Waitr Holdings Inc. (Nasdaq: WTRH) (“Waitr” or the “Company”), a
leader in on-demand food ordering and delivery, today announced its
preliminary unaudited financial results for the second quarter
ended June 30, 2020.
Preliminary Unaudited Second Quarter 2020 Results
On a preliminary, estimated basis:
- Revenue for the second quarter of 2020 was approximately $60
million, compared to $51.3 million in the second quarter of
2019.
- Net Income for the second quarter of 2020 was at least $8
million, compared to a net loss of $24.9 million in the second
quarter of 2019.
- Adjusted EBITDA1 for the second quarter of 2020 was at
least $15 million, compared to negative EBITDA of $14.9 million in
the second quarter of 2019, an increase of almost $30 million.
- As of June 30, 2020, cash on hand was approximately $66
million.
- During the second quarter of 2020, the Company converted
approximately $12.5 million of its convertible notes into common
stock. On July 2, 2020 the Company paid down $12.5 million of its
senior secured term loan.
Business Update
"We are pleased to present a preliminary look at our second
quarter results and we are excited to deliver strong revenue growth
and profitability, driven, in part, by an uptick in new diners and
orders. While the events of the last several months have
accelerated the adoption of our platform by consumers, we believe
the important steps we adopted early this year, pre-pandemic, to
super-charge our business are starting to be recognized in our
financial results,” said Carl Grimstad, Chairman and CEO of
Waitr.
“Continued strong results reflect the hard work of our team
members, our restaurant partners and our drivers, as well as the
trust that we have earned from consumers who have relied on us to
deliver high-quality food throughout the pandemic,” added Mr.
Grimstad. “Over the course of the last six months, we have
reinforced our presence in our most important markets by increasing
delivery areas, adding grocery and alcohol delivery services, and
expanding our customer service and dispatch teams. All these growth
initiatives are being supported by a leaner cost structure and with
an eye on efficiencies and appropriate returns on deployed
capital.”
Since the onset of the pandemic, Waitr has been nimble in
adapting its business. Waitr continues to actively work with our
local communities, diners, restaurant partners, drivers and
employees in joint efforts to mitigate risks and hardships arising
from the ongoing pandemic. The Company has been working with new
and existing restaurant partners to boost their delivery potential
and sustain their businesses in the current environment, and has
provided restaurants with free marketing and promotions, discounted
delivery fees and other support. Waitr also recently added a
donation feature to its app, the proceeds from which will go to
Feeding America and other similar charities to help feed those in
need.
“The increased demand for our services enables us to provide our
communities with employment opportunities for drivers,” said Mr.
Grimstad. “The increase in the number of drivers, in turn, ensures
expanded capacity and improved service for our restaurant partners
and diners.”
The Company expects to release its second quarter 2020 results
in early August. The date on which the Company expects to issue
such release will be announced in the near future.
Preliminary Results
The financial results presented in this press release are
preliminary, estimated and unaudited. They are subject to the
completion and finalization of Waitr’s financial and accounting
closing procedures and reflect management’s estimates based solely
upon information available to management as of the date of this
press release. Further information learned during that completion
and finalization may alter the final results. In addition, the
preliminary estimates should not be viewed as a substitute for full
quarter financial statements prepared in accordance with generally
accepted accounting principles in the United States of America.
There is a possibility that Waitr’s second quarter financial
results could vary materially from these preliminary estimates. In
addition to the completion of the financial closing procedures of
Waitr, factors that could cause actual results to differ from those
described above are set forth below under “Cautionary Note
Concerning Forward-Looking Statements.” Accordingly, you should not
place undue reliance upon this preliminary information.
About Waitr Holdings Inc.
Founded in 2013 and based in Lafayette, Louisiana, Waitr is a
leader in on-demand food ordering and delivery. Waitr, along with
Bite Squad connect local restaurants to hungry diners in
underserved U.S. markets. Together they are a convenient way to
discover, order and receive great food from local restaurants,
national chains and grocery stores. As of June 30, 2020, Waitr and
Bite Squad operated in small and medium sized markets in the United
States in over 600 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 preliminary unaudited 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 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 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. 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 has thus far been able to operate effectively as it
relates to the COVID-19 pandemic. However, the potential impact and
duration of the COVID-19 pandemic on the global economy and on the
Company’s business in particular may be difficult to assess or
predict. The pandemic has resulted in, and may continue to result
in, significant disruption of global financial markets, which may
reduce the Company’s ability to access capital and continue to
operate effectively. The COVID-19 pandemic could also reduce the
demand for the Company’s services. In addition, a recession or
further financial market correction resulting from the spread of
COVID-19 could adversely affect demand for the Company’s services.
To the extent that the COVID-19 pandemic adversely impacts the
Company’s business, results of operations, liquidity or financial
condition, it may also have the effect of increasing many of the
other risks described in the risk factors in the Company’s Annual
Report on Form 10-K for the fiscal year ended December 31, 2019,
and in the Company’s subsequent periodic filings with the SEC.
1Non-GAAP Financial Measure
Adjusted EBITDA is a financial measure that is not calculated 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,
acquisition and restructuring costs, stock-based compensation
expense, impairments of intangible assets and goodwill 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 preliminary, estimated low end net income to
estimated low end Adjusted EBITDA for the second quarter ended June
30, 2020.
NON-GAAP FINANCIAL
MEASURE
ADJUSTED EBITDA
(In millions)
(Unaudited)
Three Months Ended June
30,
2020
NET INCOME
$
8
Interest expense
3
Depreciation and amortization
2
Stock-based compensation
1
Restructuring Expenses
1
ADJUSTED EBITDA
$
15
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