Jamba, Inc. Announces Third Quarter 2016 Financial Results

Jamba, Inc. (NASDAQ:JMBA) today reported unaudited financial results for the third quarter ended September 27, 2016.

Financial Highlights
  • Total revenue decreased 37.9% to $22.1 million from $35.5 million for the prior year, primarily due to the reduction in the number of Company stores as part of the Company's refranchising strategy.
  • Company-owned comparable store sales (1) decreased 0.8%. Franchise-operated comparable store sales (1) decreased 1.1%. System-wide comparable store sales (1) decreased 1.1%.
  • System-wide comparable stores (1) sales and transactions exceeded the Knapp-Track Fast Casual benchmark by approximately 170 and 70 basis points, respectively.
  • 20 system-wide stores opened and 9 system-wide stores closed, resulting in 11 openings net of closures (2).
  • Domestic system-wide sales (3) are $132.9 million versus $132.9 million in the prior year period. Blended royalty rate (4) is 5.1% versus 4.9% for the prior year period.
  • General and administrative expenses for the quarter increased 7.7% to $9.7 million compared with $9.0 million for the prior year period primarily due to transition costs and non-recurring expenses in 2016 of $4.4 million. Non-GAAP adjusted general and administrative expense (5) for the quarter was $5.3 million compared with $7.3 million for the prior year period . The decline in Non-GAAP adjusted general and administrative expense (5) is primarily attributed to the company's transition to a franchise focused business model and the reduced overhead support necessary to operate the business.
  • GAAP Net Loss attributable to Jamba, Inc. was $(2.0) million or $(0.13) per share compared to GAAP Net Income of $13.1 million, or $0.81 per share for the prior year. Non-GAAP Adjusted Net Income attributable to Jamba, Inc. (5), was $1.8 million, or $0.12 per share compared to $1.6 million, or $0.10 per share for the prior year period.
  • Adjusted EBITDA (6) was $4.1 million for the third quarter of 2016 and $4.0 million for the third quarter of 2015.

"While Q3 financial performance did not meet our expectations, we believe the positive gap to Knapp Track's Fast Casual benchmark, in both Sales and Traffic, indicates the strength of the Jamba brand and signals the potential for growth," said Dave Pace, President and Chief Executive Officer of Jamba, Inc. "During the quarter we successfully relocated our support center to Frisco, Texas, made several key strategic decisions that will increase our focus on core stores, and our newly formed leadership team has quickly rallied to build a thoughtful approach to our 2017 operating plan aligned with our five strategies for growth. I remain optimistic about our brand and future performance."

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