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In addition, the Board of Directors of eDiets.com today announced thatcurrent President Steve Rattner has been named President and Chief ExecutiveOfficer, effective immediately.
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Mr. Rattner joined eDiets.com in May 2006 following the acquisition ofNutrio.com, of which he was President and Chief Executive Officer, as well asco-Founder, and was named President of eDiets in October 2006.
"Steve has led eDiets.com's turnaround and served as a great leader forthe past 13 months. He has assembled a top-notch management team and overseenthe rebuilding of our technology on time and on budget, the successfulrevamping of our meal delivery program and the continued growth of our B2Bbusinesses. We are very proud to have Steve take on the role of CEO andbelieve he has demonstrated the skills necessary to return the Company toprofitability and positive cash flow," said Kevin A. Richardson, the Company'sChairman, on behalf of the Board.
"I would like to thank the Board of Directors for their support and theirvote of confidence in selecting me. I look forward to expanding myresponsibilities as eDiets.com moves closer to offering an end-to-end solutionin the weight-loss and wellness marketplace," said Steve Rattner.
Q3 2007 Results
The Company generated $6.8 million in revenues from continuing operationsfor the third quarter of 2007, compared to $12.2 million for the same periodlast year. Loss from continuing operations for the quarter was $2.5 million,or $0.10 per diluted share compared to net income from continuing operationsof $0.5 million and $0.02 per diluted share for the third quarter of 2006.
Adjusted EBITDA*, defined as net income before interest, taxes,depreciation, amortization, stock-based compensation, discontinued operationsand severance charges for the quarter ended September 30, 2007 was ($1.1)million compared to $1.3 million in the prior year period.
For the nine months ended September 30, 2007, the Company recordedrevenues of $22.8 million compared to $39.3 million for the same period lastyear. Loss from continuing operations was $5.2 million or $0.21 per dilutedshare, compared to a loss of $3.6 million or $0.16 per diluted share for thefirst nine months of 2006. Adjusted EBITDA for the nine month period of 2007totaled ($1.8) million compared to ($1.2) million in the prior year period.
"We are well positioned for the post-holiday diet season, with our newtechnology platform and the capital in place to support the expansion of thebusiness, particularly our freshly prepared meal delivery service," said SteveRattner.
"Our new technology platform will enable us to streamline the access toour distinct B2C and B2B divisions, making it easier for our customers andbusiness partners to navigate our content and communicate their needs. As aresult, we will be able to present our customers with multiple relevant weightloss and wellness products and services within a single location, even astheir personal needs change or expand. Simultaneously, we expect thataccelerated growth and increasing volume in our Corporate Services divisionwill provide operating leverage and savings to share with our consumerbusiness and significantly improve overall profitability."
Outlook
For 2008, eDiets.com estimates that revenue will be approximately $50million. This guidance reflects the anticipated benefits and operatingleverage from the new integrated technology platform, accelerated growth ofthe B2B business and the expansion of the meal delivery program, includingseveral new heart healthy, glycemic and diabetic meal plans that will beintroduced during the f
