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James D. WhiteThank you, Karen, and welcome to our first quarter call. On our last earnings call, I said the strong same-store sales trend that marked the end of 2011 was continuing in the early weeks of 2012. And as you can see from our 12.7% increase in company-owned store sales and 11.6% increase system-wide, the positive trend actually accelerated through the quarter, so we are off to a great start. I'll highlight some of our quarterly accomplishments and then expand on a few of them later. Our same-store sales have now been positive for 6 consecutive quarters for company-owned stores and 7 for franchise stores. Both improved traffic and higher average check drove these increases in all day parts. Store profitability improved by more than 1,000 basis points during the quarter, versus a year ago. Our balance sheet remained strong with 0 debt and $19 million in cash. All of our strategic initiatives in our BLEND Plan 2.0 that we unveiled last year are being initiated to accelerate our growth. Product and menu innovation is accelerating around fresh juice blends and better-for-you smoothies, like our fruit and vegetable offerings. Our JambaGo express units are being installed, and we are planning 400 to 500 installations by year end. We added 6 international units in Q1 and will double our international stores to more than 40 during 2012. We acquired the premium boutique company, Talbott Teas, a lifestyle specialty brand that fits well with our brand positioning as a leading health and wellness company, and our CPG revenues are growing with a very strong showing in the Inventure Foods line. CPG royalties are on track to reach around $3 million this year. Our unrelenting focus on taking costs out of the system and managing our cost structure continue to yield excellent results. With that overview, I'll now ask Karen to take us through the financials.
Karen L. LueyThank you, James. Before I review our highlights for the first quarter of fiscal 2012, I'd like to remind you that we switched the dates of our quarter end to more conform with the calendar quarter end. The press release that was issued today has comparisons against prior-year GAAP results and prior-year pro forma results. The 10-Q, which will be filed on or around May 8, 2012, will only include comparisons against prior-year GAAP results. And today, I'll focus most of my comments on the pro forma comparisons. We continue to make progress on strengthening the financial health of our business, and it's reflected in our first quarter results. Quarter-over-quarter comparisons on a GAAP and pro forma basis reflects significant improvement in comparable same-store sales and total revenue, 4-wall store margins, adjusted operating profit, and we continue to improve on our bottom line results. On a pro forma basis, for the first 13 weeks in 2012 compared to the first 13 weeks in 2011, we reduced our net loss from $7.7 million to $1.5 million or $0.03 loss per share, a reduction of more than 76% due to the increase in revenue and continued operational efficiencies in overall store operating expenses, primarily labor. Our 4-wall store margins improved to 15.4% from 4.8%, and our adjusted operating profit increased by $6 million to $10.7 million in the first quarter of 2012 from $4.7 million in the first quarter of 2011. Total pro forma revenue for the first quarter increased 4.9% to $53 million, and company store revenue increased 3.7% to $50 million as compared to the prior-year same quarter. Across our entire system, we showed increases in comparable store sales for the first quarter. Our company comparable store sales increased 12.7%, and franchise comparable store sales increased 10.5%. And for the second consecutive quarter, we are reflecting an increase in traffic. The results of our company comparable store sales increase of 12.7% for the quarter includes an 880-basis point increase in traffic, and a 390-basis point increase due to average check. The increase in traffic consists of approximately 510 basis points related to the weather impact and 370 basis points related to more frequent and repeat business. Read the rest of this transcript for free on seekingalpha.com