Jamba Juice Company (NASDAQ:JMBA) today reiterated fiscal year 2012 guidance, including Company comparable store sales guidance range of positive 4% to 6% (1). The Company also released its “BLEND” Plan 3.0, outlining strategic priorities and initiatives for 2013 that will position the Company for transformational growth and increased shareholder value. “Jamba performed very well in 2012 against our BLEND Plan 2.0 strategic priorities that accelerated our growth as a healthy, active lifestyle brand through product and menu innovation, engaging marketing programs, strong retail growth in the U.S. and globally, new formats and store concepts, expansion of our consumer products platform, and an ongoing pursuit of new ways to reduce cost and improve productivity,” said James D. White, chairman, president and CEO, Jamba Juice Company. “We believe 2012 provides an excellent foundation for accelerated growth and continued progress in transforming Jamba. Our new BLEND Plan 3.0 provides continuity and a blueprint for focusing our resources. Importantly, we will implement initiatives that build total brand value through multi-channel brand building, product and menu innovation, store format and design and leveraging unique partnerships to extend the enterprise. We will refresh and remodel our stores to provide a superior customer experience that will feature on-trend fresh juices, smoothies, and complementary menu extensions served by skilled, knowledgeable associates. “We will also leverage a range of formats to grow our global footprint with accelerated growth for JambaGO™ , limited menu Smoothie Stations, and international units. We will expand the reach of our Jamba-branded Consumer Package Goods (CPG) with innovative products and broadened business partnerships. And, we will strengthen our organization, improve our efficiency, and enhance our productivity and profitability,” Mr. White concluded. Brand Building and Total Innovation Jamba’s focus on initiatives that build total brand value though multi-channel brand building and total innovation, include consumer loyalty and engaging marketing programs and partnerships. On-trend specialty beverages and new product platforms will address consumer health and wellness needs across all dayparts.
Lifestyle EngagementJamba will continue to develop integrated programs, like their Master of Blending Arts training that will help deepen and broaden the health and wellness knowledge of the Jamba workforce across the system. The development of relevant partnerships and programs will continue to drive the Fight Against Obesity and encourage healthy active lifestyles. Expand Growth Initiatives Over the past three years, the Company has made significant accomplishments in transitioning to a franchise-oriented organization. At the close of the fiscal year, 473 of 774 stores were franchise-owned; 301 were company-owned and operated stores. Internationally, Jamba experienced accelerated growth ending the year with 35 franchise stores in three global markets. It will pursue new international markets for global growth in 2013. Jamba also launched two new flexible formats, JambaGO™ and a limited menu Smoothie Station, that facilitate rapid expansion of healthy menu options into K-12 schools and entertainment and convenience venues, respectively. Both store formats will be expanded significantly in 2013. Jamba will continue to drive best-in-class economics across all store formats. It plans to accelerate franchise growth by deploying a new integrated business model for growth. In addition, new juice bar concept stores, launched in 2012, to extend Jamba’s juice offering will be incorporated in the remodeling and refreshing of up to 100 company stores. The overall effort will provide a more engaging, fresh, contemporary, and fun experience for guests. New Product, Partners, Channels, and Markets During 2012, Jamba acquired Talbott Teas, a specialty lifestyle tea brand. It also acquired the intellectual property for their energy drink, which the Company is now expanding into new markets, particularly the West Coast. In 2013, Jamba will increase consumer touch points with innovative branded products in relevant categories that will extend the product portfolio into new channels and markets. The Company also plans to put in place a new business model for the manufacture and distribution of Jamba-branded products that will accelerate the global growth and success of their CPG program.
Drive Enterprise EfficienciesAt the close of 2012, Jamba had launched several technology enhancements to improve the customer experience, enhance speed of service and drive productivity at store level and across the enterprise. New ways to further reduce costs and drive productivity are planned for 2013. As it builds its supply chain into a global competitive advantage, Jamba will pursue and leverage existing and new partnerships to drive greater efficiencies and effectiveness. Improving store economics, including labor, COGS/distribution, occupancy, and store operations, through disciplined cost control and outlier management, will continue to be a focus for the Company. Outlook for 2013 The Company expects to achieve the following results for fiscal 2013:
- Deliver positive company-owned comparable store sales of 4%-6%;
- Deliver store-level margin of 20%;
- Achieve income from operations of 2.5-3.0%;
- Deliver CPG revenue of $4 million-$5 million;
- Develop 60-80 U.S. and international locations;
- Add 1,000 JambaGO™ served locations; and
- Add up to 100 Smoothie Stations.
|(1)||Comparable store sales are calculated using sales of Jamba Juice stores open at least 13 full fiscal periods. Company-owned comparable store sales percentages are based on sales from Company-owned stores included in our store base. Franchise-operated comparable store sales percentages are based on sales from franchised stores, as reported by franchisees, which are included in our store base. System-wide sales percentages are based on sales by both Company-owned and franchise-operated stores, as reported by our franchisees, which are included in our store base. Company-owned stores that were sold in refranchising transactions are included in the stores base for each accounting period of the fiscal quarter to the extent the sale is consummated at least three days prior to the end of such accounting period, but only for the days such stores have been Company-owned. Thereafter, such stores are excluded from the store base until such stores have been franchise-operated for at least one full fiscal period, at which point such stores are included in the store base and compared to sales in the comparable period of the prior year. Comparable store sales exclude closed locations. Company-owned comparable store sales percentages as used herein, may not be equivalent to Company-owned comparable store sales as defined or used by other companies. Franchise-operated comparable store sales percentages and system-wide sales percentages as used herein are non-GAAP financial measures and should not be considered in isolation or as substitute for other measures of performance prepared in accordance with generally accepted accounting principles in the United States. Management reviews the increase or decrease in Company-owned comparable store sales, franchise-operated comparable store sales and system-wide sales compared with the same period in the prior year to assess business trends and make certain business decisions. The Company believes the data is useful in assessing the overall performance of the Jamba brand and, ultimately, the performance of the Company, the Company-owned stores, and the franchise-operated stores.|