DEERFIELD BEACH, FL — Perhaps as further proof of the expansive weight loss/weight management market and the power of the Internet in the health and fitness community, eDiets.com announced that earnings before interest, taxes, depreciation and amortization (EBITDA), net income and earnings per share for fiscal 2002 nearly doubled, while revenue increased 21.6 percent over fiscal 2001. The results mark the company's second consecutive profitable year.
EBITDA for the fiscal year ended Dec. 31, 2002 increased 99 percent to $2.9 million or 9.7 percent of revenues, compared to $1.4 million or 5.9 percent of revenues for 2001. Net income for 2002 increased 105 percent to $1.6 million or $0.09 per diluted share, compared to net income of $794,000 or $0.05 per diluted share, for the prior year. Revenue totaled $29.6 million in fiscal 2002 compared to $24.4 million in 2001. In addition, the company's deferred subscription revenue balance grew $0.9 million to $3.1 million at the end of fiscal 2002, compared to $2.2 million as of Dec. 31, 2001.
For the fiscal fourth quarter of 2002, eDiets reported revenues of $7.3 million, a 2.6 percent decrease compared to revenues of $7.5 million for the fourth quarter of 2001. Revenues declined as a result of a lower average base of members compared to the prior year period, the company said. EBITDA totaled $195,000, a decline of 81.5 percent compared to EBITDA of $1.1 million in the fourth quarter of 2001, while net income totaled $136,000 or $0.01 per diluted share, a decline of 82.3 percent compared to net income of $764,000, or $0.05 per diluted share in the prior year period. EBITDA and net income declined in the fourth quarter of 2002 compared to the fourth quarter of 2001 primarily due to higher online media costs and significant investments in new marketing programs in the most recent quarter, according to the company.
“We had another year of strong financial results in 2002, although growing our base of members using traditional online advertising proved challenging. Despite this, we continued to support our vision to be the global online destination for diet, fitness and motivation, with significant investments to develop new offerings and marketing channels,” said David Humble, CEO and founder of eDiets.
“The fruits of some of these investments are coming to market, with more scheduled to come later in the year. We have entered 2003 with a strong framework for continued growth and profitability.”