Jamba, Inc. (JMBA) announced, for the fourth quarter of 2016, company-owned comparable store sales decreased 2.5%, Franchise comparable store sales decreased 2.2%, and System-wide comparable store sales decreased 2.2%. System-wide comparable store sales and transactions exceeded the Knapp-Track Fast Casual benchmark for the fourth quarter of 2016 by approximately 0.8% and 0.2% respectively. The company said it expects to record unusual cash and non-cash charges of approximately $13 million to $14 million in the fourth quarter of 2016, resulting in part, from the company's efforts to focus on the core retail business and remove all non-core activities.
Full year 2016 system-wide comparable store sales decreased 0.2%. The company now expects total revenue to meet or exceed $78 million compared to prior guidance of approximately $78 million. Non-GAAP Adjusted EBITDA is now expected to meet or exceed $10.5 million compared to prior guidance of approximately $10.5 million.
For 2017, the company now expects total revenue of $75 to $77 million compared to prior guidance of $78 to $80 million. Annual system-wide comparable sales are expected to be flat, to slightly positive compared to prior guidance of an increase of 2 to 4%. Non-GAAP adjusted EBITDA is expected to be $13 to $15 million compared to prior outlook of $14 to $16 million. The company said its updated guidance for fiscal 2017 incorporates changes to annual Comp Sales due to the historic rain and flooding in primary geographies, a reduction in new store openings, the strategic exit of the JambaGO business, closure of the Innovation Store in Pasadena, California, and refranchise of the Emeryville, California store.
As a result of a delay in completing the company's financial statements, Jamba will file a Form 12b-25 Notification of Late Filing with the U.S. SEC with regard to its 2016 Annual Report on Form 10-K. The company currently does not expect to file its Form 10-K on or before April 4, 2017, the prescribed due date under the fifteen calendar day extension period.
by RTT Staff Writer
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