Company focused on identifying ways to unlock shareholder value
NEW YORK, NY / ACCESSWIRE / September 22, 2015 / Snap Interactive, Inc. (“SNAP,” the “Company,” “we,” “our” or “us”) (OTCQB: STVI), a leading online dating provider, announced today that it is undertaking an intensive strategic review to identify ways to unlock shareholder value. This review will include, but not be limited to, seeking opportunities to accelerate organic growth, changes and additions to our management team and board of directors, and engaging an advisor to pursue opportunities for business combinations.
“SNAP is committed to acting in the best interests of our shareholders. Our strategic review process is designed to identify the possible approaches that we may pursue in order realize greater shareholder value,” said Clifford Lerner, SNAP’s Chief Executive Officer. “The Company has a strong platform for success, with approximately $1.9 million of cash and positive Adjusted EBITDA as of the June 30, 2015 quarter end. As a result of the Company’s evolution from managing a single product to an emerging portfolio of products, we believe that the true value of SNAP is potentially far greater than is represented by the current market price of the Company’s stock. The launch of our mobile dating application The Grade has received recognition in the press for its innovative approach to improving the mobile dating experience. The Company is also exploring further opportunities to expand its portfolio. We have a database of over 30 million users, representing a large foundation upon which to build new products.”
Alex Harrington, SNAP’s Chief Operating Officer and Chief Financial Officer, added: “SNAP is one of the few publicly traded companies in the interactive dating arena. The anticipated IPO of Match Group will attract a lot of attention to our industry and provide more valuation direction to investors. Being publicly traded also presents an opportunity for the Company to use its stock as an acquisition currency and to provide liquidity to thousands of entrepreneurs in the fragmented dating industry who may be seeking an exit. The Company has many opportunities to leverage its position in the market, and believes this strategic review will help establish a roadmap for success.”
IR Contact:
IR@snap-interactive.com
PR Contact:
Adam Handelsman
adam@specopscomm.com
212-518-7721
About Snap Interactive, Inc.
Snap Interactive, Inc. develops, owns and operates dating applications for social networking websites and mobile platforms. The Grade is a patent-pending mobile dating application catering to high-quality singles. SNAP’s flagship brand, AYI.com, is a multi-platform online dating site with over one million active users. For more information, please visit http://www.snap-interactive.com.
The contents of our websites are not part of this press release, and you should not consider the contents of these websites in making an investment decision with respect to our common stock.
Facebook is a registered trademark of Facebook Inc. Apple and iPhone are registered trademarks of Apple Inc. and App Store is a registered service mark of Apple Inc. Android is a registered trademark of Google Inc. The Grade is a trademark and AYI.com is a registered trademark of Snap Interactive, Inc.
Forward-Looking Statements:
This press release contains “forward-looking statements.” Such statements may be preceded by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. Forward-looking statements are not guarantees of future performance, are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company’s control, and cannot be predicted or quantified and consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with general economic, industry and market sector conditions; the Company’s ability to institute corporate governance standards or achieve compliance with national exchange listing requirements; the Company’s future growth and the ability to obtain additional financing to implement the Company’s growth strategy; the ability to increase or recognize revenue, decrease expenses and increase the number of active subscribers, new subscription transactions or monthly active users; the ability to enter into new advertising agreements; the ability to diversify new user acquisition channels or improve the conversion of users to paid subscribers; the ability to anticipate and respond to changing user and industry trends and preferences; the intense competition in the online dating marketplace; the ability to release new applications or derive revenue from new applications; and circumstances that could disrupt the functioning of the Company’s applications. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission (“SEC”), including the Company’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC’s web site at http://www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.
All forward-looking statements speak only as of the date on which they are made. The Company undertakes no obligation to update any forward-looking statement or statements to reflect events or circumstances after the date on which such statement was made, except to the extent required by applicable securities laws.
Non-GAAP Financial Measures
The Company defines Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, plus non-cash stock-based compensation and the non-cash change in fair value of derivative liabilities. The Company has provided Adjusted EBITDA in this release to supplement information contained in the Company’s condensed consolidated financial statements, which are prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). Management uses these non-GAAP financial measures internally in analyzing the Company’s financial results to assess operational performance and to determine the Company’s future capital requirements. The presentation of this financial information is not intended to be considered in isolation or as a substitute for the financial information prepared in accordance with GAAP. The Company believes that both management and investors benefit from referring to Adjusted EBITDA in assessing our performance and when planning, forecasting and analyzing future periods. The Company believes that Adjusted EBITDA is a useful financial measure to investors and others to understand and evaluate the Company’s operating results and that Adjusted EBITDA allows for a more meaningful comparison between the Company’s performance and that of competitors.
Some limitations of Adjusted EBITDA as a financial measure include that:
– Adjusted EBITDA does not (i) reflect cash capital expenditure requirements for assets underlying depreciation and amortization expense that may need to be replaced or for new capital expenditures; (ii) reflect the Company’s working capital requirements; (iii) consider the potentially dilutive impact of stock-based compensation; (iv) reflect interest expense or interest payments on our outstanding indebtedness; and (v) reflect the change in fair value of warrants; and
– Other companies, including companies in our industry, may calculate Adjusted EBITDA differently or choose not to calculate Adjusted EBITDA at all, which reduces its usefulness as a comparative measure.
Because of these limitations, you should consider this non-GAAP financial information along with other financial performance measures reported in our filings with the Securities and Exchange Commission, including total revenues, subscription revenue, deferred revenue, net income (loss), cash and cash equivalents, restricted cash, net cash used in operating activities and our financial results presented in accordance with GAAP.
The following unaudited table presents a reconciliation of net loss, the most directly comparable financial measure calculated and presented in accordance with GAAP, to Adjusted EBITDA for the three months ended June 30, 2015:
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Reconciliation of net loss to Adjusted EBITDA:
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Three Months Ended
June 30, 2015
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Net loss
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$
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(258,986)
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Interest expense, net
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430,611
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Depreciation and amortization expense
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35,188
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Loss on disposal of fixed assets
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–
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Change in fair value of derivative liabilities
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(410,000)
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|
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Stock-based compensation expense
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276,592
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Adjusted EBITDA
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$
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73,405
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SOURCE: Snap Interactive, Inc.
ReleaseID: 432145
