eDiets.com, Inc. (OTCBB:EDET), the world’s leading subscription-based online diet center, today reported revised first-quarter earnings from those reported on April 17, 2001, reducing net income from $66,000, to $26,000. Diluted earnings per share of $0.00 remains unchanged as a result of the revision. The change in net income was due to non-cash charges related to a consulting contract entered into during the quarter.
Revenues for the quarter ending March 31, 2001 were $4.37 million, a 285 percent increase over revenues of $1.13 million a year earlier. Net income for the quarter was $26,000 or $0.00 per diluted share, compared with a net loss of $1.24 million, or $0.10 per diluted share, a year ago. Cash from operations during the quarter was $1.2 million, doubling the company’s cash balance to $2.36 million from the previous quarter. Cash flow per diluted share was $0.08 for the quarter, up from a negative cash flow of $0.15 a year ago.
“Our continued growth supports our belief that the online model of the billion-dollar diet center business is superior to the offline model,”said Dave Humble, CEO, eDiets.com. “Personalization, convenience and privacy are powerful consumer benefits that are difficult to replicate in the offline model.”
Paying members during the quarter topped 250,000, up 229 percent from 76,000 paying members a year earlier. The total eDiets.com online community, including subscribers to the company’s eDiets News newsletter, totaled 4.8 million people, up 41 percent from the 3.4 million subscribers on December 31, 2000.
About eDiets.com, Inc.
eDiets.com is a business-to-consumer subscription model and the leading subscription-based online diet center. The Company provides consumers with professional diet advice and information exclusively online, and operates a Support Center available to members 24/7. Members receive custom daily meal and fitness plans, attend online meetings, and are provided with a custom shopping-list to take to the supermarket. The Company also publishes eDiets News, and distributes it online to a subscription base of more than 4,800,000 subscribers. eDiets.com was named a Forbes “Best of the Web” fitness and nutrition Web site for the year 2000.
Statements in the release, 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 of the Company to be materially different from those which may be expressed or implied by such statements. These risks and uncertainties include, among others, changes in general economic and business conditions, changes in product acceptance by consumers, effectiveness of sales and marketing efforts, loss of market share and pressure on prices resulting from competition, and inability to obtain sufficient financing. For additional information regarding these and other risks and uncertainties associated with eDiets.com business, reference is made to the Company’s Annual Report on Form 10-KSB for the year ended December 31, 2000, 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. The Company does not undertake any obligation to publicly update any forward-looking statements.
Summary of Consolidated Financial Information
(In thousands, except per share data)
Three Months Ended March 31,
INCOME STATEMENT DATA:
Revenues $ 4,370 $ 1,134
Cost and expenses:
Cost of revenue 295 128
Product development 81 43
Sales and marketing 3,114 1,581
General and administrative 760 642
Depreciation and amortization 98 58
Income (loss) from operations 22 (1,318)
Other income, net 4 74
Net income (loss) $ 26 $ (1,244)
Earnings (loss) per common share
Basic $ 0.00 $ (0.10)
Diluted $ 0.00 $ (0.10)
Weighted average common shares
Basic 13,553 12,645
Diluted 14,659 12,645
March 31, December 31,
BALANCE SHEET DATA:
Cash and cash equivalents
(including restricted cash) $ 2,357 $ 1,207
Prepaid advertising 1,288 1,063
Total Assets 4,913 3,717
Deferred revenue 2,477 1,352
Long-term debt — —
Stockholders’ equity 491 306
Note to editors: For company or service information, contact Michelle Perez, eDiets.com, Inc. 3467 Hillsboro Boulevard, Deerfield Beach, Florida, (954) 360-9022. Readers can also access our Web site at http://www.eDiets.com.