Industry News | May 29, 2009

Jamba Reports Financial Results for Q1

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Jamba Inc. (NASDAQ:JMBA - News; NASDAQ:JMBAU - News; NASDAQ:JMBAW - News) today reported unaudited financial results for the fiscal first quarter ended April 21, 2009.

Financial and Operational Highlights

Highlights for the 16 weeks ended April 21, 2009, compared to the 16 weeks ended April 22, 2008: * Consolidated EBITDA improved $5.7 million to $0.4 million from $(5.3) million for 1Q08.

* Store-level EBITDA increased 21.9% to $12.2 million from $10.0 million for 1Q08.

* Total revenue for 1Q09 decreased 12.5% to $88.9 million from $101.6 million for 1Q08.

* Net loss for 1Q09 of $(10.2) million compared to a net loss for 1Q08 of $(6.4) million. Included in the net loss for 1Q09 is a non-cash, derivative liability gain of $0.2 million associated with a change in the fair value of the Company’s warrants and derivatives. Included in the net loss for 1Q08 is a non-cash derivative liability gain of $5.6 million associated with a change in the fair value of the Company’s warrants.

* Diluted loss per share for 1Q09 of $(0.19) compared to a diluted loss per share for 1Q08 of $(0.12).

* Company-owned comparable store sales for 1Q09 decreased 13.8%(1).

* No new company-owned stores were opened in fiscal first quarter of 2009, compared to 17 new company-owned stores in fiscal first quarter of 2008. The sale of 10 company stores in Arizona, to an existing franchisee, was completed on March 10, 2009. Six new franchise stores were opened in the first quarter of 2009, including four non-traditional franchise stores. The total number of stores increased to 732, comprised of 499 company-owned stores and 233 franchise stores.

Outlook

The company continues to expect negative comparable sales trends based on the current environment and has targeted 2009 expense goals as follows:

* Cost of sales at or below 26% of company store revenue;

* Labor costs at or below 34% of company store revenue;

* Other controllable expenses included in store operating, at or below 3.5% of company store revenue; and

* General and administrative costs at or below $35 million, before share-based compensation expense.

In addition, the company has planned minimal, if any, company store development and up to 50 new franchise stores in 2009.