Form 8-K MeetMe, Inc. For: May 05

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): May 5, 2016

 

MeetMe, Inc.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware	001-33105	86-0879433
(State or other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

 

 

100 Union Square Drive New Hope, Pennsylvania	18938
(Address of principal executive offices)	(Zip Code)

 

Registrant’s telephone number, including area code: (215) 862-1162

 

Not Applicable

(Former name or former address if changed since last report.)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

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Item 2.02 Results of Operations and Financial Condition

 

On May 5, 2016, MeetMe, Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended March 31, 2016. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K (the “Current Report”).

 

 

Item 7.01 Regulation FD Disclosure

 

As discussed in Item 2.02 above, the Company issued a press release, dated May 5, 2016, announcing its financial results for the quarter ended March 31, 2016, the text of which is incorporated by reference into this “Item 7.01. Regulation FD Disclosure.” In addition, as discussed in the press release dated May 5, 2016, the Company is making the presentation materials available on its website.

 

The information in Item 2.02 and Item 7.01 of this Current Report is being furnished and shall not be considered “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liability of such section, nor shall it be incorporated by reference into future filings by the Company under the Securities Act of 1933, as amended, or under the Exchange Act, unless the Company expressly sets forth in such future filing that such information is to be considered “filed” or incorporated by reference therein. This information shall not be deemed an admission as to the materiality of such information that is required to be disclosed solely by Regulation FD.

 

 

Item 9.01. Financial Statements and Exhibits

 

(d)      Exhibits

 

Exhibit No.	Description
99.1	MeetMe, Inc. press release, dated May 5, 2016.

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

	MEETME, INC.
Date: May 5, 2016	By: /s/ David Clark
	Name: David Clark Title: Chief Financial Officer

 

 

EXHIBIT INDEX

 

 

Exhibit No.	Description
99.1	MeetMe, Inc. press release, May 5, 2016.

 

Exhibit 99.1

 

For Immediate Release

 

Investor Contact:

 

MKR Group Inc.

Todd Kehrli or Jim Byers

(323) 468-2300

[email protected] 

 

 

 

MeetMe Reports Record First Quarter Financial Results

 

Total Revenue Increased 15% Year Over Year

Mobile Revenue Increased 42% Year Over Year

Adjusted EBITDA Increased 19% Year Over Year

GAAP Net Income Increased 226% Year Over Year

 

NEW HOPE, Pa., May 5, 2016 – MeetMe, Inc. (NASDAQ: MEET), a public market leader for social discovery, today reported financial results for its first quarter ended March 31, 2016.

 

First Quarter 2016 Financial Highlights

●

Total revenue was $13.3 million, up 15% from the first quarter of 2015.

●

Mobile revenue was $11.7 million, up 42% from the first quarter of 2015.

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Mobile revenue represented 88% of total revenue, the highest in MeetMe’s history.

●

Adjusted EBITDA was $3.7 million, an increase of 19% from the first quarter of 2015. (See the important discussion about the presentation of non-GAAP financial measures, and reconciliation to the most direct comparable GAAP financial measure, below.)

●

Adjusted EBITDA margin increased to 28%, up from 27% in the first quarter of 2015.

●

GAAP net income was $2.4 million, or $0.04 per diluted share, up 226% from the first quarter of 2015.

●

Non-GAAP net income was $3.6 million, or $0.07 per diluted share, up 100% from the first quarter of 2015.

●

Cash and Cash Equivalents totaled $26.4 million at March 31, 2016, an increase of 37% or $7.1 million from $19.3 million at December 31, 2015.

 

Geoff Cook, Chief Executive Officer of MeetMe, stated, “We consider the first quarter a very strong start to what we believe will be a great year. We achieved record first-quarter results in revenue, adjusted EBITDA, and net income. Our mobile traffic is at an all-time high. We have a deep pipeline of product initiatives that we believe will continue to grow engagement and retention. In this quarter, we plan to launch Discuss (an interest-based group conversation platform) and a major revamp to our photos feature, as well as to expand into new languages and continue to optimize our discovery algorithms.”

 

David Clark, Chief Financial Officer of MeetMe, added, “Mobile revenue for the quarter increased 42% year over year and represented 88% of our total revenue, up from 71% in 2015. We believe our increasing mobile revenue was driven by continued strength in the mobile advertising industry, which resulted in higher advertising rates on mobile devices. Much of the increased revenue flowed through to adjusted EBITDA, which increased 19% to $3.7 million for the quarter, resulting in a 28% adjusted EBITDA margin.”

 

 

Webcast and Conference Call Details

 

Management will host a webcast and conference call to discuss first quarter 2016 financial results today, May 5, 2016 at 8:30 a.m. Eastern time. To access the call dial 888-504-7963 (+1 719-325-2215 outside the United States) and when prompted provide the participant passcode 9841118 to the operator. In addition, a webcast of the conference call will be available live on the Investor Relations section of the Company’s website at www.meetmecorp.com and a replay of the webcast will be available for 90 days.

 

About MeetMe, Inc.

 

MeetMe® is a leading social network for meeting new people in the US and a public market leader for social discovery (NASDAQ: MEET). MeetMe makes it easy to discover new people to chat with on mobile devices. With approximately 90 percent of traffic coming from mobile and more than one million total daily active users, MeetMe is fast becoming the social gathering place for the mobile generation. MeetMe is a leader in mobile monetization with a diverse revenue model comprising advertising, native advertising, virtual currency, and subscription. MeetMe apps are available on iPhone, iPad, and Android in multiple languages, including English, Spanish, Portuguese, French, Italian, German, Chinese (Traditional and Simplified), Russian, Japanese, Dutch, Turkish and Korean. For more information, please visit meetmecorp.com.

 

Forward-Looking Statements

 

Certain statements in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including whether our total revenue and mobile revenue will continue to grow, whether our adjusted EBITDA will continue to grow, whether our net income will continue to grow, whether our mobile revenue will continue to constitute an increasing percentage of our total revenue, whether our revenue, adjusted EBITDA and net income will reflect the increasing value that our audience provides to mobile advertisers and the continued growth in mobile engagement by our users, whether our record revenue, adjusted EBITDA and net income reflect the increasing value of our audience to mobile advertisers and the continued growth in mobile engagement by our users, whether our pipeline of product initiatives will continue to grow user engagement and retention, whether and when we will launch of Discuss, revamp our photos feature, expand into new languages and continue to optimize our discovery algorithms, whether our increasing revenue was driven by our growing mobile engagement as well as the continued strength in the mobile advertising industry, whether our mobile engagement will continue to grow, and whether our growing mobile engagement and continued strength in the advertising industry will drive our revenue. All statements other than statements of historical facts contained herein are forward-looking statements. The words “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “could,” “target,” “potential,” “project,” “is likely,” “expect” and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Important factors that could cause actual results to differ from those in the forward-looking statements include the risk that our applications will not function easily or otherwise as anticipated, the risk that we will not launch additional features and upgrades as anticipated, the risk that unanticipated events affect the functionality of our applications with popular mobile operating systems, any changes in such operating systems that degrade our mobile applications’ functionality and other unexpected issues which could adversely affect usage on mobile devices. Further information on our risk factors is contained in our filings with the Securities and Exchange Commission (“SEC”), including the Form 10-K for the year ended December 31, 2015 . Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

 

 

Regulation G – Non-GAAP Financial Measures

 

The Company uses financial measures which are not calculated and presented in accordance with U.S. generally accepted accounting principles (“GAAP”) in evaluating its financial and operational decision making and as a means to evaluate period-to period comparison. The Company uses these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. The Company presents these non-GAAP financial measures because it believes them to be an important supplemental measure of performance that is commonly used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. We refer you to the reconciliations below.

 

The Company defines Adjusted EBITDA as earnings (or loss) from continuing operations before interest expense, change in warrant liability, income taxes, depreciation and amortization, and non-cash stock-based compensation, non-recurring acquisition and restructuring expenses, loss on cumulative foreign currency translation adjustment, gain on sale of asset, bad debt expense outside the normal range, and the goodwill impairment charges. The Company excludes stock-based compensation because it is non-cash in nature. The Company defines Non-GAAP Net Income as earnings (or loss) from continuing operations before income taxes, amortization on intangible assets, and non-cash stock-based compensation.

 

Non-GAAP financial measures should not be considered as an alternative to net income, operating income, cash flow from operating activities, as a measure of liquidity or any other financial measure. They may not be indicative of the historical operating results of the Company nor is it intended to be predictive of potential future results. Investors should not consider non-GAAP financial measures in isolation or as a substitute for performance measures calculated in accordance with GAAP.

 

 

 

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MEETME, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

 

		March 31, 2016				December 31, 2015
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	26,411,228			$	19,298,038
Accounts receivable, net of allowance of $130,413 and $133,000, at March 31, 2016 and December 31, 2015, respectively			10,593,708				16,509,291
Prepaid expenses and other current assets			920,592				970,239
Total current assets			37,925,528				36,777,568
Goodwill			70,646,036				70,646,036
Property and equipment, net			2,348,073				2,610,307
Intangible assets, net			899,748				1,278,498
Other assets			172,183				178,264
TOTAL ASSETS		$	111,991,568			$	111,490,673
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable		$	2,283,635			$	2,776,710
Accrued liabilities			1,943,236				4,127,634
Current portion of capital lease obligations			324,273				366,114
Deferred revenue			308,155				293,414
Total current liabilities			4,859,299				7,563,872
Long-term capital lease obligation, less current portion, net			151,485				221,302
Other liabilities			793,360				1,035,137
TOTAL LIABILITIES		$	5,804,144			$	8,820,311
STOCKHOLDERS' EQUITY:
Common stock, $.001 par value; authorized - 100,000,000 Shares; 47,511,379 and 47,179,486 issued and outstanding at March 31, 2016 and December 31, 2015			47,515				47,183
Additional paid-in capital			301,887,623				300,725,791
Accumulated deficit			(195,747,714	)			(198,102,612	)
TOTAL STOCKHOLDERS' EQUITY			106,187,424				102,670,362
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	111,991,568			$	111,490,673

 

 

MEETME, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(UNAUDITED)

 

		Three Months Ended March 31,
		2016				2015
Revenues		$	13,321,671			$	11,628,976
Operating Costs and Expenses:
Sales and marketing			2,321,423				1,215,320
Product development and content			5,708,100				6,319,804
General and administrative			2,348,168				1,619,904
Depreciation and amortization			751,264				815,915
Total Operating Costs and Expenses			11,128,955				9,970,943
Income from Operations			2,192,716				1,658,033
Other Income (Expense):
Interest income			5,115				5,186
Interest expense			(6,745	)			(158,866	)
Change in warrant liability			241,777				(95,728	)
Loss on cumulative foreign currency translation adjustment			16,352				(794,704	)
Gain on sale of asset			-				163,333
Total Other Income (Expense)			256,499				(880,779	)
Income before Income Taxes			2,449,215				777,254
Income taxes			(94,317	)			(55,200	)
Net Income		$	2,354,898			$	722,054
Other comprehensive Income:
Foreign currency translation adjustment			-				-
Comprehensive income		$	2,354,898			$	722,054
Basic and diluted income per common stockholders:
Basic income per common stockholders		$	0.05			$	0.02
Diluted income per common stockholders		$	0.04			$	0.01
Weighted average number of shares outstanding:
Basic			47,458,748				44,910,034
Diluted			53,666,626				48,246,763

 

 

MEETME, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP NET INCOME ALLOCABLE TO COMMON STOCKHOLDERS TO ADJUSTED EBITDA

(UNAUDITED)

 

		Three Months Ended March 31,
		2016				2015
Net income allocable to Common Stockholders		$	2,354,898			$	722,054
Interest expense			6,745				158,866
Depreciation and amortization			751,264				815,915
Stock-based compensation expense			727,780				615,265
Change in warrant liability			(241,777	)			95,728
Income taxes			94,317				55,200
Loss on cumulative effect of foreign currency translation adjustment			(16,352	)			794,704
Gain on sale of asset			-				(163,333	)
Adjusted EBITDA		$	3,676,875			$	3,094,399
GAAP basic and diluted net income per common stockholders		$	0.05			$	0.02
GAAP diluted net income per common stockholders		$	0.04			$	0.01
Basic adjusted EBITDA per common stockholders		$	0.08			$	0.07
Diluted adjusted EBITDA per common stockholders		$	0.07			$	0.06
Weighted average number of shares outstanding, Basic			47,458,748				44,910,034
Weighted average number of shares outstanding, Diluted			53,666,626				48,246,763

 

 

MEETME, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME

(UNAUDITED)

 

		Three Months Ended March 31,
		2016				2015
GAAP Net Income		$	2,354,898			$	722,054
Stock-based compensation expense			727,780				615,265
Amortization of intangible assets			378,750				387,916
Income taxes			94,317				55,200
Non-GAAP Net Income		$	3,555,745			$	1,780,435
GAAP basic and diluted net income per common stockholders		$	0.05			$	0.02
GAAP diluted net income per common stockholders		$	0.04			$	0.01
Basic non-GAAP net income per common stockholders		$	0.07			$	0.04
Diluted non-GAAP net income per common stockholders		$	0.07			$	0.04
Weighted average number of shares outstanding, Basic			47,458,748				44,910,034
Weighted average number of shares outstanding, Diluted			53,666,626				48,246,763

 

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