Jamba Juice 2011 Annual Report Download

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

Table of contents

  • Page 1
    ... OR 15(d) OF THE SECURITIES EXCHTNGE TCT OF 1934 For the fiscal year ended December 28, 2010 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
    Table of Contents JTMBT, INC. TNNUTL REPORT ON FORM 10-K FISCTL YETR ENDED DECEMBER 28, 2010 Form 10-K Item No. Name of Item Page PTRT I Item 1. Item 1T. Item 1B. Item 2. Item 3. Item 4. BUSINESS RISKoFACTORS UNRESOLVEDoSTAFFoCOMMENTS PROPERTIES LEGALoPROCEEDINGS ... 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,oInc...Company",o"Jamba",o"we",o"us"oando"our."oInformationoregardingotheoCompany'sofiscaloperiodsoisoincludedoinoItemo7,o"Management's DiscussionoandoAnalysisoofoFinancialoConditionoandoResultsoofoOperations." Narrative Description...BLEND Plan...breakfast...culture...

  • Page 5
    ... Focused Service Culture AomajoroaspectoofoouroBLENDoPlanoisotoocontinueotooimproveotheoleveloandoconsistencyoofocustomeroserviceoatoourostores.oAsoweomoveoourobusiness ...Expand our Beverage and Food Menu Offerings Tcross Tll Four Day Parts (breakfast, lunch, afternoon and dinner) Menu Overview...

  • Page 6
    ...,ocost,oandosupplyoassuranceostandards.oOur menuocurrentlyoincludesosixoorganicohototeas,ohotooatmealomadeowithoorganicosteelocutooats,oandohealthyoblendedobreakfastosmoothiesotoppedowithoorganic granola.oInoaddition,oweoofferoaorangeoofoorganic,ohigh-quality,opackaged,ogood...

  • Page 7
    .... Continue to accelerate the Development of Franchise and Non-Traditional Stores Jamba Juice Stores AoprimaryogoaloofotheoCompanyoisotoogrowoourobrandobyoestablishingomoreopointsoofodistributionotoomakeoitoeasieroforocustomersotooexperienceoallothat Jambaohasotoooffer...

  • Page 8
    ...),oShany,oandoSamlipoGeneraloFoods.oOurofirstoJambaoJuiceostoreoopenedoinoSouthoKoreaoatoIncheonoInternationaloAirportoinoJanuary 2011,oandoweoexpectoSPCoGroupotooopenoupotoo200ostoresoinoSouthoKoreaooverotheonextodecade.oWeoworkocloselyowithoSPCoGroupotoodevelopoandoimplementothe JambaoJuiceosystem...

  • Page 9
    ...,osupermarketooroairportolocations,o(iii)oExpressoplatform locations,oando(iv)oexclusiveomulti-...oTheoroyaltyorates andomarketingocontributionsoforonon-traditionalostoresovaryodependingouponotypeo(airport,ocollegeoorouniversityoorosupermarket). Franchiseesotypicallyopayoanoinitialofeeoofoupotoo$25...

  • Page 10
    ... 2011....theseostores. Franchising-Market Planning and Site Selection Process...natural,ofruit-basedoenergy drinks.oThisolineoofoproductsowasolaunchedoinoFebruaryo2011oinotheonortheasternoUnitedoStates.oInoadditionotooenergyobeverages,otheoCompanyoalsoosigned...

  • Page 11
    ...locations.oThisorelationshiporepresentsooneowayoweocanoassistoourolicenseesoinocommercializingotheolicensedoJamba-brandedoproductsoatoretail. Continue to Implement a Disciplined Expense Management Plan... Company Store Management ...

  • Page 12
    ....oOuroparticipationoinolocalofundraisingoeventsoalso helpsocaptureoaosignificantoamountoofocoverageofromolocalotelevisionostations. Product Supply Weoareocommittedotooprovidingoonlyotheofinestosmoothies,ojuicesoandootherofoodoproducts.oSmoothieoandojuiceoproductsodependoheavilyouponosuppliesoof...

  • Page 13
    Table of Contents tooprocure,omanage,oandosupportosuppliersowithorespectotooproducts,oequipment,oandodistributionoservicesotoosupportotheosystem.oTheofundingoforothisoprogram isoachievedofromoaomark-upoofocertainoproductsopurchasedobyoCompanyoStoresoandoFranchiseoStores,...

  • Page 14
    Table of Contents accommodations,oincludingorestrooms;o(c)osetostandardsopertainingotooemployeeohealthoandosafetyoandomandatoryohealthoinsurance;o(d)osetostandardsoand requirementsoforofireosafetyoandogeneraloemergencyopreparedness;o(e)oregulateotheoproperouse,ostorageoandodisposaloofowaste,...

  • Page 15
    ...numerousoInternetodomainonames,oincludingo"jamba.com"oando"jambajuice.com." Management Information Systems...,o2011oandodescriptionsoofotheirobusinessoexperienceoareosetoforthobelow.oThere areonoofamilyorelationshipsoamongoanyoofotheoexecutiveoofficersonamedobelow. James D. White, President and Chief...

  • Page 16
    Table of Contents Karen L. Luey, Senior Vice President and Chief Financial ... Senior Vice President and General Counsel, Secretary, ageo52 Mr...., Senior Vice President, Supply Chain, ageo46 Mr.oSchwartzohasoservedoasoSenioroViceoPresident,oSupplyoChainoofoJambaoJuiceoCompanyosinceoSeptembero2008...

  • Page 17
    ...oasoamended,oareoavailableoonoourowebsiteoatohttp://ir.jambajuice.com....oInformationoonoourowebsiteoisonotoincorporatedointoothisoannualoreport. Stockholdersomayorequestofreeocopiesoofotheseodocumentsofrom: Jamba, Inc. c/ooICR...(breakfast,olunch...

  • Page 18
    ... We have a history of net losses and may incur losses in the future....in our revenue and operating margins. Weocompeteowithomanyowell-establishedocompanies,ofoodoserviceoandootherwise,oonotheobasisoofotaste,... Fluctuations in various food and supply costs, particularly fruit and dairy,...

  • Page 19
    ... ourograb-and-gooportfolioocomprisedoofofresh,operishableoproducts. The Company's success depends on the value of the Jamba Juice and Jamba brands. TheoJambaoJuiceobrandopracticeoisotooinspireoandosimplifyohealthyoliving.oWeobelieveoweomustopreserveoandogrowotheovalueoofotheoJambaoJuiceobrandoin...

  • Page 20
    .... Our business could be adversely affected by increased labor or healthcare costs. Self-insurance plan claims could materially impact our results. Laboroisoaoprimaryocomponentoinotheocostoofooperatingoourobusiness.oWeodevoteosignificantoresourcesotoorecruitingoandotrainingoouroteamomembers.oA...

  • Page 21
    ...,odelaysoinoshipmentsoofoproduct,oandodisruption ofobusinessoinobothotheoaffectedoregionoandonationwide,owhichowouldoadverselyoaffectoourorevenueoandoresultsoofooperations. The unexpected loss of one or more members of our executive management team could adversely affect our business...

  • Page 22
    ...,owhetheroweohaveonetounrealizedobuilt-inogainsooronetounrealizedobuilt-in losses,otheoeffectoonotheosectiono382olimitationoofoanyopotentialofutureorecognitionoofonetounrealizedobuilt-inogainsooroanyonetounrealizedobuilt-inolossesoduringothe...

  • Page 23
    ... succeed,ofutureomarketsoandostoresomayonotobeosuccessfuloand,oevenoifoweoareosuccessful,oouroaverageostoreorevenue,oandotheoroyaltyoincomeogenerated therefrom,omayonotoincreaseoandomayoevenodecline. Our efforts to expand internationally may not be successful and could impair the value of...

  • Page 24
    ... may not realize intended benefits, the failure of royalty revenue to replace revenue available from Company Store sales or the failure of area developers to succeed in their obligations. AsoofoDecembero28,o2010,oweohaveorefranchisedo132oCompanyoStoresoasoaoresultoofoourorefranchisingoefforts...

  • Page 25
    ... can result in liabilities, increased expenses, distraction of management and can also cause customers to avoid our products,...allergens...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 ...

  • Page 26
    ...OF COMMON STOCK Failure of the Company's internal control over financial reporting could harm its business and financial ...or prevent a change of control of us, which may adversely affect the price of our common stock. ...

  • Page 27
    ...Our stock price may ...shares of the Series B Preferred (the "Securities Purchase Agreement") and the certificate of designation governing the Series B Preferred (the "Series B Certificate of Designation") contain various covenants and restrictions which may limit our ability to operate our business...

  • Page 28
    ...The Series B Preferred private placement could adversely affect the market price of our common stock. EachoshareoofoSeriesoBoPreferredoStockoisoconvertibleointoothatonumberoofosharesoofocommonostockoequalotootheoquotientodeterminedobyodividingo$115o(as adjustedoforoanyostockodividends,ocombinations...

  • Page 29
    .... Company Stores Store Count as of December 28, 2010 Franchise Stores Total Arizona California Colorado Florida Hawaii Idaho Illinois Indiana Louisiana Massachusetts Minnesota NorthoCarolina NewoJersey Nevada NewoYork Ohio Oklahoma Oregon Pennsylvania Texas Utah Washington Wisconsin Bahamas...

  • Page 30
    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,...

  • Page 31
    ...(iii)oRusselloMicroCapoIndex.oTheographoassumesothatotheovalueoofotheoinvestmentoinoourocommonostockoand eachoindexo(includingoreinvestmentoofodividends)owaso$100oonoDecembero31,o2005oinotheocaseoofoourocommonostockoandoanoinvestmentoinoanoindex. Jamba Inc. 12/31/05 101.85 107.35...

  • Page 32
    ...2010 Revenue: Companyostores Franchiseoandootherorevenue Totalorevenue Costsoandooperatingoexpenseso(income): Costoofosales $ o o o o o o o o o o o o o o o o o o o o o o o $ December 29, 2009...Othero(expense)oincome: Gaino(loss)oonoderivativeoliabilities Interestoincome Interestoexpense 37,...Weighted...

  • Page 33
    Table of Contents Selected Balance Sheet Data (at period end) December 28, 2010 December 29, 2009 December 30, 2008 January 1, 2008 January 9, 2007 Cashoandocashoequivalents Totaloassets Noteopayable Totaloliabilities SeriesoBoredeemableopreferredostock Totalostockholders'oequity ...

  • Page 34
    ...: Fiscal year ended December 29, December 28, 2010 2009 December 30, 2008 Company Stores: Beginningoofoyear CompanyoStoresoopened CompanyoStoresoclosed CompanyoStoresoacquiredofromofranchisees CompanyoStoresosoldotoofranchisees TotaloCompanyoStores...

  • Page 35
    ...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...Covered Weeks ...breakfast...

  • Page 36
    ...$(0.48)oforofiscalo2009. Company-ownedocomparableostoreosalesoforofiscalo2010oreflectedosequentialoimprovementoinosixoofotheolastosevenoquarters,oimprovingo800obasis pointsotoo...oof whicho392oareoFranchiseoStoresoando351oareoCompanyoStores. Fiscal 2010 Tccomplishments Accomplishments to...culture...

  • Page 37
    ...,oacrossomultipleocategoriesoandoretailochannels. Accomplishments to Manage Expenses WeowereoableotoosubstantiallyomaintainoCompanyoStoreofinancialoperformanceobyocontinuingotooreduceolaboroexpensesothroughooperationaloefficiencies andobetterolaboroplanning...

  • Page 38
    Table of Contents Tootheoextentopossible,oweoareocontinuingotooextendotheseocostosavingoinitiativesoandobenefitsotooFranchiseoStoresowithotheogoaloofoimprovingostore-level economicsoforoourofranchisees,oincludingo"bestopractices"...

  • Page 39
    Table of Contents amountoorofairovalueolessocostotoosell.oFairovalueoisodeterminedobasedoonotheopurchaseopriceoinotheoassetopurchaseoagreement.oAssetsoheldoforosaleoareoincludedoin prepaidoexpensesoandootherocurrentoassetsoinotheoconsolidatedobalanceosheet....

  • Page 40
    Table of Contents Jambacard Revenue Recognition Weoselloourojambacardsotooourocustomersoinoouroretailostoresoandothroughoourowebsiteoatowww.jambajuice.com.oOurojambacardsodoonotohaveoanoexpiration date.oWeorecognizeoincomeofromojambacardsowheno(i)otheojambacardoisoredeemedobyotheocustomerooro(ii)...

  • Page 41
    Table of Contents thatotheseoestimatesoareoreasonable,oactualoresultsocouldodifferofromotheseoestimates.oWeoclassifyoestimatedointerestoandopenaltiesorelatedotootheounderpaymentoof incomeotaxesoasoaocomponentoofoincomeotaxesoinotheoconsolidatedostatementsoofooperations. Share-based compensation ...

  • Page 42
    ...Year ended December 28, Year ended December 29, 2009 Year ended December 30, 2008 2010 % (1) % (1) % (1) Revenue: CompanyoStores ...Preferredostockodividendsoandodeemedodividends Netolossoattributableotoocommonostockholders Weighted-averageosharesousedoinotheocomputationoofoloss peroshare...

  • Page 43
    ...)oand refranchising,o105oCompanyoStoresoinoconnectionowithoourorefranchisingoinitiativeoandotheodecreaseoinosame-storeosalesoasoillustratedobyotheofollowingotable: Company Store Decrease in Revenue (in 000's) 2010 vs. 2009 ReductionoinonumberoofoCompanyoStores,onet CompanyoSame-storeosalesodecrease...

  • Page 44
    ...: Decrease in Company Store Revenue (in 000's) 2009 vs. 2008 CompanyoSame-... of sales Fiscal Year 2010 to Fiscal Year 2009 Costoofosalesoisomostlyocomprisedoofofruit,odairy,oandootheroproductsousedotoomakeosmoothiesoandojuices,opaperoproducts,ocostsorelatedotoomanagingoour...

  • Page 45
    ...opartiallyooffsetobyounfavorableoproductomixoshiftso(approximatelyo0.4%). Labor Fiscal Year 2010 to Fiscal Year 2009 Laborocostsoareocomprisedoofostoreomanagementosalariesoandobonuses,ohourlyoteamomemberopayroll,otrainingocostsoandootheroassociatedofringeobenefits. Laborocostsoinofiscalo2010owereo...

  • Page 46
    ... CompanyoStoreocomparableosaleso(approximatelyo0.8%)othatoresultedoinoaolowerodepreciableobase. General and administrative Fiscal Year 2010 to Fiscal Year 2009 Generaloandoadministrativeo("G&A")oexpensesoincludeocostsoassociatedowithoourocorporateoheadquartersoinoEmeryville,oCA,ofieldosupervision...

  • Page 47
    ... pre-opening Fiscal Year 2010 to Fiscal Year 2009 Storeopre-openingocostsoareoprimarilyoexpensesoincurredoforotrainingonewostoreopersonnel,opre-openingomarketingoandopre-... Fiscal Year 2010 to Fiscal Year 2009 Long-livedoassetsoareoreviewedoforoimpairmentowhenoindicatorsoofoimpairmentoareopresent....

  • Page 48
    ... leaseoexpirationodates. Trademark and goodwill impairment Fiscal Year 2010 to Fiscal Year 2009 Thereowasonootrademarkoandogoodwilloimpairmentorecordedoforofiscalo2010oasotheovalueoofoourotrademarksoandogoodwillohadopreviouslyobeenowritten downotoozero. Fiscal Year 2009 to Fiscal Year 2008...

  • Page 49
    ... Other operating, net Fiscal Year 2010 to Fiscal Year 2009 Otherooperating,onetoconsistsoprimarilyoofogainoorolossoonodisposals,oincomeofromojambacardobreakageoandoamortizationoofojambacardoliability.oInofiscal 2010,ootherooperating,onetowaso$4.3omillionoofoincome,oanoincreaseoofo$0.5omillion...

  • Page 50
    ... benefit Fiscal Year 2010 to Fiscal Year 2009 Incomeotaxoexpenseoinofiscalo2010owaso$(0.2)omillionocomparedotooanoincomeotaxobenefitoofo$1.1omillionoforotheoprioroyear... CTPITTL RESOURCES Known Events, Trends or Uncertainties Impacting or Expected to Impact Comparisons of Reported or Future Results...

  • Page 51
    .... Cash Flows Summary Theofollowingotableosummarizesoourocashoflowsoforoeachoofotheopastothreeofullofiscaloyearso(inothousands): December 28, 2010 December 29, 2009 December 30, 2008 Netocasho(usedoin)oprovidedobyooperatingoactivities Netocashoprovidedobyo(usedoin...

  • Page 52
    Table of Contents 2008o(approximatelyo$19.3omillion),oanoincreaseoinoproceedsofromotheosaleoofoCompanyoStoresoinorefranchisingotransactionso(approximatelyo$4.7omillion), partiallyooffsetobyoaodecreaseoinorestrictedocashoasoaoresultoofotheopayoffoofoouroFinancingoAgreementoduringo2009o(...

  • Page 53
    Table of Contents Contractual Obligations TheofollowingotableosummarizesocontractualoobligationsoandoborrowingsoasoofoDecembero28,o2010,oandotheotimingoandoeffectothatosuchocommitmentsoare expectedotoohaveoonoouroliquidityoandocapitalorequirementsoinofutureoperiods....

  • Page 54
    ...$0.3omillion. Commodities Prices WeopurchaseosignificantoamountsoofofruitsoandodairyoproductsotoosupportotheoneedsoofoouroCompanyoStores.oTheopriceoandoavailabilityoofothese commoditiesodirectlyoimpactsotheoresultsoofooperationsoandocanobeoexpectedotooimpactotheofutureoresultsoofooperations...

  • Page 55
    ...SUPPLEMENTTRY DTTT REPORT OF INDEPENDENT REGISTERED PUBLIC TCCOUNTING FIRM TheoBoardoofoDirectorsoandoStockholders Jamba,oInc.: WeohaveoauditedotheoaccompanyingoconsolidatedobalanceosheetsoofoJamba...oandocashoflowsoforotheofiscaloyearsoendedoDecembero28, 2010,oDecembero29... Internal Control-Integrated ...

  • Page 56
    Table of Contents JTMBT, INC. CONSOLIDTTED BTLTNCE SHEETS December 28, (Dollars in thousands, except share and per share amounts) 2010 December 29, 2009 TSSETS Currentoassets: Cashoandocashoequivalents Restrictedocash Receivables,onetoofoallowancesoofo$200oando$116 Inventories ...

  • Page 57
    ... Ended December 28, (Dollars in thousands, except share and per share amounts) 2010 December 29, 2009 December 30, 2008 Revenue... Netolossoattributableotoocommonostockholders Weighted-averageosharesousedoinotheocomputationoofolossoperoshare:...

  • Page 58
    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 BalanceoasoofoJanuaryo1,o2008 Share-basedocompensationoexpense ...

  • Page 59
    ...Year Ended Fiscal Year Ended Fiscal Year Ended December 28, (Dollars in thousands) 2010 $ 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 December 29, 2009 December 30, 2008 Casho(usedoin)oprovidedobyooperatingoactivities: Netoloss...

  • Page 60
    ... STTTEMENTS FOR THE FISCTL YETRS ENDED DECEMBER 28, 2010, DECEMBER 29, 2009 TND DECEMBER 30, 2008 1. BUSINESS TND SUMMTRY OF SIGNIFICTNT TCCOUNTING POLICIES Business-Jamba,oInc.otogetherowithoitsowhollyoownedosubsidiaryo(theo"Company")oconsummatedoitsoinitialopublicoofferingoinoJulyo2005.oThe...

  • Page 61
    ... NOTES TO CONSOLIDTTED FINTNCITL STTTEMENTS-(continued) FOR THE FISCTL YETRS ENDED DECEMBER 28, 2010, DECEMBER 29, 2009 TND DECEMBER 30, 2008 CompanyoStores,oinofiscalo2010,ofiscalo2009oandofiscalo2008,orespectively,owhichopotentiallyosubjectsotheoCompanyotooaoconcentrationoofobusinessorisk.oIfothis...

  • Page 62
    ...JTMBT, INC. NOTES TO CONSOLIDTTED FINTNCITL STTTEMENTS-(continued) FOR THE FISCTL YETRS ENDED DECEMBER 28, 2010, DECEMBER 29, 2009 TND DECEMBER 30, 2008 Impairment of Long-Lived Assets -Long-livedoassets,oincludingoleaseholdoimprovements,oandootherofixedoassetsoareoreviewedoforoimpairmentoatoleast...

  • Page 63
    ...-(continued) FOR THE FISCTL YETRS ENDED DECEMBER 28, 2010, DECEMBER 29, 2009 TND DECEMBER 30, 2008 Intangibleoassetsosubjectotooamortizationo(primarilyofranchiseoagreements,oreacquiredofranchiseorightsoandoaofavorableoleaseoportfolioointangibleoasset recognizedoinotheopurchaseoofoJambaoJuiceoino2006...

  • Page 64
    ... INC. NOTES TO CONSOLIDTTED FINTNCITL STTTEMENTS-(continued) FOR THE FISCTL YETRS ENDED DECEMBER 28, 2010, DECEMBER 29, 2009 TND DECEMBER 30, 2008 Franchiseorevenueoisogeneratedofromothreeosources;oroyalties,odevelopmentofees,oandoinitialofranchiseofees. ... outlets....

  • Page 65
    ...) FOR THE FISCTL YETRS ENDED DECEMBER 28, 2010, DECEMBER 29, 2009 TND DECEMBER 30, 2008 Advertising Costs -Advertisingocostsoareoexpensedoasoincurredoandowereo$7....loss)oequalsonetoincomeo(loss....8omillionohaveobeenoexcludedofromodiluted weighted-averageosharesooutstandingoinofiscalo2010,...

  • Page 66
    ...-(continued) FOR THE FISCTL YETRS ENDED DECEMBER 28, 2010, DECEMBER 29, 2009 TND DECEMBER 30, 2008 Share-based compensation -TheoCompanyomeasuresoandorecognizesoalloshare-...Company...Reporting...Improving Disclosures about Fair Value Measurements (ASU No. 2010-06) (Included in ASC 820 ...

  • Page 67
    ... STTTEMENTS-(continued) FOR THE FISCTL YETRS ENDED DECEMBER 28, 2010, DECEMBER 29, 2009 TND DECEMBER 30, 2008 measurementodisclosuresoforoeachoclassoofoassetsoandoliabilities,oandodisclosuresoaboutotheovaluationotechniquesousedoinodeterminingofairovalueoforoLevelo2oor Levelo3omeasurements.oASUo2010...

  • Page 68
    ...continued) FOR THE FISCTL YETRS ENDED DECEMBER 28, 2010, DECEMBER 29, 2009 TND DECEMBER 30, 2008 theofranchiseeoisorequiredotoopayotheoremainingoone-halfoofotheoinitialofee.oAsoofoDecembero28,o2010,o32ostoresoareooperatingounderoaocurrentomulti....oSubjectotoothe Company'soapprovaloandotheofranchisee'...

  • Page 69
    ...STTTEMENTS-(continued) FOR THE FISCTL YETRS ENDED DECEMBER 28, 2010, DECEMBER 29, 2009 TND DECEMBER 30, 2008 5. TSSETS HELD FOR STLE...'soevaluationoandodueotootheochallengingobusinessoconditionsoandoresultingodeclineoinotheomarketopriceoofothe Company'socommonostock,...

  • Page 70
    ...ENDED DECEMBER 28, 2010, DECEMBER 29, 2009 TND DECEMBER 30, ...,o2010 isoasofollowso(inothousands): Tmortization Fiscal Year Expense 2011 2012 2013 2014 2015 Thereafter $ o o...o2009.oTheoequityoinoearningso(losses)orecognizedobyotheoCompanyoforoJJC Hawaii...

  • Page 71
    Table of Contents JTMBT, INC. NOTES TO CONSOLIDTTED FINTNCITL STTTEMENTS-(continued) FOR THE FISCTL YETRS ENDED DECEMBER 28, 2010, DECEMBER 29, 2009 TND DECEMBER 30, 2008 9. IMPTIRMENT, STORE LETSE TERMINTTION TND CLOSURE COSTS TND WORKFORCE REDUCTION Long-lived asset impairment ...

  • Page 72
    ...FISCTL YETRS ENDED DECEMBER 28, 2010, DECEMBER 29, 2009 TND DECEMBER 30, 2008 Gain/loss on Disposal of Other Assets ...,o2010,owereoasofollowso(inothousands): Fiscal Year Ending: 2011 2012 2013 2014 2015 Thereafter Totalominimumoleaseocommitments $ 29...

  • Page 73
    ... STTTEMENTS-(continued) FOR THE FISCTL YETRS ENDED DECEMBER 28, 2010, DECEMBER 29, 2009 TND DECEMBER 30, 2008 TheoCompanyoleasesocertainoequipmentoandosoftwareolicenseoofo$0.4omillionowhichoareoconsideredoasocapitaloleasesoandoareoincludedoinopropertyoand equipmentoonotheoconsolidatedobalanceosheets...

  • Page 74
    ... STTTEMENTS-(continued) FOR THE FISCTL YETRS ENDED DECEMBER 28, 2010, DECEMBER 29, 2009 TND DECEMBER 30, 2008 sharesoofoPreferredoStockobeoconvertedointoosharesoofoCommonoStockoifo(i)otheoCommonoStockotradingovolumeoaverageso150,000osharesoperotradingodayooveroa 30otradingodayoperiodoando(ii...

  • Page 75
    ...-(continued) FOR THE FISCTL YETRS ENDED DECEMBER 28, 2010, DECEMBER 29, 2009 TND DECEMBER 30, 2008 Preferred,ovotingoasoaoseparateoclass,owillobeoentitledotoohaveooneomemberoonotheoBoardotoofillotheoseat.oTheoabilityotooelectoanyomembersotootheoBoardobyothe holdersoofotheosharesoofoSeriesoB...

  • Page 76
    ...CONSOLIDTTED FINTNCITL STTTEMENTS-(continued) FOR THE FISCTL YETRS ENDED DECEMBER 28, 2010, DECEMBER 29, 2009 TND DECEMBER 30, 2008 OnoSeptembero11,o2008,otheoCompanyoenteredointooaofinancingoagreemento(theo"FinancingoAgreement")owithoVictoryoParkoManagement,oLLC,... Company'...

  • Page 77
    ...-(continued) FOR THE FISCTL YETRS ENDED DECEMBER 28, 2010, DECEMBER 29, 2009 TND DECEMBER 30, 2008 14. SHTRE-BTSED COMPENSTTION Stock... Options -TheoCompanyomaintainsothreeoshare-basedocompensationoplanso(collectively,otheo"Plans...

  • Page 78
    ... Year Ended December 28, 2010 Fiscal Year Ended December 29, 2009 Fiscal Year Ended December 30, 2008 Weighted-averageorisk-freeointerestorate Expectedolifeoofooptionso(years)... Life WeightedTverage Exercise Price WeightedTverage Exercise Price Range of Exercise Prices Number Outstanding Number ...

  • Page 79
    ...Plan.oRSUsoareochargedoagainstotheo2006oPlanoshareoreserveoonotheobasisoofooneoshareoforoeachounitogranted.oTheofairovalueoofoRSUsoisodeterminedobasedoonothe Company...(inothousands): December 28, 2010 December 29, 2009 December 30, 2009 Current Deferred Incomeotaxo(expense)obenefit...

  • Page 80
    ...) FOR THE FISCTL YETRS ENDED DECEMBER 28, 2010, DECEMBER 29, 2009 TND DECEMBER 30, 2008 TheodifferenceobetweenotheoeffectiveoincomeotaxorateoandotheoUnitedoStatesofederaloincomeotaxorateoisosummarizedoasofollows: December 28, 2010 December 29, 2009 December 30, 2008 Statutoryofederalorate...

  • Page 81
    ... FINTNCITL STTTEMENTS-(continued) FOR THE FISCTL YETRS ENDED DECEMBER 28, 2010, DECEMBER 29, 2009 TND DECEMBER 30, 2008 carryforwardoperiod.oAovaluationoallowanceoisoprovidedoforodeferredotaxoassetsowhenoitoiso"moreolikelyothanonot"othatosomeoportionoofotheodeferredotaxoassetowill notobeorealized...

  • Page 82
    ... YETRS ENDED DECEMBER 28, 2010, DECEMBER 29, 2009 TND DECEMBER 30, 2008 2006othroughoDecembero29,o2009oforotheoconsolidatedoreturn.oTheoInternaloRevenueoServiceo("IRS")ohasocompletedoitsoexaminationsoofotheosubsidiary'sofederal incomeotaxoreturnoforotheotaxoyearsoendedoJuneo29,o2004oandoJuneo28...

  • Page 83
    ... FISCTL YETRS ENDED DECEMBER 28, 2010, DECEMBER 29, 2009 TND DECEMBER 30, 2008 Theofollowingotableopresentsoassetsothatowereoaccountedoforoatofairovalueoonoaonon-...oTheseolawsuits,obroughtoino2009oand 2010,orespectively,oallegeotheoCompanyofailedotoocomplyowithovariousoCaliforniaolaborolaws...

  • Page 84
    .... NOTES TO CONSOLIDTTED FINTNCITL STTTEMENTS-(continued) FOR THE FISCTL YETRS ENDED DECEMBER 28, 2010, DECEMBER 29, 2009 TND DECEMBER 30, 2008 settlementsoforotwooofotheolawsuits,oeachoonoaoCaliforniaostatewideobasis.oTheosettlementsohaveobeenomemorializedoandoapprovedobyotheorespectiveocourts.oThe...

  • Page 85
    ...THE FISCTL YETRS ENDED DECEMBER 28, 2010, DECEMBER 29, 2009 TND DECEMBER 30, 2008 20. ...2010 Sixteen Weeks Ended Twelve Weeks Ended Twelve Weeks Ended Twelve Weeks Ended Tpril 20, (Dollars in thousands, except share and per share amounts) 2010 July 13, 2010 October 5, 2010 December 28, 2010...

  • Page 86
    ...2010, DECEMBER 29, 2009 TND DECEMBER 30, 2008 Fiscal Year 2009 Sixteen Weeks Ended Twelve Weeks Ended Twelve Weeks Ended October 6, 2009 Twelve Weeks Ended December 29, 2009 (Dollars...(0.23)o (0.23)o Earningso(Loss)operoshare: Basic Diluted Duringotheofourthoquarteroofofiscalo2010,...

  • Page 87
    ...,oandothatosuchoinformationoisoaccumulatedoandocommunicatedotoomanagement,oincludingoouroChiefoExecutiveoOfficero("CEO")oand ChiefoFinancialoOfficero... Management's Report on Internal Control Over Financial Reporting ...

  • Page 88
    ... REPORT OF INDEPENDENT REGISTERED PUBLIC TCCOUNTING FIRM TheoBoardoofoDirectorsoandoStockholders Jamba,oInc.: WeohaveoauditedoJamba,oInc.oandosubsidiarieso(theoCompany)ointernalocontrolooverofinancialoreportingoasoofoDecembero28,o2010,obasedoonocriteria establishedoin Internal Control-Integrated...

  • Page 89
    Table of Contents PTRT III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS TND CORPORTTE GOVERNTNCE InformationoregardingotheoDirectorsoofotheoCompanyoisoincorporatedohereinobyoreferenceofromotheoCompany'so2011oProxyoStatementotooStockholdersotoobe ...

  • Page 90
    Table of Contents PTRT IV ITEM 15. EXHIBITS, FINTNCITL STTTEMENT SCHEDULES Documentsofiledoasopartoofothisoreport: (1)oListoofoFinancialoStatements TheofollowingoconsolidatedofinancialostatementsoareoincludedohereinoinoPartoII,oItemo8oofothisoAnnualoReportoonoFormo10-K: ...

  • Page 91
    .... JAMBA,oINC. By: /s/ooooJAMESoD.oW HITEoooooooo James D. White Chief Executive Officer and President POWER OF TTTORNEY WeotheoundersignedoofficersoandodirectorsoofoJamba,oInc.,oherebyoseverallyoconstituteoandoappointoJamesoD.oWhiteoandoKarenoL.oLuey,ooroeitheroofothem, hisoattorneys-in-fact...

  • Page 92
    Table of Contents EXHIBIT INDEX Exhibit Filed Number Description Form File No. Exhibit Filing Date Herewith o3.1 o3... Companyoandovariousosuppliers. OfficeoLeaseoforotheopropertyolocatedoato6475oChristieoAvenue, Emeryville,oCAo94608,obyoandobetweenoJambaoJuiceoCompanyoand BayoCenteroOffice,...

  • Page 93
    Table of Contents Exhibit Filed Number Description Form File No. Exhibit Filing Date Herewith 10.5 10.6 ...Jamba,oInc.oandotheopurchasersoidentifiedothereino(includingoas exhibitsotheoFormoofoCertificateoofoDesignation,oFormoof RegistrationoRightsoAgreementoandoofoAmendmentoNo.o1otooRights Plan...

  • Page 94
    Table of Contents Exhibit Filed Number Description Form File No. Exhibit Filing Date Herewith 21.1 23.1 24 ListoofoSubsidiary. ConsentoofoIndependentoRegisteredoPublicoAccountingoFirm-KPMGoLLP PoweroofoAttorney,oincludedoonosignatureopageohereto. X X X X X X X 31.1 31.2 32.1 32.2 ...

  • Page 95
    EXHIBIT 21.1 LIST TF SUBSIDIARY Name of Company Jurisdiction of Incorporation Jamba Juice Company California

  • Page 96
    ... December 28, 2010, December 29, 2009 and December 30, 2008, and the effectiveness of internal control over financial reporting as of December 28, 2010, which reports appear in the December 28, 2010 annual report on Form 10-K of Jamba, Inc. /s/ KPMG LLP San Francisco, California March 14, 2011

  • Page 97
    ....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 98
    ....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 99
    ... 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 28, 2010, 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 100
    ...-OXLEY ACT OF 2002 In connection with the Annual Report of Jamba, Inc. (the "Company") on Form 10-K for the year ended December 28, 2010, 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...