively. On a non-GAAP basis, Adjusted Income from
Operations(2) adjusted for costs associated with the shift to
the asset-light business model and the gain relating to refranchising
was approximately $3.3 million or 6.1% of revenue, compared to $5.1
million, or 8.0% of revenue, from the prior year. During the quarter,
cost optimization initiatives were implemented to reduce supply chain
costs, which improved cost of sales by 230 basis points as compared to
the first quarter.
Retail Growth
As of June 30, 2015, there were 807 Jamba® stores system-wide in the
United States, of which 601 are franchise-operated stores, and 206 are
Company-owned. Franchise-operated stores include 40 Smoothie Stations™,
Jamba’s limited menu express format. During the quarter, Jamba opened 10
new domestic franchise-operated stores and six international store
locations, two in the Middle East, two in South Korea, and one each in
Mexico and the Philippines. No new Company-owned stores opened during
the quarter. During the quarter, eight stores were closed globally. As
of June 30, 2015 there were 68 international store locations, all of
which are franchise-operated. Growth continues at JambaGO® with units in
operation exceeding 2,000.
Liquidity
On June 30, 2015, the Company held $13.9 million in cash and cash
equivalents as compared to $17.8 million cash and cash equivalents at
December 30, 2014. As of June 30, 2015 and July 1, 2014, the Company did
not have any restricted cash. During the quarter, the Company
repurchased 195,171 shares of common stock on the open market at an
average price of $16.09 per share. Subsequent to June 30, 2015, the
Company closed two refranchising transactions for proceeds of
approximately $31.6 million.
Summary Guidance Table
The Company expects to achieve the following results:
|
Component
|
|
|
2015 Guidance
|
|
|
2016 Expectations
|
|
|
Long-Term Outlook
|
|
|
System-wide Same Store Sales
|
|
|
2%-4%
|
|
|
2%-4%
|
|
|
2%-4%
|
|
|
Global Openings
|
|
|
100
|
|
|
100-125
|
|
|
100-125
|
|
|
System-wide Sales
|
|
|
$525-550M
|
|
|
$600-625M
|
|
|
10-12% growth
|
|
|
Avg. Unit Volume (traditional/domestic)
|
|
|
$645K
|
|
|
$665K
|
|
|
$700-750K
|
|
|
Company G&A
|
|
|
$30M
|
|
|
$25M-$26M
|
|
|
3% or less of
system-wide sales for
core store operations
|
|
|
Non-GAAP Adjusted EBITDA(3)
|
|
|
$10-$12M
|
|
|
$15-$20M
|
|
|
30-40% Margins
|
|
|
Capital Expenditures
|
|
|
$8-$10M
|
|
|
$4-6M
|
|
|
$3-5M
|
|
|
Effective Tax Rate
|
|
|
2%-3%
|
|
|
2%-3%
|
|
|
2%-3%
|
|
|
Non-GAAP Adjusted Free Cash Flow(3)
|
|
|
Flat to $4M
|
|
|
$9M-$16M
|
|
|
90-110% of Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Webcast and Conference Call Information
A conference call to review the second quarter 2015 results will be held
today, August 6, 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 13613888.
The replay will be available until August 27, 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, hot oatmeal, breakfast wraps, sandwiches, Artisan
Flatbreads™, Energy Bowls™, baked goods and snacks. As of June 30, 2015,
there were 875 store locations globally. There were 206 Company-owned
and operated stores and 601 franchise-operated stores in the United
States, and 68 franchise-operated international stores. Jamba Juice
Company expanded the Jamba® brand by direct selling of consumer packaged
goods (“CPG”) and licensing its trademarks. 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 and estimates made
under the caption “Summary Guidance Table” 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.
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 only for the days such
stores have been Company-owned. Thereafter, such stores are excluded
from the Company-owned store base 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. and Non-GAAP Adjusted Income from Operations are calculated as net
income attributable to Jamba, Inc. and net income from operations 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 legal and, transition costs
related to the Company’s move to outsource specified services to
Capgemini and the move to an asset-light business model, and excludes
the gain relating to refranchising. Non-GAAP General and Administration
Expense is calculated as general and administration expense in
accordance with GAAP excluding $0.6 million of the portion of such
transitional costs in general and administration expenses. The Company
believes that net income attributable to Jamba, Inc. and net income from
operations, 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 income/loss without the
impact of what the Company believes to be upfront transitional costs and
the gains relating to refranchising. Management does not believe such
costs and gains are reflective of the Company's ongoing performance and
accordingly excludes those items from non-GAAP Adjusted Net Income
attributable to Jamba, Inc., Net Income from Operations and General and
Administration Expense.
(3)The Company used the non-GAAP financial measure of
Adjusted EBITDA and Adjusted Free Cash Flow in its statements made in
this release and believes that these are useful in measuring the
operating performance of the company. Adjusted EBITDA is equal to net
income, adjusted for: (a) the Company’s legal and transition costs
related to the Company’s move to outsource specified services to
Capgemini and the move to an asset-light business model; (b) gain from
disposal of assets relating to refranchising; (c) depreciation and
amortization; (d) interest income; (e) interest expense; (f) income
taxes; and (g) stock based compensation expense. Adjusted Free Cash Flow
is equal to net cash provided by operating activities, adjusted for: (a)
the Company’s legal and transition costs related to the Company’s move
to outsource specified services to Capgemini and the move to an
asset-light business model; (b) capital expenditures.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JAMBA, INC.
|
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(Unaudited)
|
|
(in thousands, except share and per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13-Week Period Ended
|
|
|
26-Week Period Ended
|
|
|
|
|
June 30, 2015
|
|
July 1, 2014
|
|
|
June 30, 2015
|
|
July 1, 2014
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
Company stores
|
|
|
$
|
48,360
|
|
|
$
|
58,632
|
|
|
|
$
|
96,088
|
|
|
$
|
105,904
|
|
|
Franchise and other revenue
|
|
|
|
5,766
|
|
|
|
5,566
|
|
|
|
|
10,542
|
|
|
|
9,927
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
|
|
|
54,126
|
|
|
|
64,198
|
|
|
|
|
106,630
|
|
|
|
115,831
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
|
11,474
|
|
|
|
13,587
|
|
|
|
|
23,881
|
|
|
|
25,169
|
|
|
Labor
|
|
|
|
14,876
|
|
|
|
16,243
|
|
|
|
|
30,964
|
|
|
|
30,573
|
|
|
Occupancy
|
|
|
|
6,131
|
|
|
|
6,899
|
|
|
|
|
12,966
|
|
|
|
13,866
|
|
|
Store operating
|
|
|
|
8,059
|
|
|
|
8,495
|
|
|
|
|
16,093
|
|
|
|
15,897
|
|
|
Depreciation and amortization
|
|
|
|
1,344
|
|
|
|
2,680
|
|
|
|
|
3,217
|
|
|
|
5,298
|
|
|
General and administrative
|
|
|
|
8,427
|
|
|
|
9,582
|
|
|
|
|
17,390
|
|
|
|
17,932
|
|
|
Gain on disposal of assets
|
|
|
|
(4,480
|
)
|
|
|
(979
|
)
|
|
|
|
(5,258
|
)
|
|
|
(1,046
|
)
|
|
Other operating, net
|
|
|
|
1,834
|
|
|
|
1,085
|
|
|
|
|
2,584
|
|
|
|
1,755
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total costs and operating expenses
|
|
|
|
47,665
|
|
|
|
57,592
|
|
|
|
|
101,837
|
|
|
|
109,444
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
|
|
6,461
|
|
|
|
6,606
|
|
|
|
|
4,793
|
|
|
|
6,387
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense), net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
|
14
|
|
|
|
18
|
|
|
|
|
29
|
|
|
|
34
|
|
|
Interest expense
|
|
|
|
(68
|
)
|
|
|
(48
|
)
|
|
|
|
(109
|
)
|
|
|
(94
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other expense, net
|
|
|
|
(54
|
)
|
|
|
(30
|
)
|
|
|
|
(80
|
)
|
|
|
(60
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
|
6,407
|
|
|
|
6,576
|
|
|
|
|
4,713
|
|
|
|
6,327
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
|
(57
|
)
|
|
|
(223
|
)
|
|
|
|
(83
|
)
|
|
|
(218
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
6,350
|
|
|
|
6,353
|
|
|
|
|
4,630
|
|
|
|
6,109
|
|
|
Less: Net income attributable to noncontrolling interest
|
|
|
|
21
|
|
|
|
17
|
|
|
|
|
52
|
|
|
|
17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Jamba, Inc.
|
|
|
$
|
6,329
|
|
|
$
|
6,336
|
|
|
|
$
|
4,578
|
|
|
$
|
6,092
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares used in computation of earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
16,073,667
|
|
|
|
17,200,698
|
|
|
|
|
16,222,276
|
|
|
|
17,182,893
|
|
|
Diluted
|
|
|
|
16,573,444
|
|
|
|
17,611,007
|
|
|
|
|
16,723,127
|
|
|
|
17,604,395
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share attributable to Jamba, Inc. common stockholders
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.39
|
|
|
$
|
0.37
|
|
|
|
$
|
0.28
|
|
|
$
|
0.35
|
|
|
Diluted
|
|
|
$
|
0.38
|
|
|
$
|
0.36
|
|
|
|
$
|
0.27
|
|
|
$
|
0.35
|
|
|
|
|
|
|
JAMBA, INC.
|
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
Reconciliation of GAAP to Non-GAAP
|
|
(Unaudited)
|
|
Adjusted for Transitional Costs Associated with Shift to
Asset-Light Business Model
|
|
(in thousands, except share and per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands except share and per share amounts)
|
|
|
Reported
13-Week
Period Ended
June 30, 2015
|
|
Gains and
Transitional
Costs
|
|
|
As Adjusted
13-Week
Period Ended
June 30, 2015
|
|
Reported
13-Week
Period Ended
July 1, 2014
|
|
Gains
|
|
|
As Adjusted
13-Week
Period Ended
July 1, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company stores
|
|
|
$
|
48,360
|
|
|
$
|
-
|
|
|
|
$
|
48,360
|
|
|
$
|
58,632
|
|
|
$
|
-
|
|
|
|
$
|
58,632
|
|
|
Franchise and other revenue
|
|
|
|
5,766
|
|
|
|
-
|
|
|
|
|
5,766
|
|
|
|
5,566
|
|
|
|
-
|
|
|
|
|
5,566
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
|
|
|
54,126
|
|
|
|
-
|
|
|
|
|
54,126
|
|
|
|
64,198
|
|
|
|
-
|
|
|
|
|
64,198
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
|
11,474
|
|
|
|
-
|
|
|
|
|
11,474
|
|
|
|
13,587
|
|
|
|
-
|
|
|
|
|
13,587
|
|
|
Labor
|
|
|
|
14,876
|
|
|
|
-
|
|
|
|
|
14,876
|
|
|
|
16,243
|
|
|
|
-
|
|
|
|
|
16,243
|
|
|
Occupancy
|
|
|
|
6,131
|
|
|
|
-
|
|
|
|
|
6,131
|
|
|
|
6,899
|
|
|
|
-
|
|
|
|
|
6,899
|
|
|
Store operating
|
|
|
|
8,059
|
|
|
|
(42
|
)
|
(2)
|
|
|
8,017
|
|
|
|
8,495
|
|
|
|
-
|
|
|
|
|
8,495
|
|
|
Depreciation and amortization
|
|
|
|
1,344
|
|
|
|
-
|
|
|
|
|
1,344
|
|
|
|
2,680
|
|
|
|
-
|
|
|
|
|
2,680
|
|
|
General and administrative
|
|
|
|
8,427
|
|
|
|
(588
|
)
|
(2)
|
|
|
7,839
|
|
|
|
9,582
|
|
|
|
-
|
|
|
|
|
9,582
|
|
|
Gain on disposal of assets
|
|
|
|
(4,480
|
)
|
|
|
4,515
|
|
(1)
|
|
|
35
|
|
|
|
(979
|
)
|
|
|
1,501
|
|
(1)
|
|
|
522
|
|
|
Other operating, net
|
|
|
|
1,834
|
|
|
|
(700
|
)
|
(2)
|
|
|
1,134
|
|
|
|
1,085
|
|
|
|
-
|
|
|
|
|
1,085
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total costs and operating expenses
|
|
|
|
47,665
|
|
|
|
3,185
|
|
|
|
|
50,850
|
|
|
|
57,592
|
|
|
|
1,501
|
|
|
|
|
59,093
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
|
|
6,461
|
|
|
|
(3,185
|
)
|
|
|
|
3,276
|
|
|
|
6,606
|
|
|
|
(1,501
|
)
|
|
|
|
5,105
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense), net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
|
14
|
|
|
|
-
|
|
|
|
|
14
|
|
|
|
18
|
|
|
|
-
|
|
|
|
|
18
|
|
|
Interest expense
|
|
|
|
(68
|
)
|
|
|
-
|
|
|
|
|
(68
|
)
|
|
|
(48
|
)
|
|
|
-
|
|
|
|
|
(48
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other expense, net
|
|
|
|
(54
|
)
|
|
|
-
|
|
|
|
|
(54
|
)
|
|
|
(30
|
)
|
|
|
-
|
|
|
|
|
(30
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
|
6,407
|
|
|
|
(3,185
|
)
|
|
|
|
3,222
|
|
|
|
6,576
|
|
|
|
(1,501
|
)
|
|
|
|
5,075
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
|
(57
|
)
|
|
|
-
|
|
|
|
|
(57
|
)
|
|
|
(223
|
)
|
|
|
-
|
|
|
|
|
(223
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
6,350
|
|
|
|
(3,185
|
)
|
|
|
|
3,165
|
|
|
|
6,353
|
|
|
|
(1,501
|
)
|
|
|
|
4,852
|
|
|
Less: Net income attributable to noncontrolling interest
|
|
|
|
21
|
|
|
|
-
|
|
|
|
|
21
|
|
|
|
17
|
|
|
|
-
|
|
|
|
|
17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Jamba, Inc.
|
|
|
$
|
6,329
|
|
|
$
|
(3,185
|
)
|
|
|
$
|
3,144
|
|
|
$
|
6,336
|
|
|
$
|
(1,501
|
)
|
|
|
$
|
4,835
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares used in computation of earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
16,073,667
|
|
|
|
|
|
|
16,073,667
|
|
|
|
17,200,698
|
|
|
|
|
|
|
17,200,698
|
|
|
Diluted
|
|
|
|
16,573,444
|
|
|
|
|
|
|
16,573,444
|
|
|
|
17,611,007
|
|
|
|
|
|
|
17,611,007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share attributable to Jamba, Inc. common shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.39
|
|
|
|
|
|
$
|
0.20
|
|
|
$
|
0.37
|
|
|
|
|
|
$
|
0.28
|
|
|
Diluted
|
|
|
$
|
0.38
|
|
|
|
|
|
$
|
0.19
|
|
|
$
|
0.36
|
|
|
|
|
|
$
|
0.27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes gain on disposal of assets relating to refranchising
|
|
(2) Includes transitional costs
|
|
|
|
JAMBA, INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
Reconciliation of GAAP to Non-GAAP
|
(Unaudited)
|
Adjusted for Transitional Costs Associated with Shift to
Asset-Light Business Model
|
(in thousands, except share and per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands except share and per share amounts)
|
|
|
Reported
26-Week
Period Ended
June 30, 2015
|
|
Gains and
Transitional
Costs
|
|
|
As Adjusted
26-Week
Period Ended
June 30, 2015
|
|
Reported
26-Week
Period Ended
July 1, 2014
|
|
Gains and
Transitional
Costs
|
|
|
As Adjusted
26-Week
Period Ended
July 1, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company stores
|
|
|
$
|
96,088
|
|
|
$
|
-
|
|
|
|
$
|
96,088
|
|
|
$
|
105,904
|
|
|
$
|
-
|
|
|
|
$
|
105,904
|
|
Franchise and other revenue
|
|
|
|
10,542
|
|
|
|
-
|
|
|
|
|
10,542
|
|
|
|
9,927
|
|
|
|
-
|
|
|
|
|
9,927
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
|
|
|
106,630
|
|
|
|
-
|
|
|
|
|
106,630
|
|
|
|
115,831
|
|
|
|
-
|
|
|
|
|
115,831
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
|
23,881
|
|
|
|
-
|
|
|
|
|
23,881
|
|
|
|
25,169
|
|
|
|
-
|
|
|
|
|
25,169
|
|
Labor
|
|
|
|
30,964
|
|
|
|
-
|
|
|
|
|
30,964
|
|
|
|
30,573
|
|
|
|
-
|
|
|
|
|
30,573
|
|
Occupancy
|
|
|
|
12,966
|
|
|
|
-
|
|
|
|
|
12,966
|
|
|
|
13,866
|
|
|
|
-
|
|
|
|
|
13,866
|
|
Store operating
|
|
|
|
16,093
|
|
|
|
(231
|
)
|
(2)
|
|
|
15,862
|
|
|
|
15,897
|
|
|
|
-
|
|
|
|
|
15,897
|
|
Depreciation and amortization
|
|
|
|
3,217
|
|
|
|
-
|
|
|
|
|
3,217
|
|
|
|
5,298
|
|
|
|
-
|
|
|
|
|
5,298
|
|
General and administrative
|
|
|
|
17,390
|
|
|
|
(1,027
|
)
|
(2)
|
|
|
16,363
|
|
|
|
17,932
|
|
|
|
-
|
|
|
|
|
17,932
|
|
Gain on disposal of assets
|
|
|
|
(5,258
|
)
|
|
|
5,371
|
|
(1)
|
|
|
113
|
|
|
|
(1,046
|
)
|
|
|
1,843
|
|
(1)
|
|
|
797
|
|
Other operating, net
|
|
|
|
2,584
|
|
|
|
(820
|
)
|
(2)
|
|
|
1,764
|
|
|
|
1,755
|
|
|
|
-
|
|
|
|
|
1,755
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total costs and operating expenses
|
|
|
|
101,837
|
|
|
|
3,293
|
|
|
|
|
105,130
|
|
|
|
109,444
|
|
|
|
1,843
|
|
|
|
|
111,287
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
|
|
4,793
|
|
|
|
(3,293
|
)
|
|
|
|
1,500
|
|
|
|
6,387
|
|
|
|
(1,843
|
)
|
|
|
|
4,544
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense), net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
|
29
|
|
|
|
-
|
|
|
|
|
29
|
|
|
|
34
|
|
|
|
-
|
|
|
|
|
34
|
|
Interest expense
|
|
|
|
(109
|
)
|
|
|
-
|
|
|
|
|
(109
|
)
|
|
|
(94
|
)
|
|
|
-
|
|
|
|
|
(94
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other expense, net
|
|
|
|
(80
|
)
|
|
|
-
|
|
|
|
|
(80
|
)
|
|
|
(60
|
)
|
|
|
-
|
|
|
|
|
(60
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
|
4,713
|
|
|
|
(3,293
|
)
|
|
|
|
1,420
|
|
|
|
6,327
|
|
|
|
(1,843
|
)
|
|
|
|
4,484
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
|
(83
|
)
|
|
|
-
|
|
|
|
|
(83
|
)
|
|
|
(218
|
)
|
|
|
-
|
|
|
|
|
(218
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
4,630
|
|
|
|
(3,293
|
)
|
|
|
|
1,337
|
|
|
|
6,109
|
|
|
|
(1,843
|
)
|
|
|
|
4,266
|
|
Less: Net income attributable to noncontrolling interest
|
|
|
|
52
|
|
|
|
-
|
|
|
|
|
52
|
|
|
|
17
|
|
|
|
-
|
|
|
|
|
17
|
|
Net income attributable to Jamba, Inc.
|
|
|
$
|
4,578
|
|
|
$
|
(3,293
|
)
|
|
|
$
|
1,285
|
|
|
$
|
6,092
|
|
|
$
|
(1,843
|
)
|
|
|
$
|
4,249
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares used in computation of earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
16,222,276
|
|
|
|
|
|
|
16,222,276
|
|
|
|
17,182,893
|
|
|
|
|
|
|
17,182,893
|
|
Diluted
|
|
|
|
16,723,127
|
|
|
|
|
|
|
16,723,127
|
|
|
|
17,604,395
|
|
|
|
|
|
|
17,604,395
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share attributable to Jamba, Inc. common shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.28
|
|
|
|
|
|
$
|
0.08
|
|
|
$
|
0.35
|
|
|
|
|
|
$
|
0.25
|
|
Diluted
|
|
|
$
|
0.27
|
|
|
|
|
|
$
|
0.08
|
|
|
$
|
0.35
|
|
|
|
|
|
$
|
0.24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes gain on disposal of assets relating to refranchising
|
(2) Includes transitional costs
|
|
|
|
|
JAMBA, INC.
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
STORE COUNT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NUMBER OF STORES
|
|
|
|
|
COMPANY
|
|
FRANCHISE
|
|
TOTAL
|
|
|
|
|
|
|
Domestic
|
|
International
|
|
|
|
For the 26-Week Period Ended June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
At December 30, 2014
|
|
|
263
|
|
|
543
|
|
|
62
|
|
|
868
|
|
|
Opened
|
|
|
-
|
|
|
14
|
|
|
8
|
|
|
22
|
|
|
Closed
|
|
|
(4
|
)
|
|
(9
|
)
|
|
(2
|
)
|
|
(15
|
)
|
|
Acquired
|
|
|
-
|
|
|
53
|
|
|
-
|
|
|
53
|
|
|
Refranchised
|
|
|
(53
|
)
|
|
-
|
|
|
-
|
|
|
(53
|
)
|
|
At June 30, 2015
|
|
|
206
|
|
|
601
|
|
|
68
|
|
|
875
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the 26-Week Period Ended July 1, 2014
|
|
|
|
|
|
|
|
|
|
|
At December 31, 2013
|
|
|
268
|
|
|
535
|
|
|
48
|
|
|
851
|
|
|
Opened
|
|
|
-
|
|
|
22
|
|
|
8
|
|
|
30
|
|
|
Closed
|
|
|
(2
|
)
|
|
(14
|
)
|
|
(8
|
)
|
|
(24
|
)
|
|
Acquired
|
|
|
-
|
|
|
8
|
|
|
-
|
|
|
8
|
|
|
Refranchised
|
|
|
(8
|
)
|
|
-
|
|
|
-
|
|
|
(8
|
)
|
|
At July 1, 2014
|
|
|
258
|
|
|
551
|
|
|
48
|
|
|
857
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPARABLE STORE SALES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13-Week Period Ended
|
|
26-Week Period Ended
|
|
|
|
|
June 30, 2015
|
|
July 1, 2014
|
|
June 30, 2015
|
|
July 1, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage Change in Comparable store sales
|
|
|
|
|
|
|
|
|
|
|
Company stores
|
|
|
(5.9
|
%)
|
|
2.5
|
%
|
|
(0.4
|
%)
|
|
1.6
|
%
|
|
Franchise stores
|
|
|
(2.6
|
%)
|
|
2.0
|
%
|
|
0.3
|
%
|
|
1.2
|
%
|
|
System-wide
|
|
|
(3.9
|
%)
|
|
2.2
|
%
|
|
0.1
|
%
|
|
1.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage Change in Comparable Company store sales
|
|
|
|
|
|
|
|
|
|
|
Traffic effect
|
|
|
(11.5
|
%)
|
|
(1.6
|
%)
|
|
(5.7
|
%)
|
|
(3.6
|
%)
|
|
Average check effect
|
|
|
5.6
|
%
|
|
4.1
|
%
|
|
5.3
|
%
|
|
5.2
|
%
|
|
Total Comparable Company store sales
|
|
|
(5.9
|
%)
|
|
2.5
|
%
|
|
(0.4
|
%)
|
|
1.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JAMBA, INC.
|
|
(Unaudited)
|
|
REVENUE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13-Week Period Ended
|
|
26-Week Period Ended
|
|
|
|
|
June 30, 2015
|
|
July 1, 2014
|
|
June 30, 2015
|
|
July 1, 2014
|
|
Revenue (in thousands):
|
|
|
|
|
|
|
|
|
|
|
Company-owned stores
|
|
|
$
|
48,360
|
|
|
$
|
58,632
|
|
|
$
|
96,088
|
|
$
|
105,904
|
|
Franchise-owned stores
|
|
|
|
4,557
|
|
|
|
4,053
|
|
|
|
8,271
|
|
|
7,375
|
|
Other revenue
|
|
|
|
1,209
|
|
|
|
1,513
|
|
|
|
2,271
|
|
|
2,552
|
|
Total revenue
|
|
|
$
|
54,126
|
|
|
$
|
64,198
|
|
|
$
|
106,630
|
|
$
|
115,831
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JAMBA, INC.
|
|
(Unaudited)
|
|
|
|
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13-Week Period Ended
|
|
26-Week Period Ended
|
|
|
|
|
|
|
|
|
June 30, 2015
|
|
June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (in thousands)
|
|
|
$
|
6,350
|
|
|
$
|
4,630
|
|
|
|
|
|
|
Adjustments related to gains and transitional costs
|
|
|
|
(3,185
|
)
|
|
|
(3,293
|
)
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
1,344
|
|
|
|
3,217
|
|
|
|
|
|
|
Interest income
|
|
|
|
(14
|
)
|
|
|
(29
|
)
|
|
|
|
|
|
Interest expense
|
|
|
|
68
|
|
|
|
109
|
|
|
|
|
|
|
Income taxes
|
|
|
|
57
|
|
|
|
83
|
|
|
|
|
|
|
Stock based compensation
|
|
|
|
1,480
|
|
|
|
2,626
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
|
$
|
6,100
|
|
|
$
|
7,343
|
|
|
|
|
|
|
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