FORT LAUDERDALE, Fla., March 26 /PRNewswire-FirstCall/ -- eDiets.com, Inc. , a leading provider of convenient at-home diet, fitness and healthy lifestyle solutions, today announced that its consolidated financial statements for the fiscal year ended December 31, 2008, included in the Company's annual report on Form 10-K filed with the Securities and Exchange Commission on March 19, 2009, are accompanied by an unqualified audit opinion from the Company's independent registered public accounting firm, Ernst & Young LLP, and included an explanatory paragraph regarding the Company's ability to continue as a going concern. This announcement is being made in compliance with NASDAQ Marketplace Rule 4350(b) (1) (B), which requires separate disclosure of a recent audit opinion that contains a going concern modification opinion and is not an SEC rule. This announcement does not represent any change or amendment to the Company's 2008 financial statements or to its annual report on Form 10-K.
In the year ended December 31, 2008, the Company generated revenue of $23.9 million. During the last quarter of 2008 the Company identified and implemented $2.4 million in cost reductions. In addition, during the first quarter of 2009 the Company took further cost cutting actions, which will be in full effect by the end of March, in order to reduce costs by an additional $1.5 million on an annualized basis. The Company also improved margins on the meal delivery program to 24% (excluding revenue share and promotional costs) from breakeven in Q3, ended 2008 with 7 channel partner programs and 23 corporate services license programs, up from a total of 20 at the end of 2007, signed a third strategic marketing alliance for meal delivery program and appointed Kevin McGrath as President and Chief Executive Officer of eDiets.com in December 2008.
About eDiets
eDiets.com, Inc. is a leading provider of personalized nutrition, fitness and weight-loss programs. eDiets currently features its award-winning, fresh-prepared diet meal delivery service as one of the more than 20 popular diet plans sold directly to members on its flagship site, http://www.ediets.com/. The company also provides a broad range of customized wellness and weight management solutions for Fortune 500 clients. eDiets.com's unique infrastructure offers businesses, as well as individuals, an end-to-end solution strategically tailored to meet its customers' specific goals of achieving a healthy lifestyle. For more information, please call 310-954-1105 or visit http://www.ediets.com/.
Safe Harbor Statement
Statements which are not historical in nature are forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties which could cause the actual results, performance or achievements to be materially different from those which may be expressed or implied by such statements. These risks and uncertainties include, among others, that we will not be able to obtain sufficient and/or acceptable outside financing (when and if required); changes in general economic and business conditions; changes in product acceptance by consumers; a decline in the effectiveness of sales and marketing efforts; loss of market share and pressure on prices resulting from competition; significant investments in our technology platform, marketing plans, and product development to remain competitive with other online providers of healthy living and weight loss plans, many of which may be found to offer superior and more varied features than our plans and may also be offered for free; volatility in the advertising markets; any delay, disruption, or suspension of our supply of prepared meals from our vendor; changes in consumer preferences and discretionary spending; product liability and other risks from the sale of ingested products; regulatory actions affecting our marketing activities; and the outcome of litigation pending against us. For additional information regarding these and other risks and uncertainties associated with eDiets.com's business, reference is made to our Annual Report on Form 10-K for the year ended December 31, 2008, and other reports filed from time to time with the Securities and Exchange Commission. All forward-looking statements are current only as of the date on which such statements are made. We do not undertake any obligation to publicly update any forward- looking statements.
Investor Relations Contact:
John Mills
ICR, Inc.
310.954.1105
