EMERYVILLE, Calif. — Jamba Inc. has reported its financial results for the fiscal second quarter ended July 15, 2008. The company's statements include the results of its wholly owned subsidiary, Jamba Juice Co.
Company-owned same-store sales decreased 7.3 percent for the quarter, compared to a decrease of 3.5 percent reported in the same period last year.
Total revenue increased 10 percent to $98.6 million, up from from $89.6 million in Q2 '07.
Net loss for the quarter, including non-cash activities, was $89.2 million, compared to a net income of $2.3 million in 2Q '07.
Fourteen new company-owned stores were opened during the quarter, compared with 27 new stores opened in the same period last year. This brings the total number of company-owned stores to 518 and the total number of systemwide stores to 736.
Subsequent events
A new management team has been put in place at Jamba in order to aggressively create shareholder value from both an operational and financial perspective. The management changes and other subsequent events include:
- Steven R. Berrard, the company's chairman of the board, assumed the role of interim CEO and president, replacing Paul E. Clayton.
- Karen L. Luey, vice president, controller, and principal accounting officer, assumed the role of interim chief financial officer, replacing Donald D. Breen, and has subsequently been appointed as the company's senior VP.
- On Aug. 28, 2008, the company entered into a commitment letter for a two-year senior term note credit facility in the amount of $15 million.
- On Aug. 27, 2008, the company reduced its workforce by 16 employees to reduce operating costs and increase efficiency and identified an additional 20 stores set to close.
