Q1 2021 Waitr Holdings Inc Earnings Call
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Patients and our actual results could differ materially from those projected in the forward looking statements.
Please see the risk factors contained in our annual report on form 10-K, and in our foreign 10 queues for a discussion of risks that may cause our actual results to vary from these forward looking statements.
Finally, please note that on today's call management may refer to non-GAAP financial measures. Please refer to waiters first quarter 2021 earnings release four full reconciliation of it's non-GAAP financial measures to the most comparable GAAP financial measures.
I would like to turn the call over to waiters C. O Carlgren said, who will give an overview of the company's business activities and developments for the first quarter of 2021. He will then turn the call over to <unk>, Leo Bogdanoff, who will provide an overview of the companies operating and financial results. We will then open the call for Q&A.
Carl.
Hello, everyone and thank you for joining our call today, we are pleased to announce our financial results for the first quarter of 2021 as we continue to build on our success from 2020 and generate positive operating cash flow in.
In the first quarter Weird, we're excited to have closed the delivery Dude acquisition strengthening our market position in southern Florida, and solidify our commitment to pursue additional opportunistic strategic acquisitions.
Over the last several months, we partnered with many of the country's top delivery management and optimization platforms, which provide improved operational.
Fishing sees that benefit both restaurants and customers.
Along with these platform integrations, we have partnered with a multitude of National branch, including P. D. Q Applebee's, Marco's Pizza, Jason's Deli red Robin and various delivery only virtual restaurant concepts to our platforms, which have broadly expanded the restaurants. So.
Section for our diners.
This focused and methodical sales approach resulted in a surprise surpassing a total of 23000 partnered restaurants on the platform.
Wow adverse weather related events affected many of our markets for several weeks during the first quarter of 2021. We are pleased to report a nine per cent increase in average daily order volumes this quarter compared to the fourth quarter of 2020 or results continued to reflect.
The hard work of our entire team to the execution of fundamental operation on strategic initiatives.
Our ongoing recruiting and retention efforts continue to increase the total number of active independent contractor drivers on the platforms, which are at an all time high for the company overall, we had a great quarter and are excited about the company's future.
Now I'll turn it over to Leo our Chief Financial Officer for a recap of first quarter results.
Thank you Carl one.
Now review, our first quarter of 2021 financial results.
Revenue on a pro forma basis, including the full quarterly results on delivery routes 53.4 million in the first quarter of 2021.
Compared to pro forma revenue $46 5 million in the first quarter of 2020 and increase six 9 million or 15 per cent.
Got lost for the first quarter of 2020 137 million, which includes 5.1 billion items, we considered to be one time non-recurring current to a loss of 2.1 million on the first quarter of 2020.
Just the net income for the first quarter of 2021 was 1.4 million.
To a lost 2.1 million first quarter of 2020 and income.
<unk> 3.5 million.
Just the the EBITDA for the first quarter of 2021 8.3 million.
It's a $3.7 million in the first quarter of 2020 and increased $4.6 million per 121 per cent.
Walker share including Goose.
Blue's a at one time and non-recurring items on with the first quarter of 2021 and 2023 cents.
Just earnings per diluted chair for the first quarter of 2021 was one thing compared to an adjusted loss per diluted share of three cents from the first quarter of 21.
And the first quarter of 2021, we made a prepayment of 15 million on our term loan along with a cash payment of $10 9 million for the acquisition of delivery days, resulting in cash on hand 60.
67, 9 million as of March 31st 2021.
Total outstanding long term debt March 31st 2021 was 84.5 million consisted primarily of our 35 million term loan and 49.5 million convertible notes.
That concludes the recap on first quarter financial results will now it's going through a short Q&A session.
Thank you Sir if you would like to ask a question. Please signal by pressing star one on your telephone keypad, if you're using a speaker phone. Please make sure your mute function as turned off to allow your signal to reach our equipment. Once again that is star. One if you would like to ask a question and we'll pause for just one moment to allow everyone in on.
Opportunity the signal.
And we'll take our first question from.
<unk>, not who car with Deutsche Bank.
Hi, Thanks for taking the question what a housekeeping is the GFS works on understand what what that was.
One second.
Can do into been on <unk> and is he is he is he would look at the potential for like.
Markets opening up and and markets and later markets might already be open because you look at like you know motor vaccinations mortal coming up on <unk>, how do you see <unk>, the order trends and consumer behavior.
In your market is kind of people other things.
Well.
It's a good question and it's it's timely because you we generally have a comparison of the larger players right that operate in.
Big Metropolitan cities that have you know have been locked down quite a bit for the last year.
As you know and most of our southern markets.
These markets virtually remained open and it's a different dynamic I I think that.
These.
Second and third tier markets are generally populated with working class people that have been under some level of financial hardship also as you know, we we focus on independent restaurants independent restaurants have.
Not had the easiest time Oh during you know the the the Coke the COVID-19 time.
And as a result, you know as we go into this year I think our comparisons will be less taxing than the big National companies. I think Q2 is probably the trickiest, because that's where we saw most stimulus come into the market last year.
But ultimately our our business seems a lot more.
Consistent and steady then having these you know big blips from last year's locked down period.
Okay, and what was the GFS for this this quarter.
We only have the gross foods sales number.
Yeah. It's.
$150 3 million.
150 per cent between windows.
Okay, Great and then I've been on <unk>.
You you mentioned, but it's like working class people and that that live there permanently in these markets have you <unk> <unk>.
The the the.
The issue with like most companies on <unk>, bringing going on so I'd like it or difficulty in high Tech workers and what have you have you have you seen that kind of thing to happen in those markets like these guys.
The the like just too many jobs available for them.
Well I I, it's an interesting social commentary right I think that you know I hear it from restaurants, we definitely have tried to stay ahead of the curve on the driver's side, but when you're paying people more money than they typically make.
To go to work they don't want to work on that being said and I think it probably affected.
Our EBITDA margin for the quarter, because we wanted to stay in front of the subsidies coming out and we were we were a bit more probably aggressive with incentives for drivers.
That it it affected or margin slightly there temporarily but I think it's a nationwide issue.
That you know if if you're.
In Scenting behavior, that's not consistent with working on <unk> I think it it tightens for labor market up.
No it totally does but.
No insight into it to what's happening in your auto markets.
The things hasn't picked up.
It is as far as what that it's in order to hire employees yeah.
Yeah, No I mean, the the thing it's been on if if growth or the past yoda was kind of maybe muted because it's more working class people and they broke maybe harder it.
I've been on and right now we are getting into a situation that you have a job set up like the and like people are not like going on not going for those jobs not applying for the job then they know they they must be making more money than than all day that they would be with the drugs.
Right. So you were in we're in agreement, but you know where we would see see the greatest impact would be in lack of driver supply right. So okay. I I do hear it from restaurant partners and what have you that they're having you know more difficult.
Difficulty hiring servers, or you know dishwashers and stuff like that but as it affects kind of operationally our business migrate is fear all the time is if I don't have enough drivers you know I I have a problem. So we tried to stay in front of at that dynamic in it.
Throws another you know dynamic into it when you're having you know the the government paying out subsidies. So that's where would it would affect us, but you know ultimately as as we mentioned in in the release, we have the highest number of.
Active drivers in the company's history in this past quarter. So you know whatever we did we were able to weather that storm.
Oh, that's great and then my last one the average ordo value include like 14 per cent yoda with your.
And you know.
That's cool supposed to like 44 or $44, what's driving that yeah.
Well, it's probably a collection of a number of things, but you know again.
Mmm, we're independent restaurant.
Focused right and those tickets are typically higher than Q S. R and a lot of this.
Amazing topline growth that the national businesses are are see is driven by their Q S. R traffic uhm, which hasn't been a focus of of our company for a couple of reasons, but you know one other things you see is talking about P. O S integral.
<unk> system integrator integrations.
The company just.
Didn't use that as a priority in the past and as a result, even though they had a handful of of national Ah Ah brand. They were handicapped in signing these brands because of the integrations. So I I think.
But you know as we've shown and you've heard me say Ah, where we build profitable businesses right. So I expect the economics to be as good if not better than our core business.
Great. Thank you so much.
Thank you Sir next we'll hear from Alex Furman.
Thanks, very much correct Helen.
Terrific. Thank you very much for taking my question wanted to ask about the acquisition of delivery do you know can you talk about what makes this a good fit for later and then as you look forward to the next couple of quarters and years as if theyre going to be any heavy lifting in terms of <unk>.
Grading that into your business or is that pretty much a plug and play.
Anything you can share with us about how that's going to impact your results would be helpful.
Yes sure. Thanks.
We're super excited.
About this addition.
In the past, we're going to look at strategic acquisitions as part of our growth strategy.
And.
There's there's hundreds of the smaller operators out there.
At May bring us a continued.
<unk> market like delivery Dude did they may bring more order flow.
They may have.
An interesting niche in certain types of foods.
Delivery Dude has a little bit more upscale restaurant.
Our selection.
I wouldn't say, it's just like a caviar, but it's that tier of restaurants.
Sure.
They have a great team very entrepreneurial.
They've done a great job with.
Their marketing and their messaging.
And.
From an integration perspective.
It's not a heavy lift it's a it's it's a bolt on from from that perspective and they're.
They're growing a lot faster.
Than our core business and they're doing that profitably with positive EBITDA.
So.
It kind of checked all the boxes.
A really good management team.
Great marketing great brand.
Great restaurant selection.
It is.
It it adds to our presence in the state of Florida.
It's a.
It's pretty good stuff.
That's terrific. Thanks, Thank Karl and then I also just wanted to ask quickly about some of the investments youre, making in cannabis delivery.
No. There is a lot of work to be done there in it and it's early but.
But when when do you think we might start to see.
Some of that really coming to fruition and can you just talk a little bit about the investment that you're making in that space.
Yeah. So you know just like Kunal Ah <unk>.
It's too early for me to give you a timeframe.
We think that the opportunity in the cannabis industry in providing a solution that both encompasses payments as well as last mile delivery is.
Gonna be mission critical.
We there's a lot of work to be done both on the the.
Our regulatory compliance.
As well as putting together the pieces of the puzzle for that solution I mean.
There is there's different requirements state to state on everything from the vehicles to.
The employees to the to the.
The drivers I mean, it's it's.
It's it's tricky and that's why I like it right because ultimately we're very early on this.
And a lot of companies that are out there profess to be doing a lot of different things that they're really just not even doing yet.
And the most difficult part of it right is that the driver logistics and being able to do that profitably, which we've obviously shown that we can do that so.
More to come on that it's exciting.
That's great thanks very much.
Once again as a reminder, if you would like to ask a question you may do so by pressing star one on your telephone at this time, we'll pause for just one moment.
And.
It appears there are no further questions at this time, Mr. Grant said, we'll turn the conference back over to you for any additional or closing remarks.
Thank you and thank you to all.
Thanks for your continued support.
Have a nice evening.
Yeah.
That does conclude today's conference we do thank you for your participation you may now disconnect.
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