Jamba, Inc. Announces First Quarter 2013 Financial Results

  Jamba, Inc. Announces First Quarter 2013 Financial Results

  Company Comparable Store Sales up 3.6% Against Double-Digit Year-Ago Gains

                   Operating Margin and CPG Revenue Improve

   Growth Continues with New International and Domestic Franchise Partners

Business Wire

EMERYVILLE, Calif. -- April 30, 2013

Jamba, Inc. (NASDAQ:JMBA) today reported unaudited financial results for the
first fiscal quarter ended April 2, 2013. The Company recorded a quarterly
comparable store sales^(1) increase of 3.6% for company-owned stores, driven
by increases in store traffic and average check.

Jamba also reported solid increases in operating margin and royalty revenue
from its expanding consumer product platforms. During the quarter, the Company
entered into a master franchise development agreement with Casa Operadora de
Franquicias MAV S.A.P.I de C.V (“MAV”) to develop 80 Jamba Juice stores in
Mexico over the next 10 years. The first Jamba Juice store in Mexico is
expected to open in late 2013. The Company also entered into a new domestic
franchise partnership that will open 15 stores in Missouri and Kansas over the
next nine years. Jamba’s 125 California store expansion initiative has been
fully subscribed and is sold out.

Highlights for the 13 weeks ended April 2, 2013, compared to the 13 weeks
ended April 3, 2012:

  *Company-owned comparable store sales^(1) increased 3.6% for the quarter as
    ^ compared to the prior year period in which comparable store sales
    increased 12.7%.
  *System-wide comparable store sales^(1) increased 1.3% for the quarter
    against an 11.6% increase for the prior year period and franchise-operated
    comparable store sales^(1) decreased 0.9% for the quarter compared to the
    prior year quarterly increase of 10.5%.
  *Net loss was $(1.2) million, or $(0.02) diluted loss per share for the
    quarter, compared to net loss of $(1.5) million or $(0.03) diluted loss
    per share for the prior year period.
  *Total revenue for the 13 weeks ended April 2, 2013 rose to $55.1 million
    compared to total revenue of $53.0 million for the prior year period.
  *Jamba’s loss from operations decreased $0.3 million to $(1.3) million for
    13 weeks ended April 2, 2013, reflecting Company-owned store comparable
    sales growth, increased franchise revenue and expanding CPG sales.
    Operating margin improved by 70 basis points to (2.4)% for 13 week period
    ended April 2, 2013 compared to the prior year period.
  *General and administrative expenses for the 13 weeks ended April 2, 2013
    were $9.2 million compared with $8.6 million for the prior year period.
  *During the quarter, franchisees opened 14 new stores globally; eight new
    franchise stores in the U.S. and six new international stores.
  *During the quarter, Jamba entered into a master franchise agreement to
    expand its international operations into a new market, developing 80 new
    Jamba Juice stores in Mexico over the next 10 years.

“Our solid first quarter results, which came in the face of very strong
year-ago performance, demonstrate Jamba’s ongoing momentum with increased
traffic, average check and operating margin improvement,” said James D. White,
Chairman, President and CEO of Jamba, Inc. “Our franchise development is
strong with the addition of Mexico as our fourth major international market,
and the execution of a multi-store domestic development agreementthat will
substantially increase our presence in the Midwest. Our accelerated California
growth initiative is now completely sold out. And our plans for re-imaging
stores and adding new concepts are on track for the balance of the year.”

“During the quarter we added new on-trend menu items, including new smoothie
flavors for our Fruit & Veggie and JambaGO lines, our first nutritionist
approved Jamba Kids Meals™ and continuing introductions from our Fresh
Squeezed Juice platform containing fresh vegetables and fruits,” Mr. White
said.

First Quarter Fiscal 2013 Results

Revenue

For the 13 weeks ended April 2, 2013, total revenue increased 3.8% to $55.1
million from $53.0 million in the prior year period. The increase is due to
the 3.6% increase in Company-owned comparable store sales^(1) and increased
franchise revenue and CPG sales. The increase in Company-owned comparable
store sales^(1) of 3.6% was driven primarily by an increase in transaction
count of 130 basis points and an average check increase of 230 basis points.
During the 13 week period ended April 2, 2013, franchise-operated comparable
store sales^(1) decreased 0.9%. Franchise and other revenue increased 29.6% to
$3.9 million from $3.0 million in the prior year period. Jamba’s CPG revenue
was $1.0 million in the 13 week period ended April 2, 2013, compared to $0.4
million in the prior year period.

Loss from Operations and Operating Margin

Jamba’s operating margin improved by 70 basis points to (2.4)% for the first
quarter of 2013 compared to (3.1)% for the quarter ended April 3, 2012. On a
dollar basis, the $(1.3) million loss from operations for the first quarter of
2013 was a $0.3 million improvement from the $(1.6) million loss from
operations in the first quarter of 2012 reflecting the increased franchise
revenue and CPG sales, and improved leveraging of fixed costs resulting from
the Company-operated store comparable sales growth.

Retail Growth

On February 28, 2013, the Company entered into a master franchise development
agreement with MAV to develop 80 Jamba Juice stores in Mexico over the next 10
years. The first Jamba Juice store in Mexico is expected to open in late 2013.
The principals of MAV, Mario Conzuelo Betancourt and Manuel Saba Ades, are
seasoned executives operating food and beverage, and health and wellness
retail businesses across Mexico and Latin America. Mario Conzuelo serves as
CEO of the newly formed venture, and has previously launched and successfully
developed a major international franchise beverage brand in Mexico. Manuel
Saba serves as Chairman and CEO of Grupo Casa Saba, one of the leading
distributors of pharmaceutical, health, beauty and consumer goods, general
merchandise and publications in Mexico and South America.

As of April 2, 2013, system-wide, Jamba has 779 stores in the United States,
of which 479 are franchise-operated stores and 300 are Company-owned.
Franchise-operated stores include Jamba Smoothie Stations™, the new limited
menu express format. During the quarter, Jamba opened eight new domestic
franchise-operated stores, all non-traditional, and six international store
locations, five in Canada and one in the Philippines. No new Company-owned
stores opened during the quarter. As of April 2, 2013 there were 41
international store locations, all of which are franchise-operated. During the
quarter, the total number of JambaGO served locations increased to 548. As of
April 2, 2013, three California locations offered the Fresh Squeezed Juice
platform, with a target of up to 100 locations by the end of 2013.

Liquidity

On April 2, 2013, the Company held $23.0 million in cash and cash equivalents
as compared to $31.5 million cash and cash equivalents at January 1, 2013. On
April 2, 2013, the Company did not have any restricted cash. At the end of
fiscal 2012, the restricted cash balance was $0.2 million.

Outlook for 2013

The Company continues to expect to achieve the following results for fiscal
2013:

  *Deliver positive Company-owned comparable store sales^(1) of 4%-6% and
    store-level margin of 20%;
  *Achieve income from operations of 2.5%-3.0% of revenue;
  *Deliver CPG revenue of $4 million - $5 million;
  *Develop 60-80 U.S. and international locations;
  *Add 1,000 JambaGO served locations.

A conference call to review the first quarter 2013 results will be held today,
April 30, 2013 at 5:00 p.m. ET. The conference call can be accessed live over
the phone by dialing (877) 941-2068 or for international callers by dialing
(480) 629-9712. 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 is4614150. The replay will be available until May 21, 2013. The call
can be accessed from the Company’s website at www.jambajuice.com under the
Corporate Investor Relations section or directly at http://ir.jambajuice.com.

About Jamba, Inc.

Jamba, Inc., (the “Company”) owns and franchises Jamba Juice stores through
its wholly-owned subsidiary, Jamba Juice Company. Jamba Juice Company is a
leading restaurant retailer of better-for-you, specialty beverage and food
offerings, which include great tasting, whole fruit smoothies, fresh squeezed
juices and juice blends, hot coffee and teas, hot oatmeal, breakfast wraps,
sandwiches and mini-wraps, California Flatbreads™, frozen yogurt, and a
variety of baked goods and snacks. As of April 2, 2013, there were 820 store
locations globally. There were 300 Company-owned and operated stores and 479
franchise-operated stores in the United States, and 41 international stores.
Jamba Juice Company has expanded the Jamba brand by direct selling of consumer
packaged goods (“CPG”) and licensing its trademark. CPG products for at-home
enjoyment are also available online, through select retailers across the
nation and in Jamba outlets in the United States.

Fans of Jamba Juice can find out more about Jamba Juice's locations as well as
specific offerings and promotions by visiting the Jamba Juice website at
www.JambaJuice.comor by contacting Jamba’s Guest Services team at
1-866-4R-FRUIT (473-7848).

Forward-Looking Statements

This press release (including information incorporated or deemed incorporated
by reference herein) contains “forward-looking statements” within the meaning
of the Private Securities Litigation Reform Act of 1995. Forward-looking
statements are those involving future events and future results that are based
on current expectations, estimates, forecasts, and projections as well as the
current beliefs and assumptions of the Company’s management. Words such as
“outlook”, “believes”, “expects”, “appears”, “may”, “will”, “should”,
“anticipates”, or the negative thereof or comparable terminology, are intended
to identify such forward looking statements. Any statement that is not a
historical fact, including the statements made under the caption “Outlook for
2013” and any other estimates, projections, future trends and the outcome of
events that have not yet occurred, is a forward-looking statement.
Forward-looking statements are only predictions and are subject to risks,
uncertainties and assumptions that are difficult to predict. Therefore actual
results may differ materially and adversely from those expressed in any
forward-looking statements. Factors that might cause or contribute to such
differences include, but are not limited to factors discussed under the
section entitled “Risk Factors” in the Company’s reports filed with the SEC.
Many of such factors relate to events and circumstances that are beyond the
Company’s control. You should not place undue reliance on forward-looking
statements. The Company does not assume any obligation to update the
information contained in this press release.

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 fiscal year. Company-owned comparable store sales
percentages are based on sales from company-owned stores included in our store
base. Franchise-operated comparable store sales percentages are based on sales
from franchised stores, as reported by franchisees, which are included in our
store base. System-wide sales percentages are based on sales by both
company-owned and franchise-operated stores, as reported by our franchisees,
which are included in our store base. Company-owned stores that were sold in
refranchising transactions are included in the Company-owned store base for
each accounting period of the fiscal quarter to the extent the sale is
consummated at least three days prior to the end of such accounting period,
but only for the days such stores have been company-owned. Thereafter, such
stores are excluded from the store base until such stores have been
franchise-operated for at least one full fiscal period, at which point such
stores are included in the franchise-operated store base and compared to sales
in the comparable period of the prior year. Comparable store sales exclude
closed locations. Company-owned comparable store sales percentages as used
herein, may not be equivalent to company-owned comparable store sales as
defined or used by other companies. Franchise-operated comparable store sales
percentages and system-wide sales percentages as used herein are non-GAAP
financial measures and should not be considered in isolation or as substitute
for other measures of performance prepared in accordance with generally
accepted accounting principles in the United States. Management reviews the
increase or decrease in company-owned comparable store sales,
franchise-operated comparable store sales and system-wide sales compared with
the same period in the prior year to assess business trends and make certain
business decisions. The Company believes the data is useful in assessing the
overall performance of the Jamba brand and, ultimately, the performance of the
Company, the company-owned stores, and franchise-operated stores.

JAMBA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
                                                           
                                                                
                                             13 Week          13 Week
                                             Period Ended       Period Ended
(In thousands except share and per share     April 2, 2013      April 3, 2012
amounts)
                                                                
Revenue:
Company stores                               $ 51,140           $ 50,025
Franchise and other revenue                   3,916            3,022      
Total revenue                                 55,056           53,047     
                                                                
Costs and operating expenses:
Cost of sales                                  12,404             11,611
Labor                                          15,755             15,408
Occupancy                                      7,376              7,418
Store operating                                8,157              7,875
Depreciation and amortization                  2,772              2,922
General and administrative                     9,169              8,639
Impairment of long-lived assets                107                386
Other operating, net                          619              433        
Total costs and operating expenses            56,359           54,692     
                                                                
Loss from operations                           (1,303     )       (1,645     )
                                                                
Other income (expense), net:
                                                                
Interest income                                -                  20
Interest expense                              (78        )      (117       )
Total other expense, net                      (78        )      (97        )
                                                                
Loss before income taxes                       (1,381     )       (1,742     )
                                                                
Income tax benefit                             139                232
                                                               
Net loss                                      (1,242     )      (1,510     )
                                                                
Preferred stock dividends and deemed           (484       )       (481       )
dividends
                                                               
Net loss attributable to common              $ (1,726     )     $ (1,991     )
stockholders
                                                                
                                                                
Weighted-average shares used in
computation of loss per share:
                                                                
Basic                                          80,709,422         67,294,134
Diluted                                        80,709,422         67,294,134
                                                                
Loss per share:
Basic                                        $ (0.02      )     $ (0.03      )
Diluted                                      $ (0.02      )     $ (0.03      )
                                                                             

JAMBA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)

                                                April 2,       January 1,
(In thousands, except share and per share        2013             2013
amounts)
                                                                  
ASSETS
Current assets:
Cash and cash equivalents                        $ 23,037         $ 31,486
Restricted cash                                    -                205
Receivables, net of allowances of $114 and         7,989            11,327
$103
Inventories                                        3,444            3,143
Prepaid and refundable taxes                       457              655
Prepaid rent                                       2,981            3,080
Prepaid expenses and other current assets         2,680          1,681    
Total current assets                               40,588           51,577
                                                                  
Property, fixtures and equipment, net              37,547           38,442
Goodwill                                           1,233            1,336
Trademarks and other intangible assets, net        1,381            1,412
Other long-term assets                            1,195          846      
                                                                  
Total assets                                     $ 81,944        $ 93,613   
                                                                  
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable                                 $ 4,400          $ 8,206
Accrued compensation and benefits                  4,050            7,566
Workers' compensation and health insurance         1,249            1,087
reserves
Accrued jambacard liability                        29,498           33,634
Other current liabilities                         9,706          9,728    
Total current liabilities                          48,903           60,221
                                                                  
Deferred rent and other long-term liabilities     12,020         11,880   
Total liabilities                                 60,923         72,101   
                                                                  
Commitments and contingencies
                                                                  
Series B redeemable preferred stock, $.001 par
value, 304,348 shares authorized; 16,109 and
72,889 shares issued and outstanding at April      1,776            7,916
2, 2013 and January 1, 2013, respectively.
                                                                  
Stockholders' equity:
Common stock, $.001 par value, 150,000,000
shares authorized; 83,486,948 and 77,408,909
shares issued and outstanding at April 2, 2013     84               78
and January 1, 2013, respectively.
Additional paid-in-capital                         386,892          380,007
Accumulated deficit                               (367,731 )      (366,489 )
Total stockholders' equity                        19,245         13,596   
                                                                  
Total liabilities and stockholders' equity       $ 81,944        $ 93,613   
                                                                             

JAMBA, INC.

(Unaudited)
                                                                
STORE COUNT
                       NUMBER OF STORES
                       COMPANY   FRANCHISE                      TOTAL
                                       Domestic       International
Quarter ended
April 2, 2013
At January 1, 2013     301             473            35              809
Opened                 -               8              6               14
Closed                 -               (3      )      -               (3    )
Refranchised           (1      )       1             -              -     
At April 2, 2013       300            479           41             820   
                                                                      
                                                                      
Quarter ended
April 3, 2012
At January 3, 2012     307             443            19              769
Opened                 -               4              6               10
Closed                 (2      )       (3      )      (1      )       (6    )
Refranchised           -              -             -              -     
At April 3, 2012       305            444           24             773   
                                                                      
                                                                      
COMPARABLE STORE
SALES
                                       13 Week                        13 Week
                                       Period Ended                   Period
                                                                      Ended
                                       April 2,                       April 3,
                                       2013                           2012
                                                                      
Percentage Change
in Comparable
store sales
Company stores                         3.6     %                      12.7  %
Franchise stores                       (0.9    )%                     10.5  %
System-wide                            1.3     %                      11.6  %
                                                                      
                                                                      
Percentage Change
in Comparable
Company store
sales
Traffic effect                         1.3     %                      8.8   %
Average check                          2.3     %                      3.9   %
effect
Total Comparable
Company store                          3.6     %                      12.7  %
sales
                                                                            

Contact:

Investor Relations
ICR
Dara Dierks, 203-682-8200
investors@jambajuice.com
 
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