Stock Monitor: Performance Food Group Post Earnings Reporting
LONDON, UK / ACCESSWIRE / February 14, 2018 / Active-Investors.com has just released a free research report on Jamba, Inc. (NASDAQ: JMBA). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=JMBA as the Company's latest news hit the wire. On February 12, 2018, the Company, which is a global healthy lifestyle brand, shared updates for the fourth quarter fiscal 2017 and full fiscal year 2017 ended January 02, 2018. The Company also shared information about its progress against several business initiatives, and issued guidance for 2018. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Active-Investors.com is currently working on the research report for Performance Food Group Company (NYSE: PFGC), which also belongs to the Services sector as the Company Jamba. Do not miss out and become a member today for free to access this upcoming report at:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Jamba most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Jamba's Performance in Q4 FY17
- Jamba's system-wide comparable store sales increased 5.3% on a y-o-y basis. The comparable store sales increased 5.2% at franchise-owned locations and 6.5% at Company-owned locations.
- Jamba's Gift card sales witnessed an increment of 79% y-o-y across all distribution channels, including in-store and third party retailers. Besides, operational execution and guest satisfaction also improved across multiple measures. Jamba will continue to focus on these parameters to drive guest loyalty and improve transaction frequency.
- The Company opened 15 new stores and closed eight stores in Q4 FY17.
Jamba's Performance in Full Fiscal Year 2017
- For the full fiscal year 2017, Jamba's system-wide comparable store sales declined 0.4% y-o-y. The comparable store sales dropped 0.3% at franchise-owned locations and 1.4% at Company-owned locations.
- Jamba opened 50 new stores and closed 39 stores in FY17. The average unit volume of the 39 closed stores was below $300,000, which less than half of the average unit volume of the remaining store base.
Update on Business Initiatives
- Catering - Jamba started a Catering test in 2017 to evaluate operational feasibility. After its success in the operational testing stage, the Company extended the test to the third quarter and fourth quarter. Moreover, Jamba also extended the test into 2018 to commercially optimize the offering with plans to extend it to select areas within the franchise system in 2018.
- New Store Openings - Jamba's new drive-thru format locations have generated sales better than its standard predictive model, which has resulted in meaningfully improved unit economics. Therefore, the Company intends to generate long-term benefit from increasing the proportion of new domestic drive-thru format stores as a percentage of total domestic new store openings, from 10% in 2017 to approximately 25% in 2018.
- Reimage Prototype - In Q4 FY17, Jamba conducted qualitative research on five test locations that were converted to the new design. Research findings indicate that the new prototype is preferred in comparison to the legacy design. Now, the Company is completing additional conversions with franchise partners to expand the test population and implementing promotional tactics to drive consumer trial in the reimaged stores.
Update on Jamba's Liquidity Position
As on January 02, 2018, Jamba had $10.0 million in cash compared to $7.1 million as on January 03, 2017. The Company had $0.3 million of restricted cash in comparison to $0.5 million as of January 03, 2017. These reported balances are unaudited.
Jamba paid audit and related expenses of approximately $5.7 million during FY17. The Company expects these expenses to continue in 2018, though at a reduced level compared to 2017. Moreover, the Company had not drawn against its line of credit, and had no outstanding principal balance as on January 02, 2018.
Delay in Finalizing 2017 Results
Currently, Jamba is working on completing its financial statements for the fiscal year ended January 02, 2018, and it evaluated issuing its updated 2017 guidance to provide additional visibility. In fact, in order to comply with the Securities and Exchange Commission (SEC)'s requirements, the Company has concluded that it is unable to provide such information at this time. Jamba noted that it will share more information when the financial statements are complete.
This delay in completion of financial statements results can be attributed to the changes that the Company underwent in the past couple of years as it moved its business to a franchise-focused, asset light business model. There were also major changes in leadership, key personnel, and relocation of corporate office in 2016, which increased non-routine transactions and delayed preparation of the financial reports.
Pending Form 10-Q
Jamba is not in compliance with NASDAQ Listing Rule 5250(c) (1), which requires timely, filing of periodic reports with the SEC. Although the Company has filed its Form 10-K for the year ended January 03, 2017, the form 10-Q filing for the fiscal quarters ended April 04, July 04, and October 03, 2017 is still pending. In this regard, the NASDAQ Hearings Panel of The NASDAQ Stock Market granted the Company's request to continue its listing on NASDAQ conditioned on the additional filings on or before March 15, 2018.
Jamba is diligently working towards satisfying the terms of the Hearings Panel's decision, and it fully intends to take all steps necessary to regain compliance with the Rule and file its delinquent Form 10-Qs for 2017 as soon as possible.
Guidance for 2018
Jamba expects to generate revenues in the range of $68 million to $70 million in the fiscal year 2018. The Company anticipates positive annual-system wide comparable sales and non-GAAP adjusted EBITDA of $15 million to $16 million for the upcoming year. However, the Company will share an update on this guidance at a future date to include the required adjustments for revenue recognition.
Stock Performance Snapshot
February 13, 2018 - At Tuesday's closing bell, Jamba's stock rose 3.53%, ending the trading session at $8.80.
Volume traded for the day: 104.56 thousand shares, which was above the 3-month average volume of 82.85 thousand shares.
Stock performance in the previous three-month period - up 10.55%; and year-to-date - up 9.18%
After yesterday's close, Jamba's market cap was at $134.90 million.
The stock is part of the Services sector, categorized under the Restaurants industry. This sector was up 0.6% at the end of the session.
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