Spark Networks, Inc. (LOV) Tops Q2 EPS by 3c; Enters Agreement with PEAK6, Includes Exec Changes

August 10, 2016 4:55 PM EDT
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Price: $1.49 --0%

Financial Fact:
Total cost and expenses: 9.24M

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Spark Networks, Inc. (NYSE: LOV) reported Q2 EPS of $0.01, $0.03 better than the analyst estimate of ($0.02). Revenue for the quarter came in at $9.1 million versus the consensus estimate of $9.62 million.

Board Member John H. Lewis commented, "Spark Networks has industry-leading brands in the Jewish and Christian communities. The Board continues to see significant potential in expanding these brands to serve much larger audiences. PEAK6 is bringing a comprehensive and transformative package to Spark Networks that includes access to significant operational resources and a new leadership team with an outstanding track record of success with both large, established brands like Microsoft, Orbitz, and, and smaller entrepreneurial success stories like OptionsHouse. The transaction also brings additional strength to Spark's balance sheet."

The highlights of the PEAK6 agreement:

  • PEAK6 purchased 5.0 million shares at $1.55 per share, resulting in $7.8 million of cash proceeds
  • PEAK6 now owns approximately 16% of Spark's outstanding shares
  • Pro Forma for the agreement, Spark's Q2 2016 net cash position increases from $3.1 million to $10.9 million
  • Spark issues PEAK6 warrants to purchase 7.5 million shares with an exercise price of $1.74 per share. These warrants vest as to 50% of the shares when the share price reaches $2.50 per share and the remaining 50% of the shares vest when the share price reaches $3.50 per share
  • PEAK6 executive Danny Rosenthal to become Chief Executive Officer and will join the Board of Directors
  • PEAK6 Chief Architect David Budworth to become Chief Technology Officer
  • PEAK6 Chief Marketing Officer Lisa McLafferty to become Chief Revenue Officer
  • PEAK6 President Brad Goldberg to join the Board of Directors

For earnings history and earnings-related data on Spark Networks, Inc. (LOV) click here.

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