3SOF

Thanks for that post la-onda 

«FreshCuisine. In January, eDiets.com launched a meal delivery service.
We currently have minimal expectations; however, this service could become
meaningful starting in 2Q06. In fact, our checks indicate that the service is
off to a strong start already in 1Q06. If successful, FreshCuisine has the
potential to become the biggest revenue driver for the company and could lead to
substantial upside to our estimates.»

This is exactly what were expecting.

Everything is on track for DIET to be an outstanding pick, due to FreshCuisine, yet analysts still have minimal expectations.

I have a cold so unfortunately these updates will also be minimal 

Looks like somebody knows something or is it just a bluff.
10:00 conference call

uc.

I saw this rebound what a rebound ! Hopefully we see new highs tomorrow !

I just found out today that fresh cuisine is supplied by a company by the name of Purfoods.  They have a website by that name listing all of their meals.  So my question is, who is actually making the money on fresh cuisine?.........if ediet isn't actually producing this product wouldn't this affect the valuation of the company....?

Great day for DIET. Support levels holding up excellent. Bouncing off the downsloping trendline yet once again and managing to close above the ascending trendline. Technically DIET is shaping up great. Now we just need to hope for a positive reaction to earnings tomorrow morning. I'll be up at 6am to await the action

-fous

Quote from: molly on March 08, 2006, 07:02:59 PM
I just found out today that fresh cuisine is supplied by a company by the name of Purfoods.  They have a website by that name listing all of their meals.  So my question is, who is actually making the money on fresh cuisine?.........if ediet isn't actually producing this product wouldn't this affect the valuation of the company....?

Hello molly 

No, it's natural they're not the producers, since their business is running a website, they don't have the necessary skills (or means) to produce great meals in a large scale.

DIET buys the meals from that company at $X, and then sells it to consumers at $Y. The difference between $Y and $X is their profit margin. I believe this way they have less costs than if they had set the production for themselves.

I'll come back to DIET after the earnings release, we hope it is a positive one 

Guidance isn't particularly stellar, 8 to 10% over 2005. Assume they are under promising to over deliver. Q1 '06 $1M of revenue contribution from Fresh Cuisine (forecasted). They do anticipate at least to double EPS 2006 over 2005. Market will now decide.....

eDiets.com(R) Reports Q4 and Full Year 2005 Results
PR Newswire - March 09, 2006 09:05
Increased Per-Subscriber Revenues, Greater Ad Efficiencies Drive Higher Profits


DEERFIELD BEACH, Fla., March 9, 2006 /PRNewswire-FirstCall via COMTEX/ -- eDiets.com, Inc. (Nasdaq: DIET), leveraging the Internet and technology to bring diet, fitness and healthy lifestyle solutions to market, today announced results for the fourth quarter and full year ended December 31, 2005.

2005 Financial Highlights:
       * Revenues increased 18.2% to $53.7 million
       * Sales and marketing expense declined from 89% of revenues in 2004 to
         68% in 2005
       * Net income was $1.3 million, or $0.06 per diluted share

    Q405 Financial Highlights:
       * Revenues increased 8.5% to $12.1 million
       * Sales and marketing expense declined from 66% of revenues in Q404 to
         58% in Q405
       * Net income totaled $1.5 million, or $0.07 per diluted share

Ciaran G. McCourt, President and CEO of eDiets.com, commented, "During 2005 we delivered strong revenue growth by increasing the revenue yield of a subscriber to our online diet plans while lowering our subscriber acquisition cost. As a result, average revenue per subscriber per week grew 11% for the year while sales and marketing expense as a percentage of revenues declined by 21 points."

Revenues for the fourth quarter of 2005 were $12.1 million, an 8.5% increase from $11.1 million in the comparable period last year. Net income for the quarter was $1.5 million, compared to a loss of ($0.1) million for the fourth quarter of 2004. Earnings per diluted share were $0.07 for the fourth quarter of 2005, compared to $0.00 for the same period last year.

For the twelve months ended December 31, 2005, revenues increased 18.2% to $53.7 million versus $45.4 million for 2004. For the full year 2005, the company earned $1.3 million, or $0.06 per diluted share, versus a loss of ($9.9) million, or $(0.49) per diluted share, in 2004.

Total expenses decreased 5.2% to $10.7 million in the fourth quarter of 2005 from $11.2 million in the same period last year. For the full year 2005, expenses fell 5.4% to $52.5 million from $55.5 million in 2004. The decline in expenses was mainly related to advertising expense, which decreased steadily throughout the year.

Mr. McCourt noted, "We are adopting a multi-faceted revenue model, with more emphasis on e-commerce, advertising sales, and licensing activities, in order to capture a larger share of the diet, fitness and healthy lifestyle market going forward. As an example, we recently entered the meal delivery service market with the launch of FreshCuisine(TM), a chef-prepared fresh meal delivery service. Even though we are in the early stages of this controlled rollout consumers' initial response to our new service has been positive."

2006 Outlook:

For the full year 2006 eDiets.com is budgeting an 8% to 10% revenue increase and decreased ad spending relative to 2005. The revenue increase is predicated on being able to increase revenue per subscriber and to generate incremental non-subscription revenues, primarily from the company's new meal delivery business.

For the year the company expects that a mid- to high single-digit decline in subscription revenues will be more than offset by a doubling to tripling of non-subscription revenues. Approximately half of forecasted non-subscription revenues are expected to come from the meal delivery business. After non-cash stock based compensation expense eDiets.com expects to at least double its fully diluted earnings per share in 2006 compared to 2005.

For the first quarter of 2006 eDiets.com expects consolidated revenue growth of 4% to 6% compared to the first quarter of 2005, with a modest decline in subscription revenues being more than offset by an increase in non- subscription revenues, including approximately $1 million in gross revenues related to the meal delivery business.

eDiets.com typically invests a significant percentage of its annual advertising budget in the first fiscal quarter and correspondingly posts a net loss while building its subscriber base. The company expects to do the same in the first quarter of 2006. However, since advertising spending in the quarter is expected to decrease relative to the first quarter of 2005 the company anticipates a reduced operating loss compared to the loss in the comparable prior year period of ($0.16) per diluted share.

In conclusion, Mr. McCourt noted, "In 2006 we are looking forward to being able to more aggressively invest in new product research and development while growing net income and thereby improving both short- and long-term shareholder returns."

The company beat expectations but guidance wasn't as strong as probably many would expect. Fresh Cuisine is still in its early stages.

I believe the company is underestimating Fresh Cuisine's potential.

I know people are selling off DIET in the pre-market, but I'll continue holding the stock, both on a long term and trading perspective.

what a great thing to wake up to...............................down 23% 

I have bought more @ 6.05 $ 

Quote from: la-onda on March 09, 2006, 09:45:10 AM
I have bought more @ 6.05 $ 

Here I am looking and freaking(so to speak) and you buy more!

Cool move, I love it and this site!

I hope it works out big time la-onda

uc.

Have not been folowing this one lately but way below B bands so for short term trade the $6 area seems decent   http://tinyurl.com/9n946

If they can earn $0.60 per share in 2006 and the growth rate is 10%, they can still be classified as  a growth company. But the expected growth rate is not impressive.

So if you multiply $0.60 x 10, then you arrive at $6.00 price value.

That is why today's price is down to around $6.00.

The big institutional players have a computerized formula to quickly calculate its fair market price based on what the company announced.

Also they indicate the 1Q 2006 will be a losing quarter.

With big down, the boucing back will happen but may need to wait for a while before taking a position.

DIET is like a diet for my portfolio. My port is skinnier today thanks to DIET

I hope David is right and both the market and the company are wrong.

Has everyone here read the Mike & Diana's mission thread? Scroll to the bottom of page 2. Molly discovered the Fresh Cuisine program comes from Purfoods and that you could just order direct from Purfoods.com. I checked into it and it's pretty much the same price either way you do it. eDiet needs to make sure that buying from them is a more compelling offer than buying the same food from Purfoods. 

Quote from: shawFund on March 09, 2006, 10:55:08 AM
If they can earn $0.60 per share in 2006 and the growth rate is 10%, they can still be classified as  a growth company. But the expected growth rate is not impressive.

My impression from the conference call is that they like their new found successes and this is no longer a matter of high growth for them. They like who they are and want to stay in business for the longer term. It's obviously not great for the short term investor as witnessed today, but now I will have to look at the company from a different perspective(I do hate having to do that mid-stream, I am trying harder and harder to avoid it). That said, they held there cards close to their chests and I think they played it pretty smart. Just some thoughts!

uc.