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Revenues from continuing operations for the second quarter of 2007 were$7.6 million, compared to $13.6 million for the same period last year. Lossfrom continuing operations for the quarter was $1.4 million, or $0.06 perdiluted share compared to a loss of $0.6 million and $0.03 per diluted sharefor the second quarter of 2006. Adjusted EBITDA*, defined as net income beforeinterest, taxes, depreciation, amortization, stock- based compensation,discontinued operations and severance charges, for the quarter ended June 30,2007 was a loss of $0.3 million compared to a loss of $0.1 million for thecomparable period last year.
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For the six months ended June 30, 2007, the Company recorded revenues of$16.0 million compared $27.1 million for the same period last year. Loss fromcontinuing operations was $2.7 million or $0.11 per share, compared to a lossof $4.1 million or $0.18 per share for the first six months of 2006. AdjustedEBITDA loss for the first half of 2007 totaled $0.8 million compared to $2.4million in the comparable year period.
"We are streamlining the operations and organization of eDiets.com, so wecan capitalize on our strengths and build an even more competitive andprofitable platform in the online health and wellness market," said SteveRattner, President. "Our integration is well underway and we plan to completeour eDiets.com technology platform later this year. We continue to focus oncreating consumer demand for our new meal delivery program and preparing forthe key diet season in early 2008, including increasing our advertisingefforts and developing new flexible and healthy meal plan options. As wecontinue to rebuild and reposition eDiets, we are maintaining a disciplinedapproach to managing our overhead expenses and our cash flow."
Mr. Rattner added, "Subsequent to the quarter close, we entered into anagreement with Prides Capital, the Company's major shareholder, which allowsfor up to $10 million in borrowings in the form of senior secured notes. Thefinancing is expected to close on August 31, 2007 and we anticipate using theproceeds to invest in opportunities to grow the business, such as advertisingfor our meal delivery program and our IT upgrade, and for general corporatepurposes."
Kevin Richardson, Prides Capital's Managing Partner and Chairman ofeDiets' Board, commented on the transaction, "Taking into account thepotentially dilutive effect of an equity offering, we determined that a debtfinancing would best serve our shareholders' interests. We chose to invest ineDiets because we saw tremendous growth opportunities in the nutrition andhealthy living marketplace and this investment serves to reinforce ourconviction. We continue to believe that eDiets has strong brand namerecognition and a robust community in the diet space, and we are confidentthat management is repositioning the company to best capitalize on the marketexpansion."
Conference Call:
The company will host a conference call to discuss the second quarterresults at 8:30 a.m. Eastern Time on Wednesday, August 15, 2007. Participantsmay access the call by dialing 800-901-5259 (domestic) or 617-786-4514(international), passcode 98316679. In addition, the call will be webcast viathe Investor Relations section of the company's web site at www.ediets.com,where it will also be archived. A telephone replay will be available throughWednesday, August 22, 2007. To access the replay, please dial 888-286-8010(domestic) or 617-801-6888 (international), passcode 19794043.
About eDiets.com
eDiets.com, Inc. is a premier online diet, fitness, and healthy livingdestination offering professional advice, information, products and s
