Jamba, Inc. (NASDAQ:JMBA) today reported unaudited financial results for the second fiscal quarter ended July 2, 2013. The Company recorded a quarterly comparable store sales (1) increase of 2.2% for Company-owned stores, driven by increases in store traffic and average check.
Jamba also reported solid increases in total revenue, net income, operating margin and earnings per share from its expanding consumer product platforms during the second quarter. The Company made substantial progress in its key growth initiatives, including fresh-squeezed juice expansion, store refreshes and remodels and express retail format.
Highlights for the 13 weeks ended July 2, 2013, compared to the 13 weeks ended July 3, 2012:
- Company-owned comparable store sales (1) increased 2.2% for the quarter as compared to the prior year period in which comparable store sales increased 5.1%.
- System-wide comparable store sales (1) increased 1.7% for the quarter against a 5.7% increase for the prior year period and franchise-operated comparable store sales (1) increased 1.2% for the quarter compared to the prior year quarter increase of 6.4%.
- Net income after dividends increased 51% to $6.2 million, or $0.36 (2) diluted earnings per share for the quarter, compared to net income of $4.1 million, or $0.27 (2) diluted earnings per share for the prior year period.
- Total revenue increased 1.9% to $67.3 million compared to total revenue of $66.0 million for the prior year period.
- Income from operations increased 32.1% to $6.6 million reflecting Company-owned store comparable sales growth, increased franchise revenue and expanding CPG sales. Operating margin improved by 230 basis points to 9.9% for the second quarter of 2013.
- General and administrative expenses decreased 5.4% to $10.2 million compared with $10.8 million for the prior year period.
- During the quarter, franchisees opened 11 new stores globally; nine new franchise-operated stores, which include six smoothie stations, in the U.S. and two new international stores. Two Company-owned stores were opened.
- Holders of Series B Preferred Stock completed conversion of all preferred shares to shares of the Company’s common stock in June 2013, resulting in the end of dividend payments to the preferred stockholders.
“Despite the challenging consumer and competitive environment, Jamba had strong quarterly achievements and also set the stage for future performance gains and earnings growth. Our record of more than two years of quarterly system comparable store sales growth continued with an increase that outpaced many of our peers. Total revenue and net earnings both advanced, with EPS for the quarter increasing 33%. By increasing our marketing investment and highlighting value promotions, we continue to grow our base of light and lapsed users,” said James D. White, Chairman, President and CEO of Jamba.
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