UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
Form 8-K
CURRENT
REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (date of earliest event
reported):
May 19, 2015
Jamba,
Inc.
(Exact name of registrant as specified
in its charter)
Delaware |
|
001-32552 |
|
20-2122262 |
(State or other jurisdiction
of incorporation) |
|
(Commission
File No.) |
|
(I.R.S. Employer
Identification No.) |
6475 Christie Avenue, Suite 150, Emeryville,
California 94608
(Address of principal executive offices)
Registrant's telephone number, including
area code:
(510) 596-0100
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written communications pursuant to Rule
425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12
under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant
to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant
to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.01. Completion of Acquisition
or Disposition of Assets.
On May 19, 2015, Jamba Juice
Company, a California corporation and wholly-owned subsidiary of Jamba, Inc. (the “Company”)
completed the refranchising of a group of Company-owned stores located in the San Francisco Bay Area, California as part of
the Company’s refranchising initiative. In connection with the refranchising transaction, Jamba Juice Company
transferred to Blended Star NorCal, Inc. (“Blended Star”) all machinery, equipment, computer hardware (including
point of sale equipment), furniture, fixtures, tools, signs, vehicles, other tangible personal property and all goodwill
associated with the stores for a purchase price of $2,500,000 plus payment for all marketable inventory and cash on hand at
each of the stores. Blended Star agreed to enter into the Company’s standard franchise agreement with a ten-year
term in connection with entering into the transaction.
The accompanying unaudited pro forma condensed
consolidated financial statements give effect to the disposition of the assets in the above referenced refranchising transaction.
Item 9.01. Financial Statements and
Exhibits
| (a) | This Exhibit 99.1 includes updates to the pro forma financial
statements filed as Exhibit 99.1 to the Form 8-K filed on May 4, 2015, to include updates to assets held for sale and also to
reflect the effect of increased royalties and to correct a typographical error appearing in the unaudited pro forma condensed
consolidated financial statements filed as a result of the completion of recent refranchising transactions. |
| (b) | Pro Forma Financial Information |
The unaudited pro forma
condensed consolidated financial statements of the Company, which reflect the disposition described in Item 2.01 and all
other prior disposals under the Company’s refranchising initiative, are furnished as Exhibit 99.1 to this Current
Report on Form 8-K and are incorporated by reference herein.
| 99.1 | Unaudited pro forma condensed consolidated financial
statements of the Company. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
JAMBA, INC. |
|
|
Date: May 26, 2015 |
By: |
/s/ Karen L. Luey |
|
|
Karen L. Luey
Chief Financial Officer, Chief Administrative
Officer, Executive Vice President and Secretary |
Exhibit 99.1
JAMBA INC.
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except share and per share amounts)
| |
| | |
PRO FORMA ADJUSTMENTS | | |
| |
| |
Reported
December 30, | | |
April
Disposal | | |
April
Disposal | | |
May | | |
Other | | |
Total | | |
Pro Forma
December 30, | |
| |
2014 | | |
1 | | |
2 | | |
Disposal | | |
Disposals | | |
Adjustments | | |
2014 | |
ASSETS | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Current assets: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Cash and cash equivalents | |
$ | 17,750 | | |
$ | 1,499 | | |
$ | 2,760 | | |
$ | 2,300 | | |
$ | 2,347 | | |
$ | 8,906 | (a) | |
$ | 26,656 | |
Receivables, net of allowances of
$280 and $291 | |
| 16,977 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 16,977 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Inventories | |
| 2,300 | | |
| (83 | ) | |
| (48 | ) | |
| (56 | ) | |
| (25 | ) | |
| (212 | )(b) | |
| 2,088 | |
Prepaid and refundable income taxes | |
| 474 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 474 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Prepaid rent | |
| 504 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 504 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Assets held for sale | |
| 11,221 | | |
| (2,427 | ) | |
| - | | |
| (1,311 | ) | |
| (191 | ) | |
| (3,929 | )(c) | |
| 7,292 | |
Prepaid expenses and other
current assets | |
| 8,105 | | |
| - | | |
| (95 | ) | |
| - | | |
| - | | |
| (95 | )(b) | |
| 8,010 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Total current assets | |
| 57,331 | | |
| (1,011 | ) | |
| 2,617 | | |
| 933 | | |
| 2,131 | | |
| 4,670 | | |
| 62,001 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Property, fixtures and equipment, net | |
| 29,575 | | |
| - | | |
| (829 | ) | |
| - | | |
| (208 | ) | |
| (1,037 | )(c) | |
| 28,538 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Goodwill | |
| 982 | | |
| (7 | ) | |
| (11 | ) | |
| (9 | ) | |
| - | | |
| (27 | )(c) | |
| 955 | |
Trademarks and other intangible assets, net | |
| 2,360 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 2,360 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Other long-term assets | |
| 2,241 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 2,241 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Total assets | |
$ | 92,489 | | |
$ | (1,018 | ) | |
$ | 1,777 | | |
$ | 924 | | |
$ | 1,923 | | |
$ | 3,606 | | |
$ | 96,095 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Current liabilities: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Accounts payable | |
$ | 3,926 | | |
$ | - | | |
$ | - | | |
$ | - | | |
$ | - | | |
$ | - | | |
$ | 3,926 | |
Accrued compensation and benefits | |
| 6,325 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 6,325 | |
Workers' compensation and health insurance reserves | |
| 1,311 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 1,311 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Accrued jambacard liability | |
| 38,184 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 38,184 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Other current liabilities | |
| 16,454 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 16,454 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Total current liabilities | |
| 66,200 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 66,200 | |
Deferred revenue and other long-term liabilities | |
| 9,544 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 9,544 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Total liabilities | |
| 75,744 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 75,744 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Stockholders' equity: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Common stock, $.001 par value, 30,000,000 shares authorized; 16,567,803
and 17,154,655shares issued and outstanding, respectively | |
$ | 17 | | |
$ | - | | |
$ | - | | |
$ | - | | |
$ | - | | |
$ | - | | |
$ | 17 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Additional paid-in-capital | |
| 396,629 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 396,629 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Treasury Shares at cost | |
| (11,991 | ) | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| (11,991 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Accumulated deficit | |
| (368,041 | ) | |
| (1,018 | ) | |
| 1,908 | | |
| 924 | | |
| 1,923 | | |
| 3,737 | (d) | |
| (364,304 | ) |
Total equity attributable to Jamba, Inc. | |
| 16,614 | | |
| (1,018 | ) | |
| 1,908 | | |
| 924 | | |
| 1,923 | | |
| 3,737 | | |
| 20,351 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Noncontrolling interest | |
| 131 | | |
| - | | |
| (131 | ) | |
| - | | |
| - | | |
| (131 | )(e) | |
| - | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Total stockholders' equity | |
| 16,745 | | |
| (1,018 | ) | |
| 1,777 | | |
| 924 | | |
| 1,923 | | |
| 3,606 | | |
| 20,351 | |
Total liabilities and
stockholders' equity | |
$ | 92,489 | | |
$ | (1,018 | ) | |
$ | 1,777 | | |
$ | 924 | | |
$ | 1,923 | | |
$ | 3,606 | | |
$ | 96,095 | |
JAMBA INC.
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
DECEMBER 30, 2014
(Dollars in thousands)
| |
| | |
PRO FORMA ADJUSTMENTS | | |
| |
| |
Reported
Year ended December 30,
2014 | | |
April
Disposal 1 | | |
April
Disposal 2 | | |
May
Disposal | | |
Other
Disposals | | |
Total
Adjustments | | |
Pro Forma
Year ended December 30,
2014 | |
Revenue: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Company Stores | |
$ | 198,737 | | |
$ | (9,563 | ) | |
$ | (6,551 | ) | |
$ | (7,219 | ) | |
$ | (3,404 | ) | |
$ | (26,737 | )A | |
$ | 172,000 | |
Franchise and other revenue | |
| 19,311 | | |
| 526 | | |
| 360 | | |
| 397 | | |
| 187 | | |
| 1,471 | B | |
| 20,782 | |
Total revenue | |
| 218,048 | | |
| (9,037 | ) | |
| (6,191 | ) | |
| (6,822 | ) | |
| (3,217 | ) | |
| (25,266 | ) | |
| 192,782 | |
Costs and operating expenses (income): | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Cost of sales | |
| 52,236 | | |
| (2,418 | ) | |
| (1,634 | ) | |
| (1,851 | ) | |
| (870 | ) | |
| (6,773 | )C | |
| 45,463 | |
Labor | |
| 61,749 | | |
| (3,164 | ) | |
| (1,808 | ) | |
| (2,198 | ) | |
| (959 | ) | |
| (8,129 | )C | |
| 53,620 | |
Occupancy | |
| 27,630 | | |
| (1,192 | ) | |
| (813 | ) | |
| (843 | ) | |
| (305 | ) | |
| (3,153 | )C | |
| 24,477 | |
Store operating | |
| 33,089 | | |
| (1,473 | ) | |
| (846 | ) | |
| (1,106 | ) | |
| (465 | ) | |
| (3,890 | )C | |
| 29,199 | |
Depreciation and amortization | |
| 10,084 | | |
| (501 | ) | |
| (149 | ) | |
| (323 | ) | |
| (72 | ) | |
| (1,045 | )C | |
| 9,039 | |
General and administrative | |
| 37,278 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 37,278 | |
Other operating, net | |
| (718 | ) | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| (718 | ) |
Total costs and operating expenses | |
| 221,348 | | |
| (8,748 | ) | |
| (5,250 | ) | |
| (6,321 | ) | |
| (2,671 | ) | |
| (22,990 | ) | |
| 198,358 | |
Loss from operations | |
| (3,300 | ) | |
| (289 | ) | |
| (941 | ) | |
| (501 | ) | |
| (546 | ) | |
| (2,276 | ) | |
| (5,576 | ) |
Other income (expense): | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Interest income | |
| 74 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 74 | |
Interest expense | |
| (195 | ) | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| (195 | ) |
Total other expense, net | |
| (121 | ) | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| (121 | ) |
Loss before income taxes | |
| (3,421 | ) | |
| (289 | ) | |
| (941 | ) | |
| (501 | ) | |
| (546 | ) | |
| (2,276 | ) | |
| (5,697 | ) |
Income tax expense | |
| (168 | ) | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| (168 | ) |
Net loss | |
| (3,589 | ) | |
| (289 | ) | |
| (941 | ) | |
| (501 | ) | |
| (546 | ) | |
| (2,276 | ) | |
| (5,865 | ) |
Less: Net income attributable to noncontrolling
interest | |
| 43 | | |
| - | | |
| (43 | ) | |
| - | | |
| - | | |
| (43 | )D | |
| - | |
Net loss attributable to common stockholders | |
$ | (3,632 | ) | |
$ | (289 | ) | |
$ | (898 | ) | |
$ | (501 | ) | |
$ | (546 | ) | |
$ | (2,233 | ) | |
$ | (5,865 | ) |
Jamba Inc.
Notes to Unaudited Pro Forma Condensed Consolidated Financial
Statements
December 30, 2014
| 1. | Description of Refranchising Transactions |
On April 28, 2015, Jamba Juice
Company, a California corporation and wholly-owned subsidiary of Jamba, Inc. (the “Company”) completed the refranchising
of a group of Company-owned stores located in the San Francisco Bay Area as part of the Company’s refranchising initiative
in two separate transactions.
In connection with the first refranchising
transaction, Jamba Juice Company transferred to M5 Partners, Inc. all machinery, equipment, computer hardware (including point
of sale equipment), furniture, fixtures, tools, signs, vehicles, other tangible personal property and all goodwill associated with
stores for a purchase price of $1,850,000 plus payment for all marketable inventory and cash on hand at each of the stores. M5
Partners agreed to enter into the Company’s standard franchise agreement with a ten-year term in connection with entering
into the transaction (“April Disposal 1”).
In another refranchising transaction
completed on April 28, 2015, Jamba Juice Company sold its 88% membership interest in Jamba Juice Southern California LLC (“JJSC”)
to Strategic Marketing Sciences, Inc., its minority partner in the joint venture. JJSC was formed to operate a group of stores
in Southern California. The purchase price for the membership interest was $3,000,000 plus payment for all marketable inventory
and cash on hand at each of the stores. Strategic Marketing Sciences agreed to enter into the Company’s standard franchise
agreement with a ten-year term in connection with entering into the transaction (“April Disposal 2”).
On May 19, 2015, the Company
completed the refranchising of a group of Company-owned stores located in the San Francisco Bay Area. In connection with the
refranchising transaction, the Company transferred to Blended Star NorCal, Inc. all machinery, equipment, computer hardware
(including point of sale equipment), furniture, fixtures, tools, signs, vehicles, other tangible personal property and all
goodwill associated with stores for a purchase price of $2,500,000 plus payment for all marketable inventory and cash on hand
at each of the stores. Blended Star NorCal, Inc. agreed to enter into the Company’s standard franchise agreement with a
ten-year term in connection with entering into the transaction (“May Disposal”).
In addition to the transactions
mentioned above, the Company entered into multiple individually insignificant agreements and refranchised a small group of stores
located in Southern California and in the San Francisco Bay Area during the 13 week period ended March 31, 2015. In connection
with the refranchising transactions, the Company received aggregate proceeds of $2,352,000 and the purchasers entered into the
Company’s standard franchise agreements with ten-year terms in connection with entering into the transactions (“Other
Disposals”).
The effect of the refranchising transactions on
a cumulative basis is reflected in the unaudited pro forma condensed consolidated financial statements.
The unaudited pro forma condensed consolidated
financial statements were prepared in accordance with U.S. GAAP and pursuant to U.S. Securities and Exchange Commission Regulation
S-X Article 11, and present the pro forma financial position and results of operations of the Company based upon the historical
information after giving effect to the disposal and adjustments described in the Notes to the Unaudited Pro Forma Condensed Consolidated
Financial Statements. The unaudited pro forma condensed consolidated balance sheet is presented as if the refranchising had occurred
on December 30, 2014, and the unaudited pro forma condensed consolidated statement of operations for the year ended December 30,
2014 is presented as if the disposal had occurred on January 1, 2014.
The unaudited pro forma condensed
consolidated financial information is presented for informational purposes only and is not indicative of the Company's financial
results or financial position as if the transactions reflected herein had occurred, or been in effect during the Pro forma periods.
This unaudited pro forma condensed consolidated financial information should not be viewed as indicative of the Company's expected
financial results for future periods.
| 3. | Adjustments to Unaudited Pro Forma Condensed Consolidated
Balance Sheet |
Adjustments in the columns titled "Pro Forma Adjustments"
represent the following:
(a)
- Represents the pro forma adjustments for the proceeds received offset by store-related cash balances at the end of the year
(in thousands).
| |
Amount | |
Proceeds received | |
$ | 9,776 | |
Cost to sell | |
| (828 | ) |
Store-related assets | |
| (42 | ) |
| |
$ | 8,906 | |
(b) - Represents the pro forma adjustments for the
assets that will no longer be on Jamba's balance sheet as a result of the disposal of the stores to the franchise partners.
(c) - Represents the pro forma adjustments for the
estimated net book value of the assets purchased by the franchise partners from Jamba.
(d) - Represents the pro forma adjustments for the
impact of the refranchising transaction on the Company’s accumulated deficit (in thousands).
| |
Amount | |
Proceeds received | |
$ | 9,776 | |
Less: Cost to sell | |
| (828 | ) |
Assets held for sale | |
| (3,929 | ) |
Property, fixtures & equipment | |
| (1,037 | ) |
Goodwill and current assets | |
| (376 | ) |
Noncontrolling interest | |
| 131 | |
| |
$ | 3,737 | |
(e) - Represents the pro forma
adjustment to eliminate the 12% noncontrolling interest in Jamba Juice Southern California ("JJSC"), since the purchaser
is acquiring the remaining interest on the JJSC stores.
| 4. | Adjustments to Unaudited Pro Forma Condensed Consolidated Statement of Operations |
A - Reflects the pro forma adjustments for the full
year of revenue from the stores sold to franchise partners.
B - Reflects the pro forma adjustments for estimated
royalty income that would have been earned had the stores been owned by franchisees for the 2014 fiscal year.
C - Reflects the pro forma adjustments for the expenses
related to the stores sold to franchise partners.
D - Reflects the pro forma adjustments to eliminate
the 12% noncontrolling interest in JJSC, since the owner of the noncontrolling interest is acquiring the remaining interest on
the JJSC stores.
JAMBA INC.
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except share and per share amounts)
| |
| | |
PRO FORMA ADJUSTMENTS | | |
| |
| |
Reported
March 31, | | |
April
Disposal | | |
April
Disposal | | |
May | | |
Other |
|
|
Total | | |
Pro Forma
March 31, | |
| |
2015 | | |
1 | | |
2 | | |
Disposal | | |
Disposals |
|
|
Adjustments | | |
2015 | |
ASSETS | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Current assets: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Cash and cash equivalents | |
$ | 8,116 | | |
$ | 1,499 | | |
$ | 2,760 | | |
$ | 2,300 | | |
$ | - | | |
$ | 6,559 | (a) | |
$ | 14,675 | |
Receivables, net of allowances of
$272 and $280 | |
| 16,226 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 16,226 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Inventories | |
| 2,267 | | |
| (90 | ) | |
| (44 | ) | |
| (63 | ) | |
| - | | |
| (197 | )(b) | |
| 2,070 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Prepaid and refundable income taxes | |
| 329 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 329 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Prepaid rent | |
| 2,931 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 2,931 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Assets held for sale | |
| 22,875 | | |
| (2,427 | ) | |
| (804 | ) | |
| (1,311 | ) | |
| - | | |
| (4,542 | )(c) | |
| 18,333 | |
Prepaid expenses and other
current assets | |
| 7,554 | | |
| - | | |
| (95 | ) | |
| - | | |
| - | | |
| (95 | )(b) | |
| 7,459 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Total current assets | |
| 60,298 | | |
| (1,018 | ) | |
| 1,817 | | |
| 927 | | |
| - | | |
| 1,726 | | |
| 62,024 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Property, fixtures and equipment, net | |
| 16,002 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 16,002 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Goodwill | |
| 897 | | |
| (7 | ) | |
| (11 | ) | |
| (9 | ) | |
| - | | |
| (27 | )(c) | |
| 870 | |
Trademarks and other intangible assets, net | |
| 1,295 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 1,295 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Other long-term assets | |
| 1,969 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 1,969 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Total assets | |
$ | 80,461 | | |
$ | (1,025 | ) | |
$ | 1,806 | | |
$ | 918 | | |
$ | - | | |
$ | 1,699 | | |
$ | 82,160 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Current liabilities: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Accounts payable | |
$ | 2,310 | | |
$ | - | | |
$ | - | | |
$ | - | | |
$ | - | | |
$ | - | | |
$ | 2,310 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Accrued compensation and benefits | |
| 4,813 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 4,813 | |
Workers' compensation and health insurance reserves | |
| 1,680 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 1,680 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Accrued jambacard liability | |
| 32,368 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 32,368 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Other current liabilities | |
| 21,005 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 21,005 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Total current liabilities | |
| 62,176 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 62,176 | |
Deferred revenue and other long-term liabilities | |
| 8,643 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 8,643 | |
Total liabilities | |
| 70,819 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 70,819 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Stockholders' equity: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Common stock, $0.001 par value, 30,000,000 shares authorized; 17,523,014
and 16,166,869 shares issued and outstanding at March 31, 2015, respectively and 16,567,803 shares issued and outstanding at
December 30, 2014 | |
$ | 18 | | |
$ | - | | |
$ | - | | |
$ | - | | |
$ | - | | |
$ | - | | |
$ | 18 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Additional paid-in-capital | |
| 397,928 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 397,928 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Treasury Shares at cost | |
| (18,674 | ) | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| (18,674 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Accumulated deficit | |
| (369,792 | ) | |
| (1,025 | ) | |
| 1,968 | | |
| 918 | | |
| - | | |
| 1,861 | (d) | |
| (367,931 | ) |
Total equity attributable to Jamba, Inc. | |
| 9,480 | | |
| (1,025 | ) | |
| 1,968 | | |
| 918 | | |
| - | | |
| 1,861 | | |
| 11,341 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Noncontrolling interest | |
| 162 | | |
| - | | |
| (162 | ) | |
| - | | |
| - | | |
| (162 | )(e) | |
| - | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Total stockholders' equity | |
| 9,642 | | |
| (1,025 | ) | |
| 1,806 | | |
| 918 | | |
| - | | |
| 1,699 | | |
| 11,341 | |
Total liabilities and
stockholders' equity | |
$ | 80,461 | | |
$ | (1,025 | ) | |
$ | 1,806 | | |
$ | 918 | | |
$ | - | | |
$ | 1,699 | | |
$ | 82,160 | |
JAMBA INC.
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
MARCH 31, 2015
(Dollars in thousands)
| |
| | |
PRO FORMA ADJUSTMENTS | | |
| |
| |
Reported
13 week period ended
March 31, 2015 | | |
April
Disposal 1 | | |
April
Disposal 2 | | |
May
Disposal | | |
Other
Disposals | | |
Total
Adjustments | | |
Pro Forma
13 week period ended
March 31, 2015 | |
Revenue: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Company Stores | |
$ | 47,728 | | |
$ | (2,350 | ) | |
$ | (1,644 | ) | |
$ | (1,737 | ) | |
$ | (667 | ) | |
$ | (6,398 | )A | |
$ | 41,330 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Franchise and other revenue | |
| 4,776 | | |
| 129 | | |
| 90 | | |
| 96 | | |
| 37 | | |
| 352 | B | |
| 5,128 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Total revenue | |
| 52,504 | | |
| (2,221 | ) | |
| (1,554 | ) | |
| (1,641 | ) | |
| (630 | ) | |
| (6,046 | ) | |
| 46,458 | |
Costs and operating expenses (income): | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Cost of sales | |
| 12,407 | | |
| (585 | ) | |
| (428 | ) | |
| (428 | ) | |
| (177 | ) | |
| (1,618 | )C | |
| 10,789 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Labor | |
| 16,088 | | |
| (822 | ) | |
| (477 | ) | |
| (557 | ) | |
| (233 | ) | |
| (2,089 | )C | |
| 13,999 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Occupancy | |
| 6,835 | | |
| (301 | ) | |
| (207 | ) | |
| (222 | ) | |
| (49 | ) | |
| (779 | )C | |
| 6,056 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Store operating | |
| 8,034 | | |
| (376 | ) | |
| (224 | ) | |
| (244 | ) | |
| (54 | ) | |
| (898 | )C | |
| 7,136 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Depreciation and amortization | |
| 1,873 | | |
| (51 | ) | |
| (32 | ) | |
| (68 | ) | |
| (76 | ) | |
| (227 | )C | |
| 1,646 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
General and administrative | |
| 8,963 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 8,963 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Other operating, net | |
| (28 | ) | |
| - | | |
| - | | |
| - | | |
| 1,924 | | |
| 1,924 | D | |
| 1,896 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Total costs and operating expenses | |
| 54,172 | | |
| (2,135 | ) | |
| (1,368 | ) | |
| (1,519 | ) | |
| 1,335 | | |
| (3,687 | ) | |
| 50,485 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Loss from operations | |
| (1,668 | ) | |
| (86 | ) | |
| (186 | ) | |
| (122 | ) | |
| (1,965 | ) | |
| (2,359 | ) | |
| (4,027 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Other income (expense): | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Interest income | |
| 15 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 15 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Interest expense | |
| (41 | ) | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| (41 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Total other expense, net | |
| (26 | ) | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| (26 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Loss before income taxes | |
| (1,694 | ) | |
| (86 | ) | |
| (186 | ) | |
| (122 | ) | |
| (1,965 | ) | |
| (2,359 | ) | |
| (4,053 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Income tax expense | |
| (26 | ) | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| (26 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Net loss | |
| (1,720 | ) | |
| (86 | ) | |
| (186 | ) | |
| (122 | ) | |
| (1,965 | ) | |
| (2,359 | ) | |
| (4.079 | ) |
Less: Net income attributable to noncontrolling
interest | |
| 31 | | |
| | | |
| (31 | ) | |
| | | |
| | | |
| (31 | )E | |
| - | |
Net loss attributable to common stockholders | |
$ | (1,751 | ) | |
$ | (86 | ) | |
$ | (155 | ) | |
$ | (122 | ) | |
$ | (1,965 | ) | |
$ | (2,328 | ) | |
$ | (4,079 | ) |
Jamba Inc.
Notes to Unaudited Pro Forma Condensed Consolidated Financial
Statements
March 31, 2015
| 1. | Description of Refranchising Transactions |
On April 28, 2015, Jamba Juice
Company, a California corporation and wholly-owned subsidiary of Jamba, Inc. (the “Company”) completed the refranchising
of a group of Company-owned stores located in the San Francisco Bay Area as part of the Company’s refranchising initiative
in two separate transactions.
In connection with the first refranchising
transaction, Jamba Juice Company transferred to M5 Partners, Inc. all machinery, equipment, computer hardware (including point
of sale equipment), furniture, fixtures, tools, signs, vehicles, other tangible personal property and all goodwill associated with
stores for a purchase price of $1,850,000 plus payment for all marketable inventory and cash on hand at each of the stores. M5
Partners agreed to enter into the Company’s standard franchise agreement with a ten-year term in connection with entering
into the transaction (“April Disposal 1”).
In another refranchising transaction
completed on April 28, 2015, Jamba Juice Company sold its 88% membership interest in Jamba Juice Southern California LLC (“JJSC”)
to Strategic Marketing Sciences, Inc., its minority partner in the joint venture. JJSC was formed to operate a group of stores
in Southern California. The purchase price for the membership interest was $3,000,000 plus payment for all marketable inventory
and cash on hand at each of the stores. Strategic Marketing Sciences agreed to enter into the Company’s standard franchise
agreement with a ten-year term in connection with entering into the transaction (“April Disposal 2”).
On May 19, 2015, the Company
completed the refranchising of a group of Company-owned stores located in the San Francisco Bay Area as part of its
refranchising. In connection with the refranchising transaction, the Company transferred to Blended Star NorCal, Inc. all
machinery, equipment, computer hardware (including point of sale equipment), furniture, fixtures, tools, signs, vehicles,
other tangible personal property and all goodwill associated with stores for a purchase price of $2,500,000 plus payment for
all marketable inventory and cash on hand at each of the stores. Blended Star NorCal, Inc. agreed to enter into
the Company’s standard franchise agreement with a ten-year term in connection with entering into the
transaction (“May Disposal”).
In addition to the transactions
mentioned above, the Company entered into multiple individually insignificant agreements and refranchised a small group of stores
located in Southern California and in the San Francisco Bay Area during the 13 week period ended March 31, 2015. In connection
with the refranchising transactions, the Company received aggregate proceeds of $2,352,000 and the purchasers entered into the
Company’s standard franchise agreements with a ten-year terms in connection with entering into the transactions (“Other
Disposals”).
The unaudited pro forma
condensed consolidated financial statements were prepared in accordance with U.S. GAAP and pursuant to U.S. Securities and
Exchange Commission Regulation S-X Article 11, and present the pro forma financial position and results of operations of the
Company based upon the historical information after giving effect to the disposal and adjustments described in the Notes to
the Unaudited Pro Forma Condensed Consolidated Financial Statements. The unaudited pro forma condensed consolidated balance
sheet is presented as if the refranchising had occurred on March 31, 2015, and the unaudited pro forma condensed consolidated
statement of operations for the 13 week period ended March 31, 2015 is presented as if the disposal had occurred on December
31, 2014. As a result, pro forma adjustments for refranchising of the small group of stores completed during the 13 week
period ended March 31, 2015 were reflected in the unaudited pro forma condensed consolidated statement of operations only.
The unaudited pro forma condensed consolidated
financial information is presented for informational purposes only and is not indicative of the Company's financial results or
financial position as if the transactions reflected herein had occurred, or been in effect during the Pro forma periods. This unaudited
pro forma condensed consolidated financial information should not be viewed as indicative of the Company's expected financial results
for future periods.
| 3. | Adjustments to Unaudited Pro Forma Condensed Consolidated
Balance Sheet |
Adjustments in the columns titled "Pro Forma Adjustments"
represent the following:
(a) - Represents the pro forma adjustments for the
proceeds received offset by store-related cash balances at the end of the 13 week period ended March 31, 2015 (in thousands).
| |
Amount | |
Proceeds received | |
$ | 7,424 | |
Cost to sell | |
| (828 | ) |
Store-related assets | |
| (37 | ) |
| |
$ | 6,559 | |
(b) - Represents the pro forma adjustments for the
assets that will no longer be on Jamba's balance sheet as a result of the disposal of the stores to the franchise partners.
(c) - Represents the pro forma adjustments for the
estimated net book value of the assets purchased by the franchise partners from Jamba.
(d) - Represents the pro forma adjustments for the
impact of the refranchising transaction on the Company’s accumulated deficit (in thousands).
| |
Amount | |
Proceeds received | |
$ | 7,424 | |
Less: Cost to sell | |
| (828 | ) |
Assets held for sale | |
| (4,542 | ) |
Goodwill and current assets | |
| (355 | ) |
Noncontrolling interest | |
| 162 | |
| |
$ | 1,861 | |
(e) - Represents the pro forma
adjustments to eliminate the 12% noncontrolling interest in Jamba Juice Southern California ("JJSC"), since the purchaser
is acquiring the remaining interest on the JJSC stores.
| 4. | Adjustments to Unaudited Pro Forma Condensed Consolidated
Statement of Operations |
A - Reflects the pro forma adjustments for the revenue
during the 13 week period ended March 31, 2015 from the stores sold to franchise partners.
B - Reflects the pro forma adjustments for estimated
royalty income that would have been earned had the stores been owned by franchisees for the 13 week period ended March 31, 2015.
C - Reflects the pro forma adjustments for the expenses
related to the stores sold to franchise partners.
D - Reflects the pro forma adjustments to remove
the effect of the gain on refranchising the small group of stores during the 13 week period ended March 31, 2015.
E - Reflects the pro forma adjustments to eliminate
the 12% noncontrolling interest in JJSC, since the owner of the noncontrolling interest is acquiring the remaining interest on
the JJSC stores.
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