Waitr Reports Fourth Quarter and Full Year 2020 Results

Rhea-AI Summary

Waitr Holdings Inc. (WTRH) reported strong financial results for Q4 and the full year 2020, with Q4 revenue rising to $46.8 million, up from $43.1 million in Q4 2019. The annual revenue increased to $204.3 million from $191.7 million. The company achieved net income of $2.6 million, a significant recovery from a net loss of $21.6 million the previous year. Adjusted EBITDA surged to $9.9 million in Q4 2020, compared to a loss of $14.4 million in Q4 2019. Cash on hand was $84.7 million as of December 31, 2020, supporting ongoing operations and growth initiatives.

Positive

• Q4 2020 revenue reached $46.8 million, up 8.6% from Q4 2019.
• Full year 2020 revenue increased to $204.3 million, a 6.7% rise year-over-year.
• Net income for Q4 2020 was $2.6 million, a turnaround from a loss of $21.6 million in Q4 2019.
• Adjusted EBITDA for Q4 2020 was $9.9 million, significantly improving from a $14.4 million loss in Q4 2019.
• Cash on hand was $84.7 million as of December 31, 2020, bolstering liquidity for growth.

Negative

• The company reported long-term debt of $99.1 million as of December 31, 2020.

Waitr Holdings Inc. (Nasdaq: WTRH) (“Waitr” or the “Company”), a leader in on-demand ordering and delivery, today reported financial results for the fourth quarter and year ended December 31, 2020.

Fourth Quarter and Full Year 2020 Highlights

• Revenue for the fourth quarter of 2020 was $46.8 million, compared to $43.1 million in the fourth quarter of 2019. Revenue for the year ended December 31, 2020 was $204.3 million, compared to $191.7 million for the year ended December 31, 2019.
• Net income for the fourth quarter of 2020 was $2.6 million, or $0.02 per diluted share, compared to a loss of $21.6 million, or a loss of $0.28 per diluted share, in the fourth quarter of 2019. Net income for the year ended December 31, 2020 was $15.8 million, or $0.15 per diluted share, compared to a loss of $291.3 million, or a loss of $4.00 per diluted share, in the year ended December 31, 2019, an increase of $307.1 million. Net loss for the year ended December 31, 2019 included goodwill and intangible asset impairment charges totaling $191.2 million.
• Adjusted EBITDA¹ for the fourth quarter of 2020 was $9.9 million, compared to a loss of $14.4 million in the fourth quarter of 2019, an increase of $24.3 million. Adjusted EBITDA¹ for the year ended December 31, 2020 was $43.4 million, compared to a loss of $54.8 million in the year ended December 31, 2019, an increase of $98.2 million or 179%.
• As of December 31, 2020, cash on hand was $84.7 million and $88.5 million as of January 31, 2021.

“Our financial results for 2020 reflect the implementation of a myriad of strategic initiatives focused on operating and growing a profitable business, with eleven straight months of consistent profitability and positive operating cash flow. We have a dedicated, hard-working group of team members, a diversified selection of restaurant partners and an independent contractor driver base, all working together to provide our diners with quality service,” said Carl Grimstad, Chairman and CEO of Waitr.

“We continue to work with our restaurant partners, helping them navigate through these challenging times as the pandemic continues to impact their operations. Our commitment to our restaurant partners, diners and the communities in which we operate is unwavering. We have provided numerous job and independent contractor driver opportunities in many of the markets we serve. In addition to the impacts from the ongoing pandemic, during the fourth quarter of 2020 and in early 2021, adverse weather conditions impacted certain of the markets we operate in. Overcoming the challenges presented by these unprecedented weather events has been a top priority,” continued Grimstad.

“In 2021, we look to build on our success from 2020 by focusing on profitable growth, both through organic expansion and strategic acquisitions to bolster our delivery footprint and expansion into new verticals,” concluded Grimstad.

1 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.

Fourth Quarter and Full Year 2020 Key Business Metrics

• Average Daily Orders were 34,628 and 39,071 for the fourth quarter and full year of 2020, respectively.
• Active Diners as of December 31, 2020 were approximately 2 million.

Liquidity Update

As of December 31, 2020, the Company had cash on hand of $84.7 million and as of January 31, 2021, cash on hand was $88.5 million. The Company had total long-term debt outstanding at December 31, 2020 of $99.1 million, consisting of $49.4 million of term loans, $49.5 million of convertible notes and $0.2 million of promissory notes. The term loans and convertible notes mature in November 2023. As of December 31, 2020, the Company had outstanding short-term loans for insurance financing totaling $2.7 million.

The combination of the effects of implementing several strategic initiatives focused on improving revenue per order, cost per order, cash flow and profitability, along with proceeds from sales of common stock during the period from March 2020 through July 2020 pursuant to the Company’s at-the-market offering program, resulted in increased working capital and liquidity from December 31, 2019.

Fourth Quarter 2020 Earnings Conference Call

The Company will host a conference call to discuss fourth quarter 2020 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 (877) 705-6003, or for international callers (201) 493-6725. 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 13717127. The replay will be available until Monday, March 15, 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, 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 December 31, 2020, Waitr and Bite Squad operated in small and medium sized markets in the United States in over 700 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,” “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, 2019, filed with the SEC on March 16, 2020, 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 is set forth in Waitr’s Annual Report on Form 10-K for the year ended December 31, 2020, which was filed with the SEC on March 8, 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 (or to third parties making the forward-looking statements).

WAITR HOLDINGS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)
		Three Months Ended December 31,								Twelve Months Ended December 31,
		2020				2019				2020				2019
REVENUE		$	46,845			$	43,100			$	204,328			$	191,675
COSTS AND EXPENSES:
Operations and support			24,919				34,589				109,240				147,759
Sales and marketing			3,388				10,755				12,242				52,370
Research and development			805				1,709				4,262				7,718
General and administrative			10,730				12,747				42,982				56,862
Depreciation and amortization			2,135				1,983				8,377				15,774
Goodwill impairment			—				—				—				119,212
Intangible and other asset impairments			1				316				30				73,251
Loss on disposal of assets			5				10				20				36
TOTAL COSTS AND EXPENSES			41,983				62,109				177,153				472,982
INCOME (LOSS) FROM OPERATIONS			4,862				(19,009	)			27,175				(281,307	)
OTHER EXPENSES (INCOME) AND LOSSES (GAINS), NET
Interest expense			1,937				2,838				9,458				9,408
Interest income			(7	)			(160	)			(102	)			(1,037	)
Other expense			221				(107	)			1,861				1,547
NET INCOME (LOSS) BEFORE INCOME TAXES			2,711				(21,580	)			15,958				(291,225	)
Income tax expense			70				21				122				81
NET INCOME (LOSS)		$	2,641			$	(21,601	)		$	15,836			$	(291,306	)
INCOME (LOSS) PER SHARE:
Basic		$	0.02			$	(0.28	)		$	0.16			$	(4.00	)
Diluted		$	0.02			$	(0.28	)		$	0.15			$	(4.00	)
Weighted-average shares used to compute net income (loss) per share:
Weighted average common shares outstanding – basic			110,996,943				76,357,305				98,095,081				72,404,020
Weighted average common shares outstanding – diluted			125,018,776				76,357,305				108,175,022				72,404,020

WAITR HOLDINGS INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
(Unaudited)
		December 31,				December 31,
		2020				2019
ASSETS
CURRENT ASSETS
Cash		$	84,706			$	29,317
Accounts receivable, net			2,954				3,272
Capitalized contract costs, current			737				199
Prepaid expenses and other current assets			6,657				8,329
TOTAL CURRENT ASSETS			95,054				41,117
Property and equipment, net			3,503				4,072
Capitalized contract costs, noncurrent			2,429				772
Goodwill			106,734				106,734
Intangible assets, net			23,924				25,761
Other noncurrent assets			588				517
TOTAL ASSETS		$	232,232			$	178,973
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES:
CURRENT LIABILITIES
Accounts payable		$	4,382			$	4,384
Restaurant food liability			4,301				5,612
Accrued payroll			4,851				5,285
Short-term loans for insurance financing			2,726				3,612
Deferred revenue, current			141				414
Income tax payable			122				51
Other current liabilities			13,781				13,293
TOTAL CURRENT LIABILITIES			30,304				32,651
Long-term debt			94,372				123,244
Accrued medical contingency			16,987				17,203
Accrued workers’ compensation liability			—				102
Deferred revenue, noncurrent			—				45
Other noncurrent liabilities			2,473				325
TOTAL LIABILITIES			144,136				173,570
STOCKHOLDERS’ EQUITY:
Common stock, $0.0001 par value			11				8
Additional paid in capital			451,991				385,137
Accumulated deficit			(363,906	)			(379,742	)
TOTAL STOCKHOLDERS’ EQUITY			88,096				5,403
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		$	232,232			$	178,973

WAITR HOLDINGS INC.
CONSOLIDATED CASH FLOW STATEMENTS
(In thousands)
(Unaudited)
		Year Ended December 31,
​		2020				2019				2018
Cash flows from operating activities:
Net income (loss)		$	15,836			$	(291,306	)		$	(51,816	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Non-cash interest expense			5,925				5,674				1,206
Non-cash advertising expense			—				397				603
Stock-based compensation			5,166				7,238				12,939
Equity issued in exchange for services			—				120				120
Loss on disposal of assets			20				36				9
Depreciation and amortization			8,377				15,774				1,223
Goodwill impairment			—				119,212				—
Intangible and other asset impairments			30				73,251				—
Amortization of capitalized contract costs			495				1,637				1,513
Write-off of notes receivable			388				—				—
Gain on derivatives			—				—				(337	)
Gain on debt extinguishment			—				—				(486	)
Other non-cash (income) expense			(12	)			(68	)			75
Changes in assets and liabilities:
Accounts receivable			232				2,143				(1,563	)
Capitalized contract costs			(2,690	)			(4,579	)			(2,785	)
Prepaid expenses and other current assets			1,355				(2,676	)			(3,789	)
Other noncurrent assets			(142	)			—				—
Accounts payable			(2	)			1,604				1,580
Restaurant food liability			(1,311	)			4,475				170
Deferred revenue			(318	)			(4,210	)			2,312
Income tax payable			71				26				(427	)
Accrued payroll			(434	)			1,104				2,105
Accrued medical contingency			(216	)			(680	)			17,883
Accrued workers’ compensation liability			(102	)			(161	)			(988	)
Other current liabilities			3,630				(2,617	)			4,481
Other noncurrent liabilities			2,147				129				130
Net cash provided by (used in) operating activities			38,445				(73,477	)			(15,842	)
Cash flows from investing activities:
Purchases of property and equipment			(1,555	)			(1,636	)			(3,750	)
Internally developed software			(3,982	)			(1,805	)			—
Acquisition of Bite Squad, net of cash acquired			—				(192,568	)			—
Other acquisitions			(628	)			(695	)			(11	)
Collections on notes receivable			21				94				—
Proceeds from sale of property and equipment			19				34				—
Net cash used in investing activities			(6,125	)			(196,576	)			(3,761	)
Cash flows from financing activities:
Proceeds from issuance of stock			48,314				50,002				—
Equity issuance costs			(740	)			(4,179	)			—
Payments on long-term loans			(22,594	)			—				—
Borrowings under short-term loans for insurance financing			4,753				7,875				2,172
Payments on short-term loans for insurance financing			(5,632	)			(4,931	)			(1,514	)
Proceeds from exercise of stock options			45				4				97
Taxes paid related to net settlement on stock-based compensation			(1,077	)			(811	)			—
Proceeds from Notes and Term Loans			—				42,080				85,000
Debt issuance costs			—				—				(3,050	)
Borrowings on line of credit			—				—				5,000
Payments on line of credit			—				—				(5,000	)
Proceeds from convertible notes issuance			—				—				1,470
Repayment of Series 2017 and Series 2018 notes			—				—				(3,207	)
Proceeds from warrant exercises			—				—				380
Cash received from Landcadia Holdings			—				—				215,331
Waitr shares redeemed for cash			—				(10	)			(71,683	)
Net cash provided by financing activities			23,069				90,030				224,996
Net change in cash			55,389				(180,023	)			205,393
Cash, beginning of period			29,317				209,340				3,947
Cash, end of period		$	84,706			$	29,317			$	209,340
Supplemental disclosures of cash flow information:
Cash paid during the period for state income taxes		$	64			$	74			$	31
Cash paid during the period for interest			3,533				3,734				616
Supplemental disclosures of non-cash investing and financing activities:
Conversion of convertible notes to stock		$	12,026			$	—			$	—
Stock issued in connection with legal settlement			3,023				—				—
Accrued consideration for acquisitions			225				—				—
Equity consideration in acquisitions			100				868				142
Seller-financed payables related to other acquisitions			—				868				—
Stock issued as consideration in Bite Squad acquisition			—				126,574				—
Stock issued in connection with Additional Term Loans			—				3,884				—
Non-cash gain on debt extinguishment			—				1,897				—
Debt assumed in IndiePlate asset acquisition			—				—				60
Bifurcated embedded derivatives			—				—				87
Discount on convertible notes due to beneficial conversion feature			—				—				1,530
Warrants issued			—				—				1,612
Conversion of convertible notes to preferred stock			—				—				8,681

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, business combination related expenses, restructuring expenses, stock-based compensation expense, impairments of intangible assets and goodwill, and other expenses that do not reflect our core operations. 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 or other performance measures derived in accordance with GAAP. A reconciliation of net income (loss) to Adjusted EBITDA is provided below:

		Three Months Ended December 31,								Twelve Months Ended December 31,
		2020				2019				2020				2019
NET INCOME (LOSS)		$	2,641			$	(21,601	)		$	15,836			$	(291,306	)
Interest expense			1,937				2,838				9,458				9,408
Income taxes			70				21				122				81
Depreciation and amortization			2,135				1,983				8,377				15,774
Goodwill impairment			—				—				—				119,212
Stock-based compensation			1,988				521				5,166				7,358
Intangible and other asset impairments			1				316				30				73,251
Business combination related expenditures			—				—				—				6,956
Costs associated with reduction in force			—				1,478				—				2,504
Restructuring expenses			—				—				850				—
Accrued legal contingency			—				—				1,023				2,000
One-time legacy receivable adjustment			388				—				388				—
Insurance adjustments related to employee-model workers compensation and auto insurance			776				—				776				—
One-time insurance reserve adjustment			—				—				1,352				—
ADJUSTED EBITDA		$	9,936			$	(14,444	)		$	43,378			$	(54,762	)

 

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FAQ

What were Waitr Holdings Inc.'s revenue figures for Q4 2020?

The revenue for Q4 2020 was $46.8 million, compared to $43.1 million in Q4 2019.

How did Waitr Holdings perform in terms of net income for 2020?

For the year ended December 31, 2020, Waitr reported a net income of $15.8 million, a substantial increase from a net loss of $291.3 million in 2019.

What was Waitr's Adjusted EBITDA for Q4 2020?

Waitr's Adjusted EBITDA for Q4 2020 was $9.9 million, compared to a loss of $14.4 million in Q4 2019.

What is the current cash position of Waitr Holdings as of January 2021?

As of January 31, 2021, Waitr had cash on hand of $88.5 million.

What challenges did Waitr face during the fourth quarter of 2020?

During Q4 2020, Waitr faced challenges including the ongoing pandemic and adverse weather conditions impacting operations.