Initiates Guidance for 2016
Refines Growth Strategy for Continued
Progress
Opens 16 Global Locations
Announces Relocation of Company
Headquarters
Jamba, Inc. (NASDAQ:JMBA) today reported unaudited financial
results for the first quarter ended March 29, 2016.
Financial Highlights
- System-wide comparable store sales(1)
decreased 2.1% for the quarter. Company-owned comparable store
sales(1) increased 0.2% for the quarter. Franchise-operated
comparable store sales(1) decreased 2.4% for the quarter.
- Total revenue for the quarter decreased
64.3% to $18.8 million from $52.5 million for the prior year,
primarily due to the reduction in the number of Company stores as
part of the Company’s refranchising initiative.
- Total Company-owned stores at the end
of the first quarter of 2016 was 68, compared to 259 at the end of
the first quarter of 2015.
- GAAP net loss attributable to Jamba,
Inc. was $(2.8) million for the first quarter or $(0.19) loss per
share compared to $(1.8) million, or $(0.11) loss per share for the
prior year. Non-GAAP Adjusted Net Loss attributable to Jamba,
Inc.(2), was $(1.2) million for the first quarter, or $(0.08) loss
per share compared to $(1.9) million, or $(0.11) loss per share for
the prior year period.
- General and administrative expenses for
the quarter decreased 15.1% to $7.6 million compared with $9.0
million for the prior year period. Non-GAAP Adjusted General and
Administrative Expense(2) for the quarter was $6.0 million compared
with $8.5 million for the prior year period.
- Adjusted EBITDA(3) was $1.3 million for
the first quarter of 2016 and $1.2 million for the first quarter of
2015.
- Franchisees opened 16 new Jamba Juice
stores globally during the quarter. At March 29, 2016, Jamba’s
global store base consisted of 68 Company Stores and 817 Franchise
Stores, of which 752 are located domestically and 65 stores are
located internationally.
“One of the primary levers for driving profitability and
increasing brand awareness is new store development. The year
started off strong with 16 new Jamba locations opened during the
quarter, which provides a jumpstart to meeting our development
commitments for the year,” said David A. Pace, Chief Executive
Officer of Jamba, Inc.
“Over the last few weeks I’ve visited our stores, met with
franchisees, employees and customers and could not be more excited
about what lies ahead for the Company,” said David A. Pace, Chief
Executive Officer of the Company. “Going forward we will be focused
on five core strategies. First, we will position Jamba as a
youthful and contemporary brand that simplifies and inspires
healthy living. Second, we will re-focus the organization on a
customer and store-centric operating philosophy. Third, we will
drive sales and transactions through innovation and product news.
Fourth, we will work with our franchise partners to improve store
level profitability through operations simplification and cost
reduction and finally we will expand our store footprint across all
platforms both domestically and internationally.”
“We also announced today that we plan to move our headquarters
to Frisco, Texas within the next six to eight months. We believe
this move will better position us as we focus on these core
strategies. Specifically, the move will allow us to reduce costs,
attract and retain talent and provides a more central location for
our market expansion plans.
First Quarter Fiscal 2016 Results
Revenue
The Company ended the first quarter of 2016 with a total of 68
company locations and 817 franchise locations, as a result of the
completion of the Company’s shift to an asset light franchise
business model through a refranchising initiative during 2015 that
included the sale of 179 company locations. The comparisons to the
prior year will be skewed due to the significant number of company
locations that were sold during 2015.
For the Company’s fiscal quarter ended March 29, 2016, total
revenue decreased 64.3% to $18.8 million from $52.5 million for the
fiscal quarter ended March 31, 2015. The decrease is primarily due
to the reduction in the number of Company-owned stores pursuant to
the Company’s refranchising strategy along with the decrease in
System-wide comparable store sales(1) of 2.1%. This was partially
offset by an increase in Company-owned comparable store sales(1) of
0.2% which was primarily due to an increase in average check of
approximately 470 basis points and a decrease in transaction count
of approximately 450 basis points.
Franchise and other revenue increased 42.4% to $6.8 million for
the quarter from $4.8 million in the prior year period, primarily
due to the increase in royalties associated with the net increase
in the number of franchise stores both domestically and
internationally partially offset by the decrease of
Franchise-operated comparable store sales(1) of 2.4%. Other
revenue, which includes JambaGO® and CPG, was $1.3 million and $1.1
million in the first quarter of 2016 and first quarter of 2015,
respectively. The increase in revenue was primarily from the
Company’s cold-pressed RTD juice business.
Loss from Operations
Loss from Operations was $(2.7) million for the first quarter of
2016 compared to a loss from operations of $(1.7) million for the
first quarter of 2015. Non-GAAP Adjusted Loss from Operations(2)
which excludes gains and costs associated with refranchising and
severance related to the shift to the asset-light business model
was approximately $(1.1) million, compared to $(1.8) million in the
prior year.
Retail Growth
As of March 29, 2016, there were 885 Jamba® stores System-wide,
of which 817 are Franchise-operated stores and 68 are
Company-owned. Franchise-operated stores include 43 express
formats. During the quarter, Jamba opened 13 new domestic
Franchise-operated stores and three international stores. No new
Company-owned stores opened during the quarter. There were
approximately 2,000 JambaGO® units in operation nationwide.
Liquidity
As of March 29, 2016, the Company held $12.5 million in cash and
cash equivalents as compared to $19.7 million cash and cash
equivalents at December 29, 2015. As of March 29, 2016 and March
31, 2015, the Company did not have any restricted cash.
2016 Outlook
The Company expects to achieve the following results:
- Total revenues of $80-$82 million
- Annual system-wide comparable sales
growth of 1-3%
- 100 new store openings, 75%
Domestic/25% International
- We will begin operations in 2 new
international markets – Thailand and Indonesia
- Non-GAAP Adjusted G&A(2) of $24.3
million, exiting 2016 with a run rate of no more than $21.7;
and,
- Non-GAAP Adjusted EBITDA(3) of
$12.0-$13.0 million
Conference Call
A conference call to review the first quarter 2016 results will
be held today, May 5, 2016 at 8:30 a.m. ET. The conference call can
be accessed live over the phone by dialing (855) 327- 6837 or for
international callers by dialing (631) 891-4304. A replay will be
available at 11:30 a.m. ET and can be accessed by dialing (877)
870-5176 or (858) 384-5517 for international callers; the pin
number is 10001104. The replay will be available until May 26,
2016. 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, and a
variety of food items including, hot oatmeal, breakfast wraps,
sandwiches, Artisan Flatbreads™, Energy Bowls™, baked goods and
snacks. As of March 29, 2016, there were 885 store locations
globally. There were 68 Company-owned and operated stores and 752
Franchise-operated stores in the United States, and 65
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
estimates, projections, future trends and the outcome of events
that have not yet occurred, is a forward-looking statement,
including each of the statements made above under “2016 Outlook”.
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 and do not include
International Stores, 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. System-wide
comparable store sales do not include International Stores and
JambaGO® locations. 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 Loss 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 transition costs
related to the Company’s move to outsource specified services to
Capgemini, refranchise and severance costs associated with the move
to an asset-light business model, charges related to the executive
organization changes and the gain associated with refranchising.
Non-GAAP Adjusted General and Administration Expense is calculated
as general and administration expense in accordance with GAAP
excluding portion of such transitional costs in general and
administration expenses for the fiscal year. 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 Loss attributable to Jamba, Inc. and Non-GAAP Adjusted
General and Administration Expense. Non-GAAP Adjusted Loss from
Operations is calculated as loss from operations as determined in
accordance with GAAP excluding costs associated with the shift to
the asset light business model and the gain associated with
refranchising.
(3) The Company used the non-GAAP financial measure of Adjusted
EBITDA 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) the Company’s corporate office
relocation to Frisco, TX, (c) gain from disposal of assets relating
to refranchising; (d) depreciation and amortization; (e) interest
income; (f) interest expense; (g) income taxes; and (h) stock based
compensation expense.
JAMBA, INC. CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (Unaudited) (in thousands, except share
and per share amounts) 13-Week Period Ended
March 29, 2016 March 31, 2015 Revenue: Company stores
$ 11,953 $ 47,728 Franchise and other revenue 6,801
4,776 Total revenue 18,754
52,504 Costs and operating expenses: Cost of
sales 2,962 12,407 Labor 4,158 16,088 Occupancy 2,036 6,835 Store
operating 2,362 8,034 Depreciation and amortization 1,502 1,873
General and administrative 7,610 8,963 Loss (gain) on disposal of
assets 109 (778 ) Store pre-opening 324 22 Store lease termination
and closure 120 22 Other operating, net 271
706 Total costs and operating expenses 21,454
54,172 Loss from operations
(2,700 ) (1,668 ) Other income (expense), net:
Interest income 71 15 Interest expense (59 ) (41 )
Total other income (expense), net 12
(26 ) Loss before income taxes (2,688 ) (1,694 ) Income tax
expense (132 ) (26 ) Net loss (2,820 ) (1,720
) Less: Net income attributable to noncontrolling interest -
31 Net loss attributable to Jamba, Inc.
$ (2,820 ) $ (1,751 ) Weighted-average shares used in
computation of earnings per share attributable to Jamba, Inc.:
Basic 15,084,037 16,370,885 Diluted
15,084,037 16,370,885 Net loss
per share attributable to common stockholders attributable to
Jamba, Inc.: Basic $ (0.19 ) $ (0.11 ) Diluted $ (0.19 ) $ (0.11 )
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)
GAAP Non-GAAP GAAP
Non-GAAP Reported As Adjusted Reported
As Adjusted 13 Week Gains and 13 Week
13 Week Gains and 13 Week Period Ended
Transitional Period Ended Period Ended
Transitional Period Ended March 29, 2016
Costs March 29, 2016 March 31, 2015
Costs March 31, 2015 Revenue: Company stores $
11,953 $ - $ 11,953 $ 47,728 $ - $ 47,728 Franchise and other
revenue 6,801 - 6,801
4,776 - 4,776
Total revenue 18,754 - 18,754
52,504 - 52,504
Costs and operating expenses: Cost of sales 2,962 - 2,962
12,407 - 12,407 Labor 4,158 - 4,158 16,088 - 16,088 Occupancy 2,036
- 2,036 6,835 - 6,835 Store operating 2,362 - 2,362 8,034 (189 )
7,845 Depreciation and amortization 1,502 - 1,502 1,873 - 1,873
General and administrative 7,610 (1,650 ) 5,960 8,963 (440 ) 8,523
Loss (gain) on disposal of assets 109 - 109 (778 ) 856 78 Store
pre-opening 324 - 324 22 - 22 Store lease termination and closure
120 - 120 22 - 22 Other operating, net 271 -
271 706 (120 ) 586
Total costs and operating expenses 21,454
(1,650 ) 19,804 54,172
107 54,279 Loss from operations
(2,700 ) 1,650 (1,050 ) (1,668 )
(107 ) (1,775 ) Other income (expense), net:
Interest income 71 - 71 15 - 15 Interest expense (59 )
- (59 ) (41 ) -
(41 ) Total other income (expense), net 12
- 12 (26 ) -
(26 ) Loss before income taxes (2,688 ) 1,650 (1,038
) (1,694 ) (107 ) (1,801 ) Income tax expense (132 )
- (132 ) (26 ) - (26 )
Net loss (2,820 ) 1,650 (1,170 ) (1,720 ) (107 ) (1,827 )
Less: Net income attributable to noncontrolling interest -
- - 31 -
31 Net loss attributable to Jamba, Inc.
$ (2,820 ) $ 1,650 $ (1,170 ) $ (1,751 ) $ (107 ) $ (1,858 )
Weighted-average shares used in computation of earnings per
share attributable to Jamba, Inc.: Basic 15,084,037
15,084,037 16,370,885 16,370,885
Diluted 15,084,037 15,084,037
16,370,885 16,370,885 Net loss
per share attributable to common stockholders attributable to
Jamba, Inc.: Basic $ (0.19 ) $ (0.08 ) $ (0.11 ) $ (0.11 ) Diluted
$ (0.19 ) $ (0.08 ) $ (0.11 ) $ (0.11 )
JAMBA,
INC. (Unaudited) STORE
COUNT NUMBER OF STORES COMPANY FRANCHISE
TOTAL Domestic International For the
13-Week Period Ended March 29, 2016 At December 29, 2015 70 748
75 893 Opened - 13 3 16 Acquired - - - - Closed (2) (9) (13) (24)
Refranchised - - - - At March 29, 2016 68 752 65 885
For the 13-Week Period Ended March 31, 2015 At December 30,
2014 263 543 62 868 Opened - 4 3 7 Acquired - 4 - 4 Closed - (5)
(6) (11) Refranchised (4) - - (4) At March 31, 2015 259 546 59 864
COMPARABLE STORE SALES
13 Week Period Ended Increase/(Decrease)
March 29,
2016 March 31, 2015 Percentage Change in
Comparable store sales Company stores 0.2% 6.0% Franchise stores
(2.4)% 4.2% System-wide (2.1)% 5.0% Percentage Change
in Comparable Company store sales Traffic effect (4.5)% 0.2%
Average check effect 4.7% 5.8% Total Comparable Company store sales
0.2% 6.0%
JAMBA, INC.
(Unaudited)
REVENUE 13 Week Period Ended March 29, 2016
March 31, 2015 Revenue (in thousands): Company stores
$ 11,953 $ 47,728 Franchise revenue 5,495 3,675 Other revenue
1,306 1,101
Total revenue $
18,754 $ 52,504
JAMBA, INC.
(Unaudited)
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA
13 Week Period Ended 13 Week Period Ended
March 29, 2016 March 31, 2015 Net loss
attributable to Jamba, Inc. (in thousands) $ (2,820 ) $ (1,751
) Adjustments related to gains and transitional costs 1,650 (107 )
Depreciation and amortization 1,502 1,873 Interest income (71 ) (15
) Interest expense 59 41 Income taxes 132 26 Stock based
compensation 831 1,146
Adjusted
EBITDA $ 1,283 $ 1,213
JAMBA,
INC. CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (In thousands, except share and per share
amounts) March 29, December
29, 2016 2015 (Dollars in thousands, except
share and per share amounts) ASSETS Current Assets: Cash
and cash equivalents $ 12,536 $ 19,730 Receivables, net of
allowances of $618 and $618 16,068 16,932 Inventories 770 818
Prepaid expenses and other current assets 5,158
6,533 Total current assets 34,532 44,013
Property, fixtures and equipment, net 18,221 18,744 Goodwill 1,184
1,184 Trademarks and other intangible assets, net 1,424 1,464 Other
long-term assets 4,121 4,211
Total assets $ 59,482 $ 69,616
LIABILITIES
AND STOCKHOLDERS’ EQUITY Current Liabilities: Accounts payable
$ 1,922 $ 3,815 Accrued compensation and benefits 2,533 3,788
Workers’ compensation and health insurance reserves 651 633
Accrued jambacard liability 26,569 29,306 Other current
liabilities 16,508 18,093 Total
current liabilities 48,183 55,635 Deferred rent and other long-term
liabilities 8,195 8,990 Total
liabilities 56,378 64,625
Commitments and contingencies (Note 9) Stockholders’ equity:
Common stock, $0.001 par value—30,000,000
shares authorized; 17,948,545 and 15,089,728 shares issued and
outstanding at March 29, 2016, respectively, and 17,938,820 and
shares issued and 15,080,003 outstanding at December 29, 2015,
respectively,
18 18 Additional paid-in capital 404,538 403,605 Treasury shares,
at cost (40,009 ) (40,009 ) Accumulated deficit (361,443 )
(358,623 ) Total stockholders’ equity 3,104 4,991
Total liabilities and stockholders’ equity $ 59,482 $
69,616
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160505005554/en/
Investor RelationsDara Dierks,
ICR646-277-1212investors@jambajuice.com
Jamba, Inc. (delisted) (NASDAQ:JMBA)
Historical Stock Chart
From Aug 2024 to Sep 2024
Jamba, Inc. (delisted) (NASDAQ:JMBA)
Historical Stock Chart
From Sep 2023 to Sep 2024