Private investment firm Comvest Partners acquires the financially troubled e-retailer, which filed for Chapter 11 bankruptcy protection in March.
Sales decreased 24.3% to $18.1 million from $23.9 million in 2008. Digital plan revenue declined year over year 47.3% and meal delivery sales fell 17.0%.
The tough economy had a slimming effect on the top and bottom line for eDiets Inc. in 2009.
For the year ended Dec. 31, eDiets.com, No. 322 in the Internet Retailer Top 500 Guide, reported:
- Sales decreased 24.3% to $18.1 million from $23.9 million in 2008.
- Net loss was $12.1 million compared with a $19.9 million net loss in the prior year.
- Digital plan revenue declined 47.3% to $4.9 million from $9.3 million in 2008.
- Meal delivery sales dropped 17.0% to $7.8 million from $9.4 million in the previous year.
- Business-to-business revenue declined 20.0% to $1.2 million from $1.5 million in 2008.
"While 2009 was a challenging year, we initiated a series of corrective actions to improve eDiets.com`s performance and enter 2010 with good progress underway," says CEO Kevin McGrath. "In 2009, we successfully stabilized and repaired operations by restoring and enhancing the functionality of our core digital, meal delivery and B2B business platform, significantly reducing costs, and optimizing our overall customer experience to improve customer acquisition and retention. As a result, gross margins in 2009 expanded to 60% from 48% in the prior year."
For the fourth quarter:
- Sales decreased 2.5% to $3.86 million from $3.96 million in 2008.
- Net loss was $3.3 million compared with $8.4 million in the prior year.
- Digital plan revenue declined 26.7% to $1.1 million from $1.5 million in 2008.
- Meal delivery sales increased 41.7% to $1.7 million from $1.2 million in the previous year.
- Business-to-business revenue declined 29.6% to $774,000 from $1.1 million in 2008.