EDIETS COM INC - FORM 8-K - EX-99.1 - PORTIONS OF AN EDIETS.COM, INC. PRESENTATION

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8-K - FORM 8-K - EDIETS COM INC	d331125d8k.htm

Exhibit 99.1

This presentation contains “forward-looking statements” within the meaning of the federal securities laws and is intended to qualify

for the Safe Harbor from liability established by the Private Securities Litigation Reform Act of 1995, including statements and

assumptions regarding (i) our need for additional financial support to continue in business, (ii) our expectation that our total gross

margins and advertising efficiency will improve in the future, (iii) our assumption that we will acquire new customers at an acceptable

cost, (iv) our expectations regarding the effectiveness of our advertising and our call center conversion strategies, (v) our assumption

that we are well-positioned to compete and capture market share, (vi) our expectation regarding our ability to comply with regulatory

requirements, (vii) our assumptions regarding market size, projected results and the demand for our products and services. These

statements and assumptions are based on management’s estimates and projections with respect to future events and financial

performance and are believed to be reasonable, although they are inherently uncertain and difficult to predict. Actual results could

differ materially from those projected as a result of certain factors, including (i) our ability to raise additional capital, (ii) our ability to

attract and retain customers at an acceptable cost, (iii) our ability to maintain or improve meal delivery margins and advertising

efficiency, (iv) our ability to manage our business effectively at reduced staff levels, (v) our ability to manage fluctuations in

advertising costs, (vi) our ability to sufficiently increase revenues and maintain expenses and cash capital expenditures at

appropriate levels, (vii) the state of the credit and capital markets, including the level of volatility, illiquidity and interest rates, (viii) our

ability to maintain compliance with regulatory requirements and (ix) our ability to rapidly secure alternate technology infrastructure

vendors if we experience call center or Web site service interruption.

A discussion of factors that could cause results to vary is included in the Company’s filings with the Securities and Exchange

Commission. All forward-looking statements in this presentation speak only as of the date of this presentation. The Company

expressly disclaims any obligation or undertaking to update or revise any forward-looking statements.

This presentation also contains non-GAAP financial measures. For a reconciliation of the non-GAAP measures to the most

comparable GAAP measure, please refer to the eDiets.com website at www.ediets.com, under the Events and Presentation section

of the Investor Relations page.

2010

2011

Target

Average Weekly Selling Price

$126

$133

$136

Average Length of Stay -

# of

Weeks

6.2

7.2

7.6

Average Revenue per

Customer

$781

$958

$1,034

Cost of Goods Sold

$469

$535

$527

Adjusted Gross Margin

$312

$423

$507

Adjusted Gross Margin Full

Year Target%

40%

44%

49%

Customer Acquisition Cost

$240

$255

$200

Key

Factors

Success

Meal Delivery

Average Number

of Shipments for

Active & Canceled

Pool of Customers

Measures changes

for all customers

on a rolling

12-month period

5.4

5.7

6.1

6.4

6.2

6.3

6.6

6.9

7.2

7.6

Introduced Favorites Package for first time

customers

Quicker delivery AND optimum taste – greater

customer satisfaction

Added New Smoothies and Bars to our offering

Introduction of cost-effective shelf-stable items

to the lineup

7-Day Dinners Only Program for Q2

Expecting no impact to gross margin

CHOCOLATE !

Increased price to allow for stronger promotions while maintaining margin

Introduced Premium Program

Higher margins

The Goal: sell more 5-Day and 7-Day plans at full price (less discounts)

Since launch, ASP has increased $10

Creating Cost Effective Meal Occasions for Q2

Re-configuring lunches and dinners

Greater compliance within our caloric guidelines

Minimal impact to customer

$130K monthly cost savings

Expect to achieve large volume discounts as business grows

Expect to initiate bi-coastal production and reduce shipping costs

Meal Delivery Gross Margin Before Depreciation and CAC

(Excludes Revenue Share)

30%

35%

37%

35%

40%

39%

41%

40%

46%

44%

42%

44%

10%

15%

20%

25%

30%

35%

40%

45%

50%

•

Raised price of meal delivery service Q3 2011

•

Moved to lower-cost manufacturer Q2 2010

•

Negotiated lower shipping rates Q1 2011

48%

49%

Improving advertising

Re-energized testimonial campaign with FIRST NEW COMMERCIAL in 2 years

Continually testing television, magazine and online advertising channels and content to find

the optimal mix for driving customers to call center

Website sales funnel overhaul – improved user experience

Before: 7-9 clicks to order

Now: 3 clicks to order

Eliminated distracting and competing 3rd party advertising

Optimize the customer database

turn leads to sales

reactivate the customer

Reactivation

–

identified 100k+ untapped customer base

developed and implemented a “we want you back” email campaign

Introducing NEW 3-Day Plan for Q2

Lower entry price point . Greater opportunity for call center to upsell and close

Targeting a 5-7% improvement in CAC (customer acquisition cost)

Competitive in marketplace (under $100/wk)

Improved Call Center Efficiency

Implemented commission-only compensation structure

Early Termination Fee – allows for aggressive offer testing

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