Exhibit 99.1
- --For Immediate Release--
CORPORATE CONTACT: MEDIA/MARKETING CONTACT:
- ------------------ ------------------------
Robert T. Hamilton, Chief Financial Officer Merilee Kern
eDiets.com, Inc. eDiets.com, Inc.
954-360-9022 702-562-0064
rhamilton@eDiets.com merilee@eDiets.com
- -------------------- ------------------
eDiets Confirms Full Year Outlook for Revenues and Profitability
Quarterly Recognition of Deferred Revenues is Adjusted
DEERFIELD BEACH, Fla.--(BUSINESSWIRE)--February 12, 2002--eDiets.com, Inc.
(OTCBB:EDET), the world's leading subscription-based online diet and fitness
service, today confirmed the Company's outlook for the fiscal year ended
December 31, 2001 of both revenues in excess of $24 million and profitability
for the year. The Company also announced that it prematurely recognized certain
subscription revenues in the second and third quarters of fiscal 2001 and, as a
result, will restate its results of operations for such quarters. The
restatement has no impact on revenues, earnings or cash flow for the full year
ended December 31, 2001. The Company plans to release its year-end results later
this month.
Consistent with its press release dated November 28, 2001, eDiets.com expects to
report that revenue for the full year more than doubled to in excess of $24
million compared with revenue of $11.4 million in fiscal 2000. The Company
expects to report net income for the fiscal year of between $0.6 and $0.9
million or $0.04 and $0.06 per diluted share, as compared to a net loss of $5.5
million or $0.41 per diluted share in the prior year. Net cash flow from
operations is expected to total approximately $2.0 million for the year.
Deferred revenues from subscriptions, which will be recognized in future
periods, will total approximately $2.0 million at December 31, 2001.
eDiets.com receives approximately 92 percent of its revenues from subscriptions
to its personalized diet and fitness program that are paid at the time of
enrollment but recognized over the life of the subscription, which is typically
several months. The Company concluded that certain diet and fitness subscription
payment plans launched in the latter half of its second quarter had not been
incorporated into the Company's deferred revenue calculations at June 30, and
September 30, 2001. As a result, the unaudited consolidated financial statements
for those periods will be restated.
Revenues for the quarter ended June 30, 2001 will be restated from $6.1 million
to $5.8 million, while revenues for the quarter ended September 30, 2001 will be
restated from $7.0 million to $6.7 million. The Company's cash flow from
operations of $1.1 million and $1.5 million for the six months ended June 30,
2001 and the nine months ended September 30, 2001, respectively, remain
unchanged. Net income for the quarterly period ended June 30, 2001 will be
adjusted from $155,000, or $0.01 per diluted share, to a net loss of $220,000,
or $0.02 per diluted share.
Net income for the quarterly period ended September 30, 2001 will be adjusted
from $505,000, or $0.03 per diluted share, to $224,000, or $0.02 per diluted
share.
About eDiets.com, Inc.
eDiets.com, Inc. (OTCBB:EDET), the online diet services category leader that
operates two of the Internet's foremost e-Health brands eDiets (www.eDiets.com)
--------------
and DietSmart (www.DietSmart.com), has been dedicated to helping consumers
-----------------
improve their health and wellness through online subscription-based personalized
diet, fitness and motivational programs, products and services since 1996. The
Company operates two central Web sites from which consumers may select a custom-
tailored diet and/or fitness program that is accessible to them at anytime, from
anywhere via any Internet-enabled computer. eDiets and DietSmart also offer an
array of comprehensive online support services that are available 24/7/365,
including professionally moderated online meetings, support groups, chats,
teleconferences and other interactive support features. With approximately
300,000 paid members during the fourth quarter of 2001 and over 10 million opt-
in subscribers to its proprietary bi-weekly newsletter, eDiets Diet & Fitness
News, eDiets and DietSmart combine convenience, personalization, privacy and
support as an online alternative to traditional programs popularized by Weight
Watchers(R) (NYSE:WTW), Jenny Craig(R) (OTCBB:JCGI) and other offline diet
companies. eDiets.com, Inc. maintains its corporate office in Deerfield Beach,
Florida, with a satellite office located in Manhattan. Among other honors
received, eDiets.com was named a Forbes Magazine "Best of the Web" fitness and
nutrition Web site in both 2000 and 2001.
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.
####
eDiets.com, Inc.
Summary of Consolidated Financial Information
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended June 30, Six Months Ended June 30,
------------------------------------------------- ---------------------------------
2001 2001 2000 2001 2001 2000
----------- ------------ ------------ ----------- ---------- --------
AS RESTATED AS REPORTED AS RESTATED AS REPORTED
INCOME STATEMENT DATA:
Revenues $ 5,774 $ 6,149 $ 2,266 $ 10,144 $ 10,519 $ 3,400
Cost and expenses:
Cost of revenue 227 227 110 522 522 238
Product development 127 127 65 208 208 108
Sales and marketing 4,555 4,555 4,569 7,669 7,669 6,150
General and administrative 966 966 756 1,726 1,726 1,398
Depreciation and amortization 118 118 82 216 216 140
Income (loss) from operations (219) 156 (3,316) (197) 178 (4,634)
Other income, net 3 3 37 7 7 111
Income taxes 4 4 - 4 4 -
Net income (loss) $ (220) $ 155 $ (3,279) $ (194) $ 181 $ (4,523)
Earnings (loss) per common share
Basic $ (0.02) $ 0.01 $ (0.25) $ (0.01) $ 0.01 $ (0.35)
Diluted $ (0.02) $ 0.01 $ (0.25) $ (0.01) $ 0.01 $ (0.35)
Weighted average common shares outstanding
Basic 13,562 13,562 13,094 13,557 13,557 12,870
Diluted 13,562 14,814 13,094 13,557 14,724 12,870
June 30, June 30, December 31,
2001 2001 2000
----------- ------------ ------------
AS RESTATED AS REPORTED
BALANCE SHEET DATA:
Cash and cash equivalents
(including restricted cash) $ 2,105 $ 2,105 $ 1,206
Total Assets 5,079 5,079 3,717
Deferred revenue 2,549 2,174 1,352
Long-term debt - - -
Stockholders' equity 285 660 306
CONTACT: Robert T. Hamilton, Chief Financial Officer, 954-360-9022,
rhamilton@ediets.com
eDiets.com, Inc.
Summary of Consolidated Financial Information
(Unaudited)
(in thousands, except per share amounts)
Three Months Ended September 30, Nine Months Ended September 30,
------------------------------------------------- -------------------------------------
2001 2001 2000 2001 2001 2000
----------------- --------------- ------------ ------------ ------------ ---------
AS RESTATED AS REPORTED AS RESTATED AS REPORTED
INCOME STATEMENT DATA:
Revenues $ 6,716 $ 6,997 $ 3,765 $ 16,860 $ 17,516 $ 7,165
Cost and expenses:
Cost of revenue 348 348 145 870 870 383
Product development 170 170 56 378 378 164
Sales and marketing 4,703 4,703 4,045 12,372 12,372 10,195
General and administrative 1,122 1,122 1,023 2,848 2,848 2,421
Depreciation and amortization 139 139 84 355 355 224
Income (loss) from operations 234 515 (1,588) 37 693 (6,222)
Other income, net 0 0 23 7 7 134
Income taxes 10 10 - 14 14 -
Net income (loss) $ 224 $ 505 $ (1,565) $ 30 $ 686 $ (6,088)
Earnings (loss) per common share
Basic $ 0.02 $ 0.04 $ (0.12) $ 0.00 $ 0.05 $ (0.46)
Diluted $ 0.02 $ 0.03 $ (0.12) $ 0.00 $ 0.05 $ (0.46)
Weighted average common shares
outstanding
Basic 13,587 13,587 13,553 13,567 13,567 13,101
Diluted 14,633 14,633 13,553 14,693 14,693 13,101
September 30, September 30 December 31,
2001 2001 2000
----------------- --------------- -----------
AS RESTATED AS REPORTED
BALANCE SHEET DATA:
Cash and cash equivalents
(including restricted cash) $ 2,285 $ 2,285 $ 1,206
Total Assets 5,639 5,639 3,717
Deferred revenue 2,439 1,783 1,352
Long-term debt - - -
Stockholders' equity 502 1,158 306
CONTACT: Robert T. Hamilton, Chief Financial Officer, 954-360-9022,
rhamilton@ediets.com