Jamba, Inc. (NASDAQ:JMBA) (“the Company”) today provided updates
for the quarters ended July 4, 2017 (“second quarter”) and April 4,
2017 (“first quarter”). The Company also provided updates on select
business initiatives, and with respect to the status of the
Company’s Form 10-K for its 2016 fiscal year.
Highlights
- On a comparable calendar basis, company
comparable store sales (1) increased 1.0% in the second quarter of
fiscal 2017, following a decline of 7.3% in the first quarter of
fiscal 2017.
- System-wide comparable store sales (1)
were 0.0% in the second quarter of fiscal 2017, following a decline
of 5.8% in the first quarter of fiscal 2017.
- The decline in the first quarter for
both company and system-wide comparable store sales (1) was
primarily due to the historic wet weather during the period that
affected west coast geographies.
- Opened 25 stores comprised of 19
domestic and 6 international locations during the first and second
quarters of fiscal 2017.
- Closed 17 stores, resulting in 8
openings, net of closures (2) during the first and second quarters
of fiscal 2017.
- Held $11.2 million in cash and cash
equivalents as of July 4, 2017, and $8.2 million as of April 4,
2017. Reported balances are unaudited.
President, and Chief Executive Officer Dave Pace stated, “We
continued to make progress against our five core strategies in the
first half of the year. Comp Sales have now outperformed the
industry benchmark for five consecutive quarters. We brought new
sales driving initiatives to life, with tests for catering and
delivery, and we finalized plans for the Jamba store re-image.
Additionally, customer satisfaction levels improved while our
operators successfully captured efficiency opportunities. Finally,
new store counts for both gross and net openings beat our internal
targets.”
Pace continued, “The accounting team continues to work
diligently to complete the 2016 audit and regulatory filings. We
have committed significant resources to complete this work
accurately and to ensure it does not distract from excellence in
operating the day-to-day business.”
Pace concluded, “I remain confident in the direction and
prospects for this iconic brand.”
Business Initiative Update
- Catering: The Company launched a
catering test in May 2017, featuring the Jamba Bowl Bar, allowing
guests to customize their bowl for a healthful breakfast, lunch, or
snack occasion. The Company expects to continue the test through
the remainder of 2017.
- Chicago refranchise: On June 21, 2017,
the Company announced the refranchise of 13 company owned stores in
the Chicago market and signed a 10-unit development agreement with
an existing Jamba franchisee. The Company expects the transaction
will reduce Revenue and have no material impact to Net Income, in
2017.
- Delivery: The Company initially
launched a delivery test in 15 Texas stores in March 2017. The test
expanded to the Southern California market in May 2017. The Company
expects to continue the test through the remainder of 2017.
- Domestic new stores: 19 domestic
openings include 9 stores on the west coast and 10 stores east of
the Rockies. The Company continues to execute an infill strategy in
the west, while penetrating and building presence in targeted
eastern markets. As communicated on March 20, 2017, the Company now
excludes Express format stores from store counts.
- International new stores: There were 6
international new store openings across 5 countries, including the
first store in Thailand.
- Drive-thru format: 3 Drive-thru format
stores opened in the first half of the fiscal year. Sales
performance in drive-thru format stores continues to over-index
versus the Company’s standard predictive model.
- Re-image prototype: The Company’s
re-image prototype offers guests a holistic update to their Jamba
experience, with a modern look, enhanced sensory experience, and
new menu. The Company plans to test in approximately 20 stores
across multiple markets. The first wave of test store renovations
is underway with the final wave expected to be complete later this
year. The Company will provide updates as the test progresses.
Form 10-K and 10-Q Filings
The delay in completion of the Company’s financial statements
has been primarily caused by transition issues stemming from the
Company relocation of its headquarters from Emeryville, California
to Frisco, Texas in the second half of 2016. While the Company had
implemented a transition plan to mitigate the risk relating to the
relocation, the relocation and resulting replacement and training
of personnel Company wide and transition of Company operating
knowledge created unanticipated difficulties and delays in
completing the Company’s year-end financials. The Company’s delay
was also contributed to, in part, by the complexities with
addressing the number of Company non-routine transactions which
occurred in 2016, many of which related to the Company’s
transition.
In March 2017, in response to the Company’s late 2016 Form 10-K
filing, the Company received a letter from Nasdaq notifying it of
its failure to comply with Nasdaq listing rules relating to the
timely filing of periodic reports with the Securities and Exchange
Commission. In May 2017, in response to the Company’s late Form
10-Q filing for its Q1.2017, the Company received an additional
similar letter from Nasdaq relating to such filing. The Company
thereafter submitted its plan to regain compliance for continued
listing, to which Nasdaq has provided the Company until September
18, 2017 to regain compliance with Nasdaq's filing requirements for
continued listing.
The Company expects to file its fiscal year 2016 Form 10-K and
Form 10-Q for the first quarter of fiscal 2017, as soon as is
practicable, with timing contingent on completion of financial
statements and their subsequent audit and review, respectively.
Anticipated Expenses
The Company expects to record additional expenses in fiscal 2017
resulting from efforts to complete 2016 financial statements, their
subsequent audit and review, and remediation efforts related to the
anticipated Material Weakness disclosed in the Company’s Form
12b-25 filed with the Securities and Exchange Commission on May 15,
2017. Due to the unusual and non-recurring nature of these
expenses, the Company anticipates adjusting for them in its
non-GAAP financial measures.
Liquidity
As of July 4, 2017 and April 4, 2017, the Company held $11.2 and
$8.2 million, respectively, in cash and cash equivalents, as
compared to $7.1 million in cash and cash equivalents at January 3,
2017.
As of July 4, 2017 and April 4, 2017, the Company had no amount
of restricted cash. As of January 3, 2017, the Company had $0.4
million restricted cash.
Reported balances are unaudited.
The Company had not drawn against its line of credit, and had no
outstanding principal balance as of July 4, 2017.
About Jamba, Inc.
Jamba, Inc. (NASDAQ: JMBA) through its wholly-owned subsidiary,
Jamba Juice Company, is a healthful, active lifestyle brand with a
robust global business driven by a portfolio of franchised and
company-owned Jamba Juice ® stores and Jamba Juice Express™
formats. Jamba Juice ® is a leading restaurant retailer of
“better-for-you” specialty beverage and food offerings which
include flavorful, whole fruit and vegetable smoothies, fresh
squeezed juices and juice blends, Energy Bowls™, signature
“boosts”, shots and a variety of food items including: hot oatmeal,
breakfast wraps, sandwiches, Artisan Flatbreads™, baked goods and
snacks.
There are over 800 Jamba Juice store locations globally, as of
July 4, 2017. For more information visit www.jambajuice.com or
contact 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 “believes”, “expects”, “appears”, “may”, “will”,
“should”, “anticipates”, or the negative thereof or comparable
terminology, are intended to identify such forward-looking
statements. Any statement that is not a historical fact, including
estimates, projections, future trends and the outcome of events
that have not yet occurred, is a forward-looking
statement. Forward-looking statements are only predictions and
are subject to risks, uncertainties and assumptions that are
difficult to predict. Therefore actual results may differ
materially 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 forward-looking non-GAAP financial
measures to its investors. The Company believes that providing
these forward-looking non-GAAP measures to its investors provides
investors the benefit of viewing the Company's performance using
the same financial metrics that the management team uses in making
many key decisions and understanding how the Company's core
business operations may perform and may look in the future. The
non-GAAP financial measures are discussed further 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) Company-owned comparable store sales represents the change in
year-over-year sales for Company-owned stores opened for at least
one full year. Franchise-operated comparable store sales, a
non-GAAP financial measure, represents the change in year-over-year
sales for all Franchise Stores opened for at least one full year,
as reported by franchisees, and excludes International Stores and
Express format. System-wide comparable store sales, a non-GAAP
financial measure, represents the change in year-over-year sales
for all Company and Franchise Stores opened for at least one full,
as reported by franchisees, and excludes International Stores and
Express format. Comparable store sales includes closed locations
for the periods in which they have comparable sales. Company-owned
comparable store sales percentages as used herein may not be
equivalent to Company-owned comparable store sales as defined or
used by other companies. Franchise-operated comparable store sales
percentages and System-wide comparable stores sales percentages as
used herein are non-GAAP financial measures and should not be
considered in isolation or as substitute for other measures of
performance prepared in accordance with generally accepted
accounting principles in the United States. Management reviews the
increase or decrease in comparable store sales compared with the
same period in the prior year to assess business trends and make
certain business decisions. The Company believes the data is useful
in assessing the overall performance of the Jamba® brand and,
ultimately, the performance of the Company, the Company-owned
stores, and Franchise-operated stores. (2) New store
openings, net of closures is defined as the count of new store
openings, minus the count of store closures.
STORE COUNT QUARTER 1 NUMBER
OF STORES COMPANY FRANCHISE TOTAL
Domestic International For the Quarter Ended April
4, 2017 At January 3, 2017 66 726 70 862 Opened — 13 2 15
Acquired — — — — Closed — (5 ) (4 ) (9 ) Refranchised — — — — At
April 4, 2017 66 734 68 868
For the Quarter Ended March
29, 2016(a) At December 29, 2015 70 706 75 851 Opened —
10 3 13 Acquired — — — — Closed (2 ) (7 ) (13 ) (22 ) Refranchised
— — — — At March 29, 2016 68 709 65 842
STORE
COUNT QUARTER 2 NUMBER OF STORES COMPANY
FRANCHISE TOTAL Domestic International
For the Quarter Ended July 4, 2017 At April 4, 2017 66 734
68 868 Opened — 6 4 10 Acquired — — — — Closed — (8 ) — (8 )
Refranchised (13 ) 13 — — At July 4, 2017 53 745 72 870
For the Quarter Ended June 28, 2016(a) At March 29,
2016 68 709 65 842 Opened 1 8 2 11 Acquired — — — — Closed (1 ) (9
) (1 ) (11 ) Refranchised — — — — At June 28, 2016 68 708 66 842
(a) As communicated on March 20, 2017, the Company now
excludes Express format stores from store counts. Store counts
exclude Express in both 2016 and 2017 for comparability.
NEW STORE OPENINGS, NET OF CLOSURES QUARTER 1 13 Weeks
Ended April 4, 2017 March 29, 2016a
Openings Traditional 11 7 Non-traditional 1 3 Drive thru 1 —
International
2 3 Total
15 13
Closures Traditional (2 ) (2 ) Non-traditional (3 ) (7 )
Drive thru — — International
(4 ) (13 ) Total
(9 ) (22 )
Openings, Net of Closures(b) Traditional 9 5
Non-traditional (2 ) (4 ) Drive thru 1 — International
(2 ) (10 )
Total 6
(9 )
NEW STORE
OPENINGS, NET OF CLOSURES QUARTER 2 13 Weeks Ended 26
Weeks Ended July 4, 2017 June 28, 2016(a)
July 4, 2017 June 28, 2016(a) Openings
Traditional 4 4 15 11 Non-traditional — 4 1 7 Drive thru 2 1 3 1
International 4 2 6
5 Total 10 11
25 24
Closures
Traditional (3 ) (3 ) (5 ) (5 ) Non-traditional (5 ) (7 ) (8 ) (14
) Drive thru — — — — International — (1
) (4 ) (14 ) Total (8 ) (11 )
(17 ) (33 )
Openings, Net of
Closures(b) Traditional 1 1 10 6 Non-traditional (5 ) (3
) (7 ) (7 ) Drive thru 2 1 3 1 International 4
1 2 (9 ) Total 2
— 8 (9 ) (a) As
communicated on March 20, 2017, the Company now excludes Express
format stores from store counts. Store counts exclude Express in
both 2016 and 2017 for comparability. (b) New store openings, net
of closures is defined as the count of new store openings, minus
the count of store closures.
COMPARABLE STORE
SALES
Fiscal Calendar
Basis
2017 2016 Quarter Ended
26 Weeks
Ended
Quarter Ended
26 Weeks
Ended
Increase/(Decrease)
April 4, 2017
vs
March 29,
2016
July 4, 2017
vs
June 28, 2016
July 4, 2017
vs
June 28, 2016
March 29,
2016 vs
March 31,
2015
June 28, 2016
vs
June 30, 2015
June 28, 2016
vs
June 30, 2015
Percentage Change in Comparable store sales Company stores
(4.5 )% 0.9 % (1.6 )% 0.2 % 5.7 % 3.0 % Franchise stores (2.2 )%
(1.0 )% (1.5 )% (2.4 )% 4.0 % 1.1 % System-wide (2.5 )% (0.8 )%
(1.5 )% (2.1 )% 4.2 % 1.3 %
Comparable
Calendar Basis (a)
2017 2016 Quarter Ended
26 Weeks
Ended
Quarter Ended
26 Weeks
Ended
Increase/(Decrease)
April 4, 2017
vs
April 5, 2016
July 4, 2017
vs
July 5, 2016
July 4, 2017
vs
July 5, 2016
March 29,
2016 vs
March 31,
2015
June 28, 2016
vs
June 30, 2015
June 28, 2016
vs
June 30, 2015
Percentage Change in Comparable store sales Company stores
(7.3 )% 1.0 % (3.0 )% 0.2 % 5.7 % 3.0 % Franchise stores (5.6 )%
(0.2 )% (2.7 )% (2.4 )% 4.0 % 1.1 % System-wide (5.8 )% (0.0 )%
(2.7 )% (2.1 )% 4.2 % 1.3 % Percentage Change in
Comparable Company store sales Traffic (9.9 )% (2.9 )% (6.2 )% (4.5
)% 1.4 % (1.6 )% Average check 2.6 % 3.9 % 3.3 % 4.7 % 4.3 % 4.6 %
Total Comparable Company store sales (7.3 )% 1.0 % (3.0 )% 0.2 %
5.7 % 3.0 % (a) Due to a 53 week fiscal 2016, year-over-year
fiscal comparisons are offset by one week. Using comparable
calendar periods balances the one week shift and provides a clearer
year over year comparison. 2016 fiscal and calendar comparisons are
the same.
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version on businesswire.com: http://www.businesswire.com/news/home/20170809005252/en/
Investor RelationsDara
Dierks646-277-1212investors@jambajuice.com
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