Waitr Holdings Inc.

Good afternoon, everyone. I would like to welcome all of you to the Reuters Holdings Inc. Second Quarter 2022 Conference Call. With us today are Reuters Chief Executive Officer, Carl Grunfeld, and Chief Financial Officer, Armin Jägerserians. By now, you should have access to the company's earnings press release. If not, it may be found at sec.gov or their investor relations website at investors.reiterep.com. Before I turn the call over to management, I would like to remind you that certain statements and projections in this call about future business and financial results constitute forward-looking statements. These statements are based on management's current business and market expectations, and actual results could differ materially from those projected in the forward-looking statements. Please seek the risk factors contained in the company's annual report on Form 10-K for a discussion of risks that may cause 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 Waiter's second quarter 2022 earnings release for a full reconciliation of its non-GAAP financial measures to the most comparable GAAB financial measures. I would like to now turn the call over to Rater's CEO, Carl Grimstad, who will give an overview of the company's business activities and developments for the second quarter of 2022. He will then turn the call over to Armin Jagerzerians, who will provide an overview of the company's operating and financial results. We will then open the call for Q&A. Carl?

Thank you. Hello, everyone, and welcome to the second quarter 2022 earnings call. In July 2022, we entered into agreements to begin delivering from retailers in industries such as apparel, luxury, sporting goods, alcohol, auto parts, electrical products, and more. This is in line with our vision to deliver anything ASAP to consumers same day from any type of business. We also believe these agreements with third parties like Burke and Elite Extra will start making an impact to order volume in late third quarter and into the fourth quarter of 2022. We added 7-11 in mid-June 2022. With the addition of 7-11 locations to our platform, this created a new level of convenience for our customers. We are looking forward forward to working to ensure our customers, past and present, are aware that they now can order these items which historically they could not. In addition to expanding the variety of items we deliver, we also entered into a multi-year sponsorship agreement, partnering with the New York Giants, the New York Jets, and MetLife Stadium as the exclusive mobile ordering platform at MetLife Stadium. Fans can use the ASAP platform to place mobile orders at all Giants and Jets home games with our platform integrated into each team's app for a seamless mobile ordering experience from concession stands throughout MetLife Stadium. For other events, ASAP mobile ordering will be done directly through our proprietary ASAP stadium ordering application. Our stadium ordering application technology is currently active at the University of Alabama, Louisiana State University, and the New Orleans Saints Super Jump. We have plans to add new venues across the nation over time. We will use our stadium technology and partnerships to enter new markets for both last mile delivery and payment processing solutions for merchants of all types. July 2022 also marked the start of our official transition to rebrand and change the name of the company to ASAP. We are shifting to one platform, which once completed, should provide additional cost and resource savings. Moreover, the shift to one platform and application should allow for a further focus on various feature enhancements and streamlining of service levels. We continue to provide our instant pay technology built for our independent contractor drivers and intend to commercialize the rollout of this technology to restaurant partners and potentially to all other verticals. Additionally, we are pleased with our progress in facilitating merchants with access to third party payment providers and expect this business to continue to see growth in the future. During the second quarter of 2022, we negotiated the pay down of approximately $21 million of debt while extending the debt maturity to May 15, 2024. In July 2022, we entered into an agreement with the lenders of our convertible notes pursuant to which they converted approximately $6.8 million of the notes and currently now beneficially own approximately 16.3% of the company's common stock in addition to their beneficial ownership in underlying warrants. This conversion reinforces their commitment to the company's management team and future strategy. Outstanding long-term debt as of August 8, 2022, totaled approximately $57 million, compared to $84.5 million at December 31, 2021. With this most recent conversion, debt has decreased by over $70 million or approximately 56% since January 1, 2020. I am proud of our team and the foundation we are building for the long-term future of the company. Our broader view towards our business strategy with respect to our industry should allow the company to grow profitably in the future. We believe the company will be close to adjusted EBITDA positive by the end of the third quarter, assuming stable order volume and taking out the cost of the rebrand. Our focus is to be able to deliver a diverse set of products from any vendors. We also believe that we can become the preferred payment provider to any vendor. This, along with our best-in-class proprietary stadium technology, should help us strategically expand our operations. There is still work to be done in enhancing all of our systems, implementing our rebrand, and the migration to one application, but our team is making great strides. I believe we are on the right path. However, from a capital structure perspective, there is still work to be done. This is why we will be having a new shareholder vote in the fall of 2022 in order to effectuate a reverse stock split, resulting in continued compliance with NASDAQ listing requirements, the importance of which is to maintain the company's financial flexibility and the opportunity to further grow the business through future acquisitions. Now I will turn over to Armen, our Chief Financial Officer, for a recap of the second quarter results.

Thank you, Carl. I would like to now review our second quarter 2022 financial results. Revenue for the second quarter of 2022 was $31.2 million compared to $49.2 million in the second quarter of 2021. For the six-month end of June 30, 2022, revenue was 66.2 million, compared to 100.1 million for the six-month end of June 30, 2021. In addition to macroeconomic factors affecting order volumes, the lack of stimulus payments in the first quarter of 2022, unlike those distributed in the late first quarter of 2021, also contributed to the decline in revenue for the six-month end of June 30, 2022, compared to the six-month end of June 30, 2021. Adjusted EBITDA for the second quarter of 2022 was a net loss of $3.6 million compared to adjusted EBITDA of $2.5 million in the second quarter of 2021. Approximately $1 million of the second quarter 2022 loss is from an increase to the IB&R insurance reserve. Net loss for second quarter 2022 was $11.7 million or $0.07 per share compared to a net loss of $5.6 million or $0.05 cents per share in the second quarter of 2021. Cash on hand totaled $28.2 million as of June 30, 2022. That concludes the recap of our second quarter 2022 financial results. We will now go into a short Q&A session.