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:
-- 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.
-- 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).(*)
-- 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. (*)
-- Company-owned comparable store sales(1) of (10.3)% in 3Q08, compared to 3.8% in 3Q07.
-- 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.
-- 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."
(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.
* - Use of Non-GAAP Financial Measures
The Company uses non-GAAP financial measures in its statements made in this release. Income (loss) from operations and net income (loss) are presented excluding certain non-cash activities, which presentation the Company believes is a helpful indicator of the Company's financial performance. The statements are reconciled to the GAAP presentation of income (loss) from operations and net income (loss) in the same statement in which the non-GAAP financial measures are presented. The Company also uses a non-GAAP financial measure for an adjusted diluted earnings (loss) per share, which presentation the Company believes is a helpful indicator of the Company's financial performance. [For a reconciliation of diluted earnings (loss), please see the table at the end of this release.] In addition, the Company uses the non-GAAP financial measures of store-level EBITDA. The Company defines store-level EBITDA as net income (loss) from operations, plus franchisee reimbursements and other income less: (a) depreciation and amortization, (b) general and administrative expenses; (c) store pre-opening expenses; (d) trademark impairment; (e) store lease termination and closure expenses; (f) store impairment expenses; (g) other operating expenses and (h) income taxes. The Company believes that store-level EBITDA is an important measure of financial performance because it is widely regarded in the restaurant industry as a useful metric by which to evaluate continuing store-level operating efficiency and performance. For a reconciliation of Store-level EBITDA to net income (loss), please see the table at the end of this release. The adjusted income (loss) from operations, net income (loss) and Store-level EBITDA are not measurements determined in accordance with GAAP and should not be considered in isolation or as an alternative to income (loss) from operations or net income (loss) as indicators of financial performance. Each non-GAAP financial measure used as presented may not be comparable to other similarly titled measures of other companies.
Webcast and Conference Call Information
Jamba will host a conference call to discuss third quarter 2008 results on Monday, November 17, 2008 at 5:00 p.m. ET. The earnings call can be accessed live over the phone by dialing 877.852.6575 or 719.325.4822 for international callers. A simultaneous web cast of the call will be available by visiting www.jamba.com. A replay will be available at 8:00 p.m. ET and can be accessed by dialing 888.203.1112 or 719.457.0820for international callers; the passcode is 3669748. The replay will be available until December 1, 2008.
About Jamba, Inc.
Jamba, Inc. is a holding company and through its wholly-owned subsidiary, Jamba Juice Company, owns and franchises JAMBA JUICE(R) stores. JAMBA JUICE is the leading blender of fruit and other naturally healthy ingredients. Founded in 1990, Jamba strives to inspire and simplify healthy living for its customers and employees. As of October 7, 2008, JAMBA JUICE had 749 stores, of which 520 were company-owned and operated. For the nearest location or a complete menu including our breakfast smoothies with organic granola, please call: 1-866-4R-FRUIT or visit the JAMBA JUICE website at www.jamba.com. Look for Jamba's ready-to-drink Jamba(R) bottled Smoothies and Juicies on grocery store shelves.
This press release (including information incorporated or deemed incorporated by reference herein) contains "forward-looking statements" within the meaning of the Private 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 projects as well as the current beliefs and assumptions of our 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. 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, those discussed under the section entitled "Risk Factors" in our reports filed with the SEC. Many of such factors relate to events and circumstances that are beyond our 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.