Waitr Holdings Inc. (Nasdaq: WTRH) (“Waitr” or the “Company”), a
leader in on-demand ordering and delivery, today reported financial
results for the second quarter ended June 30, 2021.
Second Quarter 2021 Highlights and Key Business
Metrics
- Revenue for the second quarter of 2021 was $49.2 million,
compared to $50.9 million in the first quarter of 2021 and $60.5
million in the second quarter of 2020. For the six months ended
June 30, 2021, revenue was $100.1 million, compared to $104.7
million for the six months ended June 30, 2020.
- Average Daily Orders increased to 38,583 for the second quarter
of 2021, compared to 37,627 for the first quarter of 2021.
- Active Diners as of June 30, 2021 were substantially consistent
with the Active Diners as of March 31, 2021.
- Net loss for the second quarter of 2021 was $5.6 million,
compared to net loss of $3.7 million for the first quarter of 2021
and net income of $10.7 million in the second quarter of 2020.
Adjusted net loss1 was $4.7 million for the second quarter of 2021,
compared to adjusted net income of $1.4 million for the first
quarter of 2021 and $11.5 million for the second quarter of 2020.
Loss per share for the second quarter of 2021 was $0.05 compared to
loss per share of $0.03 in the first quarter of 2021 and net income
per share for the second quarter of 2020 of $0.10. Adjusted loss
per diluted share2 for the second quarter of 2021 was $0.04,
compared to adjusted earnings per diluted share of $0.01 for the
first quarter of 2021 and $0.11 for the second quarter of
2020.
- Adjusted EBITDA3 for the second quarter of 2021 was $2.5
million, compared to $8.3 million in the first quarter of 2021 and
$16.7 million in the second quarter of 2020. In the second quarter
of 2021, we invested in several key areas of the business, with the
expectation of positioning ourselves for long-term growth:
- At June 30, 2021, we had our highest level of active drivers
since inception. During the second quarter of 2021, our continued
investment in driver supply led to elevated driver costs in the
first two quarters of 2021, but these driver costs started to
decrease in the later part of the second quarter of 2021;
- Addition of QSR and other national brands to the platform, such
as Potbelly, Long John Silver’s, KFC, Smoothie King, Applebee’s,
Red Robin, causing compression in revenue per order;
- Focused efforts on our new market launch and geographic
expansion strategy as well as corresponding diner incentives in
connection therewith;
- Enhancement of our customer, restaurant partner, and driver
support operations; and
- Acceleration of hiring product and engineering personnel to
further refine our technology platform.
- As of June 30, 2021, cash on hand was $60.5 million.
____________________
1
Adjusted net income (loss) is a
non-GAAP financial measure. A reconciliation of GAAP net income
(loss) to adjusted net income (loss) is included in the “Non-GAAP
Financial Measures/Adjusted Net Income (Loss) and Adjusted Earnings
(Loss) Per Diluted Share” table below.
2
Adjusted earnings (loss) per
diluted share is a non-GAAP financial measure, calculated based on
adjusted net income (loss). A reconciliation of GAAP net income
(loss) to adjusted net income (loss) is included in the “Non-GAAP
Financial Measures/Adjusted Net Income (Loss) and Adjusted Earnings
(Loss) Per Diluted Share” table below.
3
Adjusted EBITDA is a non-GAAP
financial measure. A reconciliation of GAAP net income (loss) to
Adjusted EBITDA is included in the “Non-GAAP Financial
Measure/Adjusted EBITDA” table below.
“During the second quarter of 2021, we expanded our scope of
delivery and restaurant selection for our diners, adding a variety
of additional national brands to our platform and entered new
markets in cities and towns we perceived to need expanded delivery
options. With over 25,000 restaurants on our platform and a growing
footprint in many undeserved areas, we plan to continue to expand
our market presence in the on-demand delivery sector,” said Carl
Grimstad, Chairman and CEO of Waitr.
“Our independent contractor driver base is at its highest level
since inception, a reflection of our ongoing recruiting efforts and
focus on providing quality service to our diners and restaurant
partners. Our driver labor cost during the first two quarters was
higher than normal due to the overall national tight labor market
during this period. We continue to support our restaurant partners
and the communities we serve,” added Mr. Grimstad.
“We recently launched a comprehensive strategic initiative to
change our corporate name, brand and visual identity, reflecting
our ongoing commitment to innovation, continued expansion into new
delivery verticals, and anticipated expansion into other related
sectors. We are excited to begin the process and ultimately
identify a corporate name that unifies our current and future
service offerings, as well as reflects our long-term business
strategy of servicing our ecosystem of diners, restaurants and
independent contractor drivers,” continued Mr. Grimstad.
“We recently executed definitive purchase agreements to purchase
payment processing companies ProMerchant LLC, Cape Cod Merchant
Services LLC and Flow Payments LLC, three players in the merchant
processing solutions space. These acquisitions in the fintech
sector will further supplement our offerings as we continue to
diversify the Company beyond third-party food delivery.”
“We invested in the recent Series-D preferred round of Figure
Technologies Inc. and are working on an agreement expected to
facilitate the use of the Figure Technologies’ mobile banking
blockchain application as a real-time payment option for our diners
and independent contractor drivers, as well as providing additional
disbursement solutions for our restaurant partners. Figure
Technology operates in a sector that is transforming payment
options, lending and other financial transactions, and we continue
to view fintech solutions as a growth opportunity,” concluded Mr.
Grimstad.
Second Quarter 2021 Earnings Conference Call
The Company will host a conference call to discuss second
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 (800) 430-8332, 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 6688695. The replay will be available until
Monday, August 16, 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 June 30, 2021, Waitr, Bite Squad and Delivery Dudes
operate in small and medium sized markets in the United States in
over 900 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 June 30, 2021, which will be filed with the SEC on August 9,
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 June
30,
Six Months Ended June
30,
2021
2020
2021
2020
REVENUE
$
49,167
$
60,506
$
100,097
$
104,749
COSTS AND EXPENSES:
Operations and support
31,273
30,547
61,611
56,912
Sales and marketing
4,500
2,740
8,516
5,566
Research and development
854
1,167
1,853
2,637
General and administrative
12,505
10,094
22,691
20,872
Depreciation and amortization
2,965
2,075
5,882
4,139
Intangible and other asset impairments
—
29
—
29
Loss on disposal of assets
162
3
159
11
TOTAL COSTS AND EXPENSES
52,259
46,655
100,712
90,166
INCOME (LOSS) FROM OPERATIONS
(3,092
)
13,851
(615
)
14,583
OTHER EXPENSES (INCOME) AND LOSSES
(GAINS), NET
Interest expense
1,681
2,490
3,582
5,404
Interest income
—
(21
)
—
(81
)
Other expense
835
712
5,099
675
NET INCOME (LOSS) FROM CONTINUING
OPERATIONS BEFORE INCOME TAXES
(5,608
)
10,670
(9,296
)
8,585
Income tax expense
33
17
57
34
NET INCOME (LOSS) FROM CONTINUING
OPERATIONS
$
(5,641
)
$
10,653
$
(9,353
)
$
8,551
INCOME (LOSS) PER SHARE:
Basic
$
(0.05
)
$
0.11
$
(0.08
)
$
0.10
Diluted
$
(0.05
)
$
0.10
$
(0.08
)
$
0.09
Weighted-average shares used to compute
net income (loss) per share:
Weighted average common shares
outstanding – basic
115,644,790
95,053,207
113,998,589
85,968,962
Weighted average common shares
outstanding – diluted
115,644,790
105,951,232
113,998,589
91,769,460
WAITR HOLDINGS INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands, except per
share data)
(Unaudited)
June 30,
December 31,
2021
2020
ASSETS
CURRENT ASSETS
Cash
$
60,548
$
84,706
Accounts receivable, net
3,883
2,954
Capitalized contract costs, current
1,015
737
Prepaid expenses and other current
assets
7,842
6,657
TOTAL CURRENT ASSETS
73,288
95,054
Property and equipment, net
4,964
3,503
Capitalized contract costs, noncurrent
3,117
2,429
Goodwill
121,077
106,734
Intangible assets, net
33,363
23,924
Operating lease right-of-use assets
4,903
—
Other noncurrent assets
1,160
588
TOTAL ASSETS
$
241,872
$
232,232
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES:
CURRENT LIABILITIES
Accounts payable
$
6,642
$
4,382
Restaurant food liability
4,215
4,301
Accrued payroll
3,633
4,851
Short-term loans for insurance
financing
5,465
2,726
Income tax payable
179
122
Operating lease liabilities
1,603
—
Other current liabilities
24,242
13,922
TOTAL CURRENT LIABILITIES
45,979
30,304
Long term debt - related party
81,214
94,218
Accrued medical contingency
16,728
16,987
Operating lease liabilities
3,622
—
Other noncurrent liabilities
1,385
2,627
TOTAL LIABILITIES
148,928
144,136
STOCKHOLDERS’ EQUITY:
Common stock, $0.0001 par value
11
11
Additional paid in capital
466,192
451,991
Accumulated deficit
(373,259
)
(363,906
)
TOTAL STOCKHOLDERS’ EQUITY
92,944
88,096
TOTAL LIABILITIES AND STOCKHOLDERS’
EQUITY
$
241,872
$
232,232
WAITR HOLDINGS INC.
CONDENSED CONSOLIDATED CASH
FLOW STATEMENTS
(In thousands)
(Unaudited)
Six Months Ended June
30,
2021
2020
Cash flows from operating
activities:
Net income (loss)
$
(9,353
)
$
8,551
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Non-cash interest expense
1,485
4,453
Amortization of operating lease assets
696
—
Stock-based compensation
4,465
1,450
Loss on disposal of assets
159
11
Depreciation and amortization
5,882
4,139
Intangible and other asset impairments
—
29
Amortization of capitalized contract
costs
423
183
Other non-cash income
—
(22
)
Changes in assets and liabilities:
Accounts receivable
(614
)
(2,849
)
Capitalized contract costs
(1,389
)
(1,736
)
Prepaid expenses and other current
assets
(1,008
)
2,823
Other noncurrent assets
(386
)
—
Accounts payable
1,623
951
Restaurant food liability
(86
)
(84
)
Income tax payable
57
34
Operating lease liabilities
(780
)
—
Accrued payroll
(1,368
)
(265
)
Accrued medical contingency
(258
)
(112
)
Accrued workers’ compensation
liability
—
(1
)
Other current liabilities
6,452
1,232
Other noncurrent liabilities
(64
)
174
Net cash provided by operating
activities
5,936
18,961
Cash flows from investing
activities:
Purchases of property and equipment
(589
)
(381
)
Internally developed software
(4,137
)
(1,335
)
Acquisitions, net of cash acquired
(12,706
)
(290
)
Collections on notes receivable
—
36
Proceeds from sale of property and
equipment
13
7
Net cash used in investing
activities
(17,419
)
(1,963
)
Cash flows from financing
activities:
Proceeds from issuance of stock
—
22,944
Equity issuance costs
—
(359
)
Payments on long-term loan
(14,472
)
—
Borrowings under short-term loans for
insurance financing
5,209
1,906
Payments on short-term loans for insurance
financing
(2,471
)
(3,415
)
Payments on acquisition loans
(132
)
—
Proceeds from exercise of stock
options
8
39
Taxes paid related to net settlement on
stock-based compensation
(817
)
(728
)
Net cash (used in) provided by
financing activities
(12,675
)
20,387
Net change in cash
(24,158
)
37,385
Cash, beginning of period
84,706
29,317
Cash, end of period
$
60,548
$
66,702
Supplemental disclosures of cash flow
information:
Cash paid during the period for
interest
$
2,097
$
951
Supplemental disclosures of non-cash
investing and financing activities:
Conversion of convertible notes to
stock
$
—
$
11,888
Stock issued as consideration in
acquisition
10,545
—
Noncash impact of operating lease
assets
5,600
—
Noncash impact of operating lease
liabilities
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 income (loss)
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,
business combination related expenditures and other non-recurring
adjustments, accrued legal contingency and restructuring expenses.
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 (loss) or other
performance measures derived in accordance with GAAP. A
reconciliation of net income (loss) to Adjusted EBITDA is provided
below:
Three Months Ended June
30,
Six Months Ended June
30,
2021
2020
2021
2020
NET INCOME (LOSS)
$
(5,641
)
$
10,653
$
(9,353
)
$
8,551
Interest expense
1,681
2,490
3,582
5,404
Income taxes
33
17
57
34
Depreciation and amortization expense
2,965
2,075
5,882
4,139
Stock-based compensation expense
2,387
602
4,465
1,450
Loss on disposal of assets
162
3
159
11
Intangible and other asset impairments
—
29
—
29
Business combination related expenditures
and other non-recurring adjustments
236
—
1,304
—
Accrued legal contingency
700
—
4,700
—
Restructuring expenses
—
850
—
850
ADJUSTED EBITDA
$
2,523
$
16,719
$
10,796
$
20,468
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 (loss) plus business combination related
expenditures and other non-recurring adjustments, accrued legal
contingency and restructuring expenses. 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 and
restructuring expenses 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 (loss) or
earnings (loss) per share or other performance measures derived in
accordance with GAAP. A reconciliation of net income (loss) to
adjusted net income (loss), along with adjusted earnings (loss) per
diluted share, is provided below:
Three Months Ended June
30,
Six Months Ended June
30,
2021
2020
2021
2020
Net income (loss)
$
(5,641
)
$
10,653
$
(9,353
)
$
8,551
Business combination related expenditures
and other non-recurring adjustments
236
—
1,304
—
Accrued legal contingency
700
—
4,700
—
Restructuring expenses
—
850
—
850
Adjusted net income (loss)
$
(4,705
)
$
11,503
$
(3,349
)
$
9,401
Weighted average common shares outstanding
- diluted
115,644,790
105,951,232
113,998,589
91,769,460
Adjusted earnings (loss) per diluted
share
$
(0.04
)
$
0.11
$
(0.03
)
$
0.10
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210809005768/en/
Investors WaitrIR@icrinc.com
Media WaitrPR@icrinc.com
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