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Press release content from Business Wire. The AP news staff was not involved in its creation.

Waitr Reports Third Quarter 2021 Results

November 2, 2021 GMT

LAFAYETTE, La.--(BUSINESS WIRE)--Nov 2, 2021--

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 EBITDA 1 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.

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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.

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“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

 

 

View source version on businesswire.com:https://www.businesswire.com/news/home/20211102006304/en/

CONTACT: Investors

WaitrIR@icrinc.com

Media

WaitrPR@icrinc.com

KEYWORD: UNITED STATES NORTH AMERICA LOUISIANA

INDUSTRY KEYWORD: ONLINE RETAIL RETAIL RESTAURANT/BAR TECHNOLOGY SUPERMARKET INTERNET FOOD/BEVERAGE

SOURCE: Waitr Holdings Inc.

Copyright Business Wire 2021.

PUB: 11/02/2021 04:10 PM/DISC: 11/02/2021 04:11 PM

http://www.businesswire.com/news/home/20211102006304/en