Waitr Holdings Inc. (Nasdaq: WTRH) (“Waitr” or the “Company”), a
leader in on-demand ordering and delivery, today reported financial
results for the third quarter ended September 30, 2021.
Third Quarter 2021 Highlights
- Revenue for the third quarter of 2021 was $43.4 million,
compared to $52.7 million in the third quarter of 2020. For the
nine months ended September 30, 2021, revenue was $143.5 million,
compared to $157.5 million for the nine months ended September 30,
2020.
- Net income for the third quarter of 2021 was $12.3 million,
compared to net income of $4.6 million in the third quarter of
2020. Net income per share for the third quarter of 2021 was $0.09
compared to net income per share for the third quarter of 2020 of
$0.04.
- Adjusted EBITDA1 for the third quarter of 2021 was $3.1
million, compared to $2.5 million in the second quarter of 2021 and
$13.0 million in the third quarter of 2020.
- In the third quarter of 2021, we continued to invest in
technology and integrations in several key areas of the business,
with the expectation of positioning ourselves for long-term
growth.
Mr. Grimstad noted, “We continue to recover from the third
quarter hurricanes that affected our core Southeast markets and
financial results. Despite these events, Adjusted EBITDA for the
third quarter of 2021 increased by 24% from Adjusted EBITDA of $2.5
million in the second quarter of 2021 primarily as a result of
increased operational efficiencies.”
Additionally, Mr. Grimstad emphasized, “Our strategy is to
expand our ecosystem, which today is comprised of our restaurants,
diners and independent contractor drivers through the enhancement
of our platforms and providing additional products and services.
During the quarter we announced the acquisition of several payments
companies, ProMerchant LLC, Cape Cod Merchant Services LLC and Flow
Payments LLC, which is consistent with this strategy. We have
continued to make progress this quarter in offering this enhanced
product suite to our ecosystem.”
“We strive to provide quality service to our restaurant partners
and diners while also focusing on our recruiting and retention
efforts to ensure that our independent contractor driver base
remains at appropriate levels to meet the delivery demands in each
of the markets where we operate. Additionally, we continued to
invest in product and engineering personnel as we continue to
enhance our technology platform,” added Mr. Grimstad.
“Investments in integrations such as Olo, a major digital food
ordering platform for the restaurant industry, that was recently
completed along with other integrations that we expect to be
completed in the near future will help position the company for the
long term. As we near the end of 2021, we continue to focus our
efforts on our long-term business strategy of servicing our
ecosystem of restaurants, diners and independent contractor
drivers,” concluded Mr. Grimstad.
_______________
1 Adjusted EBITDA is a non-GAAP financial
measure. A reconciliation of GAAP net income to Adjusted EBITDA is
included in the “Non-GAAP Financial Measure/Adjusted EBITDA” table
below.
Third Quarter 2021 Key Business Metrics
- Average Daily Orders were 30,563 for the third quarter of 2021,
compared to 39,880 for the third quarter of 2020. For the nine
months ended September 30, 2021, Average Daily Orders were 35,565,
compared to 40,563 for the nine months ended September 30,
2020.
- Active Diners as of September 30, 2021 were substantially
consistent with the Active Diners as of June 30, 2021.
- As of September 30, 2021, cash on hand was $43.5 million.
Third Quarter 2021 Earnings Conference Call
The Company will host a conference call to discuss third quarter
2021 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 (866) 269-4261, or for international
callers (323) 289-6581. 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 5209769.
The replay will be available until Tuesday, November 9, 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 and Delivery Dudes, 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 September 30, 2021, Waitr, Bite Squad and Delivery
Dudes operate in small and medium sized markets in the United
States in over 1,000 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,” “strategy,” “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, 2020, filed with the SEC on
March 8, 2021, 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 will be set
forth in Waitr’s Quarterly Report on Form 10-Q for the three months
ended September 30, 2021, which will be filed with the SEC on
November 2, 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.
WAITR HOLDINGS INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(In thousands, except share
and per share data)
(Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2021
2020
2021
2020
REVENUE
$
43,448
$
52,734
$
143,545
$
157,483
COSTS AND EXPENSES:
Operations and support
25,043
27,409
86,654
84,321
Sales and marketing
4,965
3,288
13,481
8,854
Research and development
1,310
820
3,163
3,457
General and administrative
10,843
11,380
33,534
32,252
Depreciation and amortization
3,070
2,103
8,952
6,242
Intangible and other asset impairments
186
—
186
29
Loss on disposal of assets
11
4
170
15
TOTAL COSTS AND EXPENSES
45,428
45,004
146,140
135,170
INCOME (LOSS) FROM OPERATIONS
(1,980
)
7,730
(2,595
)
22,313
OTHER EXPENSES (INCOME) AND LOSSES
(GAINS), NET
Interest expense
1,751
2,117
5,333
7,521
Interest income
—
(14
)
—
(95
)
Other (income) expense
(16,006
)
965
(10,907
)
1,640
NET INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES
12,275
4,662
2,979
13,247
Income tax expense
25
18
82
52
NET INCOME FROM CONTINUING
OPERATIONS
$
12,250
$
4,644
$
2,897
$
13,195
INCOME PER SHARE:
Basic
$
0.10
$
0.04
$
0.02
$
0.14
Diluted
$
0.09
$
0.04
$
0.02
$
0.13
Weighted-average shares used to compute
net income per share:
Weighted average common shares
outstanding – basic
119,823,181
109,181,847
115,961,454
93,763,069
Weighted average common shares
outstanding – diluted
130,167,296
123,785,750
128,279,820
102,519,454
WAITR HOLDINGS INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands, except per
share data)
(Unaudited)
September 30,
December 31,
2021
2020
ASSETS
CURRENT ASSETS
Cash
$
43,502
$
84,706
Accounts receivable, net
3,978
2,954
Capitalized contract costs, current
1,091
737
Prepaid expenses and other current
assets
6,826
6,657
TOTAL CURRENT ASSETS
55,397
95,054
Property and equipment, net
4,362
3,503
Capitalized contract costs, noncurrent
3,138
2,429
Goodwill
130,592
106,734
Intangible assets, net
40,616
23,924
Operating lease right-of-use assets
4,743
—
Other noncurrent assets
1,106
588
TOTAL ASSETS
$
239,954
$
232,232
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES:
CURRENT LIABILITIES
Accounts payable
$
6,084
$
4,382
Restaurant food liability
3,398
4,301
Accrued payroll
1,661
4,851
Short-term loans for insurance
financing
2,331
2,726
Income tax payable
84
122
Operating lease liabilities
1,654
—
Other current liabilities
19,093
13,922
TOTAL CURRENT LIABILITIES
34,305
30,304
Long term debt - related party
81,671
94,218
Accrued medical contingency
53
16,987
Operating lease liabilities
3,395
—
Other noncurrent liabilities
2,733
2,627
TOTAL LIABILITIES
122,157
144,136
STOCKHOLDERS’ EQUITY:
Common stock, $0.0001 par value
13
11
Additional paid in capital
478,793
451,991
Accumulated deficit
(361,009
)
(363,906
)
TOTAL STOCKHOLDERS’ EQUITY
117,797
88,096
TOTAL LIABILITIES AND STOCKHOLDERS’
EQUITY
$
239,954
$
232,232
WAITR HOLDINGS INC.
CONDENSED CONSOLIDATED CASH
FLOW STATEMENTS
(In thousands)
(Unaudited)
Nine Months Ended September
30,
2021
2020
Cash flows from operating
activities:
Net income
$
2,897
$
13,195
Adjustments to reconcile net income to net
cash provided by operating activities:
Non-cash interest expense
1,948
5,126
Stock-based compensation
6,100
3,178
Loss on disposal of assets
170
15
Depreciation and amortization
8,952
6,242
Intangible and other asset impairments
186
29
Amortization of capitalized contract
costs
686
327
Other non-cash income
—
(31
)
Other
(93
)
—
Changes in assets and liabilities:
Accounts receivable
583
(653
)
Capitalized contract costs
(1,749
)
(2,219
)
Prepaid expenses and other current
assets
16
3,732
Other noncurrent assets
(311
)
—
Accounts payable
373
591
Restaurant food liability
(903
)
(876
)
Income tax payable
(38
)
1
Accrued payroll
(3,389
)
(3,037
)
Accrued medical contingency
(16,933
)
(363
)
Accrued workers’ compensation
liability
—
(102
)
Other current liabilities
1,032
3,650
Other noncurrent liabilities
(102
)
781
Net cash (used in) provided by
operating activities
(575
)
29,586
Cash flows from investing
activities:
Purchases of property and equipment
(717
)
(968
)
Internally developed software
(6,432
)
(2,387
)
Acquisitions, net of cash acquired
(25,435
)
(339
)
Collections on notes receivable
—
51
Proceeds from sale of property and
equipment
21
14
Net cash used in investing
activities
(32,563
)
(3,629
)
Cash flows from financing
activities:
Proceeds from issuance of stock
7,900
47,574
Payments on long-term loan
(14,472
)
(22,594
)
Borrowings under short-term loans for
insurance financing
5,209
1,906
Payments on short-term loans for insurance
financing
(5,605
)
(4,336
)
Payments on acquisition loans
(178
)
—
Proceeds from exercise of stock
options
12
40
Taxes paid related to net settlement on
stock-based compensation
(932
)
(728
)
Net cash (used in) provided by
financing activities
(8,066
)
21,862
Net change in cash
(41,204
)
47,819
Cash, beginning of period
84,706
29,317
Cash, end of period
$
43,502
$
77,136
Supplemental disclosures of cash flow
information:
Cash paid during the period for state
income taxes
$
—
$
64
Cash paid during the period for
interest
$
3,385
$
2,395
Supplemental disclosures of non-cash
investing and financing activities:
Conversion of convertible notes to
stock
$
—
$
12,024
Stock issued as consideration in
acquisition
13,724
—
Noncash impact of operating lease assets
upon adoption
5,833
—
Noncash impact of operating lease
liabilities upon adoption
6,232
—
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
adjusted to exclude interest expense, income taxes, depreciation
and amortization expense, stock-based compensation expense, loss on
disposal of assets, intangible and other asset impairments, medical
contingency change in estimate, business combination related
expenditures and other non-recurring adjustments, accrued legal
contingency, restructuring expenses and one-time legacy reserve
adjustment. 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 to Adjusted EBITDA is provided
below:
Three Months Ended
September 30,
Nine Months Ended
September 30,
2021
2020
2021
2020
NET INCOME
$
12,250
$
4,644
$
2,897
$
13,195
Interest expense
1,751
2,117
5,333
7,521
Income taxes
25
18
82
52
Depreciation and amortization expense
3,070
2,103
8,952
6,242
Stock-based compensation expense
1,635
1,728
6,100
3,178
Loss on disposal of assets
11
4
170
15
Intangible and other asset impairments
186
—
186
29
Medical contingency change in estimate
(16,715
)
—
(16,715
)
—
Business combination related expenditures
and other non-recurring adjustments
855
—
2,159
—
Accrued legal contingency
—
1,023
4,700
1,023
Restructuring expenses
—
—
—
850
One-time legacy reserve adjustment
—
1,352
—
1,352
ADJUSTED EBITDA
$
3,068
$
12,989
$
13,864
$
33,457
WAITR HOLDINGS INC.
NON-GAAP FINANCIAL
MEASURES
ADJUSTED NET INCOME (LOSS)
AND
ADJUSTED EARNINGS (LOSS) PER
DILUTED SHARE
(In thousands, except share
and per share data)
(Unaudited)
Adjusted net income (loss) and adjusted earnings (loss) per
diluted share are not required by, nor presented in accordance with
GAAP. We define adjusted earnings (loss) per diluted share as
adjusted net income (loss) divided by our weighted average common
shares outstanding - diluted. Adjusted net income (loss) is
calculated as net income minus medical contingency change in
estimate, plus business combination related expenditures and other
non-recurring adjustments, accrued legal contingency, restructuring
expenses and one-time legacy reserve adjustment. We use these
non-GAAP financial measures because we believe they facilitate
period to period comparisons of operating performance, by excluding
potential differences primarily caused by non-recurring items.
Business combination related expenses, accrued legal contingency,
restructuring expenses and medical contingency change in estimate
are considered non-recurring items. Adjusted net income (loss) and
adjusted earnings (loss) per diluted share are not measurements of
our financial performance under GAAP and should not be considered
as an alternative to net income or earnings per share or other
performance measures derived in accordance with GAAP. A
reconciliation of net income to adjusted net income (loss), along
with adjusted earnings (loss) per diluted share, is provided
below:
Three Months Ended
September 30,
Nine Months Ended
September 30,
2021
2020
2021
2020
Net income
$
12,250
$
4,644
$
2,897
$
13,195
Medical contingency change in estimate
(16,715
)
—
(16,715
)
—
Business combination related expenditures
and other non-recurring adjustments
855
—
2,159
—
Accrued legal contingency
—
1,023
4,700
1,023
Restructuring expenses
—
—
—
850
One-time legacy reserve adjustment
—
1,352
—
1,352
Adjusted net income (loss)
$
(3,610
)
$
7,019
$
(6,959
)
$
16,420
Weighted average common shares outstanding
- diluted
130,167,296
123,785,750
128,279,820
102,519,454
Adjusted earnings (loss) per diluted
share
$
(0.03
)
$
0.06
$
(0.05
)
$
0.16
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version on businesswire.com: https://www.businesswire.com/news/home/20211102006304/en/
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