-	Live Interactive Video revenue increased 5.3% year-over-year to $20.7 million

-	Entertainment revenue increased 7.2% year-over-year to $5.6 million

-	Completed acquisition of JigoCity and PerfectMatch.com

-	Income from operations increased 4.1% year-over-year to $52.4 million

-	Adjusted EBITDA increased 1.8% year over year to $74.4 million

-	Repaid $80.2 million in outstanding debt since December 31, 2010, including $7.3 million in November 2011

 

 

 

 

 

 

 

 

 

		September 30, 2011				December 31, 2010
		(unaudited)
ASSETS
Current assets:
Cash		$	16,470			$	34,585
Restricted cash			11,734				7,385
Accounts receivable, less allowance for doubtful accounts of $2,042 and $2,236, respectively			9,893				9,886
Inventories			793				1,028
Prepaid expenses			5,417				4,534
Deferred tax asset			6,998				5,522
Total current assets			51,305				62,940
Film costs, net			4,162				4,312
Property and equipment, net			7,805				6,666
Goodwill			332,709				326,540
Domain names			56,089				55,890
Trademarks			9,563				9,213
Other intangible assets, net			20,879				29,134
Unamortized debt costs			13,645				22,336
Deferred offering costs			-				13,267
Other assets			2,676				2,519
		$	498,833			$	532,817
LIABILITIES
Current liabilities:
Current installment of long-term debt, net of unamortized discount of $295 and $744, respectively		$	7,976			$	15,009
Accounts payable			9,030				9,481
Accrued expenses and other liabilities			71,200				65,420
Deferred revenue			44,285				48,302
Total current liabilities			132,491				138,212
Deferred tax liability			31,870				30,275
Long-term debt, net of unamortized discount of $37,342 and $31,935, respectively			453,449				510,551
Liability related to warrants			-				3,559
Total liabilities			617,810				682,597
Contingencies (Note 16 )
STOCKHOLDERS’ DEFICIENCY
Preferred stock, $0.001 par value — authorized, 22,500,000 shares; issued and outstanding no shares in 2011 and 10,211,556 shares in 2010,
Series A Convertible Preferred Stock, $0.001 per share — authorized 2,500,000 shares; issued and outstanding, 0 in 2011, 1,766,703 shares in 2010 (liquidation preference $21,000)			-				2
Series B Convertible Preferred Stock, $0.001 per share — authorized 10,000,000 shares; issued and outstanding, 0 in 2011, 8,444,853 shares in 2010 (liquidation preference $5,000)			-				8
Common stock, $0.001 par value — authorized 125,000,000 shares in 2011 and 2010
Common stock voting — authorized 112,500,000 shares, issued and outstanding 31,186,679 shares in 2011 and 6,517,746 shares in 2010			31				6
Series B common stock non-voting — authorized 12,500,000 shares; issued and outstanding 32,965 shares in 2011 and 1,839,825 shares in 2010
			-				2
Capital in excess of par value			132,551				80,823
Accumulated deficit			(251,559	)			(230,621	)
Total stockholders’ deficiency			(118,977	)			(149,780	)
		$	498,833			$	532,817

		Three Months Ended September 30,								Nine Months Ended September 30,
		2011				2010				2011				2010
Net revenue
Service		$	77,710			$	82,076			$	234,918			$	243,447
Product			5,026				4,587				14,709				14,043
Total			82,736				86,663				249,677				257,490
Cost of revenue
Service			24,267				23,919				67,547				75,568
Product			3,646				3,012				11,259				9,222
Total			27,913				26,931				79,806				84,790
Gross profit			54,823				59,732				169,821				172,700
Operating expenses:
Product development			4,024				3,264				12,080				9,304
Selling and marketing			8,279				7,423				22,679				30,589
General and administrative			22,836				19,904				67,507				60,155
Amortization of acquired intangibles and software			4,060				6,313				11,906				18,793
Depreciation and other amortization			913				1,112				3,268				3,556
Total operating expenses			40,112				38,016				117,440				122,397
Income from operations			14,711				21,716				52,381				50,303
Interest expense			(21,146	)			(22,730	)			(65,097	)			(69,128	)
Interest related to VAT liability not charged to customers			(476	)			(666	)			(1,410	)			(1,742	)
Foreign exchange (loss) gain, principally related to VAT liability not charged to customers			1,432				(4,584	)			(1,521	)			436
Gain on liability related to warrants							(57	)			391				427
Loss on extinguishment of debt							–				(7,312	)			–
Other non-operating (expense) income net			1				(31	)			(3,912	)			5
Loss before income tax (benefit)			(5,478	)			(6,352	)			(26,480	)			(19,699	)
Income tax (benefit)		$	(82	)		$	(71	)		$	(5,542	)		$	(219	)
Net loss		$	(5,396	)		$	(6,281	)		$	(20,938	)		$	(19,480	)
Net loss per common share — basic and diluted		$	(0.18	)		$	(0.46	)		$	(1.02	)		$	(1.42	)
Weighted average shares outstanding — basic and diluted			30,330				13,735				20,505				13,735

 

 

 

		Three Months Ended September 30,								Nine Months Ended September 30,
		2011				2010				2011				2010
GAAP net loss		$	(5,396	)		$	(6,281	)		$	(20,938	)		$	(19,480	)
Add: Interest expense, net			21,146				22,730				65,097				69,128
Add (subtract): Income tax provision (benefit)			(82	)			(71	)			(5,542	)			219
Add: Amortization of acquired intangible assets and software			4,060				6,313				11,906				18,793
Add: Depreciation and other amortization			913				1,112				3,268				3,556
EBITDA		$	20,641			$	23,803			$	53,791			$	71,778
Add: Broadstream arbitration provision, including related legal fees			-				-				7,394				-
Add (subtract): (Gain) loss related to VAT liability not charged to customers			(956	)			5,250				2,931				1,306
Add: Loss of extinguishment of debt			-				-				7,312				-
Add: Stock Compensation Expense			269				-				2,554				-
Add: Severance Costs			388				-				388				-
Adjusted EBITDA		$	20,342			$	29,053			$	74,370			$	73,084