Jamba, Inc. (NASDAQ:JMBA) today reported unaudited financial results for the third fiscal quarter ended October 2, 2012. The Company recorded a quarterly comparable sales increase of 3.9%, marking two years of consecutive, quarterly Company-owned stores and system-wide sales growth.
Jamba continued its solid gains in store-level profitability as improved traffic drove increases in all day parts. During the quarter, Jamba opened 12 new stores, eight in the U.S. and four in international markets.
“The excellent results Jamba has achieved during the quarter and year-to-date give us good momentum for a strong finish to the year,” said James D. White, chairman, president and CEO of Jamba, Inc. “This progress gave us an opportunity during the quarter to increase our investments in marketing to deliver customer value-oriented promotions designed to grow our customer base and strategic growth initiatives, like JambaGO® and Talbott Teas®, which will accelerate our growth as a healthy, active lifestyle brand.
“Our marketing encourages trial by new customers, who become long-term fans, by showcasing our healthy on-the-go options along with our value proposition. Our innovative JambaGO initiative continues in high gear with 169 served locations at the end of the quarter.
“Based on our strong year-to-date performance, we are affirming our guidance for 2012 and providing a preliminary 2013 outlook that underscores our optimism for the future,” concluded Mr. White.
Highlights for the 13 weeks ended October 2, 2012, compared to the 12 weeks ended October 4, 2011:
- Company-owned comparable store sales (1) increased 3.9%, franchise-operated comparable store sales (1) increased 1.0% and system-wide comparable store sales (1) increased 2.5%.
- Net income was $4.1 million, and represents $0.04 diluted earnings per share for the quarter, compared to net income of $4.1 million or $0.05 diluted earnings per share for the prior year period.
- Investment during the quarter was accelerated in targeted customer value-price promotions and several growth initiatives, including JambaGO.
- General and administrative expense increased to $9.7 million from $7.4 million, resulting from the accelerated investment in growth initiatives and an additional week of expenses included in the 2012 fiscal third quarter.
This is the third quarter the Company’s results are being reported on the basis of 13-week fiscal quarters which results in 12 fiscal periods. Therefore, the fiscal 2012 quarterly results are not directly comparable to fiscal 2011 quarterly results. The fiscal 2012 third quarter began on July 4, 2012 and ended on October 2, 2012. The third quarter of fiscal 2012 had 13 weeks and the third quarter of fiscal 2011 had 12 weeks. For comparable sales, the percentage change in company-owned and system-wide comparable sales compares the sales during a 13- and 39-week period in 2012 to the sales from the equivalent 13- and 39-week periods in the prior year. The Company has provided pro-forma results for fiscal 2011 third quarter in the attached tables.