Market Overview

Jamba, Inc. Reports Results for the Second Quarter of Fiscal 2018

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Jamba, Inc. (NASDAQ:JMBA) (the "Company") today reported unaudited
financial results for the fiscal quarter ended July 3, 2018 ("second
quarter").

Highlights for second quarter 2018:

  • Total Revenue increased $4.0 million to $24.5 million, primarily due
    to changes resulting from adoption of new accounting standards. The
    Company adopted Accounting Standards Update No. 2014-09, Revenue from
    Contracts with Customers (Topic 606) ("new accounting standards"),
    effective January 3, 2018. See the "Adoption of New Accounting
    Standard" section below for additional information.
  • System-wide comparable store sales increased 2.2%.
  • Comparable store sales increased 2.4% at franchise-owned stores and
    decreased 0.3% at company-owned stores.
  • Non-GAAP System-wide Sales increased $4.9 million, to $144.7 million.
  • Net loss was $0.3 million, versus income of $1.7 million last year.
  • Non-GAAP Adjusted EBITDA was $4.6 million compared to $5.1 million
    last year.
  • Held $9.1 million in cash and had no outstanding principal balance on
    its line of credit, as of July 3, 2018.

CEO Comments

Dave Pace, President and Chief Executive Officer, stated: "The
revitalization of the Jamba business continued in the second quarter.
Our commitment to a standard of operating excellence across the
franchise and company owned portfolio, ongoing work to contemporize the
overall experience, and a new marketing communication strategy drove a
third consecutive quarter of comparable store sales growth."

Pace continued, "The announced transaction with Focus Brands was only
possible due to the significant progress made in resetting the
foundation of the business to materially improve performance over the
past several quarters."

Pace concluded: "We have now positioned the Jamba brand for renewed
sustainable growth by enhancing the customer experience, driving
transaction growth, increasing store level margin, and building the
momentum behind our new store pipeline. I continue to be optimistic
about the performance of the brand and look forward to seeing this
progress continue under Focus Brands ownership."

Merger Update

As previously announced, on August 1, 2018, the Company and Jay Merger
Sub, Inc., a wholly owned subsidiary of Focus Brands Inc. ("Focus"),
entered into a merger agreement providing for the acquisition of the
Company by Focus for $13.00 per share in an all-cash transaction. Focus
is a leading developer of global multi-channel foodservice brands.
Through its affiliate brands, Focus is the franchisor and operator of
more than 5,000 restaurants, cafes, ice cream shoppes and bakeries
in the United States, the District of Columbia, Puerto Rico and over 50
foreign countries under the brand names Carvel®, Cinnabon®,
Schlotzsky's®, Moe's Southwest Grill®, Auntie Anne's® and McAlister's
Deli®, as well as Seattle's Best Coffee® on certain military bases and
in certain international markets. Please visit www.focusbrands.com to
learn more.

The Company expects the transaction to close during the third quarter of
2018, subject to tender of at least a majority of the issued and
outstanding Shares and other customary closing conditions.

Additional information about the Merger Agreement and the related
transactions can be found in the Company's Current Report on Form 8-K
filed with the Securities and Exchange Commission on August 2, 2018.

In light of the pending merger, the Company will not be updating its
guidance for fiscal 2018 and will not be hosting a conference call to
discuss its second quarter 2018 business results.

Liquidity

The Company held cash of $9.1 million as of July 3, 2018.

The Company used $0.6 million of cash in the second quarter of 2018 to
pay incremental audit and expenses related to the effort required to
complete past due filings. The Company anticipates the usage of cash
related to these efforts is substantially complete, however does
anticipate cash usage for expenses related to the transaction with Focus.

The Company had not drawn against its line of credit, and had no
outstanding principal balance as of July 3, 2018.

Adoption of New Accounting Standard

The Company adopted Accounting Standards Update No. 2014-09, Revenue
from Contracts with Customers (Topic 606), on January 3, 2018 using the
modified retrospective transition method. Information from prior year
periods has not been adjusted and continues to be reported under the
accounting standards in effect for those periods under Topic 605 "Revenue
Recognition
".

Refer to the Jamba, Inc. Form 10-Q filing for the quarterly period ended
July 3, 2018 for additional information.

About Jamba, Inc.

Jamba, Inc. (NASDAQ:JMBA) through its wholly-owned subsidiary, Jamba
Juice Company, is a global healthy lifestyle brand that inspires and
simplifies healthful living through freshly blended whole fruit and
vegetable smoothies, bowls, juices, cold-pressed shots, boosts, snacks,
and meal replacements. Jamba's blends are made with premium ingredients
free of artificial flavors and preservatives so guests can feel their
best and blend the most into life.

Jamba Juice® has more than 800 franchised and company-owned locations
worldwide, as of July 3, 2018. For more information, visit www.jambajuice.com.

Notice to Investors

The proposed acquisition of the Company (the "tender offer") by Focus
Brands Inc., a Delaware corporation ("Parent") and Jay Merger Sub, Inc.,
a Delaware corporation and a wholly owned subsidiary of Parent ("Merger
Sub"), described in the press release has not yet commenced. This
communication is for informational purposes only and is not a
recommendation, an offer to purchase or a solicitation of an offer to
sell shares of Company stock. At the time the tender offer is commenced,
Merger Sub will file a tender offer statement and related exhibits with
the U.S. Securities and Exchange Commission (the "SEC") and the Company
will file a solicitation/recommendation statement with respect to the
tender offer. Investors and stockholders of the Company are strongly
advised to read the tender offer statement (including the related
exhibits) and the solicitation/recommendation statement, as they may be
amended from time to time, when they become available, because they will
contain important information that stockholders should consider before
making any decision regarding tendering their shares. The tender offer
statement (including the related exhibits) and the
solicitation/recommendation statement will be available at no charge on
the SEC's website at www.sec.gov.
In addition, the tender offer statement and other documents that Merger
Sub files with the SEC will be made available to all stockholders of the
Company free of charge from the information agent for the tender offer.
The solicitation/recommendation statement and the other documents filed
by the Company with the SEC will be made available to all stockholders
of the Company free of charge at www.ir.jambajuice.com.

Forward-Looking Statements

This press release (including information incorporated or deemed
incorporated by reference herein) contains "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements are those involving future events and
future results that are based on current expectations, estimates,
forecasts, and projections as well as the current beliefs and
assumptions of the Company's management. Words such as "believes",
"expects", "appears", "may", "will", "should", "anticipates", or the
negative thereof or comparable terminology, are intended to identify
such forward-looking statements. Any statement that is not a historical
fact, including estimates, projections, future trends and the outcome of
events that have not yet occurred, is a forward-looking statement.
Forward-looking statements are only predictions and are subject to
risks, uncertainties and assumptions that are difficult to predict.
Therefore actual results may differ materially from those expressed in
any forward-looking statements. These statements include, but are not
limited to risks and uncertainties relating to among other things,
statements about the potential benefits of the proposed transaction; the
prospective performance and outlook of the surviving company's business,
performance and opportunities; the ability of the parties to complete
the proposed transaction and the expected timing of completion of the
proposed transaction; as well as any assumptions underlying any of the
foregoing. Forward-looking statements are based on management's current
expectations, beliefs, estimates, projections and assumptions. As such,
forward-looking statements are not guarantees of future performance and
involve inherent risks and uncertainties that are difficult to predict.
As a result, actual future results and trends may differ materially from
what is forecast in forward-looking statements. The following are some
of the factors that could cause actual future results to differ
materially from those expressed in any forward-looking statements: (i)
uncertainties as to the timing of the tender offer; (ii) the risk that
the proposed transaction may not be completed in a timely manner or at
all; (iii) the possibility that competing offers or acquisition
proposals for the Company will be made; (iv) uncertainty surrounding how
many of the Company's stockholders will tender their shares in the
tender offer; (v) the possibility that any or all of the various
conditions to the consummation of the tender offer may not be satisfied
or waived, including the failure to receive any required regulatory
approvals from any applicable governmental entities; (vi) the
possibility that prior to the completion of the transactions
contemplated by the merger agreement, the Company's business may
experience significant disruptions due to transaction-related
uncertainty; (vii) the occurrence of any event, change or other
circumstance that could give rise to the termination of the merger
agreement; (viii) the risk that stockholder litigation in connection
with the proposed transaction may result in significant costs of
defense, indemnification and liability; and (ix) other factors as set
forth from time to time in the Company's filings with the SEC, including
its Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q, as
well as the tender offer statement, solicitation/recommendation
statement and other tender offer documents that will be filed by Parent,
Merger Sub and the Company, as applicable. You are cautioned not to
place undue reliance on these forward-looking statements, which speak
only as of the date hereof. Parent, Merger Sub and the Company do not
undertake any obligation to update or publicly release any revisions to
any forward-looking statements to reflect events, circumstances or
changes in expectations after the date of this communication.

Non-GAAP Financial Measures

The Company provides certain Non-GAAP financial measures to its
investors. The Company believes that providing these Non-GAAP measures
to its investors provides investors the benefit of viewing the Company's
performance using the same financial metrics that the management team
uses in making many key decisions and understanding how the Company's
core business operations may perform and may look in the future. The
Non-GAAP financial measures are discussed further below.

Non-GAAP financial measures are not in accordance with, or an
alternative for, generally accepted accounting principles in the United
States of America. Non-GAAP measures should not be considered in
isolation from or as a substitute for financial information presented in
accordance with generally accepted accounting principles, and may be
different from Non-GAAP measures used by other companies.

The following definitions apply to these terms as used in this
release:

Blended royalty rate is defined as total royalty dollars divided
by total franchise sales dollars, as reported by franchisees.

Company-owned comparable store sales represents the change in
year-over-year sales for Company-owned stores opened for at least one
full year. Franchise-operated comparable store sales, a Non-GAAP
financial measure, represents the change in year-over-year sales for all
Franchise Stores opened for at least one full year, as reported by
franchisees, and excludes International Stores and Express format. System-wide
comparable store sales
, a Non-GAAP financial measure, represents the
change in year-over-year sales for all Company and Franchise Stores
opened for at least one full year, as reported by franchisees, and
excludes International Stores and Express format. Comparable store sales
includes closed locations for the periods in which they have comparable
sales. Company-owned comparable store sales percentages as used herein
may not be equivalent to Company-owned comparable store sales as defined
or used by other companies. Franchise-operated comparable store sales
percentages and System-wide comparable stores sales percentages as used
herein are Non-GAAP financial measures and should not be considered in
isolation or as substitute for other measures of performance prepared in
accordance with generally accepted accounting principles in the United
States. Management reviews the increase or decrease in comparable store
sales compared with the same period in the prior year to assess business
trends and make certain business decisions. The Company believes the
data is useful in assessing the overall performance of the Jamba® brand
and, ultimately, the performance of the Company, the Company-owned
stores, and Franchise-operated stores.

Company owned store level margin equals Company store revenue,
less the sum of, cost of sales, labor, occupancy, and store operating
expenses. This total is then divided by Company store revenue.

Domestic system-wide sales are the sum of company-operated
restaurant revenue and sales from domestic franchised stores. Our total
revenue in our consolidated statements of operations is limited to
company-operated store revenue, franchise revenue from our franchisees,
and other revenue. Accordingly, domestic system-wide sales should not be
considered in isolation or as a substitute for our results as reported
under GAAP. Management believes that domestic system-wide sales are an
important figure for investors, because they are widely used in the
restaurant industry, including by our management, to evaluate brand
scale and market penetration. We have included a reconciliation of
domestic system-wide sales to total revenue.

New store openings, net of closures is defined as the count of
new store openings, minus the count of store closures.

Non-GAAP Adjusted EBITDA is equal to net income, adjusted for:
(a) depreciation and amortization; (b) interest income; (c) interest
expense; (d) income taxes; (e) impairment expense; (f) stock based
compensation expense; and (g) other one-time or extraordinary items that
are not reflective of the ongoing business such as legal settlements,
expenses related to the extended audit and gain or loss on disposal of
assets. The Company believes this metric is useful in measuring the
operating performance of the Company.

Non-GAAP Adjusted EBITDA margin percent is defined as Adjusted
EBITDA divided by Total Revenue.

Non-GAAP Adjusted General and Administrative ("G&A") expense
is calculated as general and administrative expense in accordance with
GAAP excluding refranchise and severance costs associated with the move
to an asset-light business model, charges related to the executive
organization changes, costs due to the Company's corporate office
relocation to Frisco, Texas, and other non-recurring general and
administrative expenses. The Company believes that general and
administrative expense adjusted to exclude the costs of such items is a
helpful indicator of the Company's operating performance in that it
shows the net expense without the impact of what the Company believes to
be upfront transitional costs. Management does not believe such costs
are reflective of the Company's ongoing performance and accordingly
excludes those items from Non-GAAP Adjusted General and Administrative
Expense.

 
JAMBA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)
           
13-Week Period Ended 26-Week Period Ended
July 3, 2018 July 4, 2017 July 3, 2018 July 4, 2017
Revenue:
Company stores $ 11,058 $ 13,262 $ 20,367 $ 24,369
Franchise and other revenue 7,285 6,951 13,653 12,703
Advertising fees and other income   6,150     301     11,446     1,055  
Total revenue   24,493     20,514     45,466     38,127  
 
Costs and operating expenses:
Cost of sales 2,460 2,928 4,662 5,590
Labor 3,544 4,281 6,934 8,569
Occupancy 1,448 1,711 2,851 3,474
Store operating 1,476 2,531 2,897 4,329
Depreciation and amortization 870 899 1,741 1,780
General and administrative 10,552 6,757 18,575 15,358
Loss on disposal of assets 5 392 168 554
Store pre-opening 80 105 115 343
Store lease termination and closure 140 57 200 238
Advertising expense 3,544 6,560
Other operating, net   584     (867 )   854     (791 )
Total costs and operating expenses   24,703     18,794     45,557     39,444  
Income (loss) from operations (210 ) 1,720 (91 ) (1,317 )
 
Other income (expenses):
Interest income 3 41 7 95
Interest expense   (78 )   (83 )   (158 )   (166 )
Total other income (expenses), net (75 ) (42 ) (151 ) (71 )
 
Income (loss) before income taxes (285 ) 1,678 (242 ) (1,388 )
Income tax (expense) benefit   (1 )   47     (6 )   (39 )
Net income (loss) $ (286 ) $ 1,725   $ (248 ) $ (1,427 )
 
Share Data:
Weighted-average shares used in the computation of

income (loss) per share:

Basic 15,602,605 15,472,137 15,595,405 15,441,916
Diluted 15,602,605 15,867,544 15,595,405 15,441,916
Income (loss) per share:
Basic $ (0.02 ) $ 0.11 $ (0.02 ) $ (0.09 )
Diluted $ (0.02 ) $ 0.11 $ (0.02 ) $ (0.09 )
 
 
JAMBA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
(unaudited)
 
      July 3,   January 2,
2018 2018
ASSETS
Current Assets:
Cash and cash equivalents $ 9,095 $ 10,030
Receivables, net of allowances of $719 and $904 8,965 10,098
Inventories 468 465
Prepaid rent 683 776
Prepaid expenses and other current assets   3,509     4,321  
Total current assets 22,720 25,690
Property, fixtures and equipment, net of accumulated depreciation of
$33,549 and $32,785
9,778 10,928
Goodwill 1,181 1,181
Trademarks and other intangible assets, net of accumulated
amortization of $887 and $855
1,150 1,211
Deferred tax asset 785 791
Notes receivable and other long-term assets   1,040     847  
Total assets $ 36,654   $ 40,648  
LIABILITIES AND SHAREHOLDERS' DEFICIT
Current Liabilities:
Accounts payable and accrued expenses $ 7,245 $ 10,070
Accrued compensation and benefits 4,059 2,122
Accrued gift card liability 13,456 27,469
Other current liabilities   9,830     8,052  
Total current liabilities 34,590 47,713
Long term portion of deferred revenue 7,715 2,398
Deferred rent and other long-term liabilities   4,607     5,111  
Total liabilities 46,912 55,222
Commitments and contingencies
Shareholders' deficit:
Common stock, $0.001 par value—30,000,000 shares authorized;
18,499,434 and 15,640,617 shares issued and outstanding,
respectively, at July 3, 2018, and 18,447,023 and 15,588,206 shares
issued and outstanding, respectively, at January 2, 2018
18 18
Additional paid-in capital 410,624 409,518
Treasury shares, at cost, 2,858,817 shares (40,009 ) (40,009 )
Accumulated deficit   (380,891 )   (384,101 )
Total shareholders' deficit   (10,258 )   (14,574 )
Total liabilities and shareholders' deficit $ 36,654   $ 40,648  
 
 
KEY OPERATING METRICS
 
      13-Weeks Ended   26-Weeks Ended
July 3, 2018   July 4, 2017 July 3, 2018   July 4, 2017
Number of system-wide stores open at end of period 848 870 848 870
New store openings 9 10 14 25
Domestic system-wide comparable store sales change (a) 2.2% (0.0)% 2.2% (2.7)%
Domestic system-wide sales (in thousands) 144,731 139,821 265,359 256,856
Blended royalty rate 5.0% 5.0% 5.1% 5.0%
Net Income (in thousands) (286) 1,725 (248) (1,427)
Non-GAAP Adjusted EBITDA (in thousands) 4,609 5,081 7,561 8,086
Non-GAAP Adjusted EBITDA margin percent 18.8% 24.8% 16.6% 21.2%
 
(a)   Due to a 53 week fiscal 2016, year-over-year fiscal comparisons in
2017 are offset by one week. Comparable calendar basis is presented
above.
 
 
JAMBA, INC.
(Unaudited)
RECONCILIATION OF NON-GAAP DOMESTIC SYSTEMWIDE SALES    
       
13-Week Period Ended 26-Week Period Ended
July 3, 2018 July 4, 2017 July 3, 2018 July 4, 2017
Total Revenue (in thousands): $ 24,493 $ 20,514 $ 45,466 $ 38,127
Franchise and other revenue (13,435 ) (7,252 ) (25,099 ) (13,758 )
Domestic franchise sales   133,673     126,559     244,992     232,487  
Non-GAAP domestic system-wide sales $ 144,731   $ 139,821   $ 265,359   $ 256,856  
 
 
JAMBA, INC.
(Unaudited)
RECONCILIATION OF GENERAL AND ADMINISTRATIVE TO NON-GAAP ADJUSTED
GENERAL AND ADMINISTRATIVE
   
       
13-Week Period Ended 26-Week Period Ended
July 3, 2018 July 4, 2017 July 3, 2018 July 4, 2017
General and administrative (in thousands): $ 10,552 $ 6,757 $ 18,575 $ 15,358
Corporate relocation expenses (380 ) (1,675 )
Audit related expenses (462 ) (863 ) (1,054 ) (1,434 )
Other non-recurring expenses   (2,237 )   (195 )   (3,148 )   (2,489 )
Non-GAAP Adjusted General and administrative $ 7,853   $ 5,319   $ 14,373   $ 9,760  
 
Adjustments for comparability to prior year
Vendor rebates (2,058 ) (3,512 )
Incentive Compensation Accrual   (662 )       (1,324 )    
Non-GAAP Adjusted General and administrative

comparable total

$ 5,133   $ 5,319   $ 9,537   $ 9,760  
 

* The Company has provided additional data in the "Adjustments for
comparability to prior year" section to better compare year over year
results. These adjustments result from the Company's implementation of
the new accounting standards and an increased accrual for annual
incentive compensation. Vendor rebates were recorded as contra expense
in 2017 results. With the implementation of the new accounting
standards, these rebates are now recorded as revenue. This results in an
equal and offsetting increase to both revenue and general and
administrative expenses. Additionally, the Company accrued zero
incentive compensation expense in 2017, compared to $662 thousand in the
second quarter and $1,324 thousand year to date in 2018. In order to
better compare year over year results, these amounts are removed to
arrive at the "Non-GAAP Adjusted General and administrative comparable
total".

 
JAMBA, INC.
(Unaudited)
RECONCILIATION OF NET INCOME (LOSS) TO NON-GAAP ADJUSTED EBITDA
           
13-Week Period Ended 26-Week Period Ended
July 3, 2018 July 4, 2017 July 3, 2018 July 4, 2017
Net Income (Loss) (in thousands): $ (286 ) $ 1,725 $ (248 ) $ (1,427 )
Depreciation and amortization 870 899 1,741 1,780
Interest income (3 ) (41 ) (7 ) (95 )
Interest expense 78 83 158 166
Income taxes 1 (47 ) 6 39
Stock based compensation 2,147 497 2,227 645
Other non-recurring expenses   1,802     1,965     3,684     6,978  
Non-GAAP Adjusted EBITDA $ 4,609   $ 5,081   $ 7,561   $ 8,086  
 
Adjustments for comparability to prior year
All new accounting standards 29 (917 )
Incentive compensation accrual   662         1,324      
Non-GAAP Adjusted EBITDA comparable total $ 5,300   $ 5,081   $ 7,968   $ 8,086  
 

* The Company has provided additional data in the "Adjustments for
comparability to prior year" section to better compare year over year
results. These adjustments result from the Company's implementation of
the new accounting standards and an increased accrual for annual
incentive compensation. While the new accounting standards are expected
to have a negligible impact to Non-GAAP Adjusted EBITA for the full
year, there was a benefit in the first and second quarters from these
changes. Additionally, the Company accrued zero incentive compensation
expense in 2017, compared to $662 thousand in the second quarter and
$1,324 thousand year to date in 2018. In order to better compare
results, these amounts are removed to arrive at the "Non-GAAP Adjusted
EBITDA comparable total".

 
JAMBA, INC.
(Unaudited)
           
COMPARABLE STORE SALES
 
13-Weeks Ended 26-Weeks Ended
July 3, 2018 vs July 4, 2017 vs July 3, 2018 vs July 4, 2017 vs
Increase/(Decrease) July 4, 2017 July 5, 2016 (a) July 4, 2017 July 5, 2016 (a)
Percentage Change in Comparable store sales
Company stores (0.3 )% 1.0 % 0.6 % (3.0 )%
Franchise stores 2.4 % (0.2 )% 2.4 % (2.7 )%
System-wide 2.2 % (0.0 )% 2.2 % (2.7 )%
Percentage Change in Comparable Company store sales
Traffic (2.4 )% (2.9 )% (0.6 )% (6.2 )%
Average check 2.1 % 3.9 % 1.2 % 3.3 %
Total Comparable Company store sales (0.3 )% 1.0 % 0.6 % (3.0 )%
 
(a)   Due to a 53 week fiscal 2016, year-over-year fiscal comparisons in
2017 are offset by one week. Comparable calendar basis is presented
above.
 
 
JAMBA, INC.
(Unaudited)
           
STORE COUNT
 
NUMBER OF STORES
COMPANY FRANCHISE TOTAL
Domestic International
For the Quarter Ended July 3, 2018
At April 3, 2018 51 734 68 853
Opened 7 2 9
Acquired
Closed (4 ) (10 ) (14 )
Refranchised        
At July 3, 2018 51   737   60   848  
For the Quarter Ended July 4, 2017
At April 4, 2017 66 734 68 868
Opened 6 4 10
Acquired
Closed (8 ) (8 )
Refranchised (13 ) 13      
At July 4, 2017 53   745   72   870  
 
 
JAMBA, INC.
(Unaudited)
           
NEW STORE OPENINGS, NET OF CLOSURES
 
13-Weeks Ended 26-Weeks Ended
July 3, 2018 July 4, 2017 July 3, 2018 July 4, 2017
Openings
Traditional 6 4 8 15
Non-traditional 1 1 1
Drive thru 2 3
International 2   4   5   6  
Total 9   10   14   25  
Closures
Traditional (3 ) (3 ) (15 ) (5 )
Non-traditional (1 ) (5 ) (7 ) (8 )
Drive thru (1 )
International (10 )   (16 ) (4 )
Total (14 ) (8 ) (39 ) (17 )
Openings, Net of Closures
Traditional 3 1 (7 ) 10
Non-traditional (5 ) (6 ) (7 )
Drive thru 2 (1 ) 3
International (8 ) 4   (11 ) 2  
Total (5 ) 2   (25 ) 8  
 
 
JAMBA, INC.
(Unaudited)
             
COMPANY ESTIMATES FOR THE 2018 FISCAL INCOME STATEMENT IMPACT OF
IMPLEMENTING NEW ACCOUNTING STANDARDS
 
Vendor Gift Card Initial and
(in millions) Advertising   Rebates   Breakage   Other Fees TOTAL
Advertising fund contributions $ 11.6 $ $

$

$

11.6
Franchise and license revenue 6.4 6.4
Gift card breakage 2.4 2.4
Initial and other fees        

0.1

  0.1
Total revenue   11.6   6.4

 

2.4

 

0.1

 

20.5
Advertising expense 11.6 11.6
General and administrative 6.4 6.4
Other operating, net       2.4     2.4
Total expense   11.6   6.4   2.4     20.4
Total $ $ $ $ 0.1 $ 0.1
 

* The table above presents the Company's expected annual impact of the
new accounting standards. The Company expects most items will have an
equal impact to increase revenue and increase expenses, resulting in no
net change to the Income Statement. Initial and Other Fees are
anticipated to only increase revenue with no expense implications.

* Refer to the Company's Form 10-Q filing for the quarterly period ended
July 3, 2018 for additional information.

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