Waitr Reports Second Quarter 2021 Results and Execution of Definitive Agreements to Purchase Several Payment Processing Businesses

August 9, 2021

LAFAYETTE, La.--(BUSINESS WIRE)--Aug. 9, 2021-- 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

 

 

Investors
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Source: Waitr Holdings Inc.