Jamba (JMBA) is indicated lower this morning after delaying its 10-K filing for 2016. The company also lowered guidance for next year.
First, the good news. Jamba expects to meet or exceed fiscal 2016 adjusted EBITDA and total revenue guidance. The company had previously guided for fiscal 2016 adjusted EBITDA of $10.5 million on total revenue of $78 million.
Fourth quarter same store sales fell 2.2%, which was a little better than expected.
Jamba also lowered fiscal 2017 guidance 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. Jamba lowered fiscal 2017 same store sales guidance to flat to slightly positive from 2-4% growth. Jamba lowered adjusted EBITDA guidance to $13-15 million from $14-16 million and total sales guidance to $75-77 million from $78-80 million.
Another negative development, Jamba 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 provided by Rule 12b-25. The delay in completion of the Company's financial statements has been primarily caused by transition issues stemming from the Company relocation of its headquarters from Emeryville, California to Frisco, Texas in the second half of 2016. While the Company had implemented a transition plan to mitigate the risk relating to the relocation, the relocation and resulting replacement and training of personnel Company wide and transition of Company operating knowledge created unanticipated difficulties and delays in completing the Company's year-end financials. The Company's delay was also contributed to, in part, by the complexities with addressing the number of Company non-routine transactions which occurred in 2016, many of which related to the Company's transition.
Jamba's stock has been trending lower for the last two years. The company has a rather poor track record, having missed earnings estimates seven quarters in a row.
Jamba's enterprise value is just under 10x the midpoint of fiscal 2017 adjusted EBITDA guidance.