Jamba, Inc. Reports Financial Results for Third Quarter Fiscal Year 2008
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Source: Jamba, Inc.
18/11/2008
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Emeryville, Calif., Nov. 17 - Jamba, Inc. today reported unaudited financial results for the third quarter ended October 7, 2008.
Fiscal third quarter 2008 (3Q08), 12-week period ended October 7, 2008, compared to fiscal third quarter 2007 (3Q07), 12-week period ended October 16, 2007:
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Total revenue of $86.6 million in 3Q08, an increase of 3.6% from $83.6 million in 3Q07.
-
Loss from operations for 3Q08 was $(11.4) million as compared to a loss of $(3.1) million in 3Q07. Loss from operations would have been $(5.5) million as compared to $(2.9) million in 3Q07, excluding the impact of store impairment, lease termination and store closure costs of $5.9 million ($0.2 million in 3Q07).(*) Loss from operations includes non-cash share-based compensation of $2.1 million in 3Q08 compared to $1.0 million in 3Q07.
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Net loss for 3Q08, including non-cash activities was $(12.4) million, compared to net income of $22.4 million in 3Q07. Net loss for 3Q08 would have been $(6.0) million compared to a net loss of $(0.7) million in 3Q07, excluding $5.9 million of store impairment, lease termination and store closure costs ($0.2 million in 3Q07) and $0.5 million loss from derivative liabilities (compared to $23.3 million in 3Q07 gain from derivative liabilities).(*)
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Diluted earnings (loss) per share of $(0.23) in 3Q08, compared to $0.40 in 3Q07. Diluted loss per share in 3Q08 would have been $(0.11) compared to $(0.01), excluding store impairment, lease termination and store closure costs and gain (loss) from derivative liabilities. (*)
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Company-owned comparable store sales(1) of (10.3)% in 3Q08, compared to 3.8% in 3Q07.
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Four new company-owned stores were opened in 3Q08, compared to 24 new company-owned stores in 3Q07. This brings the total number of company-owned stores to 520 and the total number of system-wide stores (company-owned and franchise-operated stores) to 749.
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Store-level EBITDA(*) decreased to $13.8 million in 3Q08 compared to $16.4 million in 3Q07. For a reconciliation of Store-level EBITDA, a non-GAAP financial measure, to net income (loss), a GAAP financial measure please see the table at the end of this release.
“We remain focused on our key business objectives to improve store operating performance, grow franchising and maximize revenue streams from licensing. We are making tangible progress with a number of initiatives that have recently been implemented or are being planned and we continue to expect store operating performance to demonstrate material improvement in 2009 as a number of these activities take hold and begin impacting financial performance,” said Steven R. Berrard, the interim Chief Executive Officer and President.
Mr. Berrard continued, “While we can not control the difficult consumer economic conditions we find ourselves operating under, we are taking actions in a number of areas we can control, like strong cost controls and implementing other revenue initiatives. We have also gathered valuable insights from Jamba team members through recent field management meetings that are being incorporated into our plans to better address historical cannibalization, competitive threats, marketing and even new revenue opportunities like food.”
Footnotes
(1)Comparable store sales are calculated using sales of stores open at least thirteen full fiscal periods. 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.
| JAMBA, INC. |
| CONDENSED CONSOLIDATED BALANCE SHEETS |
| (Unaudited) |
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October 7, |
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January 1, |
| (In thousands, except share and per share amounts) |
2008 |
|
2008 |
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|
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| ASSETS |
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|
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| Current assets: |
|
|
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| Cash and cash equivalents |
$ |
28,254 |
|
|
$ |
23,016 |
|
| Restricted cash |
|
1,338 |
|
|
|
1,916 |
|
| Receivables, net of allowances of $565 and $133 |
|
5,509 |
|
|
|
6,402 |
|
| Inventories |
|
4,039 |
|
|
|
3,582 |
|
| Deferred income taxes |
|
- |
|
|
|
6,928 |
|
| Prepaid and refundable income taxes |
|
6,132 |
|
|
|
5,814 |
|
| Prepaid rent |
|
3,010 |
|
|
|
3,261 |
|
| Prepaid expenses and other current assets |
|
963 |
|
|
|
1,607 |
|
| Total current assets |
|
49,245 |
|
|
|
52,526 |
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|
|
|
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| Property, fixtures and equipment, net |
|
117,277 |
|
|
|
128,861 |
|
| Trademarks and other intangible assets, net |
|
3,374 |
|
|
|
87,599 |
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| Restricted cash |
|
3,010 |
|
|
|
2,950 |
|
| Deferred income taxes |
|
354 |
|
|
|
- |
|
| Other long-term assets |
|
4,585 |
|
|
|
3,066 |
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|
|
|
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| Total assets |
$ |
177,845 |
|
|
$ |
275,002 |
|
|
|
|
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| LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
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| Current liabilities: |
|
|
|
| Accounts payable |
$ |
8,868 |
|
|
$ |
14,487 |
|
| Accrued compensation and benefits |
|
7,932 |
|
|
|
6,490 |
|
| Workers' compensation and health self-insurance reserves |
|
2,189 |
|
|
|
1,796 |
|
| Accrued jambacard liability |
|
23,918 |
|
|
|
28,576 |
|
| Current portion of capital lease obligations |
|
244 |
|
|
|
- |
|
| Other accrued expenses |
|
9,962 |
|
|
|
8,277 |
|
| Derivative liabilities |
|
2,383 |
|
|
|
9,290 |
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| Total current liabilities |
|
55,496 |
|
|
|
68,916 |
|
|
|
|
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| Note payable |
|
22,533 |
|
|
|
- |
|
| Long-term workers' compensation and health insurance reserves |
|
3,010 |
|
|
|
2,950 |
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| Capital lease obligations |
|
323 |
|
|
|
- |
|
| Deferred income tax |
|
- |
|
|
|
7,269 |
|
| Deferred rent and other long-term liabilities |
|
15,205 |
|
|
|
12,359 |
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| Commitments and contingencies |
|
- |
|
|
|
- |
|
|
|
|
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| Total liabilities |
$ |
96,567 |
|
|
$ |
91,494 |
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| Stockholders' equity: |
|
|
|
| Common stock, $0.001 par value, authorized 150,000,000 shares: 54,690,728 and 52,637,131 |
|
55 |
|
|
|
53 |
|
| issued and outstanding at October 7, 2008 and January 1, 2008, respectively |
|
|
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| Additional paid-in-capital |
|
357,941 |
|
|
|
352,184 |
|
| Accumulated deficit |
|
(276,718 |
) |
|
|
(168,729 |
) |
| Total stockholders' equity |
|
81,278 |
|
|
|
183,508 |
|
|
|
|
|
| Total liabilities and stockholders' equity |
$ |
177,845 |
|
|
$ |
275,002 |
|
| JAMBA, INC. |
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
| (Unaudited) |
| |
|
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Twelve Week Period Ended |
|
Forty Week Period Ended |
| (In thousands, except share and per share amounts) |
|
October 7, 2008 |
|
October 16, 2007 |
|
October 7, 2008 |
|
October 16, 2007 |
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| Revenue: |
|
|
|
|
|
|
|
|
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Company stores |
|
$ |
84,427 |
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|
$ |
81,044 |
|
|
$ |
279,371 |
|
|
$ |
253,418 |
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|
Franchise and other revenue |
|
|
2,208 |
|
|
|
2,594 |
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|
|
7,415 |
|
|
|
9,215 |
|
|
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Total revenue |
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86,635 |
|
|
|
83,638 |
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|
|
286,786 |
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|
|
262,633 |
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|
|
|
|
|
|
|
|
|
|
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| Operating expenses: |
|
|
|
|
|
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|
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Cost of sales |
|
|
22,746 |
|
|
|
22,486 |
|
|
|
74,459 |
|
|
|
69,697 |
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Labor costs |
|
|
28,124 |
|
|
|
25,803 |
|
|
|
97,542 |
|
|
|
81,144 |
|
|
Occupancy costs |
|
|
10,679 |
|
|
|
9,138 |
|
|
|
34,614 |
|
|
|
28,681 |
|
|
Store operating |
|
|
10,721 |
|
|
|
9,189 |
|
|
|
35,305 |
|
|
|
31,112 |
|
|
Depreciation and amortization |
|
|
5,835 |
|
|
|
4,923 |
|
|
|
19,331 |
|
|
|
14,187 |
|
|
General and administrative |
|
|
12,082 |
|
|
|
12,103 |
|
|
|
37,228 |
|
|
|
37,598 |
|
|
Store pre-opening |
|
|
220 |
|
|
|
1,359 |
|
|
|
1,920 |
|
|
|
3,984 |
|
|
Store impairment |
|
|
5,901 |
|
|
|
199 |
|
|
|
13,198 |
|
|
|
397 |
|
|
Store lease termination and closure costs |
|
|
19 |
|
|
|
43 |
|
|
|
2,899 |
|
|
|
196 |
|
|
Trademark impairment |
|
|
- |
|
|
|
- |
|
|
|
82,600 |
|
|
|
- |
|
|
Other |
|
|
|
1,744 |
|
|
|
1,510 |
|
|
|
3,548 |
|
|
|
4,159 |
|
|
|
Total operating expenses |
|
|
98,071 |
|
|
|
86,753 |
|
|
|
402,644 |
|
|
|
271,155 |
|
|
|
|
|
|
|
|
|
|
|
|
| Income (loss) from operations |
|
|
(11,436 |
) |
|
|
(3,115 |
) |
|
|
(115,858 |
) |
|
|
(8,522 |
) |
|
|
|
|
|
|
|
|
|
|
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| Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) from derivative liabilities |
|
|
(520 |
) |
|
|
23,271 |
|
|
|
7,610 |
|
|
|
38,750 |
|
|
Interest income |
|
|
69 |
|
|
|
775 |
|
|
|
315 |
|
|
|
3,091 |
|
|
Interest expense |
|
|
(485 |
) |
|
|
(21 |
) |
|
|
(703 |
) |
|
|
(155 |
) |
|
|
Total other income (expense) |
|
|
(936 |
) |
|
|
24,025 |
|
|
|
7,222 |
|
|
|
41,686 |
|
|
|
|
|
|
|
|
|
|
|
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| Income (loss) before income tax |
|
|
(12,372 |
) |
|
|
20,910 |
|
|
|
(108,636 |
) |
|
|
33,164 |
|
|
|
|
|
|
|
|
|
|
|
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| Income tax benefit |
|
|
9 |
|
|
|
1,487 |
|
|
|
647 |
|
|
|
3,509 |
|
|
|
|
|
|
|
|
|
|
|
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| Net income (loss) |
|
$ |
(12,363 |
) |
|
$ |
22,397 |
|
|
$ |
(107,989 |
) |
|
$ |
36,673 |
|
|
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| Weighted-average shares used in computation of earnings (loss) per share: |
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|
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Basic |
|
|
|
53,251,591 |
|
|
|
52,576,948 |
|
|
|
52,821,493 |
|
|
|
52,243,161 |
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Diluted |
|
|
|
53,251,591 |
|
|
|
55,468,235 |
|
|
|
52,821,493 |
|
|
|
57,871,913 |
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|
|
|
|
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| Earnings (loss) per share: |
|
|
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|
|
|
|
|
|
Basic |
|
|
$ |
(0.23 |
) |
|
$ |
0.43 |
|
|
$ |
(2.04 |
) |
|
$ |
0.70 |
|
|
Diluted |
|
|
$ |
(0.23 |
) |
|
$ |
0.40 |
|
|
$ |
(2.04 |
) |
|
$ |
0.63 |
|
| JAMBA, INC. |
| Reconciliation of GAAP Income (Loss) from Operations to Store Level EBITDA |
| (Unaudited) |
|
|
|
|
| (In thousands) |
Twelve Week Period Ended |
|
October 7, 2008 |
|
October 16, 2007 |
|
|
|
|
| Company stores revenue |
$ |
84,427 |
|
|
$ |
81,044 |
|
| Franchisee revenue (excluding franchise reimbursement) |
|
1,652 |
|
|
|
1,967 |
|
| Cost of sales |
|
(22,746 |
) |
|
|
(22,486 |
) |
| Labor costs |
|
(28,124 |
) |
|
|
(25,803 |
) |
| Occupancy costs |
|
(10,679 |
) |
|
|
(9,138 |
) |
| Store operating |
|
(10,721 |
) |
|
|
(9,189 |
) |
| Store Level EBITDA |
$ |
13,809 |
|
|
$ |
16,395 |
|
|
|
|
|
| Store Level EBITDA |
$ |
13,809 |
|
|
$ |
16,395 |
|
| Add: Franchisee reimbursement |
|
556 |
|
|
|
627 |
|
| Less: Depreciation and amortization |
|
(5,835 |
) |
|
|
(4,923 |
) |
| Less: General and administrative |
|
(12,082 |
) |
|
|
(12,103 |
) |
| Less: Store pre-opening |
|
(220 |
) |
|
|
(1,359 |
) |
| Less: Store impairment |
|
(5,901 |
) |
|
|
(199 |
) |
| Less: Store lease termination and closure |
|
(19 |
) |
|
|
(43 |
) |
| Less: Other |
|
(1,744 |
) |
|
|
(1,510 |
) |
| Add (Less): Other income (expense) |
|
(936 |
) |
|
|
24,025 |
|
| Add: Income tax benefit |
|
9 |
|
|
|
1,487 |
|
| Net income (loss) |
$ |
(12,363 |
) |
|
$ |
22,397 |
|
|