EDiets.com(R) Announces Q4 2009 Results

FORT LAUDERDALE, Fla., March 11 /PRNewswire-FirstCall/ -- eDiets.com, Inc. (Nasdaq: DIET) , a leading provider of convenient at-home diet, fitness and healthy lifestyle solutions, today announced results for the fourth quarter and full year ended December 31, 2009.

Revenues for the fourth quarter of 2009 were $3.9 million, compared to $4.0 million in the prior year period.  The net loss was $(3.3) million, or $(0.12) per diluted share, for the fourth quarter of 2009 compared to $(8.4) million, or $(0.33) per diluted share, for the fourth quarter of 2008.  Results for the fourth quarter of 2008 included a non-cash, impairment charge of $5.2 million related to the goodwill of the Company's business-to-consumer segment.

Adjusted EBITDA*, defined as net loss before interest, taxes, depreciation, amortization, stock-based compensation, severance charges, bad debt recovery or expense, and impairment of goodwill and intangible assets, for the quarter ended December 31, 2009 was $(1.1) million, compared to $(1.2) million in the prior year period.

For the year ended December 31, 2009, the Company recorded revenues of $18.1 million compared to $23.9 million for the same period last year.  Net loss was $(12.1) million, or $(0.47) per share, compared to $(19.8) million, or $(0.79) per share, for 2008, including the non-cash goodwill impairment charge of $5.2 million.  Adjusted EBITDA for 2009 totaled $(3.3) million compared to $(7.5) million in the comparable prior year period.      

Fourth Quarter and Recent Operating Highlights:

• Expanded margins on meal delivery program to 36% in 2009 (excluding revenue share, depreciation and promotional costs) from less than 2% in 2008
• Lowered 2009 SG&A expenses by $4.5 million, or 21%, from the prior year
• Improved meal delivery customer retention to over 10 weeks, up from approximately 7 weeks at the beginning of 2009
• Grew meal delivery revenue 45% in the fourth quarter of 2009 compared to the fourth quarter of 2008
• eDiets.com member success story featured in major media outlets, including PEOPLE Magazine and the NBC TODAY Show

"While 2009 was a challenging year, we initiated a series of corrective actions to improve eDiets.com's performance and enter 2010 with good progress underway," said Kevin McGrath. "We have assembled a strong team of employees at all levels of the company that is committed to reshaping eDiets into a profitable company. In 2009, we successfully stabilized and repaired operations by restoring and enhancing the functionality of our core digital, meal delivery and B2B business platform, significantly reducing costs, and optimizing our overall customer experience to improve customer acquisition and retention. As a result, gross margins in 2009 expanded to 60% from 48% in the prior year."

Mr. McGrath continued, "We are off to a solid start in 2010, with continued growth in meal delivery revenue and margins. Our advertising and marketing efforts are driving meaningful improvements in our meal delivery subscriber base and we have acquired approximately 33% more customers in the first two months of 2010 compared to last year.  We have built a position of leadership in the weight loss and wellness industry and will continue to expand on this foundation by improving our operating infrastructure and delivering compelling nutrition, fitness and weight-loss solutions for our members and corporate clients."