Waitr Holdings Reports Fiscal 2019 Second Quarter Results
Revenue Increased 218% and Active Diners Increased 248% during the Quarter
“Our second quarter showed strong growth in our core markets, despite being a seasonally slower quarter for our business. Our revenue grew 218% year over year and active diners grew 248%,” said
Second Quarter 2019 Financial Highlights
-
Revenue for the second quarter of 2019 increased 218% to
$51.3 million compared to$16.2 million in the second quarter of 2018. Revenue related to the Bite Squad Merger totaled$26.1 million for the second quarter of 2019.
-
Net loss for the second quarter of 2019 was
$24.9 million , or$0.32 per diluted share, compared to a loss of$7.4 million , or$0.74 per diluted share, in the second quarter of 2018. Net loss for the second quarter of 2019 included$2.5 million of non-cash stock compensation expenses.
-
Adjusted EBITDA1 for the second quarter of 2019 was a loss of
$14.9 million compared to a loss of$2.2 million in the second quarter of 2018.
Second Quarter 2019 Key Business Metrics and Updates
-
Gross Food Sales2 for the second quarter of 2019 increased 179% to
$183.0 million compared to$65.7 million in the second quarter of 2018.
- Active Diners for the second quarter of 2019 increased 248% to 2.4 million compared to 679 thousand for the second quarter of 2018.
-
On
May 21, 2019 ,Waitr completed an underwritten follow-on public offering of 6,757,000 shares of its common stock at a price of$7.40 per share, resulting in gross proceeds of$50 million .
-
During second quarter 2019,
Waitr developed a strategic “Path to Profitability” initiative with the intent of strengthening the business through realizing synergies from the Bite Squad combination and aligning the teams and cost structure of the combined organization under one set of guiding principles and objectives. This initiative will continue through 2019 and into 2020 with the expectation of improved annual operating cash flows in excess of$10 million .
-
After consideration of recent interest expressed in the Company as a result of its dominant position in core small to medium sized markets, along with a consolidating landscape in the industry as recently announced transactions from other companies in the restaurant delivery space would indicate,
Waitr recently commenced a review to explore and evaluate potential strategic alternatives to enhance shareholder value. These alternatives could include, among others, continuing to execute the Company's business plan, including an increased focus on certain standalone strategic initiatives, the disposition of certain assets, a strategic business combination, a transaction that results in private ownership or a sale of the Company, or some combination of these. The Company has engagedEvercore and Jefferies as financial advisors to assist the Board with its strategic alternatives review.
1 |
Adjusted EBITDA is a non-GAAP financial measure. A reconciliation of GAAP net loss to Adjusted EBITDA is included in the accompanying financial data. See also “Non-GAAP Financial Measure,” included herein. |
||
2 |
Gross Food Sales represents food and beverage receipts, plus taxes, prepaid gratuities and diner fees. |
Full Year 2019 Outlook
“Given delays in the roll-out of our planned revenue initiatives, the additional time needed to integrate the Bite Squad merger, as well as current competitive dynamics, we are lowering our full year 2019 revenue guidance to a range of
Second Quarter 2019 Earnings Conference Call
The Company will host a conference call to discuss second quarter 2019 financial results today at
About
Founded in 2013 and based in
Non-GAAP Financial Measure
Adjusted EBITDA is a financial measure that is not calculated in accordance with generally accepted accounting principles in
We define Adjusted EBITDA as net loss adjusted to exclude interest expense, income taxes, depreciation and amortization, acquisition and restructuring costs, stock-based compensation expense, impairments of intangible assets and gains and losses associated with derivatives and debt extinguishments and when applicable, other expenses that do not reflect our core operations. We use this non-GAAP financial measure as a key performance measure because we believe it facilitates operating performance comparisons from period to period by excluding potential differences primarily caused by variations in capital structures, tax positions, the impact of acquisitions and restructuring, the impact of depreciation and amortization expense on our fixed assets and the impact of stock-based compensation expense. Adjusted EBITDA is not a measurement of our financial performance under GAAP and should not be considered as an alternative to performance measures derived in accordance with GAAP.
See “Non-GAAP Financial Measure/Adjusted EBITDA” below for a reconciliation of net loss to Adjusted EBITDA for the three and six months ended
Cautionary Note Concerning Forward-Looking Statements
This press release contains “forward-looking statements,” as defined by the federal securities laws, including statements regarding the future performance of the Company. Forward-looking statements reflect Waitr’s current expectations and projections about future events at the time, and thus involve uncertainty and risk. The words “believe,” “expect,” “anticipate,” “will,” “could,” “would,” “should,” “may,” “plan,” “estimate,” “intend,” “predict,” “potential,” “continue,” and the negatives of these words and other similar expressions generally identify forward-looking statements. Such forward-looking statements are subject to various risks and uncertainties, including those described under the section entitled “Risk Factors” in Waitr’s Annual Report on Form 10-K, filed with the
CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share amounts) (Unaudited) |
||||||||||||||||
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
||||
REVENUE |
|
$ |
51,342 |
|
|
$ |
16,160 |
|
|
$ |
99,374 |
|
|
$ |
28,569 |
|
COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations and support (1) |
|
|
39,698 |
|
|
|
11,918 |
|
|
|
75,881 |
|
|
|
21,034 |
|
Sales and marketing (1) |
|
|
15,339 |
|
|
|
2,805 |
|
|
|
25,662 |
|
|
|
5,169 |
|
Research and development |
|
|
2,149 |
|
|
|
609 |
|
|
|
4,089 |
|
|
|
1,197 |
|
General and administrative (1) |
|
|
12,380 |
|
|
|
7,842 |
|
|
|
31,298 |
|
|
|
11,355 |
|
Depreciation and amortization |
|
|
4,824 |
|
|
|
276 |
|
|
|
8,940 |
|
|
|
502 |
|
Impairment of intangible assets |
|
|
— |
|
|
|
— |
|
|
|
18 |
|
|
|
— |
|
Loss on disposal of assets |
|
|
10 |
|
|
|
— |
|
|
|
15 |
|
|
|
8 |
|
TOTAL COSTS AND EXPENSES |
|
|
74,400 |
|
|
|
23,450 |
|
|
|
145,903 |
|
|
|
39,265 |
|
LOSS FROM OPERATIONS |
|
|
(23,058 |
) |
|
|
(7,290 |
) |
|
|
(46,529 |
) |
|
|
(10,696 |
) |
OTHER EXPENSES (INCOME) AND LOSSES (GAINS), NET |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
2,190 |
|
|
|
290 |
|
|
|
3,795 |
|
|
|
462 |
|
Interest income |
|
|
(241 |
) |
|
|
— |
|
|
|
(580 |
) |
|
|
(1 |
) |
Gain on derivatives |
|
|
— |
|
|
|
(165 |
) |
|
|
— |
|
|
|
(327 |
) |
Other income |
|
|
(123 |
) |
|
|
(39 |
) |
|
|
(173 |
) |
|
|
(38 |
) |
NET LOSS BEFORE INCOME TAXES |
|
|
(24,884 |
) |
|
|
(7,376 |
) |
|
|
(49,571 |
) |
|
|
(10,792 |
) |
Income tax expense (benefit) |
|
|
(32 |
) |
|
|
23 |
|
|
|
30 |
|
|
|
34 |
|
NET LOSS |
|
$ |
(24,852 |
) |
|
$ |
(7,399 |
) |
|
$ |
(49,601 |
) |
|
$ |
(10,826 |
) |
LOSS PER SHARE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
$ |
(0.32 |
) |
|
$ |
(0.74 |
) |
|
$ |
(0.70 |
) |
|
$ |
(1.08 |
) |
Weighted average common shares outstanding – basic and diluted |
|
|
72,416,614 |
|
|
|
9,997,815 |
|
|
|
68,492,911 |
|
|
|
10,023,853 |
|
(1) Certain prior period amounts have been reclassified to conform to the current period’s presentation. The Company has revised the classification of certain employee-related wages and payroll taxes associated with such wages to better align the statement of operations line items with departmental responsibilities and management of operations. |
KEY BUSINESS METRICS |
||||||||||||||||
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
||||
Active Diners (as of period end) |
|
|
2,362,290 |
|
|
|
678,818 |
|
|
|
2,362,290 |
|
|
|
678,818 |
|
Average Daily Orders |
|
|
55,728 |
|
|
|
20,724 |
|
|
|
54,269 |
|
|
|
18,858 |
|
Gross Food Sales (dollars in thousands) |
|
$ |
183,042 |
|
|
$ |
65,687 |
|
|
$ |
353,445 |
|
|
$ |
119,813 |
|
Average Order Size (in dollars) |
|
$ |
36.09 |
|
|
$ |
35.22 |
|
|
$ |
35.98 |
|
|
$ |
35.30 |
|
CONSOLIDATED BALANCE SHEETS (In thousands, except per share data) (Unaudited) |
||||||||
|
|
June 30, |
|
|
December 31, |
|
||
|
|
2019 |
|
|
2018 (1) |
|
||
ASSETS |
|
|
|
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
|
|
|
|
Cash |
|
$ |
72,827 |
|
|
$ |
209,340 |
|
Accounts receivable, net |
|
|
7,149 |
|
|
|
3,687 |
|
Capitalized contract costs, current |
|
|
2,601 |
|
|
|
1,869 |
|
Prepaid expenses and other current assets |
|
|
9,673 |
|
|
|
4,548 |
|
TOTAL CURRENT ASSETS |
|
|
92,250 |
|
|
|
219,444 |
|
Property and equipment, net |
|
|
4,511 |
|
|
|
4,551 |
|
Capitalized contract costs, noncurrent |
|
|
1,191 |
|
|
|
827 |
|
Goodwill |
|
|
225,946 |
|
|
|
1,408 |
|
Intangible assets, net |
|
|
96,863 |
|
|
|
261 |
|
Other noncurrent assets |
|
|
539 |
|
|
|
61 |
|
TOTAL ASSETS |
|
$ |
421,300 |
|
|
$ |
226,552 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
2,188 |
|
|
$ |
1,827 |
|
Restaurant food liability |
|
|
7,537 |
|
|
|
208 |
|
Accrued payroll |
|
|
8,294 |
|
|
|
3,055 |
|
Short-term loan |
|
|
5,032 |
|
|
|
658 |
|
Deferred revenue, current |
|
|
3,472 |
|
|
|
3,314 |
|
Income tax payable |
|
|
— |
|
|
|
25 |
|
Other current liabilities |
|
|
12,597 |
|
|
|
4,508 |
|
TOTAL CURRENT LIABILITIES |
|
|
39,120 |
|
|
|
13,595 |
|
Long-term debt |
|
|
118,364 |
|
|
|
80,985 |
|
Accrued workers’ compensation liability |
|
|
603 |
|
|
|
908 |
|
Deferred revenue, noncurrent |
|
|
1,048 |
|
|
|
1,356 |
|
Other noncurrent liabilities |
|
|
287 |
|
|
|
217 |
|
TOTAL LIABILITIES |
|
|
159,422 |
|
|
|
97,061 |
|
STOCKHOLDERS’ EQUITY: |
|
|
|
|
|
|
|
|
Common stock, $0.0001 par value |
|
|
8 |
|
|
|
5 |
|
Additional paid in capital |
|
|
382,402 |
|
|
|
200,417 |
|
Accumulated deficit |
|
|
(120,532 |
) |
|
|
(70,931 |
) |
TOTAL STOCKHOLDERS’ EQUITY |
|
|
261,878 |
|
|
|
129,491 |
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
$ |
421,300 |
|
|
$ |
226,552 |
|
(1) |
Certain prior period amounts have been reclassified to conform to the current period’s presentation. |
NON-GAAP FINANCIAL MEASURE ADJUSTED EBITDA (In thousands) (Unaudited) |
||||||||||||||||
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
||||
NET LOSS |
|
$ |
(24,852 |
) |
|
$ |
(7,399 |
) |
|
$ |
(49,601 |
) |
|
$ |
(10,826 |
) |
Interest expense |
|
|
2,190 |
|
|
|
290 |
|
|
|
3,795 |
|
|
|
462 |
|
Income taxes |
|
|
(32 |
) |
|
|
23 |
|
|
|
30 |
|
|
|
34 |
|
Depreciation and amortization |
|
|
4,824 |
|
|
|
276 |
|
|
|
8,940 |
|
|
|
502 |
|
Stock-based compensation |
|
|
2,549 |
|
|
|
1,136 |
|
|
|
4,612 |
|
|
|
2,242 |
|
Gain on derivatives |
|
|
— |
|
|
|
(165 |
) |
|
|
— |
|
|
|
(327 |
) |
Impairment of intangible assets |
|
|
— |
|
|
|
— |
|
|
|
18 |
|
|
|
— |
|
Business combination related expenditures |
|
|
7 |
|
|
|
3,603 |
|
|
|
6,956 |
|
|
|
3,603 |
|
Costs associated with reduction in force |
|
|
368 |
|
|
|
— |
|
|
|
368 |
|
|
|
— |
|
ADJUSTED EBITDA |
|
$ |
(14,946 |
) |
|
$ |
(2,236 |
) |
|
$ |
(24,882 |
) |
|
$ |
(4,310 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20190808005855/en/
Source:
Investors
WaitrIR@icrinc.com
or
Media
WaitrPR@icrinc.com