FORT LAUDERDALE, Fla., Aug. 6 FL-eDiets.com-earns
FORT LAUDERDALE, Fla., Aug. 6 /PRNewswire-FirstCall/ -- eDiets.com, Inc.
(Nasdaq: DIET), leveraging the power of the Internet to bring diet, fitness
and healthy lifestyle solutions to everyone, today announced results for the
second quarter and six months ended June 30, 2008.
Revenues for the second quarter of 2008 were $6.5 million, compared to
$7.6 million in the prior year period. Net loss for the quarter was $(3.1)
million, or $(0.12) per diluted share, for the second quarter of 2008,
compared to $(1.4) million, or $(0.06) per diluted share, for the second
quarter of 2007.
Adjusted EBITDA*, defined as net income (loss) before interest, taxes,
depreciation, amortization, stock-based compensation, severance charges, bad
debt expense and loss on disposition of assets, for the quarter ended June 30,
2008 was $(1.4) million compared to ($0.4) million in the prior year period.
For the six months ended June 30, 2008, the Company recorded revenues of
$15.2 million compared $16.0 million for the same period last year. Net loss
was $(8.3) million, or $(0.33) per share, compared to $(2.7) million, or
$(0.11) per share, for the first six months of 2007. Adjusted EBITDA for the
first half of 2008 totaled $(4.8) million compared to $(0.9) million in the
comparable year period.
Second Quarter 2008 and Subsequent Highlights:
-- Achieved over 280% increase in Q2 2008 meal delivery revenues from
prior year
-- Signed and launched co-branded meal delivery program with national
health and wellness expert Jillian Michaels of NBC's The Biggest Loser
-- Signed 8 B2B contracts and launched 5 B2B programs year-to-date
-- Signed new agreement with food supplier significantly improving
inventory control and reducing food costs
-- Appointed Laura Klein as Chief Information Officer in June 2008
"During the second quarter we intensely focused on improving our new
enterprise platform," stated President and Chief Executive Officer, Steve
Rattner. "These preparations culminated in the recent implementation of robust
payment, billing and fulfillment functionality, as well as made it possible
for the launch of two new B2B client programs and community features within
the last week. We are pleased with this progress, although we expect that
short term delays in B2B launches combined with the challenging macroeconomic
conditions will defer the benefits and operating leverage from the new
platform and previously expected growth of the B2B and meal delivery
businesses to the 2009 diet season."
Thomas Hoyer, Chief Financial Officer commented, "Despite the challenging
economic conditions, we are confident that recent enhancements to our overall
business platform will enable us to achieve improvements in our operating
performance in the third and fourth quarter compared to the second quarter
based on the improvements we have made in our overall business platform during
the second quarter. We continue to believe in the long-term opportunity for
eDiet's integrated health and wellness platform, and are committed to fine
tuning the platform and digital subscribers, meal delivery, and e-commerce
businesses in order to best prepare for growth in the post-holiday diet
season."
Conference Call
The company will host a conference call to discuss the second quarter of
2008 results at 8:30 a.m. Eastern Time on Thursday, August 7, 2008.
Participants may access the call by dialing 866-510-0704 (domestic) or
617-597-5362 (international), passcode 86375577. 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 21, 2008. To access the replay, please
dial 888-286-8010 (domestic) or 617-801-6888 (international), passcode
39234724.
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.
Three Months EndedSix Months Ended
June 30, June 30, June 30, June 30,
2008 2007 2008 2007
Net loss$(3,128) $(1,442) $(8,253) $(2,699)
Interest income, net(10) (24) (52) (66)
Interest expense on
secured notes 372 760
Amortization of secured
notes 335 - 595 -
Income tax (benefit)
provision 33 831 142
Depreciation391215 691 447
Amortization of
Intangibles237302 529 604
Stock-based compensation290418 758 590
Loss on disposition of
fixed assets 1 20120
Bad debt expense 65 5 9111
Severance Charges26 53 3569
Adjusted EBITDA $(1,388) $(370) $(4,844)$(882)
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,
2007, 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 June 30, Six Months Ended June 30,
2008 2007 2008 2007
Revenues:
Digital plans $2,524 $ 5,124 $ 5,736 $11,256
Meal delivery 2,720 7116,8231,391
Other 1,2071,7162,6563,348
Total revenues 6,4517,551 15,215 15,995
Cost and expenses:
Cost of revenue
Digital plans 574 6701,1981,655
Meal delivery 2,765 7197,1231,290
Other 114 119 209 256
Total cost of revenue 3,4531,5088,5303,201
Technology and
development 1,0211,0171,9721,891
Sales, marketing and
support 2,3294,4167,4959,569
General and
administrative1,8091,6713,6383,351
Amortization of
Intangibles 237 302 529 604
Total cost and expenses 8,8498,914 22,164 18,616
Loss from operations(2,398) (1,363) (6,949) (2,621)
Interest income 24 29 75 97
Interest expense(721) (25) (1,378) (33)
Income tax provision (33) (83) (1)(142)
Net loss $(3,128) $(1,442) $(8,253) $(2,699)
Loss per common share:
Basic and diluted$(0.12) $ (0.06) $(0.33) $ (0.11)
Weighted average common
and common equivalent
shares outstanding:
Basic and diluted 25,114 24,748 25,079 24,707
Three Months Ended June 30, Six Months Ended June 30,
2008 2007 2008 2007
STATEMENT OF CASH
FLOW DATA:
Net cash provided by
(used in):
Operations $(1,021)$(54) $(4,975) $(1,560)
Investing (797)(270) (1,709) (1,677)
Financing 2,567 1492,520 163
June 30, December 31,
2008 2007
BALANCE SHEET DATA:
Cash and cash equivalents $2,806 $7,132
Total assets 24,295 27,691
Deferred Revenue3,779 3,664
Long-term debt (excluding capital leases) 7,553 6,247
Stockholder's equity8,232 12,862
SOURCE eDiets.com, Inc.
