Juice retailer Jamba rebounds to a 3Q profit

EMERYVILLE, Calif. - Juice retailer Jamba Inc. said it made money in the third quarter, as cost-cutting helped it reverse a year-ago loss despite lower revenue.

The company said Wednesday it earned $2.1 million, or 4 cents per share, in the quarter ended Oct. 6. It lost $12.4 million, or 23 cents per share, in the same quarter last year.

Revenue fell 8 percent to $79 million from $86.1 million. Sales at locations open at least a year, an important retail metric known as same-store sales, dropped 5.3 percent.

Jamba sliced 22 percent off operating costs, a savings of more than $21 million, with the largest numbers coming out of labor and administrative expenses.

CEO James D. White said the company was hindered by the weak economy and high unemployment in California, where many Jamba stores are located. He said stores that sell food — about half the chain — performed better than those selling only drinks.

Jamba said for 2010 it planned to boost gross profit same-store sales and add up to 50 franchise locations. It said earnings before interest, taxes, depreciation and amortization would be 5 to 7 percent.

The chain, which sells fruit smoothies and juices at its Jamba Juice Company stores, opened 10 new franchise locations and one company-owned store in the third quarter. It finished the quarter with 742 stores.

Jamba shares rose 3 cents to close at $1.69 in regular trading, then gained 26 cents to $1.95 in extended trading after the release of results.

Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.