WTRH Waitr Holdings Inc

Waitr Holdings Inc. (Nasdaq: WTRH) (“Waitr” or the “Company”), a leader in on-demand ordering and delivery, today reported financial results for the fourth quarter and year ended December 31, 2020.

Fourth Quarter and Full Year 2020 Highlights

• Revenue for the fourth quarter of 2020 was $46.8 million, compared to $43.1 million in the fourth quarter of 2019. Revenue for the year ended December 31, 2020 was $204.3 million, compared to $191.7 million for the year ended December 31, 2019.
• Net income for the fourth quarter of 2020 was $2.6 million, or $0.02 per diluted share, compared to a loss of $21.6 million, or a loss of $0.28 per diluted share, in the fourth quarter of 2019. Net income for the year ended December 31, 2020 was $15.8 million, or $0.15 per diluted share, compared to a loss of $291.3 million, or a loss of $4.00 per diluted share, in the year ended December 31, 2019, an increase of $307.1 million. Net loss for the year ended December 31, 2019 included goodwill and intangible asset impairment charges totaling $191.2 million.
• Adjusted EBITDA1 for the fourth quarter of 2020 was $9.9 million, compared to a loss of $14.4 million in the fourth quarter of 2019, an increase of $24.3 million. Adjusted EBITDA1 for the year ended December 31, 2020 was $43.4 million, compared to a loss of $54.8 million in the year ended December 31, 2019, an increase of $98.2 million or 179%.
• As of December 31, 2020, cash on hand was $84.7 million and $88.5 million as of January 31, 2021.

“Our financial results for 2020 reflect the implementation of a myriad of strategic initiatives focused on operating and growing a profitable business, with eleven straight months of consistent profitability and positive operating cash flow. We have a dedicated, hard-working group of team members, a diversified selection of restaurant partners and an independent contractor driver base, all working together to provide our diners with quality service,” said Carl Grimstad, Chairman and CEO of Waitr.

“We continue to work with our restaurant partners, helping them navigate through these challenging times as the pandemic continues to impact their operations. Our commitment to our restaurant partners, diners and the communities in which we operate is unwavering. We have provided numerous job and independent contractor driver opportunities in many of the markets we serve. In addition to the impacts from the ongoing pandemic, during the fourth quarter of 2020 and in early 2021, adverse weather conditions impacted certain of the markets we operate in. Overcoming the challenges presented by these unprecedented weather events has been a top priority,” continued Grimstad.

“In 2021, we look to build on our success from 2020 by focusing on profitable growth, both through organic expansion and strategic acquisitions to bolster our delivery footprint and expansion into new verticals,” concluded Grimstad.

1 Adjusted EBITDA is a non-GAAP financial measure. A reconciliation of GAAP net income (loss) to Adjusted EBITDA is included in the “Non-GAAP Financial Measure/Adjusted EBITDA” table below.

Fourth Quarter and Full Year 2020 Key Business Metrics

• Average Daily Orders were 34,628 and 39,071 for the fourth quarter and full year of 2020, respectively.
• Active Diners as of December 31, 2020 were approximately 2 million.

Liquidity Update

As of December 31, 2020, the Company had cash on hand of $84.7 million and as of January 31, 2021, cash on hand was $88.5 million. The Company had total long-term debt outstanding at December 31, 2020 of $99.1 million, consisting of $49.4 million of term loans, $49.5 million of convertible notes and $0.2 million of promissory notes. The term loans and convertible notes mature in November 2023. As of December 31, 2020, the Company had outstanding short-term loans for insurance financing totaling $2.7 million.

The combination of the effects of implementing several strategic initiatives focused on improving revenue per order, cost per order, cash flow and profitability, along with proceeds from sales of common stock during the period from March 2020 through July 2020 pursuant to the Company’s at-the-market offering program, resulted in increased working capital and liquidity from December 31, 2019.

Fourth Quarter 2020 Earnings Conference Call

The Company will host a conference call to discuss fourth quarter 2020 financial results today at 5 p.m. ET. The conference call will be webcast live from the Company’s investor relations website at http://investors.waitrapp.com. The call can also be accessed live over the phone by dialing (877) 705-6003, or for international callers (201) 493-6725. A replay will be available one hour after the call and can be accessed by dialing (844) 512-2921 or (412) 317-6671 for international callers; the conference ID is 13717127. The replay will be available until Monday, March 15, 2021.

About Waitr Holdings Inc.

Founded in 2013 and based in Lafayette, Louisiana, Waitr operates an online ordering technology platform, providing delivery, carryout and dine-in options. Waitr, along with Bite Squad, connect local restaurants and grocery stores to diners in underserved U.S. markets. Together, they are a convenient way to discover, order and receive great food and other products from local restaurants, national chains and grocery stores. As of December 31, 2020, Waitr and Bite Squad operated in small and medium sized markets in the United States in over 700 cities.

Cautionary Note Concerning Forward-Looking Statements

This press release contains “forward-looking statements,” as defined by the federal securities laws, including statements regarding the Company’s financial results, implementation of strategic initiatives and future performance of the Company. Forward-looking statements reflect Waitr’s current expectations and projections about future events, and thus involve uncertainty and risk. The words “believe,” “expect,” “anticipate,” “will,” “could,” “would,” “should,” “may,” “might,” “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 the impact of the coronavirus (COVID-19) pandemic on the Company’s business and operations, and those described under the section entitled “Risk Factors” in Waitr’s Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC on March 16, 2020, as such factors may be updated from time to time in Waitr’s periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. Additional information is set forth in Waitr’s Annual Report on Form 10-K for the year ended December 31, 2020, which was filed with the SEC on March 8, 2021, and should be read in conjunction with these financial results. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in Waitr’s filings with the SEC. While forward-looking statements reflect Waitr’s good faith beliefs, they are not guarantees of future performance. Waitr disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes after the date of this press release, except as required by applicable law. You should not place undue reliance on any forward-looking statements, which are based only on information currently available to Waitr (or to third parties making the forward-looking statements).

 

WAITR HOLDINGS INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except share and per share data)

(Unaudited)

 

 

 

Three Months Ended December 31,

 

 

Twelve Months Ended December 31,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

REVENUE

 

$

46,845

 

 

$

43,100

 

 

$

204,328

 

 

$

191,675

 

COSTS AND EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operations and support

 

 

24,919

 

 

 

34,589

 

 

 

109,240

 

 

 

147,759

 

Sales and marketing

 

 

3,388

 

 

 

10,755

 

 

 

12,242

 

 

 

52,370

 

Research and development

 

 

805

 

 

 

1,709

 

 

 

4,262

 

 

 

7,718

 

General and administrative

 

 

10,730

 

 

 

12,747

 

 

 

42,982

 

 

 

56,862

 

Depreciation and amortization

 

 

2,135

 

 

 

1,983

 

 

 

8,377

 

 

 

15,774

 

Goodwill impairment

 

 

—

 

 

 

—

 

 

 

—

 

 

 

119,212

 

Intangible and other asset impairments

 

 

1

 

 

 

316

 

 

 

30

 

 

 

73,251

 

Loss on disposal of assets

 

 

5

 

 

 

10

 

 

 

20

 

 

 

36

 

TOTAL COSTS AND EXPENSES

 

 

41,983

 

 

 

62,109

 

 

 

177,153

 

 

 

472,982

 

INCOME (LOSS) FROM OPERATIONS

 

 

4,862

 

 

 

(19,009

)

 

 

27,175

 

 

 

(281,307

)

OTHER EXPENSES (INCOME) AND LOSSES (GAINS), NET

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

1,937

 

 

 

2,838

 

 

 

9,458

 

 

 

9,408

 

Interest income

 

 

(7

)

 

 

(160

)

 

 

(102

)

 

 

(1,037

)

Other expense

 

 

221

 

 

 

(107

)

 

 

1,861

 

 

 

1,547

 

NET INCOME (LOSS) BEFORE INCOME TAXES

 

 

2,711

 

 

 

(21,580

)

 

 

15,958

 

 

 

(291,225

)

Income tax expense

 

 

70

 

 

 

21

 

 

 

122

 

 

 

81

 

NET INCOME (LOSS)

 

$

2,641

 

 

$

(21,601

)

 

$

15,836

 

 

$

(291,306

)

INCOME (LOSS) PER SHARE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.02

 

 

$

(0.28

)

 

$

0.16

 

 

$

(4.00

)

Diluted

 

$

0.02

 

 

$

(0.28

)

 

$

0.15

 

 

$

(4.00

)

Weighted-average shares used to compute net income (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding – basic

 

 

110,996,943

 

 

 

76,357,305

 

 

 

98,095,081

 

 

 

72,404,020

 

Weighted average common shares outstanding – diluted

 

 

125,018,776

 

 

 

76,357,305

 

 

 

108,175,022

 

 

 

72,404,020

 

WAITR HOLDINGS INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except per share data)

(Unaudited)

 

 

 

 

 

 

 

 

 

December 31,

 

 

December 31,

 

 

 

2020

 

 

2019

 

ASSETS

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

 

Cash

 

$

84,706

 

 

$

29,317

 

Accounts receivable, net

 

 

2,954

 

 

 

3,272

 

Capitalized contract costs, current

 

 

737

 

 

 

199

 

Prepaid expenses and other current assets

 

 

6,657

 

 

 

8,329

 

TOTAL CURRENT ASSETS

 

 

95,054

 

 

 

41,117

 

Property and equipment, net

 

 

3,503

 

 

 

4,072

 

Capitalized contract costs, noncurrent

 

 

2,429

 

 

 

772

 

Goodwill

 

 

106,734

 

 

 

106,734

 

Intangible assets, net

 

 

23,924

 

 

 

25,761

 

Other noncurrent assets

 

 

588

 

 

 

517

 

TOTAL ASSETS

 

$

232,232

 

 

$

178,973

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

LIABILITIES:

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

 

Accounts payable

 

$

4,382

 

 

$

4,384

 

Restaurant food liability

 

 

4,301

 

 

 

5,612

 

Accrued payroll

 

 

4,851

 

 

 

5,285

 

Short-term loans for insurance financing

 

 

2,726

 

 

 

3,612

 

Deferred revenue, current

 

 

141

 

 

 

414

 

Income tax payable

 

 

122

 

 

 

51

 

Other current liabilities

 

 

13,781

 

 

 

13,293

 

TOTAL CURRENT LIABILITIES

 

 

30,304

 

 

 

32,651

 

Long-term debt

 

 

94,372

 

 

 

123,244

 

Accrued medical contingency

 

 

16,987

 

 

 

17,203

 

Accrued workers’ compensation liability

 

 

—

 

 

 

102

 

Deferred revenue, noncurrent

 

 

—

 

 

 

45

 

Other noncurrent liabilities

 

 

2,473

 

 

 

325

 

TOTAL LIABILITIES

 

 

144,136

 

 

 

173,570

 

STOCKHOLDERS’ EQUITY:

 

 

 

 

 

 

 

 

Common stock, $0.0001 par value

 

 

11

 

 

 

8

 

Additional paid in capital

 

 

451,991

 

 

 

385,137

 

Accumulated deficit

 

 

(363,906

)

 

 

(379,742

)

TOTAL STOCKHOLDERS’ EQUITY

 

 

88,096

 

 

 

5,403

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

$

232,232

 

 

$

178,973

 

WAITR HOLDINGS INC.

CONSOLIDATED CASH FLOW STATEMENTS

(In thousands)

(Unaudited)

 

 

 

 

 

 

Year Ended December 31,

 

​

 

2020

 

 

2019

 

 

2018

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

15,836

 

 

$

(291,306

)

 

$

(51,816

)

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Non-cash interest expense

 

 

5,925

 

 

 

5,674

 

 

 

1,206

 

Non-cash advertising expense

 

 

—

 

 

 

397

 

 

 

603

 

Stock-based compensation

 

 

5,166

 

 

 

7,238

 

 

 

12,939

 

Equity issued in exchange for services

 

 

—

 

 

 

120

 

 

 

120

 

Loss on disposal of assets

 

 

20

 

 

 

36

 

 

 

9

 

Depreciation and amortization

 

 

8,377

 

 

 

15,774

 

 

 

1,223

 

Goodwill impairment

 

 

—

 

 

 

119,212

 

 

 

—

 

Intangible and other asset impairments

 

 

30

 

 

 

73,251

 

 

 

—

 

Amortization of capitalized contract costs

 

 

495

 

 

 

1,637

 

 

 

1,513

 

Write-off of notes receivable

 

 

388

 

 

 

—

 

 

 

—

 

Gain on derivatives

 

 

—

 

 

 

—

 

 

 

(337

)

Gain on debt extinguishment

 

 

—

 

 

 

—

 

 

 

(486

)

Other non-cash (income) expense

 

 

(12

)

 

 

(68

)

 

 

75

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

232

 

 

 

2,143

 

 

 

(1,563

)

Capitalized contract costs

 

 

(2,690

)

 

 

(4,579

)

 

 

(2,785

)

Prepaid expenses and other current assets

 

 

1,355

 

 

 

(2,676

)

 

 

(3,789

)

Other noncurrent assets

 

 

(142

)

 

 

—

 

 

 

—

 

Accounts payable

 

 

(2

)

 

 

1,604

 

 

 

1,580

 

Restaurant food liability

 

 

(1,311

)

 

 

4,475

 

 

 

170

 

Deferred revenue

 

 

(318

)

 

 

(4,210

)

 

 

2,312

 

Income tax payable

 

 

71

 

 

 

26

 

 

 

(427

)

Accrued payroll

 

 

(434

)

 

 

1,104

 

 

 

2,105

 

Accrued medical contingency

 

 

(216

)

 

 

(680

)

 

 

17,883

 

Accrued workers’ compensation liability

 

 

(102

)

 

 

(161

)

 

 

(988

)

Other current liabilities

 

 

3,630

 

 

 

(2,617

)

 

 

4,481

 

Other noncurrent liabilities

 

 

2,147

 

 

 

129

 

 

 

130

 

Net cash provided by (used in) operating activities

 

 

38,445

 

 

 

(73,477

)

 

 

(15,842

)

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

 

(1,555

)

 

 

(1,636

)

 

 

(3,750

)

Internally developed software

 

 

(3,982

)

 

 

(1,805

)

 

 

—

 

Acquisition of Bite Squad, net of cash acquired

 

 

—

 

 

 

(192,568

)

 

 

—

 

Other acquisitions

 

 

(628

)

 

 

(695

)

 

 

(11

)

Collections on notes receivable

 

 

21

 

 

 

94

 

 

 

—

 

Proceeds from sale of property and equipment

 

 

19

 

 

 

34

 

 

 

—

 

Net cash used in investing activities

 

 

(6,125

)

 

 

(196,576

)

 

 

(3,761

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from issuance of stock

 

 

48,314

 

 

 

50,002

 

 

 

—

 

Equity issuance costs

 

 

(740

)

 

 

(4,179

)

 

 

—

 

Payments on long-term loans

 

 

(22,594

)

 

 

—

 

 

 

—

 

Borrowings under short-term loans for insurance financing

 

 

4,753

 

 

 

7,875

 

 

 

2,172

 

Payments on short-term loans for insurance financing

 

 

(5,632

)

 

 

(4,931

)

 

 

(1,514

)

Proceeds from exercise of stock options

 

 

45

 

 

 

4

 

 

 

97

 

Taxes paid related to net settlement on stock-based compensation

 

 

(1,077

)

 

 

(811

)

 

 

—

 

Proceeds from Notes and Term Loans

 

 

—

 

 

 

42,080

 

 

 

85,000

 

Debt issuance costs

 

 

—

 

 

 

—

 

 

 

(3,050

)

Borrowings on line of credit

 

 

—

 

 

 

—

 

 

 

5,000

 

Payments on line of credit

 

 

—

 

 

 

—

 

 

 

(5,000

)

Proceeds from convertible notes issuance

 

 

—

 

 

 

—

 

 

 

1,470

 

Repayment of Series 2017 and Series 2018 notes

 

 

—

 

 

 

—

 

 

 

(3,207

)

Proceeds from warrant exercises

 

 

—

 

 

 

—

 

 

 

380

 

Cash received from Landcadia Holdings

 

 

—

 

 

 

—

 

 

 

215,331

 

Waitr shares redeemed for cash

 

 

—

 

 

 

(10

)

 

 

(71,683

)

Net cash provided by financing activities

 

 

23,069

 

 

 

90,030

 

 

 

224,996

 

Net change in cash

 

 

55,389

 

 

 

(180,023

)

 

 

205,393

 

Cash, beginning of period

 

 

29,317

 

 

 

209,340

 

 

 

3,947

 

Cash, end of period

 

$

84,706

 

 

$

29,317

 

 

$

209,340

 

Supplemental disclosures of cash flow information:

 

 

 

 

 

 

 

 

 

 

 

 

Cash paid during the period for state income taxes

 

$

64

 

 

$

74

 

 

$

31

 

Cash paid during the period for interest

 

 

3,533

 

 

 

3,734

 

 

 

616

 

Supplemental disclosures of non-cash investing and financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Conversion of convertible notes to stock

 

$

12,026

 

 

$

—

 

 

$

—

 

Stock issued in connection with legal settlement

 

 

3,023

 

 

 

—

 

 

 

—

 

Accrued consideration for acquisitions

 

 

225

 

 

 

—

 

 

 

—

 

Equity consideration in acquisitions

 

 

100

 

 

 

868

 

 

 

142

 

Seller-financed payables related to other acquisitions

 

 

—

 

 

 

868

 

 

 

—

 

Stock issued as consideration in Bite Squad acquisition

 

 

—

 

 

 

126,574

 

 

 

—

 

Stock issued in connection with Additional Term Loans

 

 

—

 

 

 

3,884

 

 

 

—

 

Non-cash gain on debt extinguishment

 

 

—

 

 

 

1,897

 

 

 

—

 

Debt assumed in IndiePlate asset acquisition

 

 

—

 

 

 

—

 

 

 

60

 

Bifurcated embedded derivatives

 

 

—

 

 

 

—

 

 

 

87

 

Discount on convertible notes due to beneficial conversion feature

 

 

—

 

 

 

—

 

 

 

1,530

 

Warrants issued

 

 

—

 

 

 

—

 

 

 

1,612

 

Conversion of convertible notes to preferred stock

—

 

 

—

 

 

 

8,681

WAITR HOLDINGS INC. NON-GAAP FINANCIAL MEASURE ADJUSTED EBITDA (In thousands) (Unaudited)

Adjusted EBITDA is not required by, nor presented in accordance with generally accepted accounting principles in the United States of America (“GAAP”). We define Adjusted EBITDA as net income (loss) adjusted to exclude interest expense, income taxes, depreciation and amortization, business combination related expenses, restructuring expenses, stock-based compensation expense, impairments of intangible assets and goodwill, and 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, the impact of stock-based compensation expense and other items that do not reflect our core operations. Adjusted EBITDA is not a measurement of our financial performance under GAAP and should not be considered as an alternative to net income or other performance measures derived in accordance with GAAP. A reconciliation of net income (loss) to Adjusted EBITDA is provided below:

 

 

Three Months Ended December 31,

 

 

Twelve Months Ended December 31,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

NET INCOME (LOSS)

 

$

2,641

 

 

$

(21,601

)

 

$

15,836

 

 

$

(291,306

)

Interest expense

 

 

1,937

 

 

 

2,838

 

 

 

9,458

 

 

 

9,408

 

Income taxes

 

 

70

 

 

 

21

 

 

 

122

 

 

 

81

 

Depreciation and amortization

 

 

2,135

 

 

 

1,983

 

 

 

8,377

 

 

 

15,774

 

Goodwill impairment

 

 

—

 

 

 

—

 

 

 

—

 

 

 

119,212

 

Stock-based compensation

 

 

1,988

 

 

 

521

 

 

 

5,166

 

 

 

7,358

 

Intangible and other asset impairments

 

 

1

 

 

 

316

 

 

 

30

 

 

 

73,251

 

Business combination related expenditures

 

 

—

 

 

 

—

 

 

 

—

 

 

 

6,956

 

Costs associated with reduction in force

 

 

—

 

 

 

1,478

 

 

 

—

 

 

 

2,504

 

Restructuring expenses

 

 

—

 

 

 

—

 

 

 

850

 

 

 

—

 

Accrued legal contingency

 

 

—

 

 

 

—

 

 

 

1,023

 

 

 

2,000

 

One-time legacy receivable adjustment

 

 

388

 

 

 

—

 

 

 

388

 

 

 

—

 

Insurance adjustments related to employee-model workers compensation and auto insurance

 

 

776

 

 

 

—

 

 

 

776

 

 

 

—

 

One-time insurance reserve adjustment

 

 

—

 

 

 

—

 

 

 

1,352

 

 

 

—

 

ADJUSTED EBITDA

 

$

9,936

 

 

$

(14,444

)

 

$

43,378

 

 

$

(54,762

)

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20210308005817/en/

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