Waitr Holdings Inc. (Nasdaq: WTRH) (“Waitr” or the “Company”), a
leader in on-demand food ordering and delivery, today reported
financial results for the third quarter of 2020.
Third Quarter 2020 Highlights
- Revenue for the third quarter of 2020 was $52.7 million,
compared to $49.2 million in the third quarter of 2019, an increase
of 7%.
- Net income for the third quarter of 2020 was $4.6 million, or
$0.04 per diluted share, compared to a loss of $220.1 million, or a
loss of $2.89 per diluted share, in the third quarter of 2019.
- Adjusted EBITDA1 for the third quarter of 2020 was $13.0
million, compared to a loss of $15.4 million in the third quarter
of 2019, an increase of $28.4 million.
- As of October 31, 2020, cash on hand was approximately $80
million.
- The Company completed its at-the-market common equity offering
program on July 10, 2020, issuing an aggregate of 23,698,720 shares
of common stock for net proceeds of $47.6 million during the period
of March 20, 2020 through July 10, 2020.
- On August 3, 2020, the Company prepaid $10.5 million to its
lender in exchange for a rate decrease of 200 basis points for 1
year along with a one-year extension of the maturity date to
November 15, 2023 on both its credit facility and convertible
notes.
“We achieved a second consecutive quarter of continued
profitability and operating cash flow, which we believe is the
result of our fundamental strategic initiatives and focus on
operating a profitable business. We believe the continued hard work
of our team members, diversified selection of restaurant partners
and increased driver base strengthens our position in many
markets,” said Carl Grimstad, Chairman and CEO of Waitr.
“Some of our restaurant partners have recently faced additional
hardships arising from the overall macroeconomic challenges related
to the ongoing pandemic as well as headwinds from several recent
hurricanes that have hit the Southeast. We are working to help
certain of these restaurant partners overcome these hardships in an
attempt to return to a sense of normalcy during this tough time,”
concluded Grimstad.
Waitr has also diversified its product offering beyond food
delivery, having recently introduced its tableside service
technology. Combining this “dine-in” offering with its existing
delivery and take-out ordering services, Waitr now offers an
integrated payment solution that can help restaurants improve their
safety protocols, sales and efficiency, both inside and outside the
four walls of the restaurant.
Additionally, the Company has continued its expansion into new
delivery verticals such as same-day groceries and alcohol delivery
services, all while offering no-contact delivery.
1 Adjusted EBITDA is a non-GAAP financial measure. A
reconciliation of GAAP net income (loss) to Adjusted EBITDA is
included under “Non-GAAP Financial Measure”.
Third Quarter 2020 Key Business Metrics
- Average Daily Orders were 39,880.
- Active Diners as of September 30, 2020 were over 2
million.
Liquidity Update
As of September 30, 2020, the Company had cash on hand of $77.1
million. The Company had total long-term debt outstanding at
September 30, 2020 of $99.2 million, consisting of $49.5 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. Short-term debt as of September 30, 2020 totaled
$1.2 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 the sales of
common stock pursuant to the at-the-market offerings launched by
the Company in March and May 2020, resulted in increases in working
capital and liquidity from December 31, 2019.
Third Quarter 2020 Earnings Conference Call
The Company will host a conference call to discuss third 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 (866) 269-4261, or for international
callers (323) 347-3278. 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 9968426.
That replay will be available until Monday, November 16, 2020.
About Waitr Holdings Inc.
Founded in 2013 and based in Lafayette, Louisiana, Waitr
operates an online food ordering 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 from local restaurants, national chains and
grocery stores. As of September 30, 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 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. Additional information will be set forth in Waitr’s
Quarterly Report on Form 10-Q for the three months ended September
30, 2020, which will be filed with the SEC on November 9, 2020, 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).
Non-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, 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 income (loss) to Adjusted EBITDA for the
three and nine months ended September 30, 2020 and 2019.
CONSOLIDATED STATEMENTS OF OPERATIONS (In
thousands, except share and per share amounts) (Unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2020
2019
2020
2019
REVENUE
$
52,734
$
49,201
$
157,483
$
148,575
COSTS AND EXPENSES:
Operations and support
27,409
37,289
84,321
113,170
Sales and marketing
3,288
15,953
8,854
41,615
Research and development
820
1,920
3,457
6,009
General and administrative
11,380
12,817
32,252
44,115
Depreciation and amortization
2,103
4,851
6,242
13,791
Goodwill impairment
—
119,212
—
119,212
Intangible and other asset impairments
—
72,917
29
72,935
Loss on disposal of assets
4
11
15
26
TOTAL COSTS AND EXPENSES
45,004
264,970
135,170
410,873
INCOME (LOSS) FROM OPERATIONS
7,730
(215,769
)
22,313
(262,298
)
OTHER EXPENSES (INCOME) AND LOSSES
(GAINS), NET
Interest expense
2,117
2,775
7,521
6,570
Interest income
(14
)
(297
)
(95
)
(877
)
Other expense
965
1,827
1,640
1,654
NET INCOME (LOSS) BEFORE INCOME
TAXES
4,662
(220,074
)
13,247
(269,645
)
Income tax expense
18
30
52
60
NET INCOME (LOSS)
$
4,644
$
(220,104
)
$
13,195
$
(269,705
)
INCOME (LOSS) PER SHARE:
Basic
$
0.04
$
(2.89
)
$
0.14
$
(3.77
)
Diluted
$
0.04
$
(2.89
)
$
0.13
$
(3.77
)
Weighted-average shares used to compute
net income (loss) per share:
Weighted average common shares
outstanding – basic
109,181,847
76,145,317
93,763,069
71,071,777
Weighted average common shares
outstanding – diluted
123,785,750
76,145,317
102,519,454
71,071,777
CONSOLIDATED BALANCE SHEETS (In thousands,
except per share data)
September 30,
December 31,
2020
2019
(unaudited)
2
ASSETS
CURRENT ASSETS
Cash
$
77,136
$
29,317
Accounts receivable, net
3,925
3,272
Capitalized contract costs, current
643
199
Prepaid expenses and other current
assets
4,597
8,329
TOTAL CURRENT ASSETS
86,301
41,117
Property and equipment, net
3,452
4,072
Capitalized contract costs, noncurrent
2,220
772
Goodwill
106,734
106,734
Intangible assets, net
23,414
25,761
Other noncurrent assets
435
517
TOTAL ASSETS
$
222,556
$
178,973
LIABILITIES AND STOCKHOLDERS’
EQUITY
LIABILITIES:
CURRENT LIABILITIES
Accounts payable
$
4,975
$
4,384
Restaurant food liability
4,736
5,612
Accrued payroll
2,248
5,285
Short-term loans
1,172
3,612
Deferred revenue, current
24
414
Income tax payable
52
51
Other current liabilities
17,026
13,293
TOTAL CURRENT LIABILITIES
30,233
32,651
Long-term debt
93,689
123,244
Accrued medical contingency
16,839
17,203
Accrued workers’ compensation
liability
—
102
Deferred revenue, noncurrent
—
45
Other noncurrent liabilities
1,107
325
TOTAL LIABILITIES
141,868
173,570
STOCKHOLDERS’ EQUITY:
Common stock, $0.0001 par value
11
8
Additional paid in capital
447,224
385,137
Accumulated deficit
(366,547
)
(379,742
)
TOTAL STOCKHOLDERS’ EQUITY
80,688
5,403
TOTAL LIABILITIES AND STOCKHOLDERS’
EQUITY
$
222,556
$
178,973
2 During the third quarter of 2020, we identified and corrected
an immaterial error related to the understatement of an accrued
medical contingency that affected the previously issued
consolidated balance sheet at December 31, 2019. The impact of the
updated estimated liability for the claim is reflected herein. See
“Notes to Condensed Consolidated Financial Statements, Note 9 –
Correction of Prior Period Error” included in our Quarterly Report
on Form 10-Q for the quarter ended September 30, 2020 filed with
the SEC.
CONSOLIDATED CASH FLOW STATEMENTS (In
thousands) (Unaudited)
Nine Months Ended September
30,
2020
2019
Cash flows from operating
activities:
Net income (loss)
$
13,195
$
(269,705
)
Adjustments to reconcile net income (loss)
to net cash provided by (used in) operating activities:
Non-cash interest expense
5,126
3,346
Non-cash advertising expense
—
379
Stock-based compensation
3,178
6,747
Equity issued in exchange for services
—
90
Loss on disposal of assets
15
26
Depreciation and amortization
6,242
13,791
Goodwill impairment
—
119,212
Intangible and other asset impairments
29
72,935
Amortization of capitalized contract
costs
327
1,614
Other non-cash income
(31
)
(39
)
Changes in assets and liabilities:
Accounts receivable
(653
)
(248
)
Capitalized contract costs
(2,219
)
(3,585
)
Prepaid expenses and other current
assets
3,732
(2,803
)
Accounts payable
591
2,640
Restaurant food liability
(876
)
5,851
Deferred revenue
(435
)
(3,691
)
Income tax payable
1
5
Accrued payroll
(3,037
)
2,853
Accrued medical contingency
(363
)
(604
)
Accrued workers’ compensation
liability
(102
)
(160
)
Other current liabilities
4,085
(76
)
Other noncurrent liabilities
781
111
Net cash provided by (used in)
operating activities
29,586
(51,311
)
Cash flows from investing
activities:
Purchases of property and equipment
(968
)
(1,493
)
Acquisition of Bite Squad, net of cash
acquired
—
(192,568
)
Other acquisitions
(339
)
(395
)
Collections on notes receivable
51
72
Internally developed software
(2,387
)
(1,096
)
Proceeds from sale of property and
equipment
14
28
Net cash used in investing
activities
(3,629
)
(195,452
)
Cash flows from financing
activities:
Waitr shares redeemed for cash
—
(10
)
Proceeds from issuance of stock
48,314
50,002
Equity issuance costs
(740
)
(4,179
)
Proceeds from Additional Term Loans
—
42,080
Payments on long-term loans
(22,594
)
—
Proceeds from short-term loans
1,906
5,032
Payments on short-term loans
(4,336
)
(2,509
)
Proceeds from exercise of stock
options
40
4
Taxes paid related to net settlement on
stock-based compensation
(728
)
(799
)
Net cash provided by financing
activities
21,862
89,621
Net change in cash
47,819
(157,142
)
Cash, beginning of period
29,317
209,340
Cash, end of period
$
77,136
$
52,198
Supplemental disclosures of cash flow
information:
Cash paid during the period for state
income taxes
$
64
$
30
Cash paid during the period for
interest
2,395
3,224
Supplemental disclosures of non-cash
investing and financing activities:
Stock issued as consideration in Bite
Squad acquisition
$
—
$
126,574
Conversion of convertible notes to
stock
12,024
—
Stock issued in connection with Additional
Term Loans
—
3,884
Non-cash gain on debt extinguishment
—
1,897
Seller-financed payables related to other
acquisitions
—
801
Non-cash investments in other
acquisitions
—
801
NON-GAAP FINANCIAL MEASURE ADJUSTED EBITDA
(In thousands) (Unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2020
2019
2020
2019
NET INCOME (LOSS)
$
4,644
$
(220,104
)
$
13,195
$
(269,705
)
Interest expense
2,117
2,775
7,521
6,570
Income taxes
18
30
52
60
Depreciation and amortization
2,103
4,851
6,242
13,791
Goodwill impairment
—
119,212
—
119,212
Stock-based compensation
1,728
2,225
3,178
6,837
Intangible and other asset impairments
—
72,917
29
72,935
Business combination related
expenditures
—
—
—
6,956
Costs associated with reduction in
force
—
658
—
1,026
Restructuring expenses
—
—
850
—
Accrued legal contingency
1,023
2,000
1,023
2,000
One-time insurance reserve adjustment
1,352
—
1,352
—
ADJUSTED EBITDA
$
12,985
$
(15,436
)
$
33,442
$
(40,318
)
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version on businesswire.com: https://www.businesswire.com/news/home/20201109005945/en/
Investors WaitrIR@icrinc.com
Media WaitrPR@icrinc.com
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