Jamba Juice 2010 Annual Report Download

Download and view the complete annual report

Please find the complete 2010 Jamba Juice annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 114

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114

Table of Contents




xx 



¨¨ 



  
  




 


 ¨x
 ¨x


x¨


¨¨


¨


¨
x
¨

¨
 ¨x











Table of contents

  • Page 1
    ... OR 15(d) OF THE SECURITIES EXCHTNGE TCT OF 1934 For the fiscal year ended December 29, 2009 OR ¨ TRTNSITION REPORT PURSUTNT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHTNGE TCT OF 1934 Jamba, Inc. (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of...

  • Page 2
    ... Contents JTMBT, INC. TNNUTL REPORT ON FORM 10-K FISCTL YETR ENDED DECEMBER 29, 2009 Form 10-K Item No. Name of Item Page PTRT I 4 4 Item 1. Item 1T. Item 1B. Item 2. Item 3. Item 4. BUSINESS RISKoFACTORS UNRESOLVEDoSTAFFoCOMMENTS PROPERTIES LEGALoPROCEEDINGS RESERVED ... MANAGEMENT'...

  • Page 3
    ... Special Note Regarding Forward-Looking Statements Weobelieveothatosomeoofotheoinformationoinothisodocumentoconstitutesoforward-lookingostatements.oYouocanoidentifyotheseostatementsobyoforward-looking wordsosuchoaso"may,"o"expect,"o"anticipate,"o"contemplate,"o"believe,"o"estimate,"o"intend,"o"plan...

  • Page 4
    ... BUSINESS Background of Jamba, Inc. Jamba...Company",o"Jamba",o"we",o"us"oando"our."oInformationoregardingotheoCompany'sofiscaloperiodsoisoincludedoinoItemo7,o"Management's DiscussionoandoAnalysisoofoFinancialoConditionoandoResultsoofoOperations." Narrative Description of Business...BLEND Plan...breakfast...

  • Page 5
    .... Building a Retail Food Capability Tcross Tll Four Day Parts (breakfast, lunch, afternoon and dinner) Menu Overview Weohaveotraditionallyoprovidedoaorangeoofofreshlyoblendedobeverages,obakedogoodsoandosnacksoinoourostores.oOuromenuoitemsoareodesignedotoostrengthen...

  • Page 6
    ... tooaobroaderogroupoofoconsumersoacrossoallofourodayopartso(breakfast,olunch,...-Traditional Stores Jamba Juice Stores AoprimaryogoaloofotheoCompanyoisotoogrowoourobrandobyoestablishingomoreopointsoofoaccessotoomakeoitoeasieroforocustomersotooexperienceowhatoweohaveoto...

  • Page 7
    ...-Growth Strategy Untilotheothirdoquarteroofofiscalo2008,oourogrowthostrategyoforotraditionalostoresohadobeenofocusedoonotheodevelopmentoofonewoCompanyoStores... universities,oairportsoandoourofranchiseodevelopersoinoanoeffortotooopenoadditionalotraditionaloandonon...

  • Page 8
    ...oTheoroyaltyoratesoandomarketingocontributionsoforonon-traditional storesovaryodependingouponotypeo(airport,ocollegeoorouniversityoorosupermarket). Franchiseesotypicallyopayoanoinitialofeeorangingofromo$5,000...unitolicenseoagreementsowithofranchiseesowhoowantotoooperateomultipleostore locations....

  • Page 9
    ... 2010....owilloundertake developmentoobligationsotooopenoasomanyoaso100oadditionaloFranchiseoStores. Franchising-Market Planning and Site Selection Process Ouromarketoplanningoandositeoselectionoprocessoisointegralotootheosuccessfuloexecutionoofoourogrowthostrategy...

  • Page 10
    ...Expense Reduction Plan Thisostrategicopriorityoinvolvesoalloaspectsoofoourosystemotooimproveostore-leveloprofitabilityoandoreturnsoforoCompanyoStoreoandoFranchiseoStoresoalike... Store Management OurofieldoandostoreooperationsoteamoisotheofoundationoforoouroperformanceoandoisovitalotootheoCompany'...

  • Page 11
    Table of Contents betweenoGeneraloManagers,oDistrictoManagersoandoRegionaloDirectorsoofoOperations.oInofiscalo2009,oweobeganobuildingoanoonlineotrainingoprogramoforoShift Managersothatowillobeoimplementedoinofiscalo2010.oWeoupdatedoouroback-of-...

  • Page 12
    ...-smoothieoretailersoasotheyoincreaseotheiroofferingsoofosmoothiesoandootherojuice-related products,oandoasoweoincreaseoourofoodoofferingsoweowillobeoplacingoourselvesointoodirectocompetitionowithootheroquickoserveofoodoconceptsowithowelloestablished businesses. Inoaddition...

  • Page 13
    Table of Contents smokeoorootherocarcinogensoororeproductiveotoxicantsoandosaccharin;oavailabilityoofoandorequirementsoforopublicoaccommodations,oincludingorestrooms;o(c)oset standardsopertainingotooemployeeohealthoandosafety;o(d)...

  • Page 14
    ...otheoCompanyohasoregisteredoandomaintains numerousoInternetodomainonames,oincludingo"jamba.com"oando"jambajuice.com." Management Information Systems EachoCompanyoStoreohasocomputerizedopoint....oThereoareonoofamilyorelationshipsoamongoanyoofotheoexecutiveoofficersonamedobelow. James D. White, ageo49 ...

  • Page 15
    .... Karen L. Luey, ageo48 Ms.oLueyojoinedoJambaoJuiceoCompanyoasoitsoViceoPresident,oControlleroandoPrincipaloAccountingoOfficeroinoAprilo2007oandohasobeenoJambaoJuice Company'soSenioroViceoPresidentoandoChiefoFinancialoOfficerosinceoAugusto2008owithoresponsibilityoforoFinanceoandoAccounting...

  • Page 16
    ..."CodeoofoBusiness ConductoandoEthics"oalsooareoavailableoatothatosameolocationoonoourowebsite.oInformationoonoourowebsiteoisonotoincorporatedointoothisoannualoreport. Stockholdersomayorequestofreeocopiesoofotheseodocumentsofrom: Jamba, Inc. c/ooICR,oInc. 441oLexingtonoAvenue,o4...

  • Page 17
    ...; buildingoaoretailofoodocapabilityoacrossoallofourodayopartso(breakfast,olunch,oafternoonoandodinner...have a history of net losses and may incur losses in the...implement our business strategy. Ourosuccessodependsotooaosignificantoextentoonodiscretionaryoconsumerospending,...

  • Page 18
    .... Weomayoalsooencounterodifficultiesoorobeounableotoonegotiateopricingoorootherotermsoasofavorableoasothoseoweocurrentlyoenjoy,owhichocouldoharmoourobusiness andooperatingoresults. Our business could be adversely affected by...

  • Page 19
    ....oInoaddition,oasoeachoofoouroleasesoexpire,oweomayofailotoonegotiateorenewals, eitheroonocommerciallyoacceptableotermsooroatoall,owhichocouldorequireousotoocloseostoresoinodesirableolocations. Our business and results may be subject to disruption...

  • Page 20
    ...The unexpected loss of one or more members of our executive management team could adversely affect our business. Weohaveoexperiencedosignificantochangesoinoouroexecutiveomanagementoteamosinceofiscalo2008,.... Our growth strategy depends on increasing...

  • Page 21
    ... affectoourobusiness. Our franchising strategy means we will become...re-franchising strategy may not be successful due to unfavorable economics, availability of credit for our buyers, the failure of royalty revenue to replace revenue available from Company Store sales ...

  • Page 22
    Table of Contents refranchisingotransactionsoandoconsummateotheosale.oBuyersomayoneedobankoloansotoofinanceoallooroaoportionoofotheiropurchasesoandotightocreditomarketsomay makeoitomoreodifficultoforobuyersotooobtainotheseoloans....

  • Page 23
    ... TheoCompanyopaysoaosubstantialopartoofotheohealthcareobenefitsoforoteamomembersoatotheoGeneraloManageroleveloandoaboveoandoforothoseoworkingoatothe Company'socorporateooffice....Self-insurance plan claims could ...")oinomid-2009,oexpectedoproceedsofromorefranchising ...

  • Page 24
    .... The Company's success depends on the value of the Jamba Juice and Jamba brands. ...RELTTED TO THE FOOD SERVICE BUSINESS Litigation and publicity concerning food quality, health and other issues can result in liabilities, increased expenses, distraction of management and can also cause customers ...

  • Page 25
    ... publicity and cause the temporary closure of some stores and, in some cases, could adversely affect the price and availability of fruits and vegetables, any of which could harm our brand reputation, result in a ...competitors...Company's internal control over financial reporting could harm its business ...

  • Page 26
    ... provisions may delay or prevent a change of control of us, which may adversely affect the price of our common stock. CertainoprovisionsoinoourocorporateodocumentsoandoDelawareolawomayodelayooropreventoaochangeoofocontroloofous,owhichocouldoadverselyoaffectotheoprice ofoourocommonostock.oForoexample...

  • Page 27
    ... designation governing the Series B Preferred (the "Series B Certificate of Designation") contains various covenants and restrictions which may limit our ability to operate our business... prices,olowerothanotheoconversionopriceothenoinoeffectoforotheoSeriesoBoPreferred...

  • Page 28
    Table of Contents affiliatesoandoourosubsidiaries'oaffiliates,oexceptoforotheopaymentoofoanyosalariesoorootheroemployeeocompensationotooofficersoofoanyosuchoaffiliates (includingoreasonableocompensationotooanyodirectoroofoanyosuchoaffiliates),...

  • Page 29
    ...The Series B Preferred private placement could adversely affect the market price of our common stock. EachoshareoofoSeriesoBoPreferredoStockoisoconvertibleointoothatonumberoofosharesoofocommonostockoequalotootheoquotientodeterminedobyodividingo$115o(as adjustedoforoanyostockodividends,ocombinations...

  • Page 30
    ... 2009 Company Franchise Stores Stores Total Arizona California Colorado Florida Illinois Indiana Minnesota NewoJersey Nevada NewoYork 2 328 33 17 21 33 61 6 2 3 35 389 23 23 1 8 2 11 18 10 Utah Washington Wisconsin Hawaii Idaho Massachusetts NorthoCarolina Ohio Oklahoma Oregon Pennsylvania...

  • Page 31
    Table of Contents PTRT II ITEM 5. MTRKET FOR JTMBT, INC.'S COMMON EQUITY, RELTTED STOCKHOLDER MTTTERS TND ISSUER PURCHTSES OF EQUITY SECURITIES TheosharesoofoJamba,oInc.ocommonostockoareocurrentlyoquotedoonotheoNASDAQoGlobaloMarketounderotheosymboloJMBA. TheoclosingopriceoperoshareoofoJamba,oInc...

  • Page 32
    ... indexoareocurrentlyoaobetterocomparisonoforous,oparticularlyoinotermsoofomarketocapitalization.oWeoalsoonoteothatodueotootheodropoinoouromarketocapitalization,oour CommonoStockowasoexcludedofromotheoRussello2000oIndexoduringo2008. Jamba Inc. NTSDTQ Composite Russell 2000...

  • Page 33
    ... 1, 2006 to January 10, 2006 (inception) to December 29, 2009 December 30, 2008 January 1, 2008(1) $ o o o o o o o o o o o o o o o o o o o o o o o ... -oooo 3,296oo Weighted-averageosharesousedoinotheocomputationoofo(loss) earningsoperoshare: Basic Diluted (Loss)oearningsoperoshare: Basic Diluted...

  • Page 34
    Table of Contents Selected Balance Sheet Data (at period end) December 29, 2009 December 30, 2008 January 1, 2008 January 9, 2007 January 10, 2006 December 31, 2005 Cashoandocashoequivalents Cashoheldoinotrust Totaloassets...(loss)ofromooperationsooronetoincomeo(loss)...

  • Page 35
    ...,o2009oandoDecembero30,o2008otoonetolossofollows: (Dollars in thousands) December 29, 2009 December 30, 2008 Net loss Franchiseosupportoreimbursement Interestoincome Interestoexpense Incomeotaxobenefit Depreciationoandoamortization Gainofromoderivativeoliabilities Storeopre-opening Trademark...

  • Page 36
    Table of Contents TheofollowingotableosetsoforthocertainodataorelatingotooCompanyoStoresoandoFranchiseoStoresoforotheoperiodsoindicated: December 29, 2009 Fiscal year ended December 30, 2008 January 1, 2008 Company Stores: Beginningoofoyear CompanyoStoresoopened CompanyoStoresoclosed ...

  • Page 37
    ...plans, estimates and beliefs. Actual results could differ from these expectations as a result of factors including those described under Item 1A, "Risk Factors," "Special Note Regarding Forward-Looking Statements" and elsewhere in this Form 10-K. JTMBT, INC. OVERVIEW Jamba... Weeks ...breakfast...

  • Page 38
    ...$35omillionoinoconvertibleopreferred stockoviaoaoprivateoplacementothatoallowedousotoorepayoouroseniorotermonoteoandotooprovideoadditionaloworkingocapitalotoohelpoexecuteoouroBLENDoPlan. Fiscal 2009 Financial and Operational Highlights...

  • Page 39
    Table of Contents Fiscal 2009 Tccomplishments Accomplishments to Support Sales .... Accomplishments to Control Costs CompanyoStoreofinancialoperformanceohasoimprovedothroughoourodisciplinedofocusoonocostoreductions,owhichoincludeocostsoofogoodsosold...

  • Page 40
    ...omake-at-homeosmoothieokitsoandoaovarietyoofotrail mixes.oWeoalsoosignedoaonon-bindingomemorandumoofointentowithoCore-...Fiscal 2009 ...oandoadjustmentsoareomadeowhenofactsoandocircumstancesodictateoaochange. OuroaccountingopoliciesoareomoreofullyodescribedoinoNoteo1o" Business and Summary of...

  • Page 41
    Table of Contents Impairment of Long-Lived Assets Long-livedoassets,oincludingoleaseholdoimprovements,oandootherofixedoassetsoareoreviewedoforoimpairmentoatoleastoquarterlyoandowhenoindicatorsoof impairmentoareopresent.oExpectedocashoflowsoassociatedowithoanoasset,...

  • Page 42
    ....oWeorelieveotheoliabilityoand recordotheorelatedorevenueoatotheotimeoaocustomeroredeemsoanyopartoofotheoamountoonotheocard.oTheocardodoesonotohaveoanyoexpirationoprovisionsoandoisonot refundable,oexceptoasootherwiseorequiredobyolaw. Self-Insurance...

  • Page 43
    Table of Contents Aovaluationoallowanceoisoprovidedoforodeferredotaxoassetsowhenoitoiso"moreolikelyothanonot"othatosomeoportionoofotheodeferredotaxoassetowillonotobeorealized. Becauseoofoourorecentohistoryoofooperatingolosses,...

  • Page 44
    ... ouroconsolidatedostatementsoofooperationsoaso"Gaino(loss)oonoderivativeoliabilities."oSinceotheseowarrantsowereofreelyotradedoonotheoNASDAQoGlobaloMarket...

  • Page 45
    ... year ended December 29, 2009 % (1) December 30, 2008 % (1) Revenue: Companyostores Franchiseoandootherorevenue...(8.6)%o 2.3%o 0.1%o (0.6)%o 1.8%o (43.6)%o 0.1%o (43.5)%o -oooo (43.5)%o Weighted-averageosharesousedoinotheocomputationoofolossoper share: Basic Diluted Lossoperoshare: o 53,632...

  • Page 46
    ...-over-yearodecreasesoinorevenue. Cost of sales (ino000's) % of Year Ended December 29, 2009 % of Year Ended December 30, 2008 Company Store Revenue Company Store Revenue Costoofosales $ 72,669 24.6%o $ 89,163 26.7%o Costoofosalesoisomostlyocomprisedoofotheocostsoofofruit...

  • Page 47
    Table of Contents Labor (ino000's) % of Year Ended December 29, 2009 % of Year Ended December 30, 2008 Company Store Revenue Company Store Revenue Labor $ 100,589 34.0%o $ 120,251 36.0%o Laborocostsoareocomprisedoofostoreomanagementosalariesoandobonuses,ohourlyoteamomemberopayroll,...

  • Page 48
    Table of Contents Store operating (ino000's) % of Year Ended December 29, 2009 % of Year Ended December 30, 2008 Company Store Revenue Company Store Revenue Utilities Marketingoexpenses Repairsoandomaintenance Creditocardofees Other Totalostoreooperating $ o o o o $ 11,007 5,902 5,249 3,443 ...

  • Page 49
    .... General and administrative (ino000's) % of Year Ended December 29, 2009 % of Year Ended December 30, 2008 Total Revenue Total Revenue Wagesoandopayrollorelatedoexpenses Outsideoandocontractoservices Accountingoandolegalofees Traveloandotravel-related Share-basedocompensation Other...

  • Page 50
    ...ino000's) % of Year Ended December 29, 2009 % of Year Ended December 30, 2008 Total Revenue Total Revenue Storeopre-opening $ 516... assets (ino000's) % of Year Ended December 29, 2009 % of Year Ended December 30, 2008 Total Revenue Total Revenue Impairmentoofolong-livedoassets $ 12,639 ...

  • Page 51
    ..." Business and Summary of Significant Accounting Policies-Trademark, Goodwill and Other Intangible Asset Impairment "oincludedoinoNoteo1oinotheoNotesotooConsolidatedoFinancialoStatements. Other operating, net (ino000's) % of Year Ended December 29, 2009 % of Year Ended December 30, 2008 Total...

  • Page 52
    ..." Business and Summary of Significant Accounting Policies -Warrants and Derivative Instruments "oincludedoinoNoteo1oinotheoNotesotooConsolidatedoFinancialoStatements. Interest income (ino000's) % of Year Ended December 29, 2009 % of Year Ended December 30, 2008 Total...

  • Page 53
    Table of Contents Income tax benefit (ino000's) % of Year Ended December 29, 2009 % of Year Ended December 30, 2008 Total Revenue Total Revenue Incomeotaxobenefit $ 1,066 0.4%o $ 274 0.1%o Ouroincomeotaxobenefitowaso$1.1omillionoinofiscalo2009oando$0.3omillionoinofiscalo2008....

  • Page 54
    ... year ended December 30, 2008 % (1) January 1, 2008 % (1) Revenue: Companyostores ...0.2%o 63.2%o 1.5%o 171.9%o (71.9)%o 18.7%o 1.1%o (0.1)%o Netoloss Weighted-averageosharesousedoinotheocomputationoofolossoperoshare: Basic Diluted Lossoperoshare: Basic Diluted (1) 2.3%o 0.1%o (0.6)%o...

  • Page 55
    ...-over-yearodecreasesoinorevenue. Cost of Sales (ino000's) % of Year Ended December 30, 2008 % of Year Ended Company Store Revenue January 1, 2008 Company Store Revenue Costoofosales $ 89,163 26.7%o $ 84,226 27.5%o Costoofosalesoisomostlyocomprisedoofofruit...

  • Page 56
    Table of Contents Labor (ino000's) % of Year Ended December 30, 2008 % of Year Ended Company Store Revenue January 1, 2008 Company Store Revenue Labor $ 120,251 36.0%o $ 102,661 33.5%o Laborocostsoareocomprisedoofostoreomanagementosalariesoandobonuses,ohourlyoteamomemberopayroll,...

  • Page 57
    ...'socost-saving initiatives....(ino000's) % of Year Ended December 30, 2008 % of Year Ended Total Revenue January 1, 2008 Total Revenue Depreciationoandoamortization $ 24,717 7.2%o $ ...

  • Page 58
    Table of Contents General and Tdministrative (ino000's) % of Year Ended December 30, 2008 % of Year Ended Total Revenue January 1, 2008 Total Revenue Wagesoandopayrollorelatedoexpenses Relocationoandorecruiting Accountingoandolegalofees Share-basedocompensation Outsideoservices Other ...

  • Page 59
    ... Lease Termination and Closure (ino000's) % of Year Ended December 30, 2008 % of Year Ended Total Revenue January 1, 2008 Total Revenue Storeoleaseoterminationoandoclosure $ 10,029 2.9%o $ 718 0.2%o Storeoleaseoterminationoandoclosureocostsowereo$10.0omillionoinofiscalo2008ocomparedotoo...

  • Page 60
    ... FinancialoStatements). Trademark and Goodwill Impairment (ino000's) % of Year Ended December 30, 2008 % of Year Ended Total Revenue January 1, 2008 Total Revenue Trademarkoandogoodwilloimpairment $ 84,061 24.5%o $ 200,624 63.2%o Trademarkoandogoodwilloimpairmentoinofiscalo2008owaso$84...

  • Page 61
    ... 29, 2009 December 30, 2008 Netocashoprovidedobyooperatingoactivities Netocashousedoinoinvestingoactivities Netocashoprovidedobyofinancingoactivities Netoincreaseo(decrease)oinocashoandocashoequivalents $ o o $ 8,464oo (3,127)o 2,598oo 7,935oo $ 8,164oo o (33,050)o o 22,692oo $ (2,194)o Known...

  • Page 62
    Table of Contents Operating Tctivities Inofiscalo2009,onetocashoprovidedobyooperatingoactivitiesowaso$8.5omillion,ocomparedowithonetocashoprovidedobyooperatingoactivitiesoofo$8.2omillionoin fiscalo2008....

  • Page 63
    Table of Contents AsoofoDecembero29,o2009,oweohadocashoandocashoequivalentsoofo$28.8omillionoandonooshortotermoorolongotermodebtocomparedotoo$20.8omillionoinocash andocashoequivalentsoandoanooutstandingobalanceoonoouroSenioroNotesoasoofoDecembero30,o2008....

  • Page 64
    ...$0.2omillion. Commodities Prices WeopurchaseosignificantoamountsoofofruitsoandodairyoproductsotoosupportotheoneedsoofoouroCompanyoStores.oTheopriceoandoavailabilityoofothese commoditiesodirectlyoimpactsotheoresultsoofooperationsoandocanobeoexpectedotooimpactotheofutureoresultsoofooperations...

  • Page 65
    Table of Contents Weopurchaseofruitobasedoonoshort-termoseasonalopricingoagreements.oTheseoshort-termoagreementsogenerallyosetotheopriceoofoprocuredofrozenofruitoand 100%opureofruitoconcentratesoforolessothanooneoyearobasedoonoestimatedoannualorequirements....

  • Page 66
    ... SUPPLEMENTTRY DTTT REPORT OF INDEPENDENT REGISTERED PUBLIC TCCOUNTING FIRM TheoBoardoofoDirectorsoandoStockholders Jamba,oInc.: WeohaveoauditedotheoaccompanyingoconsolidatedobalanceosheetsoofoJamba...o2009,obasedoonocriteriaoestablishedoino Internal Control-Integrated Framework ...

  • Page 67
    ... of Contents REPORT OF INDEPENDENT REGISTERED PUBLIC TCCOUNTING FIRM TootheoBoardoofoDirectorsoandoStockholdersoofoJamba,oInc. Emeryville,oCalifornia Weohaveoauditedotheoconsolidatedostatementsoofooperations,ostockholders'oequity,oandocashoflowsoofoJamba,oInc.oandosubsidiaryo(theo"Company")oforothe...

  • Page 68
    ...CONSOLIDTTED BTLTNCE SHEETS (Dollars in thousands, except share and per share amounts) December 29, 2009 December 30, 2008 TSSETS Currentoassets: Cashoandocashoequivalents Restrictedocash Receivables,onetoofoallowancesoofo$116oando$416 Inventories Prepaidoandorefundableoincomeotaxes Prepaidorent...

  • Page 69
    ...and per share amounts) December 29, 2009 December 30, 2008 January 1, 2008 Revenue: Companyostores Franchiseoandootherorevenue Totalorevenue Costsoandooperatingoexpenseso(income... Netolossoattributableotoocommonostockholders Weighted-averageosharesousedoinotheocomputationoofolossoperoshare:...

  • Page 70
    Table of Contents JTMBT, INC. CONSOLIDTTED STTTEMENTS OF STOCKHOLDERS' EQUITY Common Stock (Dollars in thousands, except share amounts) Shares Tmount Tdditional Paid-In Capital Tccumulated Deficit Stockholders' Equity BalanceoasoofoJanuaryo9,o2007 Exerciseoofowarrants Exerciseoofostockooptions...

  • Page 71
    ... Year Ended December 29, 2009 Fiscal Year Ended December 30, 2008 Fiscal Year Ended (Dollars in thousands) January 1, 2008 $ o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o $ $ o $ o o o o Cashoprovidedobyo(usedoin)ooperatingoactivities: Netoloss...

  • Page 72
    ... TCCOUNTING POLICIES Business-Jamba,oInc.otogetherowithoitsowhollyoownedosubsidiaryo(theo"Company")oconsummatedoitsoinitialopublicoofferingoinoJulyo2005.oThe Company'somanagementohadobroadodiscretionowithorespectotootheospecificoapplicationoofotheonetoproceedsoofoitsoinitialopublicoofferingo("IPO...

  • Page 73
    ... jambacardsoissuedobyotheofranchisees.oTheoallowanceoforodoubtfuloaccountsoisotheoCompany'soestimateoofotheoamountoofoprobableocreditolossesoinothe Company'soexistingoaccountsoreceivable. Inventories -Inventoriesoincludeoonlyotheopurchaseocostoandoareostatedoatotheoloweroofocostooromarket...

  • Page 74
    Table of Contents JTMBT, INC. NOTES TO CONSOLIDTTED FINTNCITL STTTEMENTS-(continued) operatingoperformance.oIfotheosumoofotheoundiscountedocashoflowsoisolessothanotheocarryingovalueoofotheoasset,otheoCompanyorecognizesoanoimpairmentoloss, ...

  • Page 75
    Table of Contents JTMBT, INC. NOTES TO CONSOLIDTTED FINTNCITL STTTEMENTS-(continued) jurisdictions.oTheoCompanyodeterminesotheojambacardobreakageoamountobasedouponoitsohistoricaloredemptionopatterns.oTheoCompanyohasoconcludedothatoafter ...

  • Page 76
    ...Earnings (Loss) Per Share -Basicoearningso(loss)operoshareoisocomputedobasedoonotheoweighted-...5omillion,o21.8omillionoando21.8omillionohaveobeenoexcludedofromodiluted weighted-averageosharesooutstandingoinofiscalo2009,ofiscalo2008oandofiscalo2007,orespectively....

  • Page 77
    ...Stockooptionsoforoaofixedonumberoofosharesoareograntedotoocertainoemployeesoandodirectorsowithoanoexerciseopriceobasedoonotheograntodateoofothe Company'socommonostock...'soconsolidatedostatementsoofooperationsoaso"Gaino(loss)oonoderivativeoliabilities."oSinceotheseowarrantsowereofreelyotraded ...

  • Page 78
    ... 2008....Reporting -TheoCompanyohasooneoreportableoretailosegment. Recent Accounting Pronouncements Financial Accounting Standards Board ("FASB") Accounting Standards Codification (Accounting Standards Update ("ASU") 2009...

  • Page 79
    ...SFASoNo.o167oinofiscalo2010oandodoesonotoanticipateoanyomaterialoimpactoonotheoCompany'soconsolidatedofinancialostatements. ASU No. O009-04...,obeginningoafteroissuance.oAdoptionoofoASUoNo.o2009-04odidonotoimpactotheoCompany'soconsolidatedofinancialostatements. ASU No. O009-05, "Measuring Liabilities...

  • Page 80
    ... quotedopriceoofoanoidenticaloliabilityowhenotradedoasoanoasset,ooroquotedopricesoforosimilaroliabilitiesoorosimilaroliabilitiesowhenotradedoasoassets.oAdoptionoof ASUoNo.o2009-05odidonotoimpactotheoCompany'soconsolidatedofinancialostatements. ASU No. O009-08, "Earnings per Share - Amendments...

  • Page 81
    ...Franchisees TheoCompanyoacquiredotheoassetsoofo22oJambaoJuiceofranchisedostoresoownedobyoSandersoLiquidoSunshineo("Sanders")oandoVegasoLiquidoSunshine ("Vegas")oonoSeptembero18,o2007oinotheoNorthernoCaliforniaoandoNevadaogeographicoregions,orespectivelyoforo$15.3omillion... Purchase Price Allocation ...

  • Page 82
    ....oSubjectotoothe Company'soapprovaloandotheofranchisee'...,oconsistedoofotheofollowingo(inothousands): December 29, 2009 December 30, 2008 Leaseholdoimprovements Furniture,ofixturesoandoequipment Constructionoinoprogresso(primarilyostoresounderoconstruction)...

  • Page 83
    ... Company'socommonostock... Tccumulated Tmortization Net Tmortized Intangible Tssets Ts of December 29, 2009 Favorableoleases Franchiseoagreements Reacquiredofranchiseorights Total Ts of December 30, 2008 Favorableoleases Franchiseoagreements Reacquiredofranchiseorights Total 83 $2,627 o 897 o 550...

  • Page 84
    ... isoasofollowso(inothousands): Fiscal Year Tmortization 2010 2011 2012 2013 2014 Thereafter $...termoassetsoconsistedoofotheofollowingo(inothousands): December 29, 2009 December 30, 2008 Noteoreceivableofromofranchisee Deposits InvestmentoinoJJCoHawaii,oLLC ...equityoinoearningso(losses)...

  • Page 85
    ... o (1,158)o o (483)o $ 5,664oo o 1,089oo o 311oo o (1,278)o o (3,308)o $ 2,478oo Gain/loss on Disposal of Other Assets -TheoCompanyorecognizedogainoonodisposaloofoassetsoresultingoprimarilyofromotheorefranchisingoofoitsostores ofo$2.0omillionoduringofiscalo2009.oDuringofiscalo2008oandofiscalo2007...

  • Page 86
    ... costsoandogeneraloandoadministrativeoexpenses. TheoaggregateofutureominimumononcancelableoleaseopaymentsoasoofoDecembero29,o2009,owereoasofollowso(inothousands): Fiscal Year Ending: 2010 2011 2012 2013 2014 Thereafter Totalominimumoleaseocommitments $ 34,879...

  • Page 87
    Table of Contents JTMBT, INC. NOTES TO CONSOLIDTTED FINTNCITL STTTEMENTS-(continued) TheosharesoofoPreferredoStockoareoconvertibleoatotheoelectionoofotheoholders,oatoanyotime,ointoosharesoofoCommonoStockoatoanoinitialoconversionopriceoof $1.15operoshare....

  • Page 88
    Table of Contents JTMBT, INC. NOTES TO CONSOLIDTTED FINTNCITL STTTEMENTS-(continued) theoCompany'so2010oannualomeetingoofoitsostockholdersothereoareomoreothanonineomembersoonotheoBoardoando(ii)osoolongoasomoreothano50%oofotheonumberoof sharesoofoSeriesoB-...

  • Page 89
    ...oincludingoifotheoaverageodailyotradingopriceoforothe Company'...Company'sostatementoofooperations. 13. SHTRE-BTSED COMPENSTTION Stock Options -TheoCompanyomaintainsothreeoshare-basedocompensationoplanso(collectively,otheo"Plans...

  • Page 90
    ...50oblendoofohistoricodailyostockopriceoobservationsoofothe Company'... Fiscal Year Ended December 29, 2009 Fiscal Year Ended December 30, 2008 Fiscal Year Ended January 1, 2008 Weighted-averageorisk-freeointerestorate Expectedolifeoofooptionso(years) Expectedostockovolatility ...

  • Page 91
    .... InformationoregardingooptionsooutstandingoandoexercisableoatoDecembero29,o2009oisoasofollows: WeightedTverage Remaining Contractual Life WeightedTverage Exercise Price WeightedTverage Exercise Price Range of Exercise Prices Number Outstanding Number Exercisable $0.36o-o$0.50 $0.51o-o$1.30...

  • Page 92
    ...1.79 NoooutstandingoRSUsowereovestedoasoofoDecembero29,o2009. 14. INCOME TTXES Theocomponentsoofotheoincomeotaxoprovisionoareoasofollowso(inothousands): December 29, 2009 December 30, 2008 January 1, 2008 Currentoprovision Deferredobenefit Incomeotaxobenefit-net $ 422 o 644 $ 1,066 $ o $ (421...

  • Page 93
    ...,o2009,oand Decembero30,o2008o(inothousands): December 29, 2009 December 30, 2008 Reservesoandoaccruals Totalocurrentodeferredotaxoasset Netooperatingolosses Deferredorent Taxocreditoattributes Basisodifferenceoinointangibles Share-basedocompensation...

  • Page 94
    ...December 29, 2009 Fiscal Year Ended December 30, 2008 Fiscal Year Ended January 1, 2008 Beginningobalance Increasesoattributableotootaxopositionsotakenoduring ...o2008orespectively.oIn 2009,othereowasoanoincreaseoinotheovaluationoallowanceoofo$9.4omillionochargedotoooperations...

  • Page 95
    Table of Contents JTMBT, INC. NOTES TO CONSOLIDTTED FINTNCITL STTTEMENTS-(continued) Theoweighted-averageoremainingocontractualolifeoofotheowarrantsoandotheooptionotoopurchaseotheounitsooutstandingoasoofoDecembero30,o2008owaso0.5oyears ando1.5oyears,orespectively....

  • Page 96
    Table of Contents JTMBT, INC. NOTES TO CONSOLIDTTED FINTNCITL STTTEMENTS-(continued) Foroassetsothatoareomeasuredousingoquotedopricesoinoactiveomarkets,ofairovalueoisotheopublishedomarketopriceoperounitomultipliedobyotheonumberoofounits heldowithoutoconsiderationoofotransactionocosts....

  • Page 97
    ...2009 Sixteen Weeks Ended Tpril 21, Twelve Weeks Ended July 14, Twelve Weeks Ended October 6, Twelve Weeks Ended December 29, 2009 2009 2009 2009 Totalorevenue Grossoprofit (Loss... (0.10)o $ o o o o o o o o o o o Fiscal Year 2008 78,991oo 59,709oo 2,570oo -oooo 21oo (320)o (299)o 2,766oo (653)o ...

  • Page 98
    ...,oandothatosuchoinformationoisoaccumulatedoandocommunicatedotoomanagement,oincludingoouroChiefoExecutiveoOfficero("CEO")oand ChiefoFinancialoOfficero... Management's Report on Internal Control Over Financial Reporting ...

  • Page 99
    Table of Contents REPORT OF INDEPENDENT REGISTERED PUBLIC TCCOUNTING FIRM TheoBoardoofoDirectorsoandoStockholders Jamba,oInc.: WeohaveoauditedoJamba,oInc.'sointernalocontrolooverofinancialoreportingoasoofoDecembero29,o2009,obasedoonocriteriaoestablishedoino Internal Control -Integrated Framework ...

  • Page 100
    Table of Contents PTRT III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS TND CORPORTTE GOVERNTNCE InformationoregardingotheoDirectorsoofotheoCompanyoisoincorporatedohereinobyoreferenceofromotheoCompany'so2010oProxyoStatementotooStockholdersotoobe ...

  • Page 101
    Table of Contents PTRT IV ITEM 15. EXHIBITS, FINTNCITL STTTEMENT SCHEDULES Documentsofiledoasopartoofothisoreport: (1)oListoofoFinancialoStatements TheofollowingoconsolidatedofinancialostatementsoareoincludedohereinoinoPartoII,oItemo8oofothisoAnnualoReportoonoFormo10-K: ...

  • Page 102
    .../S /ooooJAMESoD.oW HITEoooooooo James D. White ChiefoExecutiveoOfficer,oPresidentoandoDirector (PrincipaloExecutiveoOfficer) Marcho10,o2010 /S /ooooKARENoL.oL UEYoooooooo Karen L. Luey SenioroViceoPresidentoandoChiefoFinancialoOfficer (PrincipaloFinancialoOfficeroandoPrincipaloAccountingoOfficer...

  • Page 103
    Table of Contents Name Title Date /S /ooooRAMÃ"NoM ARTIN-BUSUTILoooooooo Ramón Martin-Busutil Director Marcho10,o2010 Marcho10,o2010 Marcho10,o2010 103 /S /ooooMICHAELoS ERRUYAoooooooo Michael Serruya Director /S /ooooBRIANoS WETTEoooooooo Brian Swette Director

  • Page 104
    Table of Contents EXHIBIT INDEX Exhibit Filed Number Description Form File No. Exhibit Filing Date Herewith oooo3... andovariousosuppliers. OfficeoLeaseoforotheopropertyolocatedoato6475oChristieoAvenue, Emeryville,oCAo94608,obyoandobetweenoJambaoJuiceoCompanyoand BayoCenteroOffice,...

  • Page 105
    Table of Contents Exhibit Filed Number Description Form File No. Exhibit Filing Date Herewith oo10.5 oo10.6 oo10....20 FormoofoNon-QualifiedoStockoOptionoAgreementounderotheo2006 Plan.** Non-employeeoDirectoroCompensationoPolicy.** ...

  • Page 106
    Table of Contents Exhibit Filed Number Description Form File No. Exhibit Filing Date Herewith oo10.18 RegistrationoRightsoAgreementodatedoasoofoSeptembero11,o2008obyoand amongoJamba,oInc.,oVictoryoParkoSpecialoSituations,oL.P.oandoVictory ParkoCreditoOpportunities,oL.P. ...

  • Page 107
    Table of Contents Exhibit Filed Number Description Form File No. Exhibit Filing Date Herewith oo31.2 CertificationoofoChiefoFinancialoOfficeropursuantotooRuleo13a14(a)oandoRuleo15d-14(a)oofotheoSecuritiesoExchangeoActoofo1934, asoamended. X oo32.1 ...

  • Page 108
    EXHIBIT 21.1 LIST TF SUBSIDIARY Name of Company Jurisdiction of Incorporation Jamba Juice Company California

  • Page 109
    ... the fiscal years ended December 29, 2009 and December 30, 2008, and the effectiveness of internal control over financial reporting as of December 29, 2009, which reports appear in the December 29, 2009 annual report on Form 10-K of Jamba, Inc. /s/ KPMG LLP San Francisco, California March 10, 2010

  • Page 110
    ...2008, relating to the consolidated financial statements of Jamba, Inc. and subsidiary for the fiscal year ended January 1, 2008 appearing in this Annual Report on Form 10-K of Jamba, Inc. for the fiscal year ended December 29, 2009. /s/ Deloitte & Touche LLP han Francisco, California March 10, 2010

  • Page 111
    ....1 CERTIFICATIONS I, James D. White, certisy that: 1. I have reviewed this annual report on Form 10-K os Jamba, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement os a material sact or omit to state a material sact necessary to make the statements made, in light os the...

  • Page 112
    ....2 CERTIFICATIONS I, Karen L. Luey, certify that: 1. I have reviewed this annual report on Form 10-K of Jamba, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the...

  • Page 113
    ... SARBANES-OXLEY ACT OF 2002 In connection with the Annual Report of Jamba, Inc. (the "Company") on Form 10-K for the year ended December 29, 2009, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, James D. White, Chief Executive Officer and President of the...

  • Page 114
    ...-OXLEY ACT OF 2002 In connection with the Annual Report of Jamba, Inc. (the "Company") on Form 10-K for the year ended December 29, 2009, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Karen L. Luey, Senior Vice President and Chief Financial Officer of...