eDiets.com(R) Announces Q1 2008 Results
Posted on May 13, 2008
Filed Under Tech Biz
FORT LAUDERDALE, Fla., May 13 /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 quarter ended March 31, 2008.
Revenues for the first quarter of 2008 were $8.8 million, compared to
$8.4 million in the prior year period. Net income (loss) for the quarter
was $(5.1) million, or $(0.20) per diluted share, for the first quarter of
2008, compared to $(1.3) million, or $(0.05) per diluted share, for the
first quarter of 2007.
Adjusted EBITDA*, defined as net income before interest, taxes,
depreciation, amortization, stock-based compensation, severance charges and
loss on disposition of assets, for the quarter ended March 31, 2008 was
$(3.5) million compared to ($0.5) million in the prior year period.
First Quarter 2008 and Subsequent Highlights:
— Hired Thomas Hoyer as Chief Financial Officer in March 2008
— Launched alli(R) meal delivery program with GlaxoSmithKline
— Debuted new creative for direct response TV campaign
— Achieved over 600% increase in Q1 2008 meal delivery revenues from
prior year period
— Signed seven B2B contracts year-to-date
“We started the first quarter with strong momentum in our meal delivery
business, but ended the quarter with a disappointing performance due to two
main issues,” stated President and Chief Executive Officer, Steve Rattner.
“The migration to our new technology platform temporarily affected our
operational abilities and inaccurate forecasting of our expanding fresh
food meal delivery program led to larger than expected increases in meal
delivery expenses. We have taken immediate action to rectify these issues,
including hiring a new technology implementation partner and streamlining
our supply chain for meal delivery. We are confident in the foundation that
we are building and will continue to lay the groundwork for long-term
sustainable growth. Additionally, our largest shareholder Prides Capital
continues to pledge their support and intends to provide the funding
necessary to achieve our goals.”
Outlook
eDiets.com reiterated previously issued 2008 guidance of approximately
$50 million in revenue and a blended gross margin of 49% for the year. This
guidance reflects the anticipated benefits and operating leverage from the
new integrated technology platform, accelerated growth of the B2B business
and the expansion of the meal delivery program, as well as cross-selling
opportunities.
Conference Call
The company will host a conference call to discuss the first quarter of
2008 results at 8:30 a.m. Eastern Time on Wednesday, May 14, 2008.
Participants may access the call by dialing 866-356-3377 (domestic) or
617-597-5392 (international), passcode 83325129. 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 Wednesday, May 28, 2008. To access the replay,
please dial 888-286-8010 (domestic) or 617-801-6888 (international),
passcode 53725636.
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,
http://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 http://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 Ended
March 31,
2008 2007
Net (loss) income $(5,125) $(1,257)
Interest, net 346 (42)
Amortization of secured notes 260 -
Income tax (benefit) provision (33) 59
Depreciation 299 232
Amortization of Intangibles 292 302
Stock-based compensation 468 172
Loss on disposition of fixed assets 3 -
Severance Charges 9 16
Adjusted EBITDA $(3,481) $(518)
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
December 31,
2008 2007
Continuing Operations:
Revenue:
Digital plan $ 3,212 $6,132
Meal delivery 4,102 680
Other revenue 1,450 1,632
Total revenue 8,764 8,444
Cost and expenses:
Cost of revenue
Digital plans 625 986
Meal delivery 4,357 571
Other 95 136
Total cost of revenue 5,077 1,693
Technology and development 952 875
Sales, marketing and support 5,166 5,152
General and administrative 1,829 1,680
Amortization of intangibles 292 302
Total cost and expenses 13,316 9,702
Loss from operations (4,552) (1,258)
Other (expense) income, net (606) 60
Income tax benefit (provision) 33 (59)
Net loss from continuing operations (5,125) (1,257)
Loss per common share:
Basic and diluted $(0.20) $(0.05)
Weighted average common and common
equivalent shares outstanding
Basic and diluted 25,044 24,660
Three Months Ended
December 31,
2008 2007
STATEMENT OF CASH FLOW DATA:
Net cash provided by (used in):
Operations $(3,954) $(1,506)
Investing (912) (1,407)
Financing (47) 14
December 31,
2008 2007
BALANCE SHEET DATA:
Cash and cash equivalents $2,062 $ 7,132
Total assets 23,079 27,691
Deferred revenue 3,695 3,664
Long-term debt (excluding capital leases) 6,916 6,247
Stockholder’s equity 8,770 12,862
SOURCE eDiets.com, Inc.
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