Business Wire | Nov 2, 2021 04:10PM EDT

Waitr Reports Third Quarter 2021 Results

Nov. 02, 2021

LAFAYETTE, La.--(BUSINESS WIRE)--Nov. 02, 2021--Waitr Holdings Inc. (Nasdaq: WTRH) ("Waitr" or the "Company"), a leader in on-demand ordering and delivery, today reported financial results for the third quarter ended September 30, 2021.

Third Quarter 2021 Highlights

* Revenue for the third quarter of 2021 was $43.4 million, compared to $52.7 million in the third quarter of 2020. For the nine months ended September 30, 2021, revenue was $143.5 million, compared to $157.5 million for the nine months ended September 30, 2020. * Net income for the third quarter of 2021 was $12.3 million, compared to net income of $4.6 million in the third quarter of 2020. Net income per share for the third quarter of 2021 was $0.09 compared to net income per share for the third quarter of 2020 of $0.04. * Adjusted EBITDA1 for the third quarter of 2021 was $3.1 million, compared to $2.5 million in the second quarter of 2021 and $13.0 million in the third quarter of 2020. * In the third quarter of 2021, we continued to invest in technology and integrations in several key areas of the business, with the expectation of positioning ourselves for long-term growth.

Mr. Grimstad noted, "We continue to recover from the third quarter hurricanes that affected our core Southeast markets and financial results. Despite these events, Adjusted EBITDA for the third quarter of 2021 increased by 24% from Adjusted EBITDA of $2.5 million in the second quarter of 2021 primarily as a result of increased operational efficiencies."

Additionally, Mr. Grimstad emphasized, "Our strategy is to expand our ecosystem, which today is comprised of our restaurants, diners and independent contractor drivers through the enhancement of our platforms and providing additional products and services. During the quarter we announced the acquisition of several payments companies, ProMerchant LLC, Cape Cod Merchant Services LLC and Flow Payments LLC, which is consistent with this strategy. We have continued to make progress this quarter in offering this enhanced product suite to our ecosystem."

"We strive to provide quality service to our restaurant partners and diners while also focusing on our recruiting and retention efforts to ensure that our independent contractor driver base remains at appropriate levels to meet the delivery demands in each of the markets where we operate. Additionally, we continued to invest in product and engineering personnel as we continue to enhance our technology platform," added Mr. Grimstad.

"Investments in integrations such as Olo, a major digital food ordering platform for the restaurant industry, that was recently completed along with other integrations that we expect to be completed in the near future will help position the company for the long term. As we near the end of 2021, we continue to focus our efforts on our long-term business strategy of servicing our ecosystem of restaurants, diners and independent contractor drivers," concluded Mr. Grimstad.

_______________^1 Adjusted EBITDA is a non-GAAP financial measure. A reconciliation of GAAPnet income to Adjusted EBITDA is included in the "Non-GAAP Financial Measure/Adjusted EBITDA" table below.

Third Quarter 2021 Key Business Metrics

* Average Daily Orders were 30,563 for the third quarter of 2021, compared to 39,880 for the third quarter of 2020. For the nine months ended September 30, 2021, Average Daily Orders were 35,565, compared to 40,563 for the nine months ended September 30, 2020. * Active Diners as of September 30, 2021 were substantially consistent with the Active Diners as of June 30, 2021. * As of September 30, 2021, cash on hand was $43.5 million.

Third Quarter 2021 Earnings Conference Call

The Company will host a conference call to discuss third 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 (866) 269-4261, 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 5209769. The replay will be available until Tuesday, November 9, 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 September 30, 2021, Waitr, Bite Squad and Delivery Dudes operate in small and medium sized markets in the United States in over 1,000 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 September 30, 2021, which will be filed with the SEC on November 2, 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 Nine Months Ended September 30, September 30,

2021 2020 2021 2020

REVENUE $ 43,448 $ 52,734 $ 143,545 $ 157,483

COSTS AND EXPENSES:

Operations and 25,043 27,409 86,654 84,321 support

Sales and 4,965 3,288 13,481 8,854 marketing

Research and 1,310 820 3,163 3,457 development

General and 10,843 11,380 33,534 32,252 administrative

Depreciation and 3,070 2,103 8,952 6,242 amortization

Intangible andother asset 186 - 186 29 impairments

Loss on disposal 11 4 170 15 of assets

TOTAL COSTS AND 45,428 45,004 146,140 135,170 EXPENSES

INCOME (LOSS) (1,980 ) 7,730 (2,595 ) 22,313 FROM OPERATIONS

OTHER EXPENSES(INCOME) AND LOSSES (GAINS),NET

Interest expense 1,751 2,117 5,333 7,521

Interest income - (14 ) - (95 )

Other (income) (16,006 ) 965 (10,907 ) 1,640 expense

NET INCOME FROMCONTINUINGOPERATIONS 12,275 4,662 2,979 13,247 BEFORE INCOMETAXES

Income tax 25 18 82 52 expense

NET INCOME FROMCONTINUING $ 12,250 $ 4,644 $ 2,897 $ 13,195 OPERATIONS

INCOME PER SHARE:

Basic $ 0.10 $ 0.04 $ 0.02 $ 0.14

Diluted $ 0.09 $ 0.04 $ 0.02 $ 0.13

Weighted-averageshares used tocompute net income pershare:

Weighted averagecommon shares 119,823,181 109,181,847 115,961,454 93,763,069 outstanding?-?basic

Weighted averagecommon shares 130,167,296 123,785,750 128,279,820 102,519,454 outstanding?-?diluted

WAITR HOLDINGS INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except per share data)

(Unaudited)

September 30,

December 31,

2021

2020

ASSETS

CURRENT ASSETS

Cash

$

43,502

$

84,706

Accounts receivable, net

3,978

2,954

Capitalized contract costs, current

1,091

737

Prepaid expenses and other current assets

6,826

6,657

TOTAL CURRENT ASSETS

55,397

95,054

Property and equipment, net

4,362

3,503

Capitalized contract costs, noncurrent

3,138

2,429

Goodwill

130,592

106,734

Intangible assets, net

40,616

23,924

Operating lease right-of-use assets

4,743

-

Other noncurrent assets

1,106

588

TOTAL ASSETS

$

239,954

$

232,232

LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES:

CURRENT LIABILITIES

Accounts payable

$

6,084

$

4,382

Restaurant food liability

3,398

4,301

Accrued payroll

1,661

4,851

Short-term loans for insurance financing

2,331

2,726

Income tax payable

84

122

Operating lease liabilities

1,654

-

Other current liabilities

19,093

13,922

TOTAL CURRENT LIABILITIES

34,305

30,304

Long term debt - related party

81,671

94,218

Accrued medical contingency

53

16,987

Operating lease liabilities

3,395

-

Other noncurrent liabilities

2,733

2,627

TOTAL LIABILITIES

122,157

144,136

STOCKHOLDERS' EQUITY:

Common stock, $0.0001 par value

13

11

Additional paid in capital

478,793

451,991

Accumulated deficit

(361,009

)

(363,906

)

TOTAL STOCKHOLDERS' EQUITY

117,797

88,096

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

239,954

$

232,232

WAITR HOLDINGS INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except per share data)

(Unaudited)

September 30, December 31,

2021 2020

ASSETS

CURRENT ASSETS

Cash $ 43,502 $ 84,706

Accounts receivable, net 3,978 2,954

Capitalized contract costs, current 1,091 737

Prepaid expenses and other current assets 6,826 6,657

TOTAL CURRENT ASSETS 55,397 95,054

Property and equipment, net 4,362 3,503

Capitalized contract costs, noncurrent 3,138 2,429

Goodwill 130,592 106,734

Intangible assets, net 40,616 23,924

Operating lease right-of-use assets 4,743 -

Other noncurrent assets 1,106 588

TOTAL ASSETS $ 239,954 $ 232,232

LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES:

CURRENT LIABILITIES

Accounts payable $ 6,084 $ 4,382

Restaurant food liability 3,398 4,301

Accrued payroll 1,661 4,851

Short-term loans for insurance financing 2,331 2,726

Income tax payable 84 122

Operating lease liabilities 1,654 -

Other current liabilities 19,093 13,922

TOTAL CURRENT LIABILITIES 34,305 30,304

Long term debt - related party 81,671 94,218

Accrued medical contingency 53 16,987

Operating lease liabilities 3,395 -

Other noncurrent liabilities 2,733 2,627

TOTAL LIABILITIES 122,157 144,136

STOCKHOLDERS' EQUITY:

Common stock, $0.0001 par value 13 11

Additional paid in capital 478,793 451,991

Accumulated deficit (361,009 ) (363,906 )

TOTAL STOCKHOLDERS' EQUITY 117,797 88,096

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 239,954 $ 232,232

WAITR HOLDINGS INC.

CONDENSED CONSOLIDATED CASH FLOW STATEMENTS

(In thousands)

(Unaudited)

Nine Months Ended September 30,

2021

2020

Cash flows from operating activities:

Net income

$

2,897

$

13,195

Adjustments to reconcile net income to net cash provided by operating activities:

Non-cash interest expense

1,948

5,126

Stock-based compensation

6,100

3,178

Loss on disposal of assets

170

15

Depreciation and amortization

8,952

6,242

Intangible and other asset impairments

186

29

Amortization of capitalized contract costs

686

327

Other non-cash income

-

(31

)

Other

(93

)

-

Changes in assets and liabilities:

Accounts receivable

583

(653

)

Capitalized contract costs

(1,749

)

(2,219

)

Prepaid expenses and other current assets

16

3,732

Other noncurrent assets

(311

)

-

Accounts payable

373

591

Restaurant food liability

(903

)

(876

)

Income tax payable

(38

)

1

Accrued payroll

(3,389

)

(3,037

)

Accrued medical contingency

(16,933

)

(363

)

Accrued workers' compensation liability

-

(102

)

Other current liabilities

1,032

3,650

Other noncurrent liabilities

(102

)

781

Net cash (used in) provided by operating activities

(575

)

29,586

Cash flows from investing activities:

Purchases of property and equipment

(717

)

(968

)

Internally developed software

(6,432

)

(2,387

)

Acquisitions, net of cash acquired

(25,435

)

(339

)

Collections on notes receivable

-

51

Proceeds from sale of property and equipment

21

14

Net cash used in investing activities

(32,563

)

(3,629

)

Cash flows from financing activities:

Proceeds from issuance of stock

7,900

47,574

Payments on long-term loan

(14,472

)

(22,594

)

Borrowings under short-term loans for insurance financing

5,209

1,906

Payments on short-term loans for insurance financing

(5,605

)

(4,336

)

Payments on acquisition loans

(178

)

-

Proceeds from exercise of stock options

12

40

Taxes paid related to net settlement on stock-based compensation

(932

)

(728

)

Net cash (used in) provided by financing activities

(8,066

)

21,862

Net change in cash

(41,204

)

47,819

Cash, beginning of period

84,706

29,317

Cash, end of period

$

43,502

$

77,136

Supplemental disclosures of cash flow information:

Cash paid during the period for state income taxes

$

-

$

64

Cash paid during the period for interest

$

3,385

$

2,395

Supplemental disclosures of non-cash investing and financing activities:

Conversion of convertible notes to stock

$

-

$

12,024

Stock issued as consideration in acquisition

13,724

-

Noncash impact of operating lease assets upon adoption

5,833

-

Noncash impact of operating lease liabilities upon adoption

6,232

-

WAITR HOLDINGS INC.

CONDENSED CONSOLIDATED CASH FLOW STATEMENTS

(In thousands)

(Unaudited)

Nine Months Ended September 30,

2021 2020

Cash flows from operating activities:

Net income $ 2,897 $ 13,195

Adjustments to reconcile net income to net cash provided by operating activities:

Non-cash interest expense 1,948 5,126

Stock-based compensation 6,100 3,178

Loss on disposal of assets 170 15

Depreciation and amortization 8,952 6,242

Intangible and other asset impairments 186 29

Amortization of capitalized contract costs 686 327

Other non-cash income - (31 )

Other (93 ) -

Changes in assets and liabilities:

Accounts receivable 583 (653 )

Capitalized contract costs (1,749 ) (2,219 )

Prepaid expenses and other current assets 16 3,732

Other noncurrent assets (311 ) -

Accounts payable 373 591

Restaurant food liability (903 ) (876 )

Income tax payable (38 ) 1

Accrued payroll (3,389 ) (3,037 )

Accrued medical contingency (16,933 ) (363 )

Accrued workers' compensation liability - (102 )

Other current liabilities 1,032 3,650

Other noncurrent liabilities (102 ) 781

Net cash (used in) provided by operating activities (575 ) 29,586

Cash flows from investing activities:

Purchases of property and equipment (717 ) (968 )

Internally developed software (6,432 ) (2,387 )

Acquisitions, net of cash acquired (25,435 ) (339 )

Collections on notes receivable - 51

Proceeds from sale of property and equipment 21 14

Net cash used in investing activities (32,563 ) (3,629 )

Cash flows from financing activities:

Proceeds from issuance of stock 7,900 47,574

Payments on long-term loan (14,472 ) (22,594 )

Borrowings under short-term loans for insurance 5,209 1,906 financing

Payments on short-term loans for insurance financing (5,605 ) (4,336 )

Payments on acquisition loans (178 ) -

Proceeds from exercise of stock options 12 40

Taxes paid related to net settlement on stock-based (932 ) (728 )compensation

Net cash (used in) provided by financing activities (8,066 ) 21,862

Net change in cash (41,204 ) 47,819

Cash, beginning of period 84,706 29,317

Cash, end of period $ 43,502 $ 77,136

Supplemental disclosures of cash flow information:

Cash paid during the period for state income taxes $ - $ 64

Cash paid during the period for interest $ 3,385 $ 2,395

Supplemental disclosures of non-cash investing and financing activities:

Conversion of convertible notes to stock $ - $ 12,024

Stock issued as consideration in acquisition 13,724 -

Noncash impact of operating lease assets upon 5,833 - adoption

Noncash impact of operating lease liabilities upon 6,232 - adoption

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 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, medical contingency change in estimate, business combination related expenditures and other non-recurring adjustments, accrued legal contingency, restructuring expenses and one-time legacy reserve adjustment. 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 to Adjusted EBITDA is provided below:

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 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, medical contingency change in estimate, business combination related expenditures and other non-recurring adjustments, accrued legal contingency, restructuring expenses and one-time legacy reserve adjustment. 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 to Adjusted EBITDA is provided below:

Three Months Ended Nine Months Ended September 30, September 30,

2021 2020 2021 2020

NET INCOME $ 12,250 $ 4,644 $ 2,897 $ 13,195

Interest expense 1,751 2,117 5,333 7,521

Income taxes 25 18 82 52

Depreciation and 3,070 2,103 8,952 6,242 amortization expense

Stock-based compensation 1,635 1,728 6,100 3,178 expense

Loss on disposal of 11 4 170 15 assets

Intangible and other 186 - 186 29 asset impairments

Medical contingency (16,715 ) - (16,715 ) - change in estimate

Business combinationrelated expenditures and 855 - 2,159 - other non-recurringadjustments

Accrued legal contingency - 1,023 4,700 1,023

Restructuring expenses - - - 850

One-time legacy reserve - 1,352 - 1,352 adjustment

ADJUSTED EBITDA $ 3,068 $ 12,989 $ 13,864 $ 33,457

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 minus medical contingency change in estimate, plus business combination related expenditures and other non-recurring adjustments, accrued legal contingency, restructuring expenses and one-time legacy reserve adjustment. 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, restructuring expenses and medical contingency change in estimate 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 or earnings per share or other performance measures derived in accordance with GAAP. A reconciliation of net income to adjusted net income (loss), along with adjusted earnings (loss) per diluted share, is provided below:

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 minus medical contingency change in estimate, plus business combination related expenditures and other non-recurring adjustments, accrued legal contingency, restructuring expenses and one-time legacy reserve adjustment. 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, restructuring expenses and medical contingency change in estimate 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 or earnings per share or other performance measures derived in accordance with GAAP. A reconciliation of net income to adjusted net income (loss), along with adjusted earnings (loss) per diluted share, is provided below:

Three Months Ended Nine Months Ended September 30, September 30,

2021 2020 2021 2020

Net income $ 12,250 $ 4,644 $ 2,897 $ 13,195

Medicalcontingency (16,715 ) - (16,715 ) - change inestimate

Businesscombinationrelatedexpenditures 855 - 2,159 - and othernon-recurringadjustments

Accrued legal - 1,023 4,700 1,023 contingency

Restructuring - - - 850 expenses

One-timelegacy - 1,352 - 1,352 reserveadjustment

Adjusted net $ (3,610 ) $ 7,019 $ (6,959 ) $ 16,420 income (loss)

Weightedaveragecommon shares 130,167,296 123,785,750 128,279,820 102,519,454 outstanding -diluted

Adjustedearnings $ (0.03 ) $ 0.06 $ (0.05 ) $ 0.16 (loss) perdiluted share

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CONTACT: Investors WaitrIR@icrinc.com Media WaitrPR@icrinc.com