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

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):

http://3.bp.blogspot.com/_shO97hOA5A...0/IMG_0327.JPG

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):

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

ADG

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

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 :)

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

http://graphics.penthouse.com/images...p4l_flyer2.png

:pimp

ADG

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.

He seems pretty cool.

http://www.carthrottle.com/wp-conten...-behaviour.jpg

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. :disgust

ADG

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

Are they the complete female membership of AFF? :winkwink:

http://shark-tank.net/wp-content/upl.../Marc-Bell.jpg

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

Poor people that paid $10 a share... :Oh crap

ADG

"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?

-- 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

I still do 6 figures with FFN :-)

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.

http://iseeahappyface.com/upload/optimism.jpg

ADG

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

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.

""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.

hmmmmm lace panties

$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). :upsidedow

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

http://i.huffpost.com/gen/510071/thu...BELL-large.jpg

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

That would certainly be an entertaining political campaign. :1orglaugh

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 ??

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! :)

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.

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.

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.

woow that's some debt

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

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.

http://flukenews.com/wp-content/uplo...3/index_06.gif

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

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

Evidence number 509 in Bone Prone vs Private.

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 $$$

Not sure those that got fucked by Ibill agree to that :2 cents: