Jamba Q4 Revenues Decline 9.8%

Jamba has reported total revenues of $50.6m for the fourth quarter ended December 29, 2009, a decrease of 9.8% compared to $56.1m for the same quarter previous year. Consolidated EBITDA for the quarter increased by 18.8% to $9.1m from $11.2m in the prior year quarter.

During the quarter, one new franchise store and one new company-owned store were opened during the bringing the store count to 739 stores system-wide, of which 261 are franchise stores and 478 are company-owned stores. Company-owned comparable store sales for the quarter declined 5.3%.

For the fiscal year 2009, total revenues were decreased 12.1% to $301.6m from $342.9m for fiscal 2008, reflecting a decrease of $41.3m. Consolidated EBITDA for fiscal 2009 increased by $14.2m to $8.6m from $5.6m for fiscal 2008. During the fiscal year 2009 23 new franchise stores and two new company-owned stores were opened during fiscal 2009. Company-owned comparable store sales for fiscal 2009 declined 10.3%.

James White, president and CEO of Jamba, said: “At the start of 2009, we said that turnaround and transformation would be our mission. With the implementation of disciplined cost controls and the expansion of our business model, we are evolving from a made-to-order smoothie company into a healthy, active lifestyle company. Our addition of food and hot beverages are key elements in extending Jamba’s menu to cover all day-parts. We are pleased with their contributions to incremental sales.

“Despite the tough operating environment, we delivered on our commitments and made significant progress on our long-term plan. Jamba’s performance in 2009 makes us confident about the outlook for 2010. We believe that for the year Jamba will see positive comparable store sales, but comparable store sales growth is only one of several metrics we’ll use to gauge our progress.”

For 2010, the company plans to achieve positive comparable store sales; consolidated EBITDA margins of 5% -7%; store-level EBITDA margins of 15% -17%; To grow franchise development with the addition of up to 50 franchise stores and expansion into one major international market; add new licensing agreements in relevant categories; and complete the refranchising of up to 150 company-owned stores started in 2009.