- Revenue of $2.9M
- Pro-Forma Revenue of $4.4M had Restaurant.com been consolidated for 12 months
ATLANTA, GA / ACCESSWIRE / March 1, 2021 / RDE, Inc. (OTCQB:RSTN) (the "Company"), the owner and operator of Restaurant.com, the nation's largest restaurant-focused digital deals brand, is pleased to announce unaudited financial results for the year ending December 31, 2020. Despite operating during the unprecedented COVID-19 health pandemic, RDE recorded revenue of $2.9 million with net income of $332,000, or $0.06 in earnings per share as compared with a loss per share of ($1.37) in 2019. It should be noted that the revenue figure reflects business recorded from March 1, 2020, the effective date of RDE's acquisition of Restaurant.com, rather than the full year 2020. The twelve months revenue for Restaurant.com was $4.4 million. All financials results are subject to the audit.
RDE believes its B2B business remains robust and looks to expand among Fortune 500 clients. As the COVID-19 pandemic abates, RDE believes it is positioned for major sales expansion. During the year, our B2B segment secured Fortune 500 and Fortune 1000 customers that used our offerings for loyalty and customer acquisition campaigns. A number of these clients will continue these campaigns throughout 2021 as well. These include T-Mobile, Florida Power, Progressive Insurance, Hertz, AFLAC and others. This segment accounted for the single largest contribution to revenue, and we expect this trend to continue in the coming quarters.
Performance Snapshot
Net income from continuing operations of $531,000 demonstrated marked improvement, as compared with a loss of $2.1 million in 2019, resulting in EPS of $0.06 as compared with a negative EPS of ($1.37) in 2019. Of note, the 2020 net income and EPS include a positive non-cash change in derivative liability due to the accounting of convertible notes.
Shareholder's equity for the year also had a major turn for the positive. Equity jumped from a ($7.8 million) deficit to $1.1 million in equity for the year. With the removal of all institutional convertible debt, management expects this figure to continue to demonstrate meaningful increases, going forward.
Looking Ahead
Ketan Thakker, Chief Executive Officer of RDE, Inc., commented on the year's results and the future for the Company: "We are very pleased with our sales and operating performance for 2020 which would have been even greater had we been able to consolidate our Restaurant.com results for the full year. We anticipate filing our audited financial statements in March ."
"Our entire team succeeded against all odds during the pandemic and we are already beginning to see improvements in our underlying markets as cities' restaurants are opening up and B2B clients are planning to use our cards for future customer acquisition campaigns. We are optimistic that restauranters and their families, who have been substantially impacted these past 12 months, will enjoy a major return to growth, which in turn will have a positive impact on our top-line results, particularly later in the year. In the meantime, as the number of vaccinated citizens increases, warm weather approaches, and the recent reduction trends in COVID-19 cases continue, we believe that a measurable rise in business for RDE could begin to occur as early as the second quarter of this year."
"In anticipation of higher growth rates, we launched our Reg A+ fundraising offering. We plan to use the funds for sales, marketing, and product expansion in new and existing markets. We believe that the future is bright for RDE, and our management team looks forward to expanding our reach among our current customers and toward younger demographics as well."
About RDE, Inc.
RDE, Inc. (OTCQB:RSTN) (Restaurant, Dining and Entertainment) is a pioneer in the restaurant deal space and the nation's largest restaurant-focused digital deals brand. Founded in 1999, Restaurant.com, Specials by Restaurant.com and our Corporate Incentives division connect digital consumers, businesses and communities offering thousands of dining, retail and entertainment deal options nationwide at over 184,000 restaurants and retailers. Restaurant.com prides itself on offering the best deal, every meal. Our restaurant certificates and gift cards allow customers to save at thousands of restaurants across the country with just a few clicks.
For more information, visit: www.rdeholdings.com
Forward-Looking Statements
Press Releases may include forward-looking statements. In particular, the words "believe," "may," "could," "should," "expect," "anticipate," "estimate," "project," "propose," "plan," "intend," and similar conditional words and expressions are intended to identify forward-looking statements. Any statements made in this news release about an action, event or development, are forward-looking statements. Such statements are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the company. Accordingly, you should not place undue reliance on these forward-looking statements. Although the company believes that the expectations reflected in the forward-looking statements are reasonable, it can give no assurance that its forward-looking statements will prove to be correct. Investors are cautioned that any forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from those projected. The forward-looking statements in this press release are made as of the date hereof. The company takes no obligation to update or correct its own forward-looking statements, except as required by law or those prepared by third parties that are not paid by the company. Statements in this press release that are not historical fact may be deemed forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although RDE, Inc. believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, RDE, Inc. is unable to give any assurance that its expectations will be attained. Factors that could cause actual results to differ materially from expectations include the company's ability identify a suitable business model for the corporation.
Investors Contact:
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SOURCE: RDE, Inc.
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