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Author Topic: Fotolia Seeking $300 Million To Refinance Debt  (Read 9278 times)

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« Reply #25 on: December 11, 2013, 09:29 »
+2
I wonder who would reckless enough to finance a special dividend like that?


« Reply #26 on: December 11, 2013, 10:31 »
+1
I wonder who would reckless enough to finance a special dividend like that?

Those who have blind hope?

« Reply #27 on: December 11, 2013, 10:53 »
+3
I wonder who would reckless enough to finance a special dividend like that?

Robber barons, of which there are many in this trade.

« Reply #28 on: December 11, 2013, 20:27 »
+1
Seems they might be setting the stage for chapter 7...

« Reply #29 on: December 11, 2013, 21:29 »
+2
Seems they might be setting the stage for chapter 7...

Better cash out now while you can

« Reply #30 on: December 12, 2013, 12:55 »
0
Fotolia did have senior staff at the expo, but you are right I dont remember them sponsoring a workshop or having a stand this year. They do however have a very active presence on all kinds of photo related events in Germany, at least I keep running into them.

Yes, "special dividend" doest sound good. Why cant owners pay themselves from hard earned profits instead??

Anyway, I hope some of that debt also gets used to move the business forward, SS is obviously making strong inroads in Europe and just opened a major office in Berlin.

I like to see balance in the market, as much as I like the SS team, I do worry if they become the only strong business in the industry.

And istock seems to have given up the fight long ago.


I agree they should not borrow to pay themselves up front at the expense of our assets. Generating instant cash for owners is a juggling act that catches up with all business's eventually when business slows down or other micros under cut pricing. They are well aware of this fact. If you notice SS is now pushing for a new crop of contributors and driving more business to BS to help drive profit in the short term. It remains to be seen how the new markets they are moving into will pan out. If SS stake holders felt confident about driving increased revenue in new markets they would not be selling personal stock, they would be holding out for higher values.

Historically @ SS "our supposedly low worth assets" provided monthly cash distributions to members of Shutterstock Images LLC with respect to their membership interests totaling $90.5 million in less than 3 years. To my knowledge there is no public information for cash distributions for the years prior to those reported via the SEC.

IS, Fotolia, etc. can see that SS paid down $12.0 million of the $12 million term loan term loan facility that it entered into on September 21, 2012 to fund working capital needs following the corps final $36.0 million cash distribution to the members of Shutterstock Images LLC prior to the pre IPO Reorganization.

Pocketing $90.5 million cash in less than three years is telling when you also consider current revenue. The micros have no problem driving the value of our assets down to participate in the race to gain market share but how long will it be before the gig is up and they hit diminishing returns?

Shutterstock Images LLC Cash Distributions prior to the IPO Reorganization

For the years ended December 31, 2011 and 2010, distributions to the members of Shutterstock Images LLC were $28.6 million and $25.9 million, respectively.

Additionally, between January 1, 2012 and October 4, 2012, we distributed $36.0 million to the members of Shutterstock Images LLC.

10Q 3/31/2013 http://www.secinfo.com/d11MXs.x17an.htm#1stPage

Snip
On October 4, 2012, we made a final distribution to the LLC members constituting approximately all of the cash generated from the operations of the LLC, since the last distribution to members and any other cash and cash equivalents on hand at the time of the distribution, other than any amounts received under the term loan facility, as described below. Following this final distribution, no additional distributions were made to members of the LLC prior to the Reorganization. Additionally, following the Reorganization, our tax rate and related tax payments have increased significantly as we became subject to federal, state and additional city income tax.

We entered into a term loan facility in September of 2012 that provided for a $12 million term loan. Following the final distribution to members described above, the borrowings from the term loan facility were used to fund the short-term capital needs of our operations following the final distribution to members described above and our IPO. On December 24, 2012, we paid down $6.0 million of the term loan and on March 25, 2013, we paid off the remaining outstanding balance of $6 million. As of March 31, 2013, we have no outstanding debt. Additionally, we believe our existing cash and cash equivalents and cash flow generated from operations will be sufficient to meet our working capital and capital expenditure for at least the next twelve months.

We plan to finance our operations and capital expenses largely through our operations. Since our results of operations are sensitive to the level of competition we face, increased competition could adversely affect our liquidity and capital resources, both by reducing our revenues and our net income, as a result of reduced sales, reduced prices and increased promotional activities, among other factors, as well as by requiring us to spend cash on advertising and marketing in an effort to maintain or increase market share in the face of such competition. In addition, the advertising and marketing expenses used to maintain market share and support future revenues will be funded from current capital resources or from borrowings or equity financings. As a result, our ability to grow our business relying largely on funds from our operations is sensitive to competitive pressures and other risks relating to our liquidity or capital resources.

lisafx

« Reply #31 on: December 12, 2013, 13:04 »
0
Seems they might be setting the stage for chapter 7...

Better cash out now while you can

On a related note - anyone get paid by Fotolia recently?  I've got a payout pending from the 2nd of Dec.  I'm about ready to request another on the 15th.  Since I switched to a twice-a-month payout request, I haven't had any problem getting paid before I was due to request again.  Until now...?

« Reply #32 on: December 12, 2013, 13:44 »
+1
Seems they might be setting the stage for chapter 7...

Better cash out now while you can

On a related note - anyone get paid by Fotolia recently?  I've got a payout pending from the 2nd of Dec.  I'm about ready to request another on the 15th.  Since I switched to a twice-a-month payout request, I haven't had any problem getting paid before I was due to request again.  Until now...?

Now I'm a little nervous because I just left my earnings in there for the year. Going to request now.

« Reply #33 on: December 12, 2013, 16:51 »
0
Seems they might be setting the stage for chapter 7...

Better cash out now while you can

On a related note - anyone get paid by Fotolia recently?  I've got a payout pending from the 2nd of Dec.  I'm about ready to request another on the 15th.  Since I switched to a twice-a-month payout request, I haven't had any problem getting paid before I was due to request again.  Until now...?

Now I'm a little nervous because I just left my earnings in there for the year. Going to request now.

I've requested payout 1st of December. They've paid me today.

OM

« Reply #34 on: December 12, 2013, 19:03 »
0
Never had any problems with payouts.....takes anything from a couple of days to a couple of weeks but I always cash out at around 50 credits.

FT is going well for me the last couple of months...sales both subs as well as dl's. Probably cuz many of you competitors have already left.  ;D  8)

« Reply #35 on: December 13, 2013, 13:39 »
0
FT's payments always take the longest. I requested mine on Dec 1st, still pending. But usually it does not come before the 15th of a month.

« Reply #36 on: December 13, 2013, 14:02 »
0
FT's payments always take the longest. I requested mine on Dec 1st, still pending. But usually it does not come before the 15th of a month.

They must do them in groups. I remember them paying fairly quickly.

lisafx

« Reply #37 on: December 13, 2013, 16:58 »
0


I've requested payout 1st of December. They've paid me today.

Useful info.  Thanks. 

Still nothing here for my request on the 30th. 

« Reply #38 on: January 10, 2014, 20:32 »
0
I left as $0.22 subs was ridiculous, I'm on SS but at least they have good volume and they use "life time" earnings to up your level/royalty 


My Very Best :)
KimsCreativeHub.com

« Reply #39 on: January 10, 2014, 20:33 »
0
Yes I agree great article, good to know thanks


My Very Best :)
KimsCreativeHub.com


 

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