Jamba, Inc. (NASDAQ:JMBA) today reported unaudited financial results for the first fiscal quarter ended April 1, 2014. The Company recorded quarterly comparable store sales (1) increases for Company-owned and franchise-operated stores, driven by increases in average check.
Jamba® also reported accelerated expansion of its on-trend fresh-squeezed juice and whole food blending platform, which by quarter end was in 130 units. Strong acceptance of Jamba’s new customer loyalty program attracted more than 500,000 users in its initial two months. Redemptions of Jamba’s million free smoothie and juice promotion, in partnership with ISIS and featuring their Mobile Wallet technology, grew during the quarter to more than 270,000. The Company expects to reach the maximum one million level by fall.
Highlights for the 13 weeks ended April 1, 2014, compared to the 13 weeks ended April 2, 2013:
- Company-owned comparable store sales (1) increased 0.6% for the quarter compared to the prior year period.
- System-wide comparable store sales (1) increased 0.3% for the quarter and franchise-operated comparable store sales (1) increased 0.1% for the quarter compared to the prior year period.
- Net loss narrowed sharply to $(0.2) million, or $(0.01) diluted loss per share for the quarter, compared to net loss of $(1.2) million or $(0.11) diluted loss per share for the prior year period.
- Total revenue for the 13 weeks ended April 1, 2014 was $51.6 million compared to total revenue of $55.7 million for the prior year period.
- Jamba’s loss from operations decreased $1.1 million to $(0.2) million for the 13 weeks ended April 1, 2014, reflecting Company-owned store comparable sales growth and increased franchise revenue. Operating margin improved by 190 basis points to (0.4)% for the 13 weeks ended April 1, 2014 compared to the prior year period.
- General and administrative expenses for the 13 weeks ended April 1, 2014 decreased 8.9% to $8.4 million compared with $9.2 million for the prior year period.
- During the quarter, franchisees opened 11 new stores globally; nine new franchise stores in the U.S. and two new international stores.
- Within the last four weeks, one store, the first of 80 units planned for Mexico, opened.
“Our first quarter results reflect meaningful accomplishments on several fronts,” said James D. White, chairman, president and CEO of Jamba, Inc. “Our same store sales gains were nominal, but outpaced our competitive set by 2-3%. We made excellent progress in the national rollout of our whole food blending and juice platform that we plan to have in over 500 units before year-end. As the popularity of juicing and whole food blends grows, we believe our competitive advantages of brand strength, know-how, development skills and supply chain efficiencies will make Jamba® the leader with a significant advantage over our nearest competitors. While we anticipate results will vary by quarter during this major rollout, we remain confident about our full-year guidance.”