Attached files
file | filename |
---|---|
8-K - FORM 8-K - JAMBA, INC. | v411630_8k.htm |
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”).
2. | Basis of Presentation |
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”).
2. | Basis of Presentation |
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.