Shares of Meet Group (MEET), which manages a portfolio of mobile apps including MeetMe, LOVOO, Skout, Tagged, and Hi5, are falling after reporting fourth quarter EBITDA of $10.5M, down from $12.8M year-over-year. The company reported a quarterly GAAP net loss of $67.7M, or 94c per diluted share, primarily as a result of a non-cash asset impairment charge and deferred tax charge of $56.4M and $7.7M, respectively, compared to GAAP net income of $9.9M, or 15c per diluted share in the prior year quarter. On its quarterly conference call, the CEO said, “As I noted earlier, our net loss for the full year includes two one-time non-cash adjustments. First, we recorded a $7.7M charge to adjust value of our NOLs as a result of income tax changes enacted by the 2018 tax reform bill and the new 21% corporate income tax rate. Second, as part of our annual review of goodwill and intangible assets, we recorded an impairment charge of $56.4M against the goodwill of our U.S. based businesses This adjusted was caused by a decrease in the fair value of certain assets that we attribute to significantly lower advertising CPMs that we experience in 2017 and that we continue to forecast into 2018 from our ad-driven revenue sources. We do not expect that these charges will impact our ability to generate cash flow or have an impact on our ongoing operations.” Shares of Meet Group are down 16.3% to $2.67 per share in late-day trading.
previous post