EMERYVILLE, Calif. — Jamba Inc. has reported its financial results for the fiscal fourth quarter and for the full 2007 fiscal year ended Jan. 1, 2008. The company's financial statements include the results of its wholly owned subsidiary, Jamba Juice Co.
For the 11-week fourth quarter of 2007, company-owned same-store sales decreased 3.3 percent. In California, company-owned comps decreased 4.7 percent; outside of California, company-owned comparable store sales increased 1.7 percent.
Total revenue increased 9.7 percent to $54.6 million, up from $49.7 million reported during the same period last year.
The company reported a net loss of $150 million for the quarter compared with net income of $8.7 million during the same period last year. Included in the net loss for the Q4 '07 is a non-cash goodwill and other intangible assets impairment charge of $200.6 million ($157.1 million after tax) and a non-cash, derivative liability gain of $20.7 million associated with a change in the fair value of the company's warrants. Included in the net income for the fiscal fourth quarter of 2006 is a non-cash derivative liability gain of $15 million.
During the quarter, the company also opened 31 company-owned stores, compared with 12 company-owned stores in Q4 '06.
For the year
For fiscal year 2007, company-owned comps increased 0.5 percent. In California, company-owned comps decreased 1.3 percent; outside of California, company-owned same-store sales increased 6.5 percent.
Total revenue increased 17.9 percent to $317.2 million, up from $269 million reported for FY '06.
The company recorded a net loss of $113.3 million for the year compared with a net loss of $57.5 million for 2006. Included in the net loss for fiscal 2007 is a non-cash goodwill and other intangible assets impairment charge of $200.6 million ($157.1 million after tax) and a non-cash derivative liability gain of $59.4 million associated with a change in the fair value of the company's warrants. Included in the net loss for fiscal 2006 is a non-cash derivative liability loss of $57.4 million.
For the year, 99 new company-owned stores were opened, compared to 49 new company-owned stores in fiscal 2006. The total number of stores in the system is now 707, with 501 company-owned stores and 206 franchised stores.
"While we are disappointed with certain financial results in fiscal 2007, we made significant progress in the implementation of our strategy that will position Jamba for the future," said Paul Clayton, Jamba's CEO. "We expect the economic environment to continue to be challenging in 2008, thus we have decided to slow our growth of new company-store openings to enable us to focus on store-level performance."
For fiscal year 2008, the company is forecasting same-store sales to be in a range between negative 2 percent and positive 2 percent. The company also has reduced its targeted store growth to 45-55 company-owned stores and 35-45 franchise stores.
