Waitr Holdings Inc.

Good afternoon, and welcome to the Waiter Holdings Third Quarter 2020 Conference Call. With us today are Waiter's Chief Executive Officer, Carl Grimseth, and Chief Financial Officer, Leo Bogdanoff. By now, you should have access to our earnings press release. If not, it may be found at sec.gov or our Investor Relations website at investors.waitapp.com. Before I turn the call over to management, I would like to remind you that certain statements and projections in this call about our future business and financial results constitute forward-looking statements. These statements are based on management's current business and market expectations, 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 Form 10Qs for 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 will refer to a non-GAAP financial measure. Please refer to Waiter's third quarter 2020 earnings release for a full reconciliation of non-GAAP financial measure to the most comparable GAAP financial measure. I would now like to turn the call over to Waiter CEO, Carl Grimstad, who will give an overview of the company's business activities and development for the third quarter of 2020. He will then turn the call over to Leo Bogdanoff, who will provide an overview of the company's operating and financial results. We will then open the call for Q&A. Carl, please go ahead.

Thank you. Hello, everyone, and thank you for joining our call today. We are pleased with our results we generated this quarter, marking a second consecutive quarter of continued profitability and positive operating cash flow. Our profitable results continue to prove the sustainability of our business model and unit economics, even during these difficult times. The restaurant and hospitality sector faces an uphill battle as a result of the duration of the COVID-19 pandemic. Despite impacts from recent hurricanes to our key markets and ongoing pandemic, our results continue to reflect the implementation of many fundamental strategic initiatives around service and profitability. We've expanded our service offerings and increased efficiencies, all while maintaining a cost structure with an eye on a return on deployed capital. Our focus is on continuing to grow and to operate a sustainable business model and bring value to shareholders over the long term. Our recent launch of table-side service technology is a prime example of our efforts to diversify our product offerings beyond restaurant delivery, strengthening our market presence. By combining this table-side service technology with our delivery and takeout ordering services, Waiter now offers restaurants an integrated payment solution that can help them improve their safety protocols, sales, and efficiency, both inside and outside the four walls of the restaurant. As of today, we already have many restaurants who have signed agreements to utilize the table-side service technology. Additionally, we have continued our expansion into new delivery verticals, such as same-day groceries and alcohols. all while offering no-contact delivery. During the third quarter of 2020, we also announced the appointments of three key leaders, Mark D'Ambrosio, our Chief Sales Officer, David Cronin, our Chief Engagement Officer, and Thomas Pritchard, our General Counsel. Mark, David, and Thomas have made immediate impacts in their respective areas of expertise, and I look forward to growing the business with these leaders. Now I'll turn it over to Leo, our Chief Financial Officer, for a recap of third quarter results. Thank you, Carl. I'd like to now turn our focus onto the third quarter of 2020 financial results. Revenue for the third quarter of 2020 was $52.7 million, compared to $49.2 million in the third quarter of 2019. Net income for the third quarter was $4.6 million, or $0.04 per diluted share, compared to a loss of $220.1 million. with $2.89 per share in the third quarter of last year. Third quarter 2019 net loss included $192.1 million of non-cash goodwill and tangible asset impairment charges, both considered as adjustments within our adjusted EBITDA. Adjusted EBITDA for the third quarter was $13 million, compared to a net loss of $15.4 million in the third quarter of 2019, an increase of $28.4 million, reflecting the implementation of initiatives around service and profitability. Our daily orders were approximately $39,880 for the quarter. Tax and diners were approximately $2 million as of September 30, 2020. As of September 30, 2020, we had cash on hand of $77.1 million, an increase of $10.4 million from June 30, 2020, driven primarily from the completion of our at-the-market offerings in July and positive operating cash flows, partially offset by a prepayment of long-term debt made to our lender. Total outstanding long-term debt was approximately $99 million, consisting primarily of $49.5 million of term loans and $49.5 million of convertible loans. Thank you, Leo. With that, we will go into a short question and answer session.

Thank you. If you would like to ask a question, please signal by pressing star 1 on your telephone keypad. If you are using a speakerphone, Please make sure your mute function is turned off to allow your signal to reach our equipment. Again, press star 1 to ask a question, and we'll take our first question from Jeff Van Sinderen with B. Riley. Please go ahead.