Waitr Holdings Inc. · OTC:ASAPQ
Waitr — Landcadia Holdings — SPAC Merger (October 2018)
39 slides from Waitr's SPAC merger presentation, Oct 3, 2018
Slide 1: Business Combination between Landcadia Holdings, Inc. and Waitr Incorporated
Business Combination between Landcadia Holdings, Inc. and Waitr Incorporated October 2018
Slide 2: Important Information
2 / Landcadia Important Information This investor presentation (“Investor Presentation”) is for informational purposes only and does not constitute an offer to s ell , a solicitation of an offer to buy, or a recommendation to purchase any equity, debt or other financial instruments of Landcadia Hold
Slide 3: Today's Presenters
3 / Landcadia Today’s Presenters Chris Meaux Founder & Chief Executive Officer Founded Waitr in 2013 Dave Pringle Chief Financial Officer Joined Waitr in 2016 Meaux’s 2 Geaux ///
Slide 4: Delivering On Landcadia's Investment Thesis
4 / Landcadia Delivering On Landcadia’s Investment Thesis x Restaurant ordering and food delivery technology platform x Massive underpenetrated market x Tremendous organic growth x Actionable acquisition opportunities to drive scale x Great customer experience and differentiated value proposition fo
Slide 5: Landcadia Brings Industry Expertise And Strong Sponsorship
5 / Landcadia Landcadia Brings Industry Expertise And Strong Sponsorship x Access to Tilman J. Fertitta and the Landry’s management team x Immediate access to restaurants to seed new growth markets x Promotion of Waitr as a delivery partner within Fertitta’s portfolio of over 4 million loyalty membe
Slide 6: Summary of Luxor Capital Group Financing
6 / Landcadia Summary of Luxor Capital Group Financing 2 x $85 million financing to fund Waitr’s growth strategy; includes – $25 million senior secured loan facility with $5 million warrants issued by Landcadia at $13 per share – $60 million convertible - to - common promissory notes, convertible at
Slide 7: Post-Transaction Ownership Breakdown and Transaction Terms
7 / Landcadia Post - Transaction Ownership Breakdown Pro - Forma Illustrative Enterprise Value at Close Sources & Uses Summary Transaction Terms (3) (6) (4) ($ and shares in millions, except per share values) (1) Assumes 2018E net revenue (excl. gratuity) of $62M - $67M. (2) Assumes 2019E net revenu
Slide 8: Comparable Company Benchmarking
8 / Landcadia Comparable Company Benchmarking 2018E & 2019E Revenue Growth Source: Company filings and Capital IQ as of 9/28/18. (1) Waitr multiples assume a pro forma enterprise value at close of $408.4M. (2) Net revenue excludes gratuity. 2018 Median: 41% 125%+ 43% 41% 41% 39% 90%+ 27% 42% 30% 22%
Slide 9: Company Overview
9 / Landcadia Company Overview
Slide 10: Waitr Has Accomplished A Great Deal In A Short Period Of Time
10 / Landcadia Orders Waitr Has Accomplished A Great Deal In A Short Period Of Time 2014 2015 2016 2017 2018E Founded 2013 Launched 1 st Market in Lake Charles in late 2014 Launched 2 nd Market in Lafayette in April 2015 Launched 3 rd Market in Baton Rouge in January 2016 3 11 24 45+ markets markets
Slide 11: Waitr Investment Highlights
11 / Landcadia Waitr Investment Highlights 11 Massive Restaurant Delivery Market Is Underpenetrated And Moving Online Leading Position In Our Current Markets With A Marketplace Model And Proven Expansion Strategy Strong Value Proposition To Customers And Restaurants Powered By A Differentiated Propr
Slide 12: Massive Restaurant Delivery Market Is Underpenetrated And Moving Online
12 / Landcadia Massive Restaurant Delivery Market Is Underpenetrated And Moving Online …Creating A Massive Addressable Market Consumers Are Moving Online… Online Restaurant Delivery Is Expected To Double … With Restaurants Following Suit … 6% 11% 2016 2022E $520B Total U.S. Restaurant Industry $13B
Slide 13: Waitr Focuses On A Massive Underserved Market
13 / Landcadia Waitr Focuses On A Massive Underserved Market Core market represents 35% of U.S. restaurants Number of U.S. Restaurants By Market Population (1) 179K 177K 205K 28K Top 10 11 - 50 51 - 500 500+ 15% 85% 11-50 51-500 Market Ranking by Population Waitr Targets Underserved Tier Two and Thr
Slide 14: Waitr's Marketplace Platform Connects Consumers And Restaurants
14 / Landcadia Waitr’s Marketplace Platform Connects Consumers And Restaurants Restaurants x Higher Average Order Value And Incremental Orders x Deep Restaurant Integration x Rich Customer Data 6,200+ Restaurants Under Contract (2) x Discovery x Convenience x Personalization Consumers 679K Active Di
Slide 15: Supporting Waitr's Restaurant Customers: Its Drivers
15 / Landcadia Supporting Waitr’s Restaurant Customers: Its Drivers Background - checked , trusted partners Ability to schedule and optimize performance Quality control for demeanor, appearance, safety Readily identifiable and uniformed Stable jobs enhance reputation in community Every driver interv
Slide 16: Great Consumer Experience For Online Discovery And Ordering
16 / Landcadia Waitr Has Created A Great Consumer Experience For Online Discovery And Ordering Personalize your experience 2 Choose Your Order & Customize With Add - Ins 4 Pick your location 1 Enjoy 6 Track Your Order 5 Discover New Restaurants 3
Slide 17: Delivering A Differentiated Experience For Restaurants
17 / Landcadia Delivering A Differentiated Experience For Restaurants Partnership Focused Restaurant Experience x Upfront restaurant investment x Menu onboarding & photography x In - market local team support Attractive Pricing For Restaurants x Most attractive transaction pricing – 15% commission v
Slide 18: A Growing List Of Leading Restaurant Partners
18 / Landcadia A Growing List Of Leading Restaurant Partners Waitr is Focused on Serving Local Independent Restaurants And Supports Regional and National Chains and Franchises 6,200+ Restaurants Under Contract Note: As of 6/30/18.
Slide 19: Waitr's Focus Is On Full Service Restaurants
19 / Landcadia Waitr’s Focus Is On Full Service Restaurants ~ $35 $16 - 20 ~ $6 QSR Delivery QSR Dine-In Leading To Higher Net Revenue Per Order ~ $10 ~ $8 QSR Delivery (1) (1) Source: Wall Street Research. (1) Includes Gratuity and delivery fees. QSR Delivery calculated as average meal delivery val
Slide 20: How Waitr Launches And Grows New Markets
20 / Landcadia How Waitr Launches And Grows New Markets Phase 0 Phase 1 Phase 2 Phase 3 Pre - launch markets • ~$200K average cost • 1 new market launched every 2 weeks • Identification of markets and key restaurant partners • Building supply and stimulating early demand, awareness, app installs • L
Slide 21: New Market Opportunities
21 / Landcadia New Market Opportunities 2015 2016 2017 2018E 2019E x Proximity: 11 states with major interstate connectivity, 105 million people, 32% of US addressable population x Population Size: 50,000 - 750,000 x Other Factors: • Leverage Waitr Restaurant Partner Network • Restaurant Spending pe
Slide 22: Improving Launches In New Markets
22 / Landcadia Note: Date shown below market represents date launched. Late 2014 January 2016 February 2018 Days to reach 1,000 Cumulative Orders Improving Launches In New Markets 76 32 12 8 Lake Charles Baton Rouge Birmingham Columbus June 2017
Slide 23: Waitr Is Winning Versus The Competition
23 / Landcadia Waitr Is Winning Versus The Competition Market Rank by Number of Restaurants on Platform in Each Market Columbus, GA Google Trends Web Search Interest Source: Google Trends. Note: Shown as 8 - week moving average; information from 7/24/2016 through 9/28/2018. Note: Defined by the numb
Slide 24: Waitr Outperforms The Competition
24 / Landcadia 0% 10% 20% 30% 40% 50% Competitor 5 Competitor 4 Competitor 3 Competitor 2 Competitor 1 Waitr Outperforms The Competition Share of August 2018 sales in cities where Waitr operates Market Share Average Monthly Customer Retention (1) : 30% Source: Second Measure. (1) Weighted average on
Slide 25: Experienced Founder-Led Management Team
25 / Landcadia Experienced Founder - Led Management Team Dave Pringle Chief Financial Officer Chris Meaux Co - Founder & Chief Executive Officer Meaux’s 2 Geaux Tyson Queen Head of Sales Coco Pahl Head of Product Evan Diaz de Arce Co - founder, Finance Addison Killebrew Co - founder, Chief Innovatio
Slide 26: Financial Highlights
26 / Landcadia Financial Highlights
Slide 27: Waitr Financial Highlights
27 / Landcadia Waitr Financial Highlights 27 Note: As of Q2 2018. (1) Gross food sales represents food and beverage receipts, plus taxes, prepaid gratuities and delivery fees. (2) Net revenue excludes gratuity payments. (3) On a net revenue basis Massive Growth Continues 130%+ Q2 2018 Year - Over -
Slide 28: Rapid Growth And Scale
28 / Landcadia 1,029 3,617 2,087 6,264 2016 2017 Q2'17 Q2'18 Contracted Restaurants Rapid Growth And Scale (1) Restaurant retention calculated using historical restaurant churn since inception. Excludes restaurant closures. (2) Diners who have placed an order over the past 12 months. (3) Diner reten
Slide 29: Waitr's Restaurant Partners Are Growing With Waitr
29 / Landcadia $1.6 $3.4 $5.0 $6.4 Year 1 (2018) Year 2 (2017) Year 3 (2016) Year 4 (2015) ... And Waitr’s Restaurant Partners Are Growing With Waitr Monthly Gross Food Sales (2) per Active Restaurant (1) For period Q2 2018. (2) Gross food sales represents food and beverage receipts, plus taxes, pre
Slide 30: High Growth Profile
30 / Landcadia $5.7 $22.9 $64.6 2016 2017 Q2 2018 Run Rate High Growth Profile Revenue Gross Food Sales (1) ($ in millions) ($ in millions) Note: Q2 2018 run rate calculated as annualized to quarterly results. (1) Gross food sales represents food and beverage receipts, plus taxes, prepaid gratuities
Slide 31: Growth From Both Existing And Newly Launched Cities
31 / Landcadia Growth From Both Existing And Newly Launched Cities $1.8 $20.6 $44.4 $28.0 $10.8 $66.0 $59.0 $10.7 $28.6 $4.2 2015 2016 2017 1H 2018 2015 Market Cohort 2016 Market Cohort 2017 Market Cohort 2018 Market Cohort Total Markets: 3 10 24 34 New Markets: 3 7 14 10 Note: As of Q2 2018. (1) Gr
Slide 32: Proven Market Contribution – Gross Margin
32 / Landcadia Gross Margin Average Orders per Day 2017 2016 2015 Market Cohort Note: YTD as of Q2 2018; Gross Margin defined as gross profit / adjusted net revenue (excluding pass through gratuity). Cost of sales primarily consists of driver costs, payroll and expenses for city - level teams and cr
Slide 33: Q2 2018 Results Commentary
33 / Landcadia Q2 2018 Results Commentary Operating Margin Waitr’s Operating Margin has shown significant improvement with the combination of both increasing Revenue and decreasing Operating Expense Margins as the platform continues to scale Revenue Waitr’s 200%+ Net Revenue Growth can be attributed
Slide 34: Operating Expenses Breakdown
34 / Landcadia 77% 64% 25% 18% 7% 4% 55% 49% 7% 2% 2017 H1 2018 Operating Expenses Breakdown As % of Revenue Operations and Support Expenses Sales and Marketing Research and Development General and Administrative Other Operating Expenses Commentary Includes salaries for city level personnel, drivers
Slide 35: Outlook
35 / Landcadia Outlook 2018E 2019E 2020E Gross Food Sales $260 - 280 $500+ $850+ Net Revenue $62 - 67 $120 - 130 $200 - 220 Adj. EBITDA Margin (1) (10%) (4 – 6%) 3 – 5% ($ in millions) (1) Adjusted EBITDA is defined as net (loss) income, plus interest expense, income taxes, depreciation and amortiza
Slide 36: Appendix
36 / Landcadia Appendix
Slide 37: Waitr Earns High-Margin Take-Rate
37 / Landcadia Customer Cost Restaurant Take Food Receipts $28.00 $28.00 - Gratuity $5.00 - - Total $33.00 $28.00 Waitr Take Rate 15% To Waitr $0.00 ($4.20) $4.20 Delivery Fee $5.00 - $5.00 Total Gross Food Sales $38.00 $23.80 $9.20 Customer Cost Restaurant Take Food Receipts $28.00 $28.00 - Total $
Slide 38: Key Performance Metrics
38 / Landcadia Key Performance Metrics Note: Reflects Waitr standalone historical financials and are not pro forma with Landcadia . (1) Adjusted EBITDA is a non - GAAP financial measure. See the reconciliation of Adjusted EBITDA to net loss on page 38. ($ in thousands) FY 2017 H1 2018 Gross Food Sal
Slide 39: Adjusted EBITDA Reconciliation
39 / Landcadia Adjusted EBITDA Reconciliation ($ in thousands) FY 2017 H1 2018 Net (Loss) Income (26,907) (10,826) Interest Expense (Income) 281 461 Other (Income) Expenses 10,537 (365) Income Tax Expense 6 34 Depreciation and amortization 723 502 Impairment of intangible assets (1) 584 - Loss on Di