Jamba Juice 2008 Annual Report Download - page 81
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Table of Contents
cumulative losses previously realized. Thereafter, profits will be allocated to the members in proportion to their recalculated interests. The recalculated interests
of the members are based on actual contributions, with the Company receiving a 25% premium on its additional contributions.
The first amendment to the operating agreement included the ability of JJC Florida, LLC to defer the marketing, royalty, and front-end fees due to the
Company. The deferral period ends the earlier of June 30, 2008 or when JJC Florida, LLC becomes cash flow positive for four consecutive quarters. As of
January 9, 2007 JJC Florida, LLC became cash flow positive for four consecutive quarters. The Company had been recognizing income from JJC Florida,
LLC on a cash basis due to the payment history. As of January 9, 2007 JJC Florida, LLC owed the Company $1.7 million of deferred royalty fees,
advertising fees and interest. During fiscal 2007, JJC Florida, LLC paid $1.6 million of the total deferred amount resulting in a balance of $0.1 million as of
January 1, 2008. The Company recognized the entire payment as income in fiscal 2007, which is recorded in franchise and other revenue.
The following is summarized financial information for the Company’s equity investments in JJC Florida, LLC and JJC Hawaii, LLC as of and for the
fiscal years ended January 1, 2008 and January 9, 2007 (in thousands):
Current assets $1,844 $2,806
Non-current assets 11,442 13,055
Current liabilities 4,421 5,663
Non-current liabilities and members’ equity 8,855 10,198
Revenue 38,157 35,970
Gross profit 26,360 25,578
Net loss from operations (2,707) (915)
Net loss (2,707) (915)
The Company leases its office, retail stores, and some equipment under operating leases, with terms expiring through 2021. Most store leases have an
initial term of 10 years, with renewal options of up to 10 years and provide for payment of common area operating expenses and real estate taxes. Rental
expense, net of sublease income was $31.1 million in fiscal 2007 and $3.0 million in fiscal 2006 and is recorded in occupancy costs and general and
administrative expenses.
The aggregate future minimum noncancelable lease payments as of January 1, 2008, were as follows (in thousands):
2008 $36,277
2009 34,485
2010 31,897
2011 29,545
2012 27,916
Thereafter 81,656
Total minimum lease commitments $241,776
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