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eDiets.com(R) Announces Q2 2009 Results
PR Newswire
Aug 12, 2009
FORT LAUDERDALE, Fla., Aug. 12 /PRNewswire-FirstCall/ -- eDiets.com, Inc. (Nasdaq: DIET), a leading provider of convenient at-home diet, fitness and healthy lifestyle solutions, today announced results for the second quarter ended June 30, 2009.
Revenues for the second quarter of 2009 were $4.7 million, compared to $6.5 million in the prior year period. The net loss was $(2.6) million, or $(0.10) per diluted share, for the second quarter of 2009 compared to $(3.1) million, or $(0.12) per diluted share, for the second quarter of 2008.
Adjusted EBITDA*, defined as net loss before interest, taxes, depreciation, amortization, stock-based compensation, severance charges and bad debt recovery or expense, for the quarter ended June 30, 2009 was $(0.5) million compared to $(1.4) million in the prior year period.
For the six months ended June 30, 2009, the Company recorded revenues of $10.0 million compared to $15.2 million for the same period last year. Net loss was $(5.5) million, or $(0.22) per share, compared to $(8.3) million, or $(0.33) per share, for the first six months of 2008. Adjusted EBITDA for the first half of 2009 totaled $(1.1) million compared to $(4.8) million in the comparable prior year period.
Second Quarter and Recent Operating Highlights:
-- Expanded margins on meal delivery program to 36% (excluding revenue
share and promotional costs) from 31% in the first quarter
-- Customer retention on meal delivery is over eight weeks
-- Cash from operations was slightly positive in the second quarter
-- Completed $500,000 Private Placement with certain members of management
and the Board of Directors
"We are encouraged by the results of our ongoing efforts to optimize our core digital, meal delivery and B2B business platform, improve the efficiency of our operations, and generate positive cash flow," said Kevin McGrath, President and Chief Executive Officer of eDiets.com. "The second quarter marked continued progress toward achieving our strategic goals. Meal delivery margins and our customer retention rate showed meaningful improvement from the first quarter and the prior year period, and we are making substantial progress in cutting costs and developing more effective ads and promotions. In addition, we significantly reduced our cash usage for the quarter."
Mr. McGrath continued, "We anticipate modest cash usage in the third quarter as we accelerate our ad spend and invest marketing dollars into a soft relaunch of our fresh meal delivery in the fall, including a new TV commercial. We believe that the actions we have taken have resulted in significant improvements in our business and we are making excellent progress towards our goals."
Conference Call
The company will host a conference call to discuss the second quarter 2009 results at 8:30 a.m. Eastern Time on Thursday, August 13, 2009. Participants may access the call by dialing 800-638-5439 (domestic) or 617-614-3945 (international), passcode 31625372. In addition, the call will be webcast via the Investor Relations section of the company's web site at http://www.eDiets.com, where it will also be archived. A telephone replay will be available through Thursday, August 27, 2009. To access the replay, please dial 888-286-8010 (domestic) or 617-801-6888 (international), passcode 20859619.
About eDiets
eDiets.com, Inc. is a leading provider of personalized nutrition, fitness and weight-loss programs. eDiets currently features its award-winning, fresh-prepared diet meal delivery service as one of the more than 20 popular diet plans sold directly to members on its flagship site, www.eDiets.com. The company also provides a broad range of customized wellness and weight management solutions for Fortune 500 clients. eDiets.com's unique infrastructure offers businesses, as well as individuals, an end-to-end solution strategically tailored to meet its customers' specific goals of achieving a healthy lifestyle. For more information, please call 310-954-1105 or visit www.eDiets.com.
* Use of Non-GAAP Financial Measures
In its earnings releases, conference calls, slide presentations or webcasts, the Company may use or discuss adjusted EBITDA, which is a non-GAAP financial measure as defined by SEC Regulation G. Management regularly reviews adjusted EBITDA as an analytical indicator of the Company's financial performance and believes that it is useful to investors in evaluating operating performance. In addition, the Company uses adjusted EBITDA as a measure of performance for its business segments and for incentive compensation purposes. The Company does not intend for adjusted EBITDA to be considered in isolation or as a substitute for any GAAP measure. Adjusted EBITDA, as presented, may not be comparable to similarly titled measures of other companies.
Reconciliation of Non-GAAP Financial Measures
(Unaudited)
(in thousands)
Three Months Six Months
Ended June 30, Ended June 30,
---------------- ----------------
2009 2008 2009 2008
---- ---- ---- ----
Net loss $(2,638) $(3,128) $(5,475) $(8,253)
Interest income, net - (10) (2) (52)
Interest expense on secured notes 740 453 1,438 840
Amortization of secured notes 500 254 952 515
Income tax provision 11 33 17 1
Depreciation 396 391 799 690
Amortization of intangibles 97 237 275 529
Stock-based compensation 306 290 693 758
Bad debt (recovery) expense (14) 64 21 89
Severance charges 82 26 220 35
-- -- --- --
Adjusted EBITDA $(520) $(1,390) $(1,062) $(4,848)
===== ======= ======= =======
Safe Harbor Statement
Statements which are not historical in nature are forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties which could cause the actual results, performance or achievements to be materially different from those which may be expressed or implied by such statements. These risks and uncertainties include, among others, that we will not be able to obtain sufficient and/or acceptable outside financing (when and if required); changes in general economic and business conditions; changes in product acceptance by consumers; a decline in the effectiveness of sales and marketing efforts; loss of market share and pressure on prices resulting from competition; significant investments in our technology platform, marketing plans, and product development to remain competitive with other online providers of healthy living and weight loss plans, many of which may be found to offer superior and more varied features than our plans and may also be offered for free; volatility in the advertising markets; any delay, disruption, or suspension of our supply of prepared meals from our vendor; changes in consumer preferences and discretionary spending; product liability and other risks from the sale of ingested products; regulatory actions affecting our marketing activities; and the outcome of litigation pending against us. For additional information regarding these and other risks and uncertainties associated with eDiets.com's business, reference is made to our Annual Report on Form 10-K for the year ended December 31, 2008, and other reports filed from time to time with the Securities and Exchange Commission. All forward-looking statements are current only as of the date on which such statements are made. We do not undertake any obligation to publicly update any forward- looking statements.
eDiets.com, Inc.
Summary of Consolidated Financial Information
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
------------------- ----------------
2009 2008 2009 2008
---- ---- ---- ----
Revenues:
Digital plans $1,269 $2,524 $2,667 $5,736
Meal delivery 2,289 2,720 4,196 6,823
Business-to-business 853 844 2,483 1,637
Other 322 363 658 1,019
--- --- --- -----
Total revenues 4,733 6,451 10,004 15,215
Cost and expenses:
Cost of revenue
Digital plans 188 574 463 1,198
Meal delivery 1,714 2,765 3,249 7,123
Business-to-business 73 36 124 63
Other 49 78 112 146
-- -- --- ---
Total cost of revenue 2,024 3,453 3,948 8,530
Technology and development 836 1,021 1,846 1,972
Sales, marketing and
support 2,062 2,329 4,321 7,495
General and administrative 1,101 1,809 2,684 3,638
Amortization of Intangibles 97 237 275 529
-- --- --- ---
Total cost and expenses 6,120 8,849 13,074 22,164
----- ----- ------ ------
Loss from operations (1,387) (2,398) (3,070) (6,949)
Interest income 3 24 9 75
Interest expense (1,243) (721) (2,397) (1,378)
------ ---- ------ ------
Loss before income tax
provision (2,627) (3,095) (5,458) (8,252)
Income tax provision (11) (33) (17) (1)
--- --- --- --
Net loss $(2,638) $(3,128) $(5,475) $(8,253)
======= ======= ======= =======
Loss per common share:
Basic and diluted $(0.10) $(0.12) $(0.22) $(0.33)
====== ====== ====== ======
Weighted average common
and common equivalent shares
outstanding:
Basic and diluted 25,193 25,114 25,176 25,079
====== ====== ====== ======
Three Months Ended Six Months
June 30, Ended June 30,
------------------- ----------------
2009 2008 2009 2008
---- ---- ---- ----
STATEMENT OF CASH FLOW DATA:
Net cash provided by
(used in):
Operations $108 $(1,021) $(1,592) $(4,975)
Investing (7) (797) (29) (1,709)
Financing (39) 2,567 (60) 2,520
June 30, December 31,
2009 2008
---- ----
BALANCE SHEET DATA:
Cash and cash equivalents $856 $2,523
Total assets 12,630 15,671
Deferred revenue 2,566 3,336
Long-term debt (excluding
capital leases) 14,115 11,808
Stockholder's deficit (7,475) (2,781)
SOURCE eDiets.com
Copyright (2009) PR Newswire. All Rights Reserved.
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