FRISCO, Texas---Jamba, Inc. (“the Company”) announced financial results for the fiscal quarters ended April 4, 2017 (“first quarter”), July 4, 2017 (“second quarter”), and October 3, 2017 (“third quarter”), and updated its fiscal 2017 and 2018 financial guidance.
Highlights for the 39-week period ended October 3, 2017 compared to the 39-week period ended September 27, 2016:
- Total Revenue declined $6.1 million to $56.3 million, primarily due to the Company’s transition to an asset light business model and the exit of non-core business units.
- Domestic system-wide sales increased $7.1 million to $392.9 million.
- Net Income (Loss) improved $5.4 million, to a loss of $1.9 million.
- Non-GAAP Adjusted EBITDA increased 39.2% to $12.8 million.
- Non-GAAP Adjusted EBITDA Margin increased to 22.8%, compared to 14.8%.
- Opened 35 new stores, of which 27 were domestic and eight international.
- Completed portfolio optimization transactions in Chicago, Phoenix, and Seattle, including development agreements for 32 new stores across the three markets.
CEO Comments
Dave Pace, President and Chief Executive Officer, noted: “Along with the filing of the 2016 10-K on February 12th, completion of the 2017 10-Qs meets an important filing deadline, and accelerates our return to a standard reporting cadence.”
Pace continued: “Financial results for the first three quarters of 2017 reflect our concrete actions to reinvigorate the Jamba business. We enhanced our organization with experienced additions to the leadership team, exited non-core and underperforming business units to improve profitability, and launched innovative new products. Together, these changes elevated the customer experience in our stores. We saw sequential improvements in comparable store sales through 2017, culminating in our previously reported 5.3% increase in the fourth quarter. The fourth quarter also marked the seventh consecutive quarter in which our comparable store sales beat the industry benchmark. Adjusted EBITDA grew 39% through the first three quarters of 2017.”
Pace concluded: “Jamba is an iconic brand. We have positioned it for sustainable growth and significant value-creation for our shareholders and are optimistic about our performance in 2018.”
