Waitr Holdings Inc. (Nasdaq: WTRH) (“Waitr” or the “Company”),
soon to be known as ASAP, an on-demand online ordering technology
platform for restaurants and stadiums, today reported financial
results for the second quarter of 2022.
Second Quarter 2022 Highlights
- Revenue for the second quarter of 2022 was $31.2 million,
compared to $49.2 million for the second quarter of 2021, due in
part to macroeconomic factors in our markets affecting order flow.
For the six months ended June 30, 2022, revenue was $66.2 million,
compared to $100.1 million for the six months ended June 30, 2021.
In addition to macroeconomic factors affecting order volumes, the
lack of stimulus payments in the first quarter of 2022, unlike
those distributed late in the first quarter of 2021, also
contributed to the decline in revenue for the six months ended June
30, 2022 compared to the six months ended June 30, 2021.
- Net loss for the second quarter of 2022 was $11.7 million, or
$0.07 per share, compared to a net loss of $5.6 million in the
second quarter of 2021, or $0.05 per share.
- Adjusted EBITDA1 for the second quarter of 2022 was a loss of
$3.6 million, compared to Adjusted EBITDA of $2.5 million for the
second quarter of 2021. Approximately $1.0 million of the loss for
the second quarter of 2022 is from an increase to the IBNR2
insurance reserve.
- As of June 30, 2022, cash on hand was $28.2 million.
During the second quarter of 2022, macroeconomic factors,
including inflation and higher gas prices along with competition,
continued to impact our markets and order volumes. We focused our
efforts on executing certain initiatives to transition the business
to a ‘deliver anything ASAP’ model, including our collaboration
with 7-Eleven in June 2022. The addition of 7-Eleven locations to
our platform created a new level of convenience for our customers.
In July 2022, we entered into agreements to begin delivering
products from retailers in various industries such as apparel,
luxury goods, sporting goods, alcohol, auto parts, electrical
products and more, with a vision to deliver ‘anything’ to
consumers, same day, from any type of business. In addition to
providing our customers with access to a broader range of products,
this expansion of services allows the Company to provide more
earning opportunities to its independent contractor driver
base.
July 2022 marked the start of our official transition to rebrand
and change the Company name to ASAP. In addition to expanding the
variety of products we deliver, we entered into a multi-year
sponsorship agreement, partnering with the New York Giants, the New
York Jets and MetLife Stadium, to serve as the exclusive mobile
ordering platform at MetLife Stadium. Fans will be able to use the
ASAP platform to place mobile orders at all Jets and Giants home
games with our platform integrated into each team’s app for a
seamless mobile ordering experience from concession stands
throughout MetLife Stadium. For other events, ASAP’s mobile
ordering will be done directly through our proprietary ASAP stadium
ordering application. Our stadium ordering technology is currently
active at the University of Alabama, Louisiana State University and
the New Orleans Saints Superdome, and we expect to add new venues
across the nation over time.
In connection with our rebranding as ASAP, we are shifting to a
single platform and application which, once completed, should
provide cost and resource savings. Moreover, the shift to one
platform should allow the Company to spend more time on various
feature-enhancements and the streamlining of service levels. We
continue to use our instant pay technology that we built for our
independent contractor drivers, and intend to commercialize and
rollout the technology to restaurant partners and potentially to
other verticals. Additionally, we are pleased with our progress in
facilitating merchants’ access to third-party payment providers and
expect to continue to see growth of that revenue stream.
During the second quarter of 2022, we negotiated the pay-down of
approximately $21 million of debt and the extension of our
long-term debt maturity by six months to May 15, 2024. In addition,
in July 2022, we entered into an agreement with the lenders under
our Credit Agreement, pursuant to which the lenders converted
approximately $6.8 million of notes into common stock. As a result,
the lenders currently beneficially own approximately 16.3% of the
Company’s common stock (excluding beneficial ownership in common
stock underlying warrants), reinforcing their commitment to the
Company’s management team and strategy. Outstanding long-term debt
as of August 8, 2022 totaled approximately $57.0 million, compared
to $84.5 million at December 31, 2021.
“I am proud of our team and the foundation we are building for
the long term success of the Company,” said Carl Grimstad, CEO and
Chairman of the Board. “With the most recent conversion, debt has
decreased by over $70 million, which is approximately 56% since
January 1, 2020. Our broader view towards our business strategy
should allow the Company to better withstand marketplace swings in
our industry in the future. Our focus is to be able to deliver a
diverse set of products from any vendor. This, along with our
best-in-class proprietary stadium technology, should help us
strategically expand our operations. There is still work to be done
in enhancing all systems, implementing the rebrand of the Company
and migrating to a single application, but our team is making great
strides,” said Mr. Grimstad.
Second Quarter 2022 Key Business Metrics
- Average Daily Orders were 18,070 for the second quarter of 2022
and 20,475 for the six months ended June 30, 2022.
- Active Diners as of August 8, 2022 were approximately 1.3
million.
Second Quarter 2022 Earnings Conference Call
The Company will host a conference call to discuss second
quarter 2022 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 (888) 221-3881, or for
international callers (323) 794-2590. 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 9933627. The replay will be available until August
15, 2022.
About Waitr Holdings Inc.
Founded in 2013, Waitr, soon to be known as ASAP, is an
on-demand ordering technology platform using the ‘deliver anything
ASAP’ model making it easy to order food, alcohol, convenience,
groceries, flowers, auto parts and more at your fingertips and get
them delivered ASAP. Waitr’s proprietary in-stadium delivery
technology now provides an enhanced fan experience at sports and
entertainment venues, allowing fans to place orders from their
favorite in-stadium concession stands, directly from their seats
through the ASAP platform. Additionally, Waitr facilitates access
to third parties that provide payment processing solutions for
restaurants and other merchants. We provide a convenient way to
discover, order and receive a wide variety of on-demand products –
ASAP. As of June 30, 2022, we operate in approximately 1,000 cities
throughout the United States.
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, debt pay-down 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,”
“goal,” 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, 2021,
filed with the SEC on March 11, 2022, 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 June 30, 2022, which
will be filed with the SEC on August 8, 2022, 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.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(In thousands, except share
and per share data)
(Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2022
2021
2022
2021
REVENUE
$
31,171
$
49,167
$
66,211
$
100,097
COSTS AND EXPENSES:
Operations and support
15,983
31,273
36,262
61,611
Sales and marketing
6,973
4,500
13,226
8,516
Research and development
1,242
854
2,553
1,853
General and administrative
12,213
12,505
23,758
22,691
Depreciation and amortization
3,000
2,965
6,065
5,882
Goodwill impairment
—
—
67,190
—
(Gain) loss on disposal of assets
(71
)
162
(88
)
159
TOTAL COSTS AND EXPENSES
39,340
52,259
148,966
100,712
LOSS FROM OPERATIONS
(8,169
)
(3,092
)
(82,755
)
(615
)
OTHER EXPENSES AND LOSSES, NET
Interest expense
1,461
1,681
3,165
3,582
Other expense
2,024
835
2,934
5,099
NET LOSS FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES
(11,654
)
(5,608
)
(88,854
)
(9,296
)
Income tax expense
17
33
33
57
NET LOSS FROM CONTINUING
OPERATIONS
$
(11,671
)
$
(5,641
)
$
(88,887
)
$
(9,353
)
LOSS PER SHARE:
Basic
$
(0.07
)
$
(0.05
)
$
(0.57
)
$
(0.08
)
Diluted
$
(0.07
)
$
(0.05
)
$
(0.57
)
$
(0.08
)
Weighted average shares used to compute
net loss per share:
Weighted average common shares
outstanding – basic
160,531,778
115,644,790
157,099,938
113,998,589
Weighted average common shares
outstanding – diluted
160,531,778
115,644,790
157,099,938
113,998,589
WAITR HOLDINGS INC.
CONSOLIDATED BALANCE
SHEETS
(In thousands, except per
share data)
(Unaudited)
June 30, 2022
December 31,
2021
ASSETS
CURRENT ASSETS
Cash
$
28,203
$
60,111
Accounts receivable, net
3,319
3,027
Capitalized contract costs, current
1,377
1,170
Prepaid expenses and other current
assets
5,126
8,706
TOTAL CURRENT ASSETS
38,025
73,014
Property and equipment, net
2,599
3,763
Capitalized contract costs, noncurrent
3,395
3,183
Goodwill
63,434
130,624
Intangible assets, net
42,506
43,126
Operating lease right-of-use assets
3,620
4,327
Other noncurrent assets
929
1,070
TOTAL ASSETS
$
154,508
$
259,107
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES:
CURRENT LIABILITIES
Accounts payable
$
5,422
$
7,018
Restaurant food liability
2,219
3,327
Accrued payroll
2,330
2,988
Short-term loans for insurance
financing
2,351
3,142
Income tax payable
107
74
Operating lease liabilities
1,315
1,581
Other current liabilities
18,768
19,309
TOTAL CURRENT LIABILITIES
32,512
37,439
Long term debt - related party
61,805
81,977
Accrued medical contingency
—
53
Operating lease liabilities, net of
current portion
2,537
3,034
Other noncurrent liabilities
36
2,115
TOTAL LIABILITIES
96,890
124,618
STOCKHOLDERS’ EQUITY:
Common stock, $0.0001 par value
16
15
Additional paid in capital
515,624
503,609
Accumulated deficit
(458,022
)
(369,135
)
TOTAL STOCKHOLDERS’ EQUITY
57,618
134,489
TOTAL LIABILITIES AND STOCKHOLDERS’
EQUITY
$
154,508
$
259,107
WAITR HOLDINGS INC.
CONSOLIDATED CASH FLOW
STATEMENTS
(In thousands)
(Unaudited)
Six Months Ended June
30,
2022
2021
Cash flows from operating
activities:
Net loss
$
(88,887
)
$
(9,353
)
Adjustments to reconcile net loss to net
cash (used in) provided by operating activities:
Non-cash interest expense
577
1,485
Induced conversion expense related to
Notes
930
—
Stock-based compensation
3,250
4,465
(Gain) loss on disposal of assets
(88
)
159
Depreciation and amortization
6,065
5,882
Goodwill impairment
67,190
—
Amortization of capitalized contract
costs
629
423
Change in fair value of contingent
consideration liability
104
—
Other
(58
)
(84
)
Changes in assets and liabilities:
Accounts receivable
(292
)
(614
)
Capitalized contract costs
(1,048
)
(1,389
)
Prepaid expenses and other current
assets
3,580
(1,008
)
Other noncurrent assets
161
(386
)
Accounts payable
(1,596
)
1,623
Restaurant food liability
(1,108
)
(86
)
Income tax payable
33
57
Accrued payroll
(658
)
(1,368
)
Accrued medical contingency
(53
)
(258
)
Other current liabilities
(2,224
)
6,452
Other noncurrent liabilities
(336
)
(64
)
Net cash (used in) provided by
operating activities
(13,829
)
5,936
Cash flows from investing
activities:
Purchases of property and equipment
(81
)
(589
)
Internally developed software
(4,318
)
(4,137
)
Purchase of domain names
(12
)
—
Acquisitions, net of cash acquired
—
(12,706
)
Proceeds from sale of property and
equipment
32
13
Net cash used in investing
activities
(4,379
)
(17,419
)
Cash flows from financing
activities:
Proceeds from issuance of stock
7,120
—
Payments on long-term loan
(20,000
)
(14,472
)
Borrowings under short-term loans for
insurance financing
2,811
5,209
Payments on short-term loans for insurance
financing
(3,602
)
(2,471
)
Payments on acquisition loans
—
(132
)
Payments on finance lease obligation
(2
)
—
Proceeds from exercise of stock
options
—
8
Taxes paid related to net settlement on
stock-based compensation
(27
)
(817
)
Net cash used in financing
activities
(13,700
)
(12,675
)
Net change in cash
(31,908
)
(24,158
)
Cash, beginning of period
60,111
84,706
Cash, end of period
$
28,203
$
60,548
Supplemental disclosures of cash flow
information:
Cash paid during the period for
interest
$
2,588
$
2,097
Supplemental disclosures of non-cash
investing and financing activities:
Conversion of convertible notes to
stock
$
1,673
$
—
Stock issued as consideration in
acquisition
—
10,545
Noncash impact of operating lease assets
upon adoption
—
5,600
Noncash impact of operating lease
liabilities upon adoption
—
6,005
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 loss adjusted
to exclude interest expense, income taxes, depreciation and
amortization expense, goodwill impairment, stock-based compensation
expense, (gain) loss on disposal of assets, induced conversion
expense related to Notes, change in fair value of contingent
consideration liability, acquisition transaction related
expenditures and other non-recurring adjustments and accrued legal
contingency and reserve. 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 goodwill impairment and
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 loss or other performance
measures derived in accordance with GAAP. A reconciliation of net
loss to Adjusted EBITDA is provided below:
Three Months Ended June
30,
Six Months Ended June
30,
2022
2021
2022
2021
NET LOSS
$
(11,671
)
$
(5,641
)
$
(88,887
)
$
(9,353
)
Interest expense
1,461
1,681
3,165
3,582
Income taxes
17
33
33
57
Depreciation and amortization expense
3,000
2,965
6,065
5,882
Goodwill impairment
—
—
67,190
—
Stock-based compensation expense
1,579
2,387
3,250
4,465
(Gain) loss on disposal of assets
(71
)
162
(88
)
159
Induced conversion expense related to
Notes
930
—
930
—
Change in fair value of contingent
consideration liability
23
—
104
—
Transaction related expenditures and other
non-recurring adjustments
1,121
236
2,036
1,304
Accrued legal contingency and reserve
—
700
800
4,700
ADJUSTED EBITDA
$
(3,611
)
$
2,523
$
(5,402
)
$
10,796
WAITR HOLDINGS INC. NON-GAAP
FINANCIAL MEASURES ADJUSTED NET LOSS AND ADJUSTED
LOSS PER DILUTED SHARE (In thousands, except share and per
share data) (Unaudited)
Adjusted net loss and adjusted loss per diluted share are not
required by, nor presented in accordance with, GAAP. We define
adjusted loss per diluted share as adjusted net loss divided by our
weighted average common shares outstanding - diluted. Adjusted net
loss is calculated as net loss plus goodwill impairment, induced
conversion expense related to Notes, change in fair value of
contingent consideration liability, acquisition transaction related
expenditures and other non-recurring adjustments and accrued legal
contingency and reserve. 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. Goodwill impairment, induced
conversion expense related to Notes, change in fair value of
contingent consideration liability, acquisition transaction related
expenses and accrued legal contingency and reserve are considered
non-recurring items. Adjusted net loss and adjusted loss per
diluted share are not measurements of our financial performance
under GAAP and should not be considered as an alternative to net
loss or loss per share or other performance measures derived in
accordance with GAAP. A reconciliation of net loss to adjusted net
loss, along with adjusted loss per diluted share, is provided
below:
Three Months Ended June
30,
Six Months Ended June
30,
2022
2021
2022
2021
Net loss
$
(11,671
)
$
(5,641
)
$
(88,887
)
$
(9,353
)
Goodwill impairment
—
—
67,190
—
Induced conversion expense related to
Notes
930
—
930
—
Change in fair value of contingent
consideration liability
23
—
104
—
Transaction related expenditures and other
non-recurring adjustments
1,121
236
2,036
1,304
Accrued legal contingency and reserve
—
700
800
4,700
Adjusted net loss
$
(9,597
)
$
(4,705
)
$
(17,827
)
$
(3,349
)
Weighted average common shares outstanding
- diluted
160,531,778
115,644,790
157,099,938
113,998,589
Adjusted loss per diluted share
$
(0.06
)
$
(0.04
)
$
(0.11
)
$
(0.03
)
_____________________ 1Adjusted EBITDA is a non-GAAP financial
measure. A reconciliation of GAAP net loss to Adjusted EBITDA is
included in the “Non-GAAP Financial Measure/Adjusted EBITDA” table
below. 2IBNR refers to incurred but not reported insurance claims
based on a third-party party analysis.
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version on businesswire.com: https://www.businesswire.com/news/home/20220808005741/en/
Investors WaitrIR@icrinc.com
Media WaitrPR@icrinc.com
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