WTF? FFN Stock Dives to Nearly a Dollar - CEO Marc Bell Rewards Self with Pay Raise - GoFuckYourself.com

AsianDivaGirlsWebDude · 05-14-2012, 08:33 PM

FFN stock (Adult Friend Finder, Penthouse, etc), is on the brink of falling below $1 a share after Q1 results showing increasing losses (FFN stock closed at $1.07 today):

Quote:

FriendFinder Networks Inc. (FFN) reported a first-quarter net loss of $21.5 million or $0.68 per share, wider than the net loss of $3.7 million or $0.27 per share in the same period last year.

Loss from continuing operations for the quarter was $13.4 million or $0.43 per share, compared to $3.7 million or $0.27 per share a year ago.

Total net revenues for the quarter declined to $81.1 million from $83.5 million in the year-ago quarter. The decline was due to a decrease in overall traffic and challenges in Europe which offset the impact of new subscriber growth.

Meanwhile, CEO Marc Bell, who is resigning as CEO in a few months recently rewarded himself with a substantial pay raise.

Check this out (Source: Business Insider):

Quote:

Marc H. Bell, CEO of Friendfinder Inc.?which owns the Penthouse adult entertainment brand and a string of sex web sites?got a nice pay raise last year. His total compensation rose from $314,000 to $818,000, paid almost entirely in cash.

The raise was curious because FFN underperformed in 2011. Revenue sank to $331 million from $346 million, subscribers to FFN's adult sites also fell from about 951,000 to 828,000. Ad revenue at Penthouse was negligible.

The company was unprofitable, again. The stock launched at $8.30 in 2011 and was trading in pennies by the end of the year.

The half-million-dollar raise came with other benefits. Bell doesn't actually work full-time for FFN. The annual report says he devotes 10 percent of his time to managing ARMOUR, a residential real estate investment trust

Bell does pretty well in the real estate business. FFN doubtless searched diligently for a location for its Boca Raton, Fla., corporate headquarters but by amazing coincidence found that the best deal on the 8,000-square-foot space came from Bell himself, who rents the space to his own company for $150,000 a year.

Marc Bell is raking the cashbox and getting out before the FFN stock trials start...

ADG

Mr Pheer · 05-14-2012, 08:42 PM

I've been doing over 1000 joins a day with FFN since like, mid February.

Robbie · 05-14-2012, 08:49 PM

So is he CEO of Medley itself? Because if that's so...then are they counting the money that StreamRay makes them? The cam biz is very profitable these days.

If they are just counting Friend Finder...then that report isn't correct IF he is the CEO of the whole company (medley)

Mr Pheer · 05-14-2012, 08:57 PM

Quote:

Originally Posted by Robbie

So is he CEO of Medley itself? Because if that's so...then are they counting the money that StreamRay makes them? The cam biz is very profitable these days.

If they are just counting Friend Finder...then that report isn't correct IF he is the CEO of the whole company (medley)

You walked by our booth several times at the CEO dinner

Catalyst · 05-14-2012, 09:04 PM

I love the lace panties on the 3rd girl.. I can't see anything else in the pic but lace panties.. fuck.. I love upskirts..

baddog · 05-14-2012, 09:11 PM

Quote:

Originally Posted by Catalyst

I love the lace panties on the 3rd girl.. I can't see anything else in the pic but lace panties.. fuck.. I love upskirts..

We really need a Like button

AsianDivaGirlsWebDude · 05-14-2012, 10:12 PM

Quote:

Originally Posted by Mr Pheer

I've been doing over 1000 joins a day with FFN since like, mid February.

ADG

Mr Pheer · 05-14-2012, 10:16 PM

Yeah that party rocked but the night before was even better. The game was cool but I really liked the BMX bike demonstration between one of the periods. Guys were doing backflips and shit.

alias · 05-14-2012, 10:50 PM

He seems pretty cool.

AsianDivaGirlsWebDude · 05-14-2012, 11:21 PM

No matter that under CEO Marc Bell et al, FFN lost huge money steadily, right? And let's not forget that FFN has made a substantial amount of money through websites that traffic in pirated/stolen content, hurting major segments of the adult industry.

With people applauding bad management and failing to draw a connection between the pirate sites and the companies that fund them (through advertising revenue), I understand why the industry is in the state that it is currently in.

ADG

Socks · 05-14-2012, 11:27 PM

Isn't this the kind of thing that shareholders can sue over?

Paul Markham · 05-14-2012, 11:31 PM

Quote:

Originally Posted by AsianDivaGirlsWebDude

Are they the complete female membership of AFF?

AsianDivaGirlsWebDude · 05-14-2012, 11:34 PM

Quote:

Originally Posted by Socks

Isn't this the kind of thing that shareholders can sue over?

I believe that at least one class-action lawsuit is underway as a result of the dismal stock offering:

Quote:

BOSTON, Dec. 5, 2011 /PRNewswire/ -- Block & Leviton LLP, which is the only law firm to file a securities class action lawsuit based on the May 11, 2011 public offering of FriendFinder Networks, Inc. (NASDAQ: FFN) ("FFN" or the "Company") common stock (the "May Offering"), reminds investors that the deadline to move for appointment as Lead Plaintiff is January 17, 2012. The lawsuit, captioned Greenfield Childrens Partnership v. FriendFinder Network, Inc. et al., 11-cv-81270, is pending in the United States District Court for the Southern District of Florida.

The lawsuit alleges violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 on behalf of investors who purchased or otherwise acquired FFN common stock pursuant to the May Offering. The complaint asserts that FFN, its officers, directors and two underwriters, Ladenburg Thalmann & Co. Inc. and Imperial Capital LLC, made false and misleading statements and omissions in the Registration Statement and Prospectus dated May 10, 2011 and May 11, 2011, respectively. A copy of the complaint is available on the firm's website (www.blockesq.com).

You may contact the attorneys at Block & Leviton to discuss your rights in the case. You may also retain counsel of your choice and you need not take any action at this time to be a class member.

This notice may constitute attorney advertising.

SOURCE Block & Leviton LLP

Block & Leviton LLP

CONTACT: CONTACT: Whitney E. Street, Esq., [email protected], +1-617-398-5600

Web Site: http://www.blockesq.com

Poor people that paid $10 a share...

ADG

L-Pink · 05-15-2012, 12:31 AM

"His total compensation rose from $314,000 to $818,000, paid almost entirely in cash." so he brought an empty gym bag to work or they mean it wasn't based on stock options?

Far-L · 05-15-2012, 12:40 AM

Quote:

Originally Posted by L-Pink

"His total compensation rose from $314,000 to $818,000, paid almost entirely in cash." so he brought an empty gym bag to work or they mean it wasn't based on stock options?

No, it was hand delivered by Penthouse Pets in panties with smiles and blowjobs for being such a good CEO - you expect a guy making that much to carry his own gym bag?

slavdogg · 05-15-2012, 01:23 AM

-- Live interactive revenues increased 14.1% year over year and 5.0% from prior quarter
-- New adult subscriptions increased 2.5% year over year and 12.6% from prior quarter
-- Adult Member to Subscriber conversion rates increased 8.7% year over year and 14.8% from prior quarter

BAKO · 05-15-2012, 01:29 AM

I still do 6 figures with FFN :-)

slavdogg · 05-15-2012, 01:32 AM

for an LBO company, they're doing just fine and profitable enough.

Stock wise, market doesnt like em. Not a good investment.

by comparison there are companies in a MUCH worse shape revenue, debt wise that have strong stocks.

Check out WWWW web.com
Revenue (ttm): 251.24M
Gross Profit (ttm): 114.38M
EBITDA (ttm)6: 21.73M
Total Debt (mrq): 709.41M
Market Cap (intraday)5: 700.95M

FFN
Market Cap (intraday)5: 33.66M
Revenue (ttm): 331.34M
Total Debt (mrq): 470.79M
Gross Profit (ttm): 223.27M
EBITDA (ttm)6: 85.25M

Either, FFN has a lot of upside to mid teens or WWWW has a lot of downside to penny stock range.

IF FFN was to change it name to Web.com, it'd be a billion $ company.
Some day it might get there, if it can only buy some growth.

AsianDivaGirlsWebDude · 05-15-2012, 01:32 AM

Quote:

Originally Posted by slavdogg

-- Live interactive revenues increased 14.1% year over year and 5.0% from prior quarter
-- New adult subscriptions increased 2.5% year over year and 12.6% from prior quarter
-- Adult Member to Subscriber conversion rates increased 8.7% year over year and 14.8% from prior quarter

ADG

teomaxxx · 05-15-2012, 01:49 AM

Quote:

Originally Posted by L-Pink

"His total compensation rose from $314,000 to $818,000, paid almost entirely in cash." so he brought an empty gym bag to work or they mean it wasn't based on stock options?

you dont issue stock options in the company close to BK, you take rather cold hard cash.

I am heavily invested in a small company (SPIN.OB), where the CEO refused to take around 5 percent ownership of that company in stock compensation and even converted his own loan to the company into its stock with a price close to the 104 week high. Yeah, and he almost work for free as one of founders...thats a real class. Participating only if the upside is good. Not this WallStreet kind of behaviour like with FFN

slavdogg · 05-15-2012, 01:49 AM

Quote:

Originally Posted by AsianDivaGirlsWebDude

ADG

yeah pretty much
FFN so far as a public company has seemed like 2 quarters away from being a sinking ship or few quarters away from being way more profitable.

slavdogg · 05-15-2012, 01:53 AM

""His total compensation rose from $314,000 to $818,000,""

Big fucking deal. $500k a year changes nothing in the grand scheme of things for this company.

Oracle Porn · 05-15-2012, 02:13 AM

hmmmmm lace panties

AsianDivaGirlsWebDude · 05-15-2012, 02:21 AM

Quote:

Originally Posted by slavdogg

""His total compensation rose from $314,000 to $818,000,""

Big fucking deal. $500k a year changes nothing in the grand scheme of things for this company.

$500k here, $500k here, and pretty soon we're talking a Q1 net LOSS of $21.5 Million (up from the $3.7 mil loss the same quarter a year ago).

So you think that when a company loses money for it's investors, that the CEO should have his pay nearly tripled?

Among the things Marc Bell is considering after stepping down as CEO of FFN, is to run for Congress:

Quote:

Marc Bell, a Boca Raton investor and CEO of FriendFinder Networks, Inc. ? the company that owns Penthouse magazine ? said he would consider running for Congress, a Palm Beach Post blog reported Thursday.

That would certainly be an entertaining political campaign.

ADG

slavdogg · 05-15-2012, 02:48 AM

Quote:

Originally Posted by AsianDivaGirlsWebDude

So you think that when a company loses money for it's investors, that the CEO should have his pay nearly tripled?

ADG

When a CEO loses money for it's investors he should be fired or replaces, as clearly happened here.

While most companies do have some sort of compensation packages for performance, they also have a base salary their executives at entitled to. $800k for a CEO or ex CEO executive doesn't seem excessive to me. If it seems excessive to you than tell me what are the comparable CEO pay packages for a non founder CEO of a publicly traded company ??

Nathan · 05-15-2012, 03:01 AM

Quote:

Originally Posted by slavdogg

for an LBO company, they're doing just fine and profitable enough.

Stock wise, market doesnt like em. Not a good investment.

by comparison there are companies in a MUCH worse shape revenue, debt wise that have strong stocks.

Check out WWWW web.com
Revenue (ttm): 251.24M
Gross Profit (ttm): 114.38M
EBITDA (ttm)6: 21.73M
Total Debt (mrq): 709.41M
Market Cap (intraday)5: 700.95M

FFN
Market Cap (intraday)5: 33.66M
Revenue (ttm): 331.34M
Total Debt (mrq): 470.79M
Gross Profit (ttm): 223.27M
EBITDA (ttm)6: 85.25M

Either, FFN has a lot of upside to mid teens or WWWW has a lot of downside to penny stock range.

IF FFN was to change it name to Web.com, it'd be a billion $ company.
Some day it might get there, if it can only buy some growth.

It's not that simple...

WWWW just got the loan, 650m right now, 150m option. It was used to buy Network Solutions end of last year. NetSol had 300m in debt already which was replaced by a chunk of this.
The loan is for 6 years. The numbers you posted above is EBITDA _prior_ to buying NetSol. Consolidated quarterly EBITDA is roughly 40M.

40*4*6 = 960m, plenty of money to pay back the loan in time.

FFN on the other hand, has an outstanding loan of 460m. A big chunk of that is due this and/or next year!
The EBITDA for FFN you posted is also not correct. Their EBITDA was 4.4m Q1 2012! Even their adjusted EBITDA, which means nothing, was only 13m for that period. Even if they can get it back up to 22m per quarter as it was last year, tat means only 88m per year in EBITDA..

Hardly enough cashflow to support their 460m loan that's about to come to an end!

So clearly, those two companies are not even close to the same.

Disclaimer: Any information given here is not meant investment advice but simply my own opinion on public information available!

Nathan · 05-15-2012, 03:03 AM

Quote:

Originally Posted by slavdogg

When a CEO loses money for it's investors he should be fired or replaces, as clearly happened here.

While most companies do have some sort of compensation packages for performance, they also have a base salary their executives at entitled to. $800k for a CEO or ex CEO executive doesn't seem excessive to me. If it seems excessive to you than tell me what are the comparable CEO pay packages for a non founder CEO of a publicly traded company ??

I agree with you there, 800k for a CEO package is not insane for a company with the revenue that FFN has. Sadly, whatever CEO you put there, unless he can magically refinance something that was already horrible to begin with, I do not see a lot of possibilities for him achieving much... but, does obviously not change that he needs to be compensated for the work done.

slavdogg · 05-15-2012, 03:20 AM

Quote:

Originally Posted by Nathan

FFN on the other hand, has an outstanding loan of 460m. A big chunk of that is due this and/or next year!

yup that's why SP downgraded their bond rating earlier this year and pretty much why their stock is so depressed. However being publicly traded also has it's advantages when it comes to refinancing debt. With junk bond rates in 6-7% range these days and plenty of cash chasing high yield returns, they should be fine IMO.

If i'm reading their 10-K correctly, they're paying 17% interest ?
$20m Interest expense in Q1 on $460m Long-term debt.

NinjaSteve · 05-15-2012, 03:23 AM

That's rough, but who would have known. Just like who would have known that Apple stock would double in the last year. Sure you can speculate, but that's what risk is all about.

SZNY · 05-15-2012, 03:32 AM

woow that's some debt

ilnjscb · 05-15-2012, 05:10 AM

Quote:

Originally Posted by Nathan

It's not that simple...

WWWW just got the loan, 650m right now, 150m option. It was used to buy Network Solutions end of last year. NetSol had 300m in debt already which was replaced by a chunk of this.
The loan is for 6 years. The numbers you posted above is EBITDA _prior_ to buying NetSol. Consolidated quarterly EBITDA is roughly 40M.

40*4*6 = 960m, plenty of money to pay back the loan in time.

FFN on the other hand, has an outstanding loan of 460m. A big chunk of that is due this and/or next year!
The EBITDA for FFN you posted is also not correct. Their EBITDA was 4.4m Q1 2012! Even their adjusted EBITDA, which means nothing, was only 13m for that period. Even if they can get it back up to 22m per quarter as it was last year, tat means only 88m per year in EBITDA..

Hardly enough cashflow to support their 460m loan that's about to come to an end!

So clearly, those two companies are not even close to the same.

Disclaimer: Any information given here is not meant investment advice but simply my own opinion on public information available!

This - they need to restructure that loan. Their revenue is fine, it is the loan and S&G expenses.

Nathan · 05-15-2012, 06:33 AM

Quote:

Originally Posted by slavdogg

yup that's why SP downgraded their bond rating earlier this year and pretty much why their stock is so depressed. However being publicly traded also has it's advantages when it comes to refinancing debt. With junk bond rates in 6-7% range these days and plenty of cash chasing high yield returns, they should be fine IMO.

If i'm reading their 10-K correctly, they're paying 17% interest ?
$20m Interest expense in Q1 on $460m Long-term debt.

Yeah, they might have chances with bonds, but I hear it won't be that easy. And yes, their mixed debt interest cost is roughly 17%

ilnjscb · 05-15-2012, 09:06 AM

Quote:

Originally Posted by Nathan

Yeah, they might have chances with bonds, but I hear it won't be that easy. And yes, their mixed debt interest cost is roughly 17%

The market for risk that high is very illiquid right now, but they need to be working their asses off to reduce that rate and reduce S&G.

AsianDivaGirlsWebDude · 05-15-2012, 10:33 AM

Quote:

Originally Posted by ilnjscb

The market for risk that high is very illiquid right now, but they need to be working their asses off to reduce that rate and reduce S&G.

Since FFN was never profitable under Bell et al, and the debts keep piling up (not decreasing), it will be interesting to see what they will do, especially since they seem to have counted on sites that deliver traffic from sources that have been widely accused of hosting pirated/stolen content (as these sources go away, how will FFN make up for the lost revenue?).

And they must spend a lot of money, and pray for a victory in their lawsuit(s), since a major class-action loss might prove devastating/fatal to a company mired in debt.

Maybe with Bell gone, the company might be able to get on the path to profitability, but that appears unclear for now since the same group of cronies that have been with Bell since iBill (yup, Marc Bell's fingerprints are all over that failed company too) still hold the executive positions at FFN.

I wonder what kind of compensation package Bell will get since the company appears worse off today then when he took over. He'll still be on the Board of the Directors, so I'm guessing it will probably be generous (particularly if based upon his wages, which took a nice hike in time for his resignation).

ADG

CamTata · 05-15-2012, 12:43 PM

Read the 10Q, most of the long-term debt is held by Bell and/or other insiders!
Executive comp section is a good read also

Just Alex · 05-15-2012, 12:46 PM

Quote:

Originally Posted by AsianDivaGirlsWebDude

ADG

Evidence number 509 in Bone Prone vs Private.

_Lush_ · 05-16-2012, 08:47 PM

800k a year is walking around money for him. Bell is pulling in $550,000 a month from his dividend payments in ARR now that's some serious $$$

directfiesta · 05-17-2012, 06:48 AM

Quote:

Originally Posted by alias

He seems pretty cool.

Not sure those that got fucked by Ibill agree to that

05-14-2012, 08:49 PM	#3
Robbie Leaner, Meaner, Faster Industry Role: Join Date: Aug 2002 Location: Vegas Posts: 20,955	So is he CEO of Medley itself? Because if that's so...then are they counting the money that StreamRay makes them? The cam biz is very profitable these days. If they are just counting Friend Finder...then that report isn't correct IF he is the CEO of the whole company (medley) __________________ -Robbie ClaudiaMarie.Com

05-14-2012, 10:50 PM	#9
alias aliasx Join Date: Apr 2001 Posts: 19,010	He seems pretty cool. __________________ https://porncorporation.com

05-14-2012, 11:21 PM	#10
AsianDivaGirlsWebDude Purveyor, Fine Asian Porn Industry Role: Join Date: Jul 2004 Location: San Francisco Bay Area Posts: 38,323	No matter that under CEO Marc Bell et al, FFN lost huge money steadily, right? And let's not forget that FFN has made a substantial amount of money through websites that traffic in pirated/stolen content, hurting major segments of the adult industry. With people applauding bad management and failing to draw a connection between the pirate sites and the companies that fund them (through advertising revenue), I understand why the industry is in the state that it is currently in. ADG __________________ Asian Diva Girls - Exclusive Photos and Videos Asian Diva Girls Affiliate Program (50% ccBill Revshare) Last edited by AsianDivaGirlsWebDude; 05-14-2012 at 11:25 PM..

05-15-2012, 01:23 AM	#16
slavdogg Confirmed User Join Date: Jan 2001 Posts: 3,570	-- Live interactive revenues increased 14.1% year over year and 5.0% from prior quarter -- New adult subscriptions increased 2.5% year over year and 12.6% from prior quarter -- Adult Member to Subscriber conversion rates increased 8.7% year over year and 14.8% from prior quarter __________________ Adult Traffic for Sale

05-15-2012, 01:29 AM	#17
BAKO Etology.com Industry Role: Join Date: Jul 2005 Location: Hollywood CA Posts: 18,380	I still do 6 figures with FFN :-) __________________ http://DatingNetwork.com Telegram: @bakokaye

05-14-2012, 08:42 PM	#2
Mr Pheer I got bored here. Industry Role: Join Date: Dec 2002 Location: In your AirBNB Posts: 20,574	I've been doing over 1000 joins a day with FFN since like, mid February.

05-14-2012, 09:04 PM	#5
Catalyst Confirmed User Industry Role: Join Date: Jun 2003 Location: Vegas Posts: 3,243	I love the lace panties on the 3rd girl.. I can't see anything else in the pic but lace panties.. fuck.. I love upskirts..

05-14-2012, 10:16 PM	#8
Mr Pheer I got bored here. Industry Role: Join Date: Dec 2002 Location: In your AirBNB Posts: 20,574	Yeah that party rocked but the night before was even better. The game was cool but I really liked the BMX bike demonstration between one of the periods. Guys were doing backflips and shit.

05-14-2012, 11:27 PM	#11
Socks Confirmed User Industry Role: Join Date: May 2002 Location: Toronto Posts: 8,475	Isn't this the kind of thing that shareholders can sue over?

05-15-2012, 12:31 AM	#14
L-Pink working on my tan Industry Role: Join Date: Mar 2005 Location: Florida/Kentucky Posts: 39,151	"His total compensation rose from $314,000 to $818,000, paid almost entirely in cash." so he brought an empty gym bag to work or they mean it wasn't based on stock options?

05-15-2012, 01:32 AM	#18
slavdogg Confirmed User Join Date: Jan 2001 Posts: 3,570	for an LBO company, they're doing just fine and profitable enough. Stock wise, market doesnt like em. Not a good investment. by comparison there are companies in a MUCH worse shape revenue, debt wise that have strong stocks. Check out WWWW web.com Revenue (ttm): 251.24M Gross Profit (ttm): 114.38M EBITDA (ttm)6: 21.73M Total Debt (mrq): 709.41M Market Cap (intraday)5: 700.95M FFN Market Cap (intraday)5: 33.66M Revenue (ttm): 331.34M Total Debt (mrq): 470.79M Gross Profit (ttm): 223.27M EBITDA (ttm)6: 85.25M Either, FFN has a lot of upside to mid teens or WWWW has a lot of downside to penny stock range. IF FFN was to change it name to Web.com, it'd be a billion $ company. Some day it might get there, if it can only buy some growth. __________________ Adult Traffic for Sale

05-15-2012, 01:53 AM	#22
slavdogg Confirmed User Join Date: Jan 2001 Posts: 3,570	""His total compensation rose from $314,000 to $818,000,"" Big fucking deal. $500k a year changes nothing in the grand scheme of things for this company. __________________ Adult Traffic for Sale

05-15-2012, 02:13 AM	#23
Oracle Porn Affiliate Industry Role: Join Date: Oct 2002 Location: Icq: 94-399-723 Posts: 24,433	hmmmmm lace panties __________________

05-15-2012, 03:23 AM	#29
NinjaSteve Too lazy to set a custom title Industry Role: Join Date: Dec 2003 Posts: 11,089	That's rough, but who would have known. Just like who would have known that Apple stock would double in the last year. Sure you can speculate, but that's what risk is all about. __________________ ...

05-15-2012, 03:32 AM	#30
SZNY SZNY Industry Role: Join Date: May 2004 Location: Sexy Republic Posts: 2,799	woow that's some debt __________________ Telegram: sandroanthonio

05-15-2012, 12:43 PM	#35
CamTata So Fucking Banned Industry Role: Join Date: Dec 2011 Location: Rio Claro de Pavones Posts: 75	FNN Marc Bell Read the 10Q, most of the long-term debt is held by Bell and/or other insiders! Executive comp section is a good read also

05-16-2012, 08:47 PM	#37
_Lush_ Confirmed User Industry Role: Join Date: Jul 2005 Location: GDL Jal. Posts: 536	800k a year is walking around money for him. Bell is pulling in $550,000 a month from his dividend payments in ARR now that's some serious $$$