CHICAGO, July 24, 2014 /PRNewswire/ -- GrubHub Inc.
(NYSE: GRUB), the leading online and mobile food-ordering company,
today announced financial results for the quarter ended
June 30, 2014.
"GrubHub continued to execute against the large opportunity in
takeout in the second quarter, driving significant year over year
growth in revenues, adjusted EBITDA, and all of our key metrics,"
said Matt Maloney, CEO. "We
generated record revenues in the second quarter despite both an
expected seasonal slowdown and an unusually cold winter that drove
record orders in the first quarter."
Second Quarter 2014 Results
The following results reflect the financial performance and key
operating metrics of our business for the three months ended
June 30, 2014, compared to the
non-GAAP pro forma combined results of Seamless Holdings and
GrubHub Holdings for the three months ended June 30, 2013, giving effect to the August 2013 merger of the two companies.
Financial Highlights
- Revenues: $60.0 million, a 48%
year-over-year increase from $40.7
million in the second quarter of 2013.
- Non-GAAP Adjusted EBITDA: $16.9
million, a 56% year-over-year increase from $10.8 million in the second quarter of 2013.
- Net Income: $2.7 million, a 930%
year-over-year increase from $0.3
million in the second quarter of 2013.
Key Business Metrics Highlights
- Active Diners grew 51% to 4.19 million, compared to 2.78
million active diners in the second quarter of 2013.
- GrubHub Inc. processed 174,500 Daily Average Grubs, a 34%
year-over-year increase from 130,100 Daily Average Grubs in the
second quarter of 2013.
- GrubHub Inc. processed $423
million in gross food sales, a 38% year-over-year increase
from $307 million processed in the
second quarter of 2013.
"We're pleased with the initial roll-out of restaurant-driven
pricing to the Seamless brand in April, which had a positive impact
on overall commission rates during the quarter," noted Maloney. "In
addition, by maintaining our seasonally higher first quarter
advertising spending in the second quarter, we continued to add new
diners at a healthy rate, particularly in areas outside of our
largest markets."
Third Quarter 2014 Guidance
Based on information available as of July
24, 2014, the company is providing the following financial
guidance for the third quarter:
- Revenue is expected to be in the range of $55.5 million to $57.5 million.
- Adjusted EBITDA is expected to be in the range of $13 million to $15 million.
Second Quarter 2014 Financial Results Conference
Call: GrubHub will webcast a conference call today at
9 a.m. CT to discuss the second
quarter 2014 financial results. The webcast can be accessed on the
GrubHub Investor Relations website at http://investors.grubhub.com,
along with the company's earnings press release and financial
tables. A replay of the webcast will be available at the same
website until August 7, 2014.
About GrubHub
GrubHub Inc. (NYSE: GRUB) is the
nation's leading online and mobile food ordering company dedicated
to connecting hungry diners with local takeout restaurants. The
company's online and mobile ordering platforms allow diners to
order directly from approximately 30,000 takeout restaurants in
more than 700 U.S. cities and London. Every order is supported by the
company's 24/7 customer service teams.
Use of Forward Looking Statements:
This press release
contains forward looking statements regarding our management's
future expectations, beliefs, intentions, goals, strategies, plans
and prospects. Such statements
constitute "forward-looking" statements, which are
subject to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. The outcome of the matters covered
by such forward-looking statements involves risks, uncertainties
and assumptions. If any of these risks or uncertainties materialize
or if any of the assumptions prove incorrect, our actual results,
performance or achievements could be materially different from any
future results, performance or achievements expressed or implied by
the forward-looking statements. Such risks and uncertainties
include, but are not limited to, the matters set forth in the
filings that we make with the Securities and Exchange Commission
from time to time, including those set forth in the section
entitled "Risk Factors" in the company's Prospectus filed
on April 7th, 2014 and additional
information that will be set forth in our Form 10-Q that will be
filed for the quarter ended June 30,
2014, which should be read in conjunction with these
financial results. These documents are available on the SEC Filings
section of the Investor Relations section of our website at
http://investors.grubhub.com/. Please also note that
forward-looking statements represent our management's beliefs and
assumptions only as of the date of this press release. Except as
required by law, we assume no obligation to update these
forward-looking statements publicly, or to update the reasons
actual results could differ materially from those anticipated in
the forward-looking statements, even if new information, becomes
available in the future.
Use of Non-GAAP Financial Measures
Adjusted EBITDA is
a financial measure that is not calculated in accordance with
accounting principles generally accepted in the United States, or GAAP.
We define Adjusted EBITDA as net income adjusted to exclude
merger and restructuring costs, income taxes, depreciation and
amortization and stock-based compensation expense. We use
Adjusted EBITDA as a key performance measure because we believe it
facilitates operating performance comparisons from period to period
by excluding potential differences primarily caused by variations
in capital structures, tax positions, the impact of acquisitions
and restructuring, the impact of depreciation and amortization
expense on our fixed assets and the impact of stock-based
compensation expense. Adjusted EBITDA is not a measurement of
our financial performance under GAAP and should not be considered
as an alternative to performance measures derived in accordance
with GAAP.
See "Schedule of Non-GAAP Adjusted EBITDA Reconciliation -
Pro Forma" below for a reconciliation of net income to
Adjusted EBITDA.
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Contacts:
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|
|
|
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Anan
Kashyap
|
Abby Hunt
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|
Corporate Finance
& Investor Relations
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Press
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ir@grubhub.com
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press@grubhub.com
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NON-GAAP PRO FORMA
FINANCIAL INFORMATION
|
|
|
|
On August 8, 2013,
GrubHub Inc. acquired all of the equity interests of each of
Seamless North America, LLC, Seamless Holdings and GrubHub Holdings
(the "Merger"). The following Unaudited Pro Forma Condensed
Statement of Operations was derived from the unaudited historical
statement of operations of Seamless Holdings (Acquirer) for the
three months ended June 30, 2013 and the unaudited historical
statement of operations of GrubHub Holdings (Acquiree) for the
three months ended June 30, 2013, adjusted for income taxes at the
Company's historical effective tax rate.
|
|
|
|
Three Months
Ended
June 30,
|
|
2014
|
|
ProForma
Combined
2013
|
|
(in
thousands)
|
|
Revenues
|
$
|
60,006
|
|
$
|
40,650
|
|
Costs and
expenses:
|
|
|
|
|
|
|
Sales and
marketing
|
|
16,168
|
|
|
10,568
|
|
Operations and
support
|
|
14,734
|
|
|
10,823
|
|
Technology (exclusive
of amortization)
|
|
6,066
|
|
|
4,201
|
|
General and
administrative
|
|
8,620
|
|
|
11,916
|
|
Depreciation and
amortization
|
|
5,615
|
|
|
2,561
|
|
Total costs and
expenses
|
|
51,203
|
|
|
40,069
|
|
Income before
provision for income taxes
|
|
8,803
|
|
|
581
|
|
Provision for income
taxes
|
|
6,111
|
|
|
320
|
|
Net
income
|
$
|
2,692
|
|
$
|
261
|
|
Net income (loss)
per share attributable to common stockholders:
|
|
|
|
|
|
|
Basic
|
$
|
0.03
|
|
$
|
(0.01)
|
|
Diluted
|
$
|
0.03
|
|
$
|
0.00
|
|
Weighted average
shares used to compute net income (loss) per share attributable to common
stockholders:
|
|
|
|
|
|
|
Basic
|
|
78,042
|
|
|
54,692
|
|
Diluted
|
|
82,074
|
|
|
74,983
|
|
|
KEY PRO FORMA
OPERATING METRICS
|
|
|
|
Three Months Ended
June 30,
|
|
2014
|
|
2013
Pro
Forma
|
|
Active Diners
(000s)
|
|
4,190
|
|
|
2,780
|
|
Daily Average
Grubs
|
|
174,500
|
|
|
130,100
|
|
Gross Food Sales
(millions)
|
$
|
422.6
|
|
$
|
306.7
|
|
GRUBHUB
INC.
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS - UNAUDITED
|
|
(in thousands,
except share data)
|
|
|
|
|
|
|
June 30,
2014
(Unaudited)
|
|
December 31,
2013
|
|
ASSETS
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
207,096
|
|
$
|
86,542
|
|
Accounts receivable,
less allowances for doubtful accounts
|
|
37,863
|
|
|
29,304
|
|
Deferred taxes,
current
|
|
3,688
|
|
|
3,688
|
|
Prepaid
expenses
|
|
2,505
|
|
|
2,625
|
|
Total current
assets
|
|
251,152
|
|
|
122,159
|
|
PROPERTY AND
EQUIPMENT:
|
|
|
|
|
|
|
Property and
equipment, net of depreciation and amortization
|
|
16,529
|
|
|
17,096
|
|
OTHER
ASSETS:
|
|
|
|
|
|
|
Other
assets
|
|
4,039
|
|
|
2,328
|
|
Goodwill
|
|
352,788
|
|
|
352,788
|
|
Acquired intangible
assets, net of amortization
|
|
261,390
|
|
|
268,441
|
|
Total other
assets
|
|
618,217
|
|
|
623,557
|
|
TOTAL
ASSETS
|
$
|
885,898
|
|
$
|
762,812
|
|
LIABILITIES,
REDEEMABLE COMMON STOCK AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
Restaurant food
liability
|
$
|
84,486
|
|
$
|
78,245
|
|
Accounts
payable
|
|
2,390
|
|
|
3,353
|
|
Accrued
payroll
|
|
3,441
|
|
|
1,720
|
|
Taxes
payable
|
|
1,377
|
|
|
1,768
|
|
Restructuring
accrual
|
|
478
|
|
|
176
|
|
Other
accruals
|
|
9,850
|
|
|
7,329
|
|
Total current
liabilities
|
|
102,022
|
|
|
92,591
|
|
LONG TERM
LIABILITIES:
|
|
|
|
|
|
|
Deferred taxes,
non-current
|
|
98,633
|
|
|
90,495
|
|
Other
accruals
|
|
3,939
|
|
|
3,936
|
|
Total long term
liabilities
|
|
102,572
|
|
|
94,431
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
Redeemable common
stock, $0.0001 par value, no shares and 1,344,236 shares
outstanding as of June 30, 2014 and December 31, 2013,
respectively
|
|
—
|
|
|
18,415
|
|
STOCKHOLDERS'
EQUITY:
|
|
|
|
|
|
|
Series A Convertible
Preferred Stock, $0.0001 par value
|
|
—
|
|
|
2
|
|
Common stock, $0.0001
par value.
|
|
8
|
|
|
5
|
|
Accumulated other
comprehensive income
|
|
316
|
|
|
132
|
|
Additional paid-in
capital
|
|
617,375
|
|
|
500,356
|
|
Retained
earnings
|
|
63,605
|
|
|
56,880
|
|
Total Stockholders'
Equity
|
$
|
681,304
|
|
$
|
557,375
|
|
TOTAL LIABILITIES,
REDEEMABLE COMMON STOCK AND STOCKHOLDERS' EQUITY
|
$
|
885,898
|
|
$
|
762,812
|
|
GRUBHUB
INC.
|
|
CONDENSED
STATEMENTS OF OPERATIONS - UNAUDITED
|
|
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June
30,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
Revenues
|
$
|
60,006
|
|
$
|
26,857
|
|
$
|
118,619
|
|
$
|
52,658
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
|
16,168
|
|
|
6,064
|
|
|
32,285
|
|
|
16,164
|
|
Operations and
support
|
|
14,734
|
|
|
5,998
|
|
|
29,841
|
|
|
11,975
|
|
Technology (exclusive
of amortization)
|
|
6,066
|
|
|
2,697
|
|
|
11,413
|
|
|
5,344
|
|
General and
administrative
|
|
8,620
|
|
|
5,809
|
|
|
16,944
|
|
|
8,712
|
|
Depreciation and
amortization
|
|
5,615
|
|
|
1,877
|
|
|
11,130
|
|
|
3,673
|
|
Total costs and
expenses
|
|
51,203
|
|
|
22,445
|
|
|
101,613
|
|
|
45,868
|
|
Income before
provision for income taxes
|
|
8,803
|
|
|
4,412
|
|
|
17,006
|
|
|
6,790
|
|
Provision for income
taxes
|
|
6,111
|
|
|
2,589
|
|
|
9,961
|
|
|
3,711
|
|
Net
income
|
$
|
2,692
|
|
$
|
1,823
|
|
$
|
7,045
|
|
$
|
3,079
|
|
Net income per
share attributable to common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.03
|
|
$
|
0.04
|
|
$
|
0.10
|
|
$
|
0.08
|
|
Diluted
|
$
|
0.03
|
|
$
|
0.04
|
|
$
|
0.09
|
|
$
|
0.07
|
|
Weighted average
shares used to compute net income per share attributable to common
stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
78,042
|
|
|
31,373
|
|
|
66,626
|
|
|
31,368
|
|
Diluted
|
|
82,074
|
|
|
43,566
|
|
|
79,854
|
|
|
43,356
|
|
GRUBHUB
INC.
|
|
CONDENSED
STATEMENTS OF CASH FLOWS - UNAUDITED
|
|
(in
thousands)
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
2014
|
|
2013
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
Net income
|
$
|
7,045
|
|
$
|
3,079
|
|
Adjustments to
reconcile net income to net cash from operating
activities:
|
|
|
|
|
|
|
Depreciation
|
|
2,390
|
|
|
1,278
|
|
Provision for doubtful
accounts
|
|
166
|
|
|
86
|
|
Deferred
taxes
|
|
8,138
|
|
|
(151)
|
|
Intangible asset
amortization
|
|
8,740
|
|
|
2,395
|
|
Tenant allowance
amortization
|
|
(79)
|
|
|
(79)
|
|
Stock based
compensation
|
|
4,687
|
|
|
1,238
|
|
Deferred
rent
|
|
76
|
|
|
(64)
|
|
Change in assets and
liabilities, net of the effects of business
acquisitions:
|
|
|
|
|
|
|
Accounts
receivable
|
|
(8,725)
|
|
|
(7,081)
|
|
Prepaid expenses and
other assets
|
|
(1,592)
|
|
|
452
|
|
Accounts
payable
|
|
(962)
|
|
|
1,510
|
|
Restaurant food
liability
|
|
6,241
|
|
|
11,184
|
|
Accrued
payroll
|
|
1,721
|
|
|
1,192
|
|
Other
accruals
|
|
2,439
|
|
|
4,376
|
|
Net cash provided by
operating activities
|
|
30,285
|
|
|
19,415
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
Capitalized website
and development costs
|
|
(1,112)
|
|
|
(1,434)
|
|
Purchases of property
and equipment
|
|
(2,378)
|
|
|
(3,170)
|
|
Net cash used in
investing activities
|
|
(3,490)
|
|
|
(4,604)
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
Net proceeds from the
issuance of common stock
|
|
94,927
|
|
|
—
|
|
Proceeds from exercise
of stock options
|
|
1,145
|
|
|
104
|
|
Taxes paid related to
net settlements of stock-based compensation awards
|
|
(2,061)
|
|
|
—
|
|
Repurchases of common
stock
|
|
(116)
|
|
|
(1,259)
|
|
Preferred stock tax
distributions
|
|
(320)
|
|
|
(651)
|
|
Net cash provided by
(used in) financing activities
|
|
93,575
|
|
|
(1,806)
|
|
|
|
|
|
|
|
Net change in cash
and cash equivalents
|
|
120,370
|
|
|
13,005
|
|
Effect of exchange
rates on cash
|
|
184
|
|
|
(225)
|
|
Cash and cash
equivalents at beginning of year
|
|
86,542
|
|
|
41,161
|
|
Cash and cash
equivalents at end of the period
|
$
|
207,096
|
|
$
|
53,941
|
|
|
|
|
|
|
|
SUPPLEMENTAL
DISCLOSURE OF NON CASH ITEMS
|
|
|
|
|
|
|
Cash paid for income
taxes
|
$
|
1,321
|
|
$
|
2,243
|
|
NON-GAAP ADJUSTED
EBITDA RECONCILATION – PRO FORMA
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2014
|
|
2013
Pro Forma
|
|
2014
|
|
2013
Pro Forma
|
|
(in
thousands)
|
|
Net
income
|
$
|
2,692
|
|
$
|
261
|
|
$
|
7,045
|
|
$
|
920
|
|
Income
taxes
|
|
6,111
|
|
|
320
|
|
|
9,961
|
|
|
1,125
|
|
Depreciation and
amortization
|
|
5,615
|
|
|
2,561
|
|
|
11,130
|
|
|
4,975
|
|
EBITDA
|
|
14,418
|
|
|
3,142
|
|
|
28,136
|
|
|
7,020
|
|
Merger and
restructuring costs
|
|
207
|
|
|
6,669
|
|
|
492
|
|
|
7,430
|
|
Stock-based
compensation
|
|
2,284
|
|
|
1,022
|
|
|
4,687
|
|
|
2,010
|
|
Adjusted
EBITDA
|
$
|
16,909
|
|
$
|
10,833
|
|
$
|
33,315
|
|
$
|
16,460
|
SOURCE GrubHub Inc.