Not looking good for Penthouse /Adult Friend Finder

[gonzo]

"The unprofitable company has $32 million in cash on hand and $650 million in liabilities. What's more, it says it lacks existing cash or cash from operations to repay a $44.5 million debt that comes due July 31 and warns that unless it can repay or restructure the obligation, it will face “a material deficiency in our short term liquidity.”

http://crainsnewyork.com

Did you get your invitation as an affiliate?

Would you invest in this IPO knowing what you do about their past transgressions with nonpayment of affiliates and the Zango debacle?

[gonzo]

Heres the link to the prospectus
http://retailroadshow.com/roadshows.asp

I guess they also think creating a tube site at tvx.com is going to help thing.

I wonder if they will be a legal or illegal tube site?

[tony404]

They bought all the content I heard and if you look at the site it looks like weak bought content.

[softball]

“a material deficiency in our short term liquidity.”
I just love double speak......

[bluemoney]

Sounds like the water is swirling for that turd.

[bbobby]

Sounds sounds...

[Evil Chris]

Here, you can keep an eye on the stock. (which appears to be rising)

http://investorshub.advfn.com/boards/board.aspx?board_id=16856

[Evil Chris]

Want to invest?
Watch the prospectus first! http://www.retailroadshow.com/links/show.asp?c=FFN

[Notime]

I wonder if they will be a legal or illegal tube site?

Depends if tripleXC is gonna pay me to broker this programming here.
Haven't seen what I need, what was agreed, after a couple of months.
Vague enough not to be libel?

[gonzo]

Depends if tripleXC is gonna pay me to broker this programming here.
Haven't seen what I need, what was agreed, after a couple of months.
Vague enough not to be libel?

I didnt see that mentioned in the prospectus.

Maybe they are saving the money to invest in the IPO?

[Notime]

I didnt see that mentioned in the prospectus.

Maybe they are saving the money to invest in the IPO?

That has nothing to do with AFF direct, just their content supplier...
Which is now my problem, not AFF's.

Sad don't you agree?
All boards all full of non-..... threads these days.
I guess I just swallow this and move on?

[gonzo]

Looks like Freindfinder delayed its bailout
http://www.xbiz.com/news/117014

[softball]

They have an army of Filipina seamstresses sewing the rips in the parachute as we speak.

[gonzo]

Last month, we posed this question in a headline about FriendFinder Networks: “Are Investors Finally Ready for an Internet Porn IPO?” Today we know the answer: No.

FriendFinder, a collection of porn sites and niche social networks, was supposed to start trading this week, after filing for a public offering more than a year ago. But this morning, the company pulled its IPO, citing “market conditions.”

I’m assuming this is not a euphemism for the Dow’s plunge yesterday, but instead a polite way of saying “we couldn’t find buyers.” The AP reports that FriendFinder, which was trying to sell some 20 million shares for $10 to $12, sold 15 million shares at $7 each earlier this week in pre-IPO trading.

Now FriendFinder will have to find some other way to resolve its massive debt issues. The company throws off a lot of cash, but all of that–and more–is getting hoovered up by loan payments. It reported $45 million in income from operations in the first nine months of last year and spent $75.3 million on interest payments in the same period.

Meanwhile, if you’re in the market for a high-end sports car, this may be the time to make the FriendFinder team an offer. The company has yet to sell the Ferrari 360 Modena it bought from its founder for $125,000 in 2006. FriendFinder is carrying the car on its books at $95,000, but I’ll bet it’s willing to negotiate.

http://mediamemo.allthingsd.com/20100205/friendfinder-cancels-the-worlds-first-web-porn-ipo-after-investors-yawn/

[Toby]

Interest payments nearly double income. That can't last much longer.

[EmporerEJ]

I "held back" from buying any stock.
Because it's a bad investment, not porn 3.0
I invest, almost exclusively, in Porn 3.0
(Whatever the hell "porn 3.0" is supposed to mean.)

I think the IPO was a last ditch effort.
Whatch'em fold.

[RawAlex]

Note: All comments made here are my own personal opinion, based on the IPO documents that had been revealed in the past.

The biggest issue for FFN is what the debt is. Near as I can figure it, Penthouse appears to have borrowed the money to pay of Lars and Andrew, potentially as notes rather than actual borrowing. It would suggest that the price "paid" for AFF and the rest was signficantly higher than it's actual value.

Anyone looking at the books of this thing would be looking mostly at it's breakup value, and not it's value as a going forward company, as it has little hope. Essentially, they cannot sell enough stock to raise the money to lower the debt enough to make a difference. They need something like 250-300 million if I remember correctly, the what they pre-sold didn't even come up to 110 million.

The only way this one floats is if the debt holders agree to convert their debt into shares, which is pretty unlikely because it removes the big payout that was part of the deal originally. Even then, the dilution might make the stock almost worthless at that point. With less than 50 million year in income (and no obvious hope of a profit), the only value in the company normally would be the value of selling the parts. It appears that the market values the parts at less than half what was paid for them.

There is only so long that AFF can go on paying out more than it takes in for every membership as well. It's starting to look like a bros slaughter, as they will all do the top notch great paying sponsor thing to the end.

[EmporerEJ]

There is only so long that AFF can go on paying out more than it takes in for every membership as well. It's starting to look like a bros slaughter, as they will all do the top notch great paying sponsor thing to the end.

Careful, when I mentioned something like that a couple years back, I was soundly attacked for having a sensible opinion like that.