Form 8-K Meet Group, Inc. For: Nov 07
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): November 7, 2018
The Meet Group, 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))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On November 7, 2018, the Company issued a press release announcing, among other things, its financial results for the quarter ended September 30, 2018. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K (this “Current Report”) and incorporated herein by reference.
Item 7.01 Regulation FD Disclosure.
As discussed in Item 2.02 above, the Company issued a press release, dated November 7, 2018, announcing, among other things, its financial results for the quarter ended September 30, 2018, 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 August 1, 2018, the Company is making 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 | ||
The Meet Group, Inc. press release, dated | November 7, 2018. | ||
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.
THE MEET GROUP, INC. | ||
Date: | November 7, 2018 | By: /s/ Geoff Cook |
Name: Geoff Cook Title: Chief Executive Officer | ||
Exhibit 99.1
The Meet Group Reports Third Quarter 2018 Financial Results
NEW HOPE, Pa., November 7, 2018 – The Meet Group, Inc. (NASDAQ: MEET), a public market leader in the mobile meeting space, today reported financial results for its third quarter ended September 30, 2018.
Third Quarter 2018 Financial Highlights
• | Total revenue of $45.7 million, up 42% year over year |
• | GAAP net income of $1.3 million, or $0.02 per diluted share, compared to $2.2 million, or $0.03 per diluted share in the prior year quarter |
• | Adjusted EBITDA of $8.7 million, compared to adjusted EBITDA of $8.9 million in the prior year quarter |
• | Non-GAAP net income of $7.6 million, or $0.10 per diluted share, compared to $8.1 million or $0.11 per diluted share in the prior year quarter |
(See the important discussion about the presentation of non-GAAP financial measures, and reconciliation to the most direct comparable GAAP financial measures, below.)
“We continue to grow video revenue across all of our apps,” said Geoff Cook, Chief Executive Officer. “In one year, we have increased the annualized video revenue run rate from virtually zero to $55 million for the month of October. Our successful Lovoo acquisition and integration, together with the dramatic growth of video revenue, have contributed to transforming our revenue mix. We tripled user pay revenue from a year ago, with that portion of our business now contributing 61% of our total revenue, up from 27% in the third quarter of 2017. We believe we are in the early days of the video opportunity and that livestreaming aligns perfectly with our mission: to facilitate human connection.
“Traffic in the quarter was also strong. We grew mobile daily active users 3% sequentially to 4.3 million and mobile monthly active users 7% sequentially to 14.6 million, reflecting quarter-over-quarter gains from each of MeetMe, Lovoo, Skout, and Tagged. For the quarter, daily live video users averaged approximately 870,000, up more than 36% sequentially. In addition, we recently surpassed our 100 millionth gift sent since launching Live monetization a year ago.”
“Advertising results were also solid,” continued Cook, “increasing sequentially for the second consecutive quarter. We continue to see evidence of a return to seasonal trends in advertising and remain cautiously optimistic about the opportunity to grow ad revenue in the fourth quarter.”
Third Quarter Financial Results
For the third quarter of 2018, the Company reported revenue of $45.7 million, an increase of 42% from $32.2 million in the prior year quarter.
GAAP net income was $1.3 million, or $0.02 per diluted share, compared to $2.2 million, or $0.03 per diluted share, in the prior year quarter. Adjusted EBITDA in the third quarter of 2018 was $8.7 million compared to $8.9 million in the prior year quarter, reflecting the ongoing shift towards user pay revenue.
The Company ended the quarter with $21.8 million in cash and cash equivalents.
Company Outlook
The Company is providing the following outlook for the fourth quarter of 2018 and is increasing its outlook for the full year 2018.
Fourth quarter 2018:
• | Revenue in the range of $47.8 million to $48.8 million |
• | Adjusted EBITDA in the range of $8.7 million to $9.1 million |
Full year 2018:
• | Revenue in the range of $174 million to $175 million |
• | Adjusted EBITDA in the range of $30.2 million to $30.6 million |
THE MEET GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
September 30, 2018 | December 31, 2017 | ||||||
ASSETS | |||||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | $ | 21,822,387 | $ | 24,158,444 | |||
Accounts receivable, net of allowance of $555,402 and $527,958 at September 30, 2018 and December 31, 2017, respectively | 24,575,376 | 26,443,675 | |||||
Prepaid expenses and other current assets | 5,081,053 | 3,245,174 | |||||
Total current assets | 51,478,816 | 53,847,293 | |||||
Restricted cash | 500,000 | 894,551 | |||||
Goodwill | 148,863,242 | 150,694,135 | |||||
Property and equipment, net | 3,253,213 | 4,524,118 | |||||
Intangible assets, net | 39,345,358 | 48,719,428 | |||||
Deferred taxes | 16,379,363 | 15,521,214 | |||||
Other assets | 1,972,799 | 1,144,032 | |||||
Total assets | $ | 261,792,791 | $ | 275,344,771 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
CURRENT LIABILITIES: | |||||||
Accounts payable | $ | 6,054,937 | $ | 6,277,846 | |||
Accrued liabilities | 19,146,585 | 19,866,438 | |||||
Current portion of long-term debt | 15,000,000 | 15,000,000 | |||||
Current portion of capital lease obligations | 152,131 | 254,399 | |||||
Deferred revenue | 4,820,137 | 4,433,450 | |||||
Total current liabilities | 45,173,790 | 45,832,133 | |||||
Long-term capital lease obligations, less current portion, net | 74,408 | 192,137 | |||||
Long-term debt, less current portion, net | 25,338,637 | 40,637,106 | |||||
Long-term derivative liability | 1,822,202 | 2,995,657 | |||||
Other liabilities | 114,627 | 147,178 | |||||
Total liabilities | 72,523,664 | 89,804,211 | |||||
STOCKHOLDERS’ EQUITY: | |||||||
Preferred stock, $.001 par value; authorized - 5,000,000 shares; 0 shares issued and outstanding at September 30, 2018 and December 31, 2017 | — | — | |||||
Common stock, $.001 par value; authorized - 100,000,000 shares; 73,534,370 and 71,915,018 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively | 73,534 | 71,918 | |||||
Additional paid-in capital | 415,572,623 | 408,029,068 | |||||
Accumulated deficit | (224,569,415 | ) | (221,435,888 | ) | |||
Accumulated other comprehensive loss | (1,807,615 | ) | (1,124,538 | ) | |||
Total stockholders’ equity | 189,269,127 | 185,540,560 | |||||
Total liabilities and stockholders’ equity | $ | 261,792,791 | $ | 275,344,771 | |||
THE MEET GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Revenues | $ | 45,716,053 | $ | 32,246,472 | $ | 126,155,591 | $ | 83,634,737 | |||||||
Operating costs and expenses: | |||||||||||||||
Sales and marketing | 8,753,156 | 4,600,148 | 23,554,635 | 14,305,498 | |||||||||||
Product development and content | 26,134,682 | 16,021,977 | 72,647,507 | 41,006,376 | |||||||||||
General and administrative | 4,938,844 | 5,021,739 | 15,562,125 | 13,044,965 | |||||||||||
Depreciation and amortization | 3,423,929 | 2,969,570 | 10,558,712 | 7,619,584 | |||||||||||
Acquisition and restructuring | 416,141 | 3,378,838 | 4,802,694 | 8,648,692 | |||||||||||
Total operating costs and expenses | 43,666,752 | 31,992,272 | 127,125,673 | 84,625,115 | |||||||||||
Income (loss) from operations | 2,049,301 | 254,200 | (970,082 | ) | (990,378 | ) | |||||||||
Other income (expense): | |||||||||||||||
Interest income | 3,823 | 1,374 | 13,773 | 5,344 | |||||||||||
Interest expense | (559,345 | ) | (244,361 | ) | (1,838,325 | ) | (421,947 | ) | |||||||
Gain (loss) on foreign currency transactions | (6,229 | ) | 9,357 | 101,030 | (2,072 | ) | |||||||||
Other | 6,527 | — | 28,154 | — | |||||||||||
Total other expense | (555,224 | ) | (233,630 | ) | (1,695,368 | ) | (418,675 | ) | |||||||
Income (loss) before income tax benefit (expense) | 1,494,077 | 20,570 | (2,665,450 | ) | (1,409,053 | ) | |||||||||
Income tax benefit (expense) | (196,146 | ) | 2,202,152 | (484,552 | ) | 4,934,216 | |||||||||
Net income (loss) | $ | 1,297,931 | $ | 2,222,722 | $ | (3,150,002 | ) | $ | 3,525,163 | ||||||
Basic and diluted net income (loss) per common stockholder: | |||||||||||||||
Basic net income (loss) per common stockholder | $ | 0.02 | $ | 0.03 | $ | (0.04 | ) | $ | 0.05 | ||||||
Diluted net income (loss) per common stockholder | $ | 0.02 | $ | 0.03 | $ | (0.04 | ) | $ | 0.05 | ||||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 73,362,467 | 71,800,274 | 72,704,205 | 67,711,324 | |||||||||||
Diluted | 79,365,576 | 76,078,563 | 72,704,205 | 72,425,863 | |||||||||||
THE MEET GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Nine Months Ended September 30, | |||||||
2018 | 2017 | ||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ | (3,150,002 | ) | $ | 3,525,163 | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
Depreciation and amortization | 10,558,712 | 7,619,584 | |||||
Stock-based compensation expense | 7,026,991 | 5,802,046 | |||||
Deferred taxes | (694,951 | ) | (5,383,583 | ) | |||
(Gain) loss on foreign currency transactions | (101,030 | ) | 2,072 | ||||
Bad debt expense | 408,998 | 168,000 | |||||
Amortization of loan origination costs | 261,373 | 142,034 | |||||
Change in derivatives | (18,412 | ) | — | ||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 1,302,954 | 3,850,379 | |||||
Prepaid expenses, other current assets and other assets | (2,326,004 | ) | 4,391,126 | ||||
Accounts payable and accrued liabilities | 4,414,400 | 2,669,471 | |||||
Deferred revenue | 515,743 | (115,831 | ) | ||||
Net cash provided by (used in) operating activities | 18,198,772 | 22,670,461 | |||||
Cash flows from investing activities: | |||||||
Purchase of property and equipment | (404,446 | ) | (1,055,020 | ) | |||
Acquisition of business, net of cash and restricted cash acquired | — | (65,802,792 | ) | ||||
Net cash provided by (used in) investing activities | (404,446 | ) | (66,857,812 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from exercise of stock options | 824,307 | 2,797,893 | |||||
Proceeds from issuance of common stock | — | 42,995,371 | |||||
Proceeds from exercise of warrants | — | 2,396,250 | |||||
Payments of capital leases | (211,290 | ) | (202,401 | ) | |||
Proceeds from long-term debt | — | 15,000,000 | |||||
Payments for restricted stock awards withheld for taxes | (306,127 | ) | (507,398 | ) | |||
Payments of contingent consideration | (5,000,000 | ) | — | ||||
Payments on long-term debt | (15,559,842 | ) | (15,000,000 | ) | |||
Net cash provided by (used in) financing activities | (20,252,952 | ) | 47,479,715 | ||||
Change in cash, cash equivalents, and restricted cash prior to effects of foreign currency exchange rate | (2,458,626 | ) | 3,292,364 | ||||
Effect of foreign currency exchange rate (translation) | (271,982 | ) | (2,072 | ) | |||
Net (decrease) increase in cash, cash equivalents, and restricted cash | (2,730,608 | ) | 3,290,292 | ||||
Cash, cash equivalents, and restricted cash at beginning of period | 25,052,995 | 22,246,015 | |||||
Cash, cash equivalents, and restricted cash at end of period | $ | 22,322,387 | $ | 25,536,307 | |||
Supplemental disclosure of cash flow information: | |||||||
Cash paid for interest | $ | 1,598,781 | $ | 279,913 | |||
THE MEET GROUP, INC. AND SUBSIDIARIES
RECONCILIATION OF TOTAL REVENUE
(UNAUDITED)
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||
2018 | 2017(1) | 2018 | 2017(1) | ||||||||||||||||||||||||
$ | % | $ | % | $ | % | $ | % | ||||||||||||||||||||
User pay revenue | $ | 28,058,843 | 61.4 | % | $ | 8,582,700 | 26.6 | % | $ | 76,034,926 | 60.3 | % | $ | 18,342,865 | 21.9 | % | |||||||||||
Advertising | 17,657,210 | 38.6 | % | 23,663,772 | 73.4 | % | 50,120,665 | 39.7 | % | 65,291,872 | 78.1 | % | |||||||||||||||
Total revenue | $ | 45,716,053 | 100.0 | % | $ | 32,246,472 | 100.0 | % | $ | 126,155,591 | 100.0 | % | $ | 83,634,737 | 100.0 | % | |||||||||||
(1) Prior period amounts have not been adjusted under the modified retrospective adoption method.
THE MEET GROUP, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA
(UNAUDITED)
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net income (loss) | $ | 1,297,931 | $ | 2,222,722 | $ | (3,150,002 | ) | $ | 3,525,163 | ||||||
Interest expense | 559,345 | 244,361 | 1,838,325 | 421,947 | |||||||||||
Income tax (benefit) expense | 196,146 | (2,202,152 | ) | 484,552 | (4,934,216 | ) | |||||||||
Depreciation and amortization | 3,423,929 | 2,969,570 | 10,558,712 | 7,619,584 | |||||||||||
Stock-based compensation expense | 2,767,196 | 2,299,696 | 7,026,991 | 5,802,046 | |||||||||||
Acquisition and restructuring | 416,141 | 3,378,838 | 4,802,694 | 8,648,692 | |||||||||||
(Gain) loss on foreign currency transactions | 6,229 | (9,357 | ) | (101,030 | ) | 2,072 | |||||||||
Adjusted EBITDA | $ | 8,666,917 | $ | 8,903,678 | $ | 21,460,242 | $ | 21,085,288 | |||||||
GAAP basic net income (loss) per common stockholder | $ | 0.02 | $ | 0.03 | $ | (0.04 | ) | $ | 0.05 | ||||||
GAAP diluted net income (loss) per common stockholder | $ | 0.02 | $ | 0.03 | $ | (0.04 | ) | $ | 0.05 | ||||||
Basic adjusted EBITDA per common stockholder | $ | 0.12 | $ | 0.12 | $ | 0.30 | $ | 0.31 | |||||||
Diluted adjusted EBITDA per common stockholder | $ | 0.11 | $ | 0.12 | $ | 0.28 | $ | 0.29 | |||||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 73,362,467 | 71,800,274 | 72,704,205 | 67,711,324 | |||||||||||
Diluted | 79,365,576 | 76,078,563 | 77,831,545 | 72,425,863 | |||||||||||
THE MEET GROUP, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME
(UNAUDITED)
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
GAAP Net income (loss) | $ | 1,297,931 | $ | 2,222,722 | $ | (3,150,002 | ) | $ | 3,525,163 | ||||||
Stock-based compensation expense | 2,767,196 | 2,299,696 | 7,026,991 | 5,802,046 | |||||||||||
Amortization of intangibles | 2,904,120 | 2,378,152 | 8,915,214 | 5,982,459 | |||||||||||
Income tax (benefit) expense | 196,146 | (2,202,152 | ) | 484,552 | (4,934,216 | ) | |||||||||
Acquisition and restructuring | 416,141 | 3,378,838 | 4,802,694 | 8,648,692 | |||||||||||
Non-GAAP net income | $ | 7,581,534 | $ | 8,077,256 | $ | 18,079,449 | $ | 19,024,144 | |||||||
GAAP basic net income (loss) per common stockholder | $ | 0.02 | $ | 0.03 | $ | (0.04 | ) | $ | 0.05 | ||||||
GAAP diluted net income (loss) per common stockholder | $ | 0.02 | $ | 0.03 | $ | (0.04 | ) | $ | 0.05 | ||||||
Basic Non-GAAP net income per common stockholder | $ | 0.10 | $ | 0.11 | $ | 0.25 | $ | 0.28 | |||||||
Diluted Non-GAAP net income per common stockholder | $ | 0.10 | $ | 0.11 | $ | 0.23 | $ | 0.26 | |||||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 73,362,467 | 71,800,274 | 72,704,205 | 67,711,324 | |||||||||||
Diluted | 79,365,576 | 76,078,563 | 77,831,545 | 72,425,863 | |||||||||||
Webcast and Conference Call Details
Management will host a webcast and conference call to discuss third quarter 2018 financial results today, November 7, 2018 at 8:30 a.m. Eastern time. To access the call dial 866-572-9351 (US and Canada) or 703-736-7482 (International) and when prompted provide the participant passcode 3187279 to the operator. An audio replay will be available at 855-859-2056 domestically or 404-537-3406 internationally, using passcode 3187279 through November 14, 2018. In addition, a webcast of the conference call will be available live on the Investor Relations section of the Company’s website at www.themeetgroup.com and a replay of the webcast will be available for 90 days.
About The Meet Group
The Meet Group (NASDAQ: MEET) is a portfolio of mobile social entertainment apps designed to meet the universal need for human connection. We leverage a powerful live-streaming video platform, empowering our global community to forge meaningful connections. Our primary apps, MeetMe©, LOVOO©, Skout©, and Tagged©, keep millions of mobile daily active users entertained and engaged and originate untold numbers of casual chats, friendships, dates, and marriages. Our apps, available on iPhone, iPad, and Android in multiple languages, use innovative products and sophisticated data science to let our users stream live video, send gifts, chat, and share photos. The Meet Group has a diversified revenue mix consisting of in-app purchases, subscription, and advertising, and we have offices in New Hope, Philadelphia, San Francisco, Dresden, and Berlin. For more information, visit themeetgroup.com, and follow us on Facebook, Twitter or LinkedIn.
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 fourth quarter 2018 and full year 2018 revenue and Adjusted EBITDA will be in the projected range, whether momentum will continue as expected, whether we have set the stage for sustainable long-term revenue growth as expected, whether our investment in livestreaming video will continue to yield strong results, whether there is a return to seasonal trends in advertising, whether there is an opportunity to grow ad revenue in the fourth quarter and whether the opportunity to continue to grow video engagement and revenue is significant. 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, 2017 filed with the SEC on March 16, 2018 and our Quarterly Report on Form 10-Q for the quarters ended March 31, 2018 and June 30, 2018 filed with the SEC on May 7, 2018 and August 2, 2018, respectively. 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 Measures
The Company defines mobile traffic and engagement metrics (including MAU, DAU, chats per day, and new users per day) to include mobile app traffic for all properties and mobile web traffic for MeetMe, Skout and Lovoo.
The Company uses Adjusted EBITDA and Non-GAAP Net Income, 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 operations before interest expense, benefit or provision for income taxes, depreciation and amortization, stock-based compensation, changes in warrant obligations, nonrecurring acquisition, restructuring or other expenses, gain or loss on foreign currency adjustment, and goodwill and long-lived asset impairment charges, if any. The Company excludes stock-based compensation because it is non-cash in nature. The Company defines Non-GAAP Net Income as earnings (or loss) before benefit or provision for income taxes, amortization on intangibles, non-recurring acquisition and restructuring costs, goodwill and long-lived asset impairment charges 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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Investor Contact:
Leslie Arena
267 714 6418
Media Contact:
Brandyn Bissinger
267 446 7010