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Waitr Holdings Reports Fourth Quarter and Full Year 2019 Results

Waitr Holdings Inc. (Nasdaq: WTRH) ("Waitr" and "Company"), a leader in on-demand food ordering and delivery, today reported financial results for its fourth quarter and full year ended December 31, 2019.

"First, I want to say that the health of our employees, restaurant partners, diners and drivers has always been the top priority for us. We have taken many measures to further protect our employees and drivers while continuing to support our restaurant partners and serve our diners during the COVID-19 health crisis. We want to support our communities and local small businesses in any way possible in this time of need," said Carl Grimstad, Chairman and CEO of Waitr.

"Moving onto our 2019 results, Waitr faced many challenges this past year," continued Grimstad. "The Company completed the acquisition of Bite Squad, effectively doubling the size of the business. Waitr also faced increased competition in some markets and encountered various management and personnel changes. Unfortunately, these distractions resulted in a lack of focus on our customers and operations. Over the past few months, this has changed. We are positioning Waitr for sustainable, long-term growth and improving service quality to our restaurant partners, our diners and drivers. We have made tremendous progress on these fronts so far in 2020, and I expect these initiatives will result in the Company achieving positive cash flow, beginning in the first quarter of 2020."

"We have been creating ways to add more value for our restaurant partners by providing additional services to help restaurant owners grow their businesses. We are focused on cementing our leading position in markets and providing diners with access to an ever-expanding restaurant selection. We initiated the transition of our drivers to an independent contractor model, and away from an employee model, and expect this to be completed in April 2020. This transition allows our drivers to have more flexibility of their hours and the ability to earn more on their own terms. Lastly, Waitr has been increasing the functionality of its platforms and improving customer service. We continue to expand our customer service and dispatch teams, based in Lafayette and Lake Charles, Louisiana, the heart of Waitr’s business, while focusing on providing the highest quality support for all three of these groups. We believe our intense focus on supporting our restaurants, our diners and drivers is a clear differentiator to many of the larger platforms. I continue to be confident in the future of Waitr," concluded Grimstad.

Liquidity Update

As of December 31, 2019, the Company had cash on hand of $29.3 million, of which $3.4 million was reserved under compensating balance arrangements with banks. The Company had total long-term debt outstanding at December 31, 2019 of $130.9 million, consisting of $69.5 million of term loans, $61.1 million of convertible notes and $0.3 million of promissory notes. The term loans and convertible notes mature in November 2022. Outstanding short-term debt as of December 31, 2019 totaled $3.6 million.

During the second half of 2019 and through the first quarter of 2020, management has implemented plans to improve the liquidity of the Company, including several initiatives to realize synergies from the Bite Squad Merger and to align the combined Company’s cost structure. These initiatives included staff reductions in November 2019 and January 2020 and the consolidation of operations, support and sales and marketing functions, as well as the integration of five markets in which Waitr and Bite Squad operations overlapped. Additionally, the Company initiated modifications to its fee structure in July 2019 with a majority of restaurants on the Waitr Platform, which became effective in August 2019, and in January 2020, with the majority of the remaining restaurants on its Platforms, which became effective throughout February 2020. Further, in December 2019 and January 2020, the Company closed approximately 60 unprofitable, non-core markets. The combination of these initiatives has reduced the Company’s overall cost structure and resulted in improved revenue per order and cash flow, stabilizing the Company’s working capital and cash balances. As of January 31 and February 29, 2020, cash on hand was approximately $30.3 million and $29.9 million, respectively. Additionally, as of March 13, 2020, cash on hand was approximately $30.5 million, essentially flat relative to December 2019.

Fourth Quarter 2019 Financial Highlights

The Company closed on the acquisition of Bite Squad on January 17, 2019. Unless otherwise noted, variances in revenue and operating expenses for the fourth quarter of 2019 compared to the fourth quarter of 2018 result from the inclusion of results of operations from Bite Squad in 2019.

  • Revenue for the fourth quarter of 2019 was $43.1 million compared to $21.3 million in the fourth quarter of 2018, an increase of 103%.
  • Operations and support expense increased by $18.2 million, or 111%, to $34.6 million for the fourth quarter of 2019, compared to $16.4 million for the fourth quarter of 2018.
  • Sales and marketing expense increased by $4.2 million, or 63%, to $10.8 million for the fourth quarter of 2019, compared to $6.6 million for the fourth quarter of 2018.
  • Research and development expense totaled $1.7 million and $1.9 million for the fourth quarters of 2019 and 2018, respectively.
  • General and administrative expense decreased by 5% to $12.7 million in the fourth quarter of 2019 from $13.5 million for the fourth quarter of 2018, primarily due to lower stock-based compensation.
  • Depreciation and amortization expense increased to $2.0 million in the fourth quarter of 2019 from $0.3 million in the fourth quarter of 2018.
  • During the fourth quarter of 2019, the Company recognized a $0.3 million non-cash charge related to the impairment of previously capitalized software development costs.
  • Net loss for the fourth quarter of 2019 was $21.6 million, or a loss of $0.28 per diluted share, compared to a loss of $17.0 million, or a loss of $0.52 per diluted share, in the fourth quarter of 2018. Net loss for the fourth quarters of 2019 and 2018 included $0.5 million and $9.5 million, respectively, of non-cash stock-based compensation expenses, considered within Adjusted EBITDA for each period.
  • Adjusted EBITDA for the fourth quarter of 2019 was a loss of $14.4 million compared to a loss of $6.4 million in the fourth quarter of 2018. Adjusted EBITDA is a non-GAAP financial measure. A reconciliation of GAAP net loss to Adjusted ABITDA is included in the accompanying financial data. See also "Non-GAAP Financial Measure," included herein.

Fourth Quarter 2019 Key Business Metrics

  • Average Daily Orders1 for the fourth quarter of 2019 were 44,788, an increase of 75%over Average Daily Orders of 25,532for the same quarter of 2018.
  • Active Diners2 grew 138%year over year to 2.4million diners as of December 31, 2019, driven largely by the acquisition of Bite Squad combined with organic growth.
  • Gross Food Sales3 for the fourth quarter of 2019 totaled $149.1million, compared to $81.3million for the fourth quarter of 2018, representing an 83% increase.

Full Year 2019 Financial Highlights

Unless otherwise noted, variances in revenue and operating expenses for 2019 compared to 2018 result from the inclusion of results of operations from Bite Squad since the acquisition date, January 17, 2019.

  • Revenue increased by 177% to $191.7 million in the year ended December 31, 2019 from $69.3 million in the year ended December 31, 2018, primarily due to the Bite Squad Merger as well as continued adoption in existing markets and contribution from markets launched in late 2018 and early 2019.
  • Operations and support expense increased by $96.4 million, or 187%, to $147.8 million in the year ended December 31, 2019 from $51.4 million in the year ended December 31, 2018.
  • Sales and marketing expense increased by $36.7 million, or 234%, to $52.4 million in the year ended December 31, 2019 from $15.7 million in the year ended December 31, 2018, primarily due to the Bite Squad Merger, as well as increased digital and traditional advertising spend.
  • Research and development expense increased by $3.8 million, or 97%, to $7.7 million in the year ended December 31, 2019 from $3.9 million in the year ended December 31, 2018.
  • General and administrative expense increased by $25.8million, or 83%, to $56.9million in the year ended December 31, 2019 from $31.1million in the year ended December 31, 2018, due primarily to increased headcount as a result of the Bite Squad Merger, business combination-related professional and other costs, costs associated with reductions in force, as well as increased auto liability and workers’ compensation insurance costs related to increased headcount, business volume and loss claims.
  • Depreciation and amortization expense increased to $15.8 million in the year ended December 31, 2019 from $1.2 million in the year ended December 31, 2018.

_______________________________________________________________________

1 Average Daily Orders represent the number of orders during the period divided by the numbers of days in that period.

2 Active Diners represent the number of diner accounts from which an order has been placed through the Platforms during the past twelve months (as of the end of the relevant period).

3 Gross Food Sales represent food and beverage receipts, plus taxes, prepaid gratuities and diner fees.

  • During the year ended December 31, 2019, Waitr recognized a non-cash goodwill impairment charge of $119.2 million and non-cash intangible asset impairment charges of $72.0 million, as a result of its annual goodwill impairment analysis, which concluded that the fair value of the reporting unit (the Company) was less than its carrying amount. The primary factor contributing to the decline in fair value of the reporting unit was the negative impacts on the Company’s estimated order volumes and revenue resulting from adverse changes in market conditions from increased competition.
  • Net loss for the year ended December 31, 2019 was $291.3 million, or a loss of $4.00 per diluted share, compared to a loss of $34.3 million, or a loss of $2.18 per diluted share, in the year ended December 31, 2018. Net loss for the year ended December 31, 2019 included the goodwill and intangible asset impairment charges discussed above, as well as $7.4 million of non-cash stock-based compensation expenses, all of which have been considered within Adjusted EBITDA. The year ended December 31, 2018 net loss included $13.1 million of non-cash stock-based compensation expenses.
  • Adjusted EBITDA for the year ended December 31, 2019 was a loss of $54.8 million compared to a loss of $13.2 million for the year ended December 31, 2018.

Full Year 2019 Key Business Metrics

  • Average Daily Orders for the years ended December 31, 2019 and 2018 were 51,156 and 21,860, respectively.
  • Gross Food Sales for the years ended December 31, 2019 and 2018 totaled $663.9 million and $278.8 million, respectively.

Other Information

Waitr will not be hosting a conference call to discuss the fourth quarter and full year 2019 operational and financial results.

About Waitr Holdings Inc.

Founded in 2013 and based in Lafayette, Louisiana, Waitr is a leader in on-demand food ordering and delivery. Waitr, along with recently acquired food delivery company Bite Squad, connects local restaurants to hungry diners in underserved U.S. markets. Together they are a convenient way to discover, order and receive great food from local restaurants and national chains. As of December 31, 2019, Waitr and Bite Squad operated in small and medium sized markets in the United States in approximately 640 cities.

Non-GAAP Financial Measure

Adjusted EBITDA is a financial measure that is not calculated in accordance with generally accepted accounting principles in the United States of America ("GAAP").

We define Adjusted EBITDA as net loss adjusted to exclude interest expense, income taxes, depreciation and amortization, acquisition and restructuring costs, stock-based compensation expense, impairments of intangible assets and goodwill and gains and losses associated with derivatives and debt extinguishments and when applicable, 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 and the impact of stock-based compensation expense. Adjusted EBITDA is not a measurement of our financial performance under GAAP and should not be considered as an alternative to performance measures derived in accordance with GAAP.

See "Non-GAAP Financial Measure/Adjusted EBITDA" below for a reconciliation of net loss to Adjusted EBITDA for the fourth quarter and full years ended December 31, 2019 and 2018.

Cautionary Note Concerning Forward-Looking Statements

This press release contains "forward-looking statements," as defined by the federal securities laws, including statements regarding the future performance of the Company. Forward-looking statements reflect Waitr’s current expectations and projections about future events at the time, and thus involve uncertainty and risk. The words "believe," "expect," "anticipate," "will," "could," "would," "should," "may," "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 those described under the section entitled "Risk Factors" in Waitr’s Annual Report on Form 10-K for the year ended December 31, 2018, filed with the SEC on March 15, 2019, 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 Annual Report on Form 10-K for the year ended December 31, 2019, which will be filed with the SEC on March 16, 2020, 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).

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except share and per share amounts)

(Unaudited)

 

 

Three Months Ended December 31,

 

 

Twelve Months Ended December 31,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

REVENUE

 

$

43,100

 

 

$

21,273

 

 

$

191,675

 

 

$

69,273

 

COSTS AND EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operations and support

 

 

34,589

 

 

 

16,372

 

 

 

147,759

 

 

 

51,428

 

Sales and marketing

 

 

10,755

 

 

 

6,579

 

 

 

52,370

 

 

 

15,695

 

Research and development

 

 

1,709

 

 

 

1,925

 

 

 

7,718

 

 

 

3,913

 

General and administrative

 

 

12,747

 

 

 

13,481

 

 

 

56,862

 

 

 

31,148

 

Depreciation and amortization

 

 

1,983

 

 

 

321

 

 

 

15,774

 

 

 

1,223

 

Goodwill impairment

 

 

 

 

 

 

 

 

119,212

 

 

 

 

Intangible and other asset impairments

 

 

316

 

 

 

 

 

 

73,251

 

 

 

 

Loss on disposal of assets

 

 

10

 

 

 

1

 

 

 

36

 

 

 

9

 

TOTAL COSTS AND EXPENSES

 

 

62,109

 

 

 

38,679

 

 

 

472,982

 

 

 

103,416

 

LOSS FROM OPERATIONS

 

 

(19,009

)

 

 

(17,406

)

 

 

(281,307

)

 

 

(34,143

)

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

2,838

 

 

 

919

 

 

 

9,408

 

 

 

1,822

 

Interest income

 

 

(160

)

 

 

(404

)

 

 

(1,037

)

 

 

(406

)

Gain on derivatives

 

 

 

 

 

(1

)

 

 

 

 

 

(337

)

Gain on debt extinguishment

 

 

 

 

 

(486

)

 

 

 

 

 

(486

)

Other (income) expenses

 

 

(107

)

 

 

1

 

 

 

1,547

 

 

 

2

 

NET LOSS BEFORE INCOME TAXES

 

 

(21,580

)

 

 

(17,435

)

 

 

(291,225

)

 

 

(34,738

)

Income tax expense (benefit)

 

 

21

 

 

 

(465

)

 

 

81

 

 

 

(427

)

NET LOSS

 

$

(21,601

)

 

$

(16,970

)

 

$

(291,306

)

 

$

(34,311

)

LOSS PER SHARE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.28

)

 

$

(0.52

)

 

$

(4.00

)

 

$

(2.18

)

Weighted average common shares outstanding – basic and diluted

 

 

76,357,305

 

 

 

32,600,466

 

 

 

72,404,020

 

 

 

15,745,065

 

KEY BUSINESS METRICS

 

 

Three Months Ended December 31,

 

 

Twelve Months Ended December 31,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Active Diners (as of period end)

 

 

2,352,007

 

 

 

989,000

 

 

 

2,352,007

 

 

 

989,000

 

Average Daily Orders

 

 

44,788

 

 

 

25,532

 

 

 

51,156

 

 

 

21,860

 

Gross Food Sales (dollars in thousands)

 

$

149,084

 

 

$

81,328

 

 

$

663,919

 

 

$

278,833

 

Average Order Size (in dollars)

 

$

36.18

 

 

$

34.62

 

 

$

36.15

 

 

$

34.95

 

CONSOLIDATED BALANCE SHEETS

(In thousands, except per share data)

(Unaudited)

 

 

December 31,

 

 

December 31,

 

 

 

2019

 

 

2018 (1)

 

ASSETS

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

 

Cash

 

$

29,317

 

 

$

209,340

 

Accounts receivable, net

 

 

3,272

 

 

 

3,687

 

Capitalized contract costs, current

 

 

199

 

 

 

1,869

 

Prepaid expenses and other current assets

 

 

8,329

 

 

 

4,548

 

TOTAL CURRENT ASSETS

 

 

41,117

 

 

 

219,444

 

Property and equipment, net

 

 

4,072

 

 

 

4,551

 

Capitalized contract costs, noncurrent

 

 

772

 

 

 

827

 

Goodwill

 

 

106,734

 

 

 

1,408

 

Intangible assets, net

 

 

25,761

 

 

 

261

 

Other noncurrent assets

 

 

517

 

 

 

61

 

TOTAL ASSETS

 

$

178,973

 

 

$

226,552

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

LIABILITIES:

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

 

Accounts payable

 

$

4,384

 

 

$

1,827

 

Restaurant food liability

 

 

5,612

 

 

 

208

 

Accrued payroll

 

 

5,285

 

 

 

3,055

 

Short-term loans

 

 

3,612

 

 

 

658

 

Deferred revenue, current

 

 

414

 

 

 

3,314

 

Income tax payable

 

 

51

 

 

 

25

 

Other current liabilities

 

 

12,630

 

 

 

4,508

 

TOTAL CURRENT LIABILITIES

 

 

31,988

 

 

 

13,595

 

Long-term debt

 

 

123,244

 

 

 

80,985

 

Accrued workers’ compensation liability

 

 

463

 

 

 

908

 

Deferred revenue, noncurrent

 

 

45

 

 

 

1,356

 

Other noncurrent liabilities

 

 

325

 

 

 

217

 

TOTAL LIABILITIES

 

 

156,065

 

 

 

97,061

 

STOCKHOLDERS’ EQUITY:

 

 

 

 

 

 

 

 

Common stock, $0.0001 par value

 

 

8

 

 

 

5

 

Additional paid in capital

 

 

385,137

 

 

 

200,417

 

Accumulated deficit

 

 

(362,237

)

 

 

(70,931

)

TOTAL STOCKHOLDERS’ EQUITY

 

 

22,908

 

 

 

129,491

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

$

178,973

 

 

$

226,552

 

  1. Certain prior period amounts have been reclassified to conform to the current period’s presentation.

CONSOLIDATED CASH FLOW STATEMENTS

(In thousands)

(Unaudited)

 

 

Years Ended December 31,

 

 

2019

 

 

2018

 

 

2017

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(291,306

)

 

$

(34,311

)

 

$

(26,907

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Non-cash interest expense

 

 

5,674

 

 

 

1,206

 

 

 

125

 

Non-cash advertising expense

 

 

397

 

 

 

603

 

 

 

 

Stock-based compensation

 

 

7,238

 

 

 

12,939

 

 

 

1,199

 

Equity issued in exchange for services

 

 

120

 

 

 

120

 

 

 

120

 

Loss on disposal of assets

 

 

36

 

 

 

9

 

 

 

33

 

Depreciation and amortization

 

 

15,774

 

 

 

1,223

 

 

 

723

 

Goodwill impairment

 

 

119,212

 

 

 

 

 

 

 

Intangible and other asset impairments

 

 

73,251

 

 

 

 

 

 

584

 

Amortization of capitalized contract costs

 

 

1,637

 

 

 

1,513

 

 

 

589

 

(Gain) loss on derivatives

 

 

 

 

 

(337

)

 

 

52

 

(Gain) loss on debt extinguishment

 

 

 

 

 

(486

)

 

 

10,537

 

Other non-cash (income) expense

 

 

(68

)

 

 

75

 

 

 

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

2,143

 

 

 

(1,563

)

 

 

(1,362

)

Capitalized contract costs

 

 

(4,579

)

 

 

(2,785

)

 

 

(1,498

)

Prepaid expenses and other current assets

 

 

(2,676

)

 

 

(3,789

)

 

 

(324

)

Accounts payable

 

 

1,604

 

 

 

1,580

 

 

 

188

 

Restaurant food liability

 

 

4,475

 

 

 

170

 

 

 

38

 

Deferred revenue

 

 

(4,210

)

 

 

2,312

 

 

 

1,449

 

Income tax payable

 

 

26

 

 

 

(427

)

 

 

1

 

Accrued payroll

 

 

1,104

 

 

 

2,105

 

 

 

638

 

Accrued workers’ compensation liability

 

 

(446

)

 

 

(342

)

 

 

1,250

 

Other current liabilities

 

 

(3,012

)

 

 

4,213

 

 

 

154

 

Other noncurrent liabilities

 

 

129

 

 

 

130

 

 

 

 

Net cash used in operating activities

 

 

(73,477

)

 

 

(15,842

)

 

 

(12,411

)

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

 

(1,636

)

 

 

(3,750

)

 

 

(1,769

)

Acquisition of Bite Squad, net of cash acquired

 

 

(192,568

)

 

 

 

 

 

 

Other acquisitions

 

 

(695

)

 

 

(11

)

 

 

 

Collections on notes receivable

 

 

94

 

 

 

 

 

 

 

Internally developed software

 

 

(1,805

)

 

 

 

 

 

(105

)

Proceeds from sale of property and equipment

 

 

34

 

 

 

 

 

 

 

Net cash used in investing activities

 

 

(196,576

)

 

 

(3,761

)

 

 

(1,874

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from line of credit

 

 

 

 

 

5,000

 

 

 

 

Payments on line of credit

 

 

 

 

 

(5,000

)

 

 

 

Proceeds from convertible notes issuance

 

 

 

 

 

1,470

 

 

 

7,684

 

Repayment of Series 2017 and Series 2018 notes

 

 

 

 

 

(3,207

)

 

 

 

Cash received from Landcadia Holdings

 

 

 

 

 

215,331

 

 

 

 

Waitr shares redeemed for cash

 

 

(10

)

 

 

(71,683

)

 

 

 

Proceeds from issuance of stock

 

 

50,002

 

 

 

 

 

 

7,224

 

Equity issuance costs

 

 

(4,179

)

 

 

 

 

 

 

Proceeds from Notes and Term Loans

 

 

42,080

 

 

 

85,000

 

 

 

 

Debt issuance costs

 

 

 

 

 

(3,050

)

 

 

 

Proceeds from warrant exercises

 

 

 

 

 

380

 

 

 

 

Proceeds from short-term loans

 

 

7,875

 

 

 

2,172

 

 

 

 

Payments on short-term loans

 

 

(4,931

)

 

 

(1,514

)

 

 

 

Proceeds from exercise of stock options

 

 

4

 

 

 

97

 

 

 

5

 

Taxes paid related to net settlement on stock-based compensation

 

 

(811

)

 

 

 

 

 

 

Other proceeds from financing activities

 

 

 

 

 

 

 

 

34

 

Net cash provided by financing activities

 

 

90,030

 

 

 

224,996

 

 

 

14,947

 

Net change in cash

 

 

(180,023

)

 

 

205,393

 

 

 

662

 

Cash, beginning of period

 

 

209,340

 

 

 

3,947

 

 

 

3,285

 

Cash, end of period

 

$

29,317

 

 

$

209,340

 

 

$

3,947

 

Supplemental disclosures of cash flow information:

 

 

 

 

 

 

 

 

 

 

 

 

Cash paid during the period for state income taxes

 

$

74

 

 

$

31

 

 

$

5

 

Cash earned during the period for interest

 

 

969

 

 

 

406

 

 

 

2

 

Cash paid during the period for interest

 

 

3,734

 

 

 

616

 

 

 

158

 

Supplemental disclosures of non-cash investing and financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Seller-financed payables related to other acquisitions

 

 

868

 

 

 

 

 

 

 

Non-cash investments in other acquisitions

 

 

868

 

 

 

142

 

 

 

 

Debt assumed in IndiePlate asset acquisition

 

 

 

 

 

60

 

 

 

 

Bifurcated embedded derivatives

 

 

 

 

 

87

 

 

 

 

Discount on convertible notes due to beneficial conversion feature

 

 

 

 

 

1,530

 

 

 

 

Premium on convertible notes

 

 

 

 

 

 

 

 

10,444

 

Warrants issued

 

 

 

 

 

1,612

 

 

 

 

Conversion of convertible notes to preferred stock

 

 

 

 

 

8,681

 

 

 

22

 

NON-GAAP FINANCIAL MEASURE

ADJUSTED EBITDA

(In thousands)

(Unaudited)

 

 

Three Months Ended December 31,

 

 

Twelve Months Ended December 31,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

NET LOSS

 

$

(21,601

)

 

$

(16,970

)

 

$

(291,306

)

 

$

(34,311

)

Interest expense

 

 

2,838

 

 

 

919

 

 

 

9,408

 

 

 

1,822

 

Income taxes

 

 

21

 

 

 

(465

)

 

 

81

 

 

 

(427

)

Depreciation and amortization

 

 

1,983

 

 

 

321

 

 

 

15,774

 

 

 

1,223

 

Goodwill impairment

 

 

 

 

 

 

 

 

119,212

 

 

 

 

Stock-based compensation

 

 

521

 

 

 

9,488

 

 

 

7,358

 

 

 

13,059

 

Gain on derivatives

 

 

 

 

 

(1

)

 

 

 

 

 

(337

)

Intangible and other asset impairments

 

 

316

 

 

 

 

 

 

73,251

 

 

 

 

Gain on early debt extinguishment

 

 

 

 

 

(486

)

 

 

 

 

 

(486

)

Business combination related expenditures

 

 

 

 

 

772

 

 

 

6,956

 

 

 

6,245

 

Costs associated with reduction in force

 

 

1,478

 

 

 

 

 

 

2,504

 

 

 

 

Accrued legal contingency

 

 

 

 

 

 

 

 

2,000

 

 

 

 

ADJUSTED EBITDA

 

$

(14,444

)

 

$

(6,422

)

 

$

(54,762

)

 

$

(13,212

)

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20200316005237/en/

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