Jamba, Inc. (NASDAQ:JMBA)
Q4 2016 Results Earnings Conference Call
March 20, 2017 08:30 AM ET
Dave Pace - CEO
Marie Perry - CFO
Alex Fuhrman - Craig-Hallum Capital Group
Colin Radke - Wedbush Securities
Greetings and welcome to the Jamba, Inc. Conference Call. At this time, all participants are in a listen-only-mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Ms. Marie Perry, Chief Financial Officer for Jamba. Thank you. Please go ahead.
Thank you, Michelle, and good morning. With me today on the call is Dave Pace, our Chief Executive Officer. During the call, Dave will provide strategic update on the business and I will review 2016 performance and 2017 outlook. We will open up the call for questions.
I would like to remind all listeners that the call is being broadcast and recorded live over the Internet at jambajuice.com. The webcast is available on our website; the replay will be available until April 10, 2017.
This conference call will include forward-looking statements with the meanings of the securities laws. The forward-looking statements will include discussions about the Company’s business outlook, anticipated financial and operating results, strategic priorities, and certain statements of our explanations and plans. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties that could cause our results to differ materially from those expressed or implied by the forward-looking statements. Such risks uncertainties and other factors include but are not limited to the forward-looking statements that are contained in the Company’s filings with the SEC, including the Risk section of the Form 10-K as supplemented in the Company’s Form 10-Q.
The Company does not assume any obligation to publicly release any revisions to the forward-looking statement discussed during the call. In addition, on the call, we will refer to certain forward-looking non-GAAP financial measures to help understand the Company’s financial performance and future results. The Company believes that providing these forward-looking non-GAAP measures to the investors provides investors with the benefit of viewing the Company’s performance using the same financial metric that the management uses to make many key decisions and understanding how the Company’s core business operations may perform and may look in the future. The Company is unable to provide quantitative reconciliations, because certain information needed to make a reasonable forward-looking estimate is difficult to predict and estimate and is often dependent on future events, which may be uncertain or outside the Company’s control.
And with that, I’ll turn the call over to Dave.
Thanks, Marie, and good morning, everyone.
Before I begin discussing the progress we’ve made, I want to address the delay in our financial reporting. It’s unacceptable the delay of filing of our financials. With that being said, we had unique situation this year as we transitioned leadership, strategy and physical infrastructure of our business. This transition has involved significant change for the entire organization, and as we transition the accounting and finance department, requiring an entirely new team, we need to be diligent and thorough in completing our reporting. And as a result, our yearend closing processes is taking longer than expected.
As I committed to you when I joined, we’ll take the best of Jamba’s heritage, leverage it and use it to make us better while leaving behind the unfulfilled promises that generated immense frustration. Driven by the widespread change and evolution of the business, there is a larger number of extraordinary transactions in 2016 that require more time to close the books effectively, a majority of which occurred in the fourth quarter such as the exit of our JambaGo platform.
We will provide updated guidance for 2016 and 2017 later on this call and will focus much of our discussion on the progress against our strategic objectives. This past week, I completed my year with Jamba as CEO. While I’m proud of the substantial progress we’ve made during that time, I also appreciate significant work yet to do.
When I arrived, I outlined an ambitious plan to reenergize and transform Jamba through a relevant and contemporized brand. Year one of that transition entails setting the stage and refocusing on our core retail business. May last year, only six weeks after my arrival, I announced that we would be relocating our support center from Emeryville, California to Frisco, Texas. The decision was made to accomplish four key objectives, lower ongoing occupancy costs for our support center; increase access to experienced food service talent; provided attractive cost of living for our team members; and locate centrally within the U.S. We completed the move on October 7th of last year, the day we opened our Frisco support center. Coupled with our physical relocation and our transition to an asset light franchise model, we also re-staffed more than 90% of our leadership and support organization. These changes have served as a catalyst for our transformation and will help us accelerate results in future.
New members of the leadership team include Marie Perry as CFO, Rachel Phillips moved as Chief Marketing Officer; Joe Thornton, Chief Operations Officer; Laurie Winward, VP of Research and Development; Doug O’Brien, VP Supply Chain; Todd Wilson, VP Finance and Investor Relations, Bora Dincer, VP IT; Danny Sullivan, VP of Digital; and Josh Nicosia, VP Legal Affairs and Franchise Development. In fact, only one of our current VP level position is occupied by a former member of the California team, Arnaud Joliff, Chief Systems Officer and SVP International.
Last spring, we also outlined the five core strategies that will drive our path to success. They include establishing customer and store centric operating environment; build an iconic global brand; drive sales and transactions through innovation; improve store profitability through simplification; and expand our global footprint. Focus on each of these core strategies but most importantly our strategy to create a customer and store centric operating environment, it was important that we evaluated and removed all non-core initiatives and distractions. As discussed previously, that included our exit from the JambaGo platform. In Q4, we continued to clear away those non-core activities by refranchising our Emeryville store and closing our Innovation Store in Pasadena.
Innovation activities are now being led by our new VP of R&D and are managed within our test kitchen at our Whirl’d Support Center in our onsite store in Frisco. Also in 2016, we have identified that improving store level margins would be a priority for the year. During the year, we identified that we did not have the profitability of month-to-month store level P&L performance for company-owned stores. And as a result, we failed to quickly see or react to deviations in labor management and other operating expenses which had a negative impact of 250 to 300 basis points in 2016. As a result of the misses in the store level margins and labor management, we’ve revised our monetary processes, conducted detailed store level analyses to identify margin opportunities by store docile and eventually took specific action plans to significantly include the overall margin performance in 2017. It is our expectation that Company store level margins will improve to some 300 to 400 basis points from 2017 to a full year target of 11 to 12%.
In addition to these systemic changes, we’ve changed leadership over our operations team. Last week, we announced the appointment of Joe Thornton as SVP and Chief Operations Officer. Joe joins the Jamba team from Starbucks. For over the last 11 years he’s held series of operations roles for both company stores as well as licensed stores. Most recently, Joe led the Licensed Store segment for more than 1,800 Starbucks outlets. Prior to Starbucks, Joe spent 14 years with Blockbuster Video where he held leadership positions in store operations, operations services and franchise support. Joe’s deep operations background, people first cultural orientation and drive for results make uniquely qualified to take on this critical role within Jamba team. We look forward to his contributions as he begins this transition into the business.
As we moved out of 2016 and into 2017, we exited the phase setting the stage and have entered a new phase in our transformation where we’ll be introducing new elements of our strategy in order to test and prove each activity and gain the confidence required to extend these across our system. This will include initiatives within each of our core strategies and are grounded and our recommitment to our core equity of blending.
The next core strategy that I’d like to discuss is build an iconic global brand. Entering 2017, we realized our brand and product strategy with our 27-year old mission to inspire and simplify healthy living. Our revised brand strategy will highlight why blending is better, why Jamba is better and ultimately while life is better blended.
In the fourth quarter of 2016, we formalized the partnership with celebrity trainer, nutritionist and blending expert Harley Pasternak. Harley is New York Times best-selling author of The Body Reset Diet. This partnership led to the recent introduction of our Super Blend Smoothies, which have the lowest sugar content on our smoothie menu and offer an ideal balance of protein, fiber and healthy fats. This balance means that each of these Super Blend Smoothies can be used as a complete meal replacement.
Our partnership with Harley has opened the door to a significant increase in social engagement, which is up 231% and a wide representation of contemporary media including Shape Magazine Entertainment Tonight and Us Weekly among others. Tomorrow morning, we’ll be featured along with Harley on a prime time Good Morning America segment highlighting the benefits of blending. In addition to these appearances, Jamba was once again parodied on a recent segment of Saturday Night Live, reprising an appearance that we made 10 years ago on the same ago and demonstrating the continued relevance of the brand. While recognition like this is appreciated and certainly fun to see, we still have considerable work to do as we focus on our vision to inspire simplified healthy living.
The third core strategy is driving sales through innovation. During the past several years, Jamba’s marketing approach centered largely around product innovation and discount. However, to effectively reenergize the brand, it’s critical that we refresh the overall experience to our guest and define innovation much more broadly. As we recommit to our roots of blending, we’ll communicate and reinforce with our guests the benefits of blending and the Jamba is the perfect place to experience those benefits.
During the first week of April at our Franchise Leadership Conference, we will introduce a new Jamba prototype, the Jamba Blend Bar. This new approach to the blending platform will allow us to highlight the benefits of blending through contemporized experience relevant to our current guests, millennials and Gen V guests of the future. Blend Bar concept will offer a modern look and enhanced sensory experience, elevating and differentiating the Jamba brand. This new guest experience will incorporate all centers including look, texture and taste, sound, smell, and focus on using blending as a platform for innovation. A select number of our franchise and company assisted stores will begin conversions in Q2 to allow us to test and learn more about the consumer, operational and financial impact of the Blend Bar prototype. We will report back on the results that we see as these tests progress.
Beyond the Blend Bar, we remain focused on improving convenience for Jamba guests. With that in mind, last week, we initiated a 15-store delivery test with our Texas franchise partner Alameda Juice and delivery service provider Favor. We plan to extend the delivery test to the California in April and to additional markets across our system during the second quarter. In addition to delivery, we’re finalizing a comprehensive catering program. Program was developed with input from experts in the catering segment and with business and social consumers in mind. While more brands are offered catering options, Jamba is uniquely positioned to meet demand for healthier options for breakfast and snack day parts in the B2B market. Specifically, our new Jamba bowl bar will provide guests with a base style smoothie bowl bar, including a variety of fresh toppings, allowing them to create their ideal bowl. Market tests will begin in Q2 and we’re targeting a subsequent system-wide rollout later in the year. Under our strategy, improved store level profitability and simplification, we also continue to make progress. To facilitate our entry into delivery and catering to more effectively cultivate our digital ecosystem, we’ve made a decision to hire a VP of Digital. Danny Sullivan will join us effective March 27th and will head our efforts to enhance our digital platform, remove redundancies, lead application integration and improve digital reporting capabilities. In addition, he’ll lead the development of future state digital initiatives to enhance the guest experience and improve the efficiency of our operating systems including labor optimization initiatives in partnership with our ops team.
Sullivan has recently served as consultant for Jamba in coordination with our IT to assess our digital readiness and has since been defining a digital roadmap. Prior to working with Jamba, he held a series of senior digital leadership roles with Gap Inc, Sephora and most recently with Pizza Hut. We’re excited to have someone with Danny’s combination of strategic insight, technical skills and commercial acumen leading this critical element of our future.
While our digital transformation along with catering and delivery will both improve productivity and enhance convenience of Jamba, core store development will remain the primary vehicle for our final strategy to extend the global footprint. Store development is an area where we’ve also deepened our understanding and refocused our assets.
In 2016, we opened 75 gross new stores, 56 domestic and 19 international. This resulted significantly below our previously communicated target of approximately 95 gross new openings. As we work to understand the miss, we found that our tracking processes were providing insufficient visibility and our project management approach did not allow us to deliver committed targets on time. As a result, we restructured our approach, realigned responsibilities and replaced the senior leadership of our development team. In addition to these changes, we performed a more comprehensive analysis to understand the true value and contribution of each store format in order to focus our efforts to ensure the highest value creation for the Company for our mix of new store formats, traditional, non-traditional, drive thru and Express. This new approach will provide a more accurate assessment of value creation versus our historic approach of simply sharing overall store counts, since not all formats create equal value.
During 2016, we opened two new drive thru stores and continued to see significant upside in this format. Five drive thru stores on our system today have generated sales that indexed 210% of our standard predictive model by providing easier and more convenient access to our guests. During 2017, we’ll be accelerating our expansion of new drive thrus with the addition of six to eight new stores. Franchisees and consumers have enthusiastically embraced the Jamba drive thru format, and growth is largely limited by access to appropriate real estate.
The increased sales levels in the drive thru format result in improvements in both store level margins and the total investment economics. Beyond drive thrus, we’re ensuring the focus remains on expansion of our traditional and non-traditional formats. We will be deemphasizing focus on Express stores as they deliver a significantly smaller contribution and a different brand experienced in the traditional and non-traditional stores. Going forward, we’ll provide overall store guidance on traditional, non-traditional and drive thru formats only and will no longer include Express stores. Express store expansion will continue but at a slower rate as primarily strategy for unique and specific opportunities. We’ll also continue to report closures to ensure visibility to net new system openings.
Internationally, we also continue to make progress to expand our global footprint. During 2016, substantially completed the exit from Mexico and Canada, and have focused our efforts on our business in Asia and the Middle East. Arnaud Joliff who assumed the responsibility for international in the middle of 2016 has conducted business reviews with each of our international franchisees and certainly remained aligned in our approach to discipline and profitable expansion in these markets. We’ll also explore a new franchisee interest and market opportunities within the Asia region.
Finally, we continue to work with new and existing franchisees to optimize our franchise portfolio. We’re engaged in a series of exploratory discussions to both expand the holdings of current franchisees and introduce new franchisees in the Jamba system. Further announcements we will be made as transactions are completed. This means that for 2017, the midpoint of our revised development plan for 65 to 75 new store openings is comprised of 50 domestic openings to include the six to eight drive thrus I mentioned earlier and 20 international openings. We also anticipate roughly 40 closures during the year, slightly reduction in gross new store guidance, the growth in system sales and thus royalty income will be greater as a result of the shift to higher value format and improvements in net new store growth.
In summary, this new team at Jamba has moved swiftly and cleared away the distractions and refocused the business on its core equity of blending and delivering a compelling and differentiated retail guest experience. We’re beginning to test highly-focused initiatives to contemporize and enhance the Jamba experience. And while undoubtedly, there will be revisions along the way, we remain confident that we have the vision, the plan and the team to execute a successful transformation, accelerate results and secure Jamba as the lead within better for you handcrafted blends.
With that, I would like to turn it over to Marie to discuss 2016 and the outlook for 2017 in more detail.
Thank you, Dave. In our release this morning and in Dave’s comments, you heard the reasons for the delay in filing. I would like to start by providing an update on the steps we are taking to complete the 2016 audited financial statement and the 10-K filings. To address this head on, we have added additional accounting resources to support the workload and secure the team in Emeryville through the ultimate filing date. In addition, we are tracking progress daily, addressing issues in real time. This is my number one priority with every effort being made to ensure an accurate filing as soon as practical. From an overall infrastructure perspective, we are evaluating the most effective way to invest in our accounting teams and processes during 2017 and beyond.
Later today, we will submit an extension to file the 10-K. The extension will provide an additional 15-day period through April 4, 2017. Based on the extent of work yet to be completed, we do not anticipate filing the 10-K within the 15-day window. However, we do expect to file in April with the timing contingent on completing the financial statements and the subsequent audit.
While there is much work to be done to complete the various steps through the 10-K filing, we believe it is important to share with you updated guidance for 2016. Based on the information available to us today, the intent is to provide some level of insight into the business results, absent audited financials.
As such, our updated guidance for 2016 is total revenues to meet or exceed our prior guidance of approximately $78 million; non-GAAP adjusted G&A of $23.3 million to $23.8 million versus our prior guidance of approximately $22.5 million. The increase is primarily due to higher forecasted IT related expenses and other professional fees. Non-GAAP adjusted EBITDA that meets or exceeds our prior guidance of approximately $10.5 million.
Moving on to liquidity, we ended the year at $7.1 million in cash and cash equivalents, down from $14.3 million at the end of the third quarter. Decrease of cash results primarily from the transition of the support centre to Frisco of $2.8 million, seasonally low sales levels of $2.5 million and four unusual health insurance claims that impacted us as we are self-insured, of $1 million.
With the transition cost and cost related to clearing away historical distractions mostly behind us, we expect the business and the business model to produce significant free cash flow as designed, especially as we head into our seasonal summer strength. In the press release, our 2016 full year system-wide comp sales was relatively flat, reported down 0.2%. Fourth quarter 2016 system-wide comp sales decreased 2.2%, which is better than our prior expectations and exceeded the Knapp-Track Fast Casual benchmark for the third consecutive quarter.
While it is our policy not to comment on current quarter trends, we believe the historic rain and flooding in our primary geography of California and on the West Coast in January and February warrants an update. 69% of our domestic store base is in California, Arizona, Idaho, Nevada, Oregon and Washington. We observed meaningful negative comp sales trends in these states in January and February. Encouragingly, the majority of the remaining domestic store base posted positive comp sales during the same time. Additionally, with the return to more normalized weather patterns, we have seen a marked improvement in March comp store sales. Our 2017 expectations for comp sales performance always contemplated a ramp up through the year. As the marketing programs take root and sales driving programs like delivery and catering are tested and deployed across the system.
While the weather in the first two months of the year will depress Q1 comp sales, we have seen enough green shoots to remain committed to our sales expectations for the balance of the year. Our updated full year 2017 guidance as compared to our preliminary 2017 guidance provided on November 4th is total revenue of 75 to $77 million versus our prior guidance of 78 to $80 million. Since our previous guidance, we made decisions to close the Innovation Store in Pasadena and refranchise the Emeryville store. These two changes drove approximately $2 million of the reduction in guidance. The remainder reflects net impact of detrimental weather in Q1 comp sales and the benefit from the residual amount of JambaGo revenue in Q1 that was not previously expected.
We now expect annual system-wide comp sales that are flat to slightly positive. This is reduced from our prior guidance of an increase of 2% to 4% and only reflects the reduction contribution of Q1. We have not changed our expectations for Q2 through Q4. The new store openings in the range of 65 to 75 gross and 25 to 35 openings net of closures; this is compared to our prior guidance of approximately 110 gross and 65 net of closures. As Dave stated previously, subsequent to our initial guidance, we made the decision to remove Express format stores from our guidance figures as they deliver smaller financial contributions than our other format. In addition, we believe the revised algorithms of our new store forecasting more accurately signals a lower store opening rate in 2017.
Non-GAAP adjusted G&A of approximately $21 million exiting 2017 with the run-rate of no more than $20 million, which is in line with our prior guidance. We now expect non-GAAP G&A EBITDA in the range of $13 million to $15 million versus our prior guidance of $14 million to $16 million. This reflects the reduced contribution from Q1 comp sales. Finally, we expect capital expenditures in the range of $3 million to $4 million.
The key forecasted drivers of our year-over-year growth in non-GAAP adjusted EBITDA from 2016 to the mid-point of 2017 guidance are anticipated as follows, approximately $2 million from sales growth due to comp sales, new stores, closures, refranchising activities; approximately $1.1 million benefit from reduced G&A expense, approximately 1.6 benefit from the combination of cost inflation and deflation, operating efficiency expectations, increased gift card breakage, and reduced franchise and operating expense. This is primarily offset by an estimated $1.2 million reduction in JambaGo contribution.
With that, I’ll turn the back over to Dave.
Before I turn the call over to our operator for questions, just like to take a moment to thank Jamba team for very busy and productive 2016 and to our franchise community for their strong support in the challenges and changes that we made already and will continue to implement. I could not be more energized and ready for a more successful 2017 and beyond.
With that I want to open the call for questions. So, operator, you can take it from here.
Thank you. We’ll now be conducting a question-and-answer session. [Operator Instructions] Our first question comes from the line of Alex Fuhrman with Craig-Hallum Capital Group. Please proceed with your question.
Great, thank you very much for taking my question. I was hoping to get a little bit more color on the lower forecasted store openings in 2017, wondering if you could quantify how much of that difference from your prior guidance is because of the Express format. And just more broadly, with the Express format no longer being prioritized here, can you comment on how much you think the overall potential is for total number of stores globally and does the discontinuation so to speak of the Express format change any of your thinking long-term there?
Yes. Thanks, Alex. Good morning. I don’t think this changes our overall view of the long-term for the brand. I think the opportunity is just there. This is just a revised update on our ability to focus on visibility of the pipeline quite frankly. The Express units offer a different experience and a different model and contribution. So, I just -- one of the things I’ve committed to you guys and said I’m going to be transparent in our pipeline and what gets developed. We only have 47 Express units today. We had I think 10 opened last year. So, I mean it’s not a big format for us. They only contribute on average about $3,000 a year per unit. So, it’s a very small contribution. And I just thought it was insignificant amount relative to what we should be focused on which are traditional, non-traditional and drive thrus. So, it doesn’t really change from that standpoint.
The reduction in guidance is really I think a reflection of what is a realistic pipeline right now. We still have a lot of interest. We’re still in discussions with a lot of franchisees who are building internally as well as new franchisees. But, given our historical trend, and I went back and looked at new store openings, net new store openings for the last several years, I just thought that what had been putting out previously had been overly aggressive relative to the algorithm that a normal pipeline would show. That normal pipeline starts with a big number; and as you work through the years, there’s fallout and yields fall out and construction gets delayed, LOIs are not converted into leases, things like that. And so, I just thought, as we look into the detail of this, this is a much more accurate way to look at the current pipeline. So, I don’t think it changes the long-term view at all, Alex.
Great. That’s really helpful. Thank you. And then, just thinking about the opportunity with drive thru, and you mentioned six to eight coming on line in 2017. Are those all, I imagine, new stores for you? And then, just looking out at the landscape in the markets where your franchisees already have a presence, what is the potential for drive thrus in terms of the real estate and zoning that’s already out there? Is that a format that could be much larger for you?
In my opinion, there’s no question that drive-thru can be much larger; I think the consumer demand at least that’s where it’s going, but I think Jamba’s behind in the curve of where we stand in drive thrus. And I think we need to get out there and start securing each real estate much more aggressively than we have previously. The good news that our franchisees and customers just embraced this, and so the forecasting models and while we’re still trying to look behind our internal forecasting models, our forecasting models, we’re beating with the new stores that we’re opening and we’re very confident about these. So, really the only limitation on the expansion of drive thrus is access to real estate because everybody wants drive thrus, so everybody wants that endcap, they want that drive through going. So, consequently rents are higher in access is more challenging. But, we’re getting in that game and getting into it aggressively and our franchisees have embraced the concept and are out there looking for it as well.
That’s great. Thank you very much and good luck this year.
Thank you. Our next question comes from the line of Colin Radke with Wedbush Securities. Please proceed with your question.
Hi. Thanks for taking my question. So, maybe first of all, just on, in terms of pricing what was that in Q4 and what level of pricing are you contemplating in your guidance for 2017?
Yes. I can let Marie jump on as well, but in Q4, we had zero pricing in the fourth quarter, we have company, we have 2.1% pricing in 2017. And we expect our franchisees be in the same ballpark, although they -- we can provide guidance and recommendations to that and then they actually do their own pricing. But for us it’s 2.1% in 2017.
And the one thing I will add is that price is actually taken in January.
Got it. Okay. And then, I didn’t see anything in the press release about the Chicago stores. Could you just provide an update on your plans for those? And as it relates to guidance, are you assuming you own those stores for the full year and if so, maybe what’s their EBITDA contribution?
Yes. We do have -- the assumption is that they are in the plan for the full year. Although, as we discussed on previous calls, it’s still our attention to refranchise these -- refranchise those and we are in discussions. We were not at a point where it was appropriate to kind of announce something, but I anticipate that we’ll be able to refranchise those stores. The contribution on those stores is actually zero. While they’ve improved considerably, it’s on a full year basis an EBITDA basically breakeven.
Got it. Okay. Just on the, innovation bar, I think that was a location that had only been open around maybe six months. So, I guess why close that now so soon after opening it? And secondarily, what are the takeaways from that unit; what is you maybe find that worked or what didn’t work?
Well, few things on that. That was an initiative that I inherited when I came on board that was well underway. Just to be clear, it was overinvested in, so it was too much capital put in, the rents were too high. We put a menu in that was diverse that was try and innovate and extend the guest experience. But it required unusual level of support and attention to maintain the menu, and to create the menu. The labor model within the store was not efficient. So, those -- we got this thing opened. But, it apparent very quickly that it was not a model that was sustainable and publicly more importantly there were not elements that we thought would be extended across the system. So, my objective with that store was if it can’t be extended across the Jamba system, then I didn’t understand why we were doing it in the first place. So, we looked at it; there were considerable losses being taken from that store. Our support center had moved halfway across the country. We had an R&D center and a store and the support center where we could do R&D. And so, to cut our losses, get out of it and move on to the future. So I think the lesson in terms of -- to your question about what could be learnt going forward is that you’re going to do these things; you have to them with a specific purpose and specific strategy. You have to do them with the intention of testing elements that you believe if successful can be expanded across the majority of the system. And I think those guardrails were absent in that concept store and along with the significant financial impact, it’s a lesson that we should learn and be very careful of before we go forward.
And with our job [ph] here in the headquarters and then our R&D center, we actually will have the opportunity as Dave already mentioned in his prepared remarks to do a lot of R&D here locally.
Okay. Got it. Yes, that makes sense. Maybe just last one for me. I appreciate the color on EBITDA waterfall. There were couple of items that were sort of bucketed together. What is the expectation for the contribution from the Jamba card breakage income in 2017?
It’s approximately $800,000.
Got it. Okay. Thank you very much.
Thank you. There are no further questions at this time. I would like to turn the call back over to Mr. Pace for closing remarks.
Thanks, operator. And thank you everyone for joining the call. I appreciate the opportunity to update you on where we stand. And we look forward to our next call which will be after our Q1 results in May. With that, we’ll end the call. Thank you.
This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation and have a wonderful day.
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