Leaf Group Comments on Letter from Osmium Partners
SANTA MONICA, Calif., March 05, 2019 (GLOBE NEWSWIRE) -- Leaf Group Ltd. (NYSE: LEAF), a diversified consumer internet company, today issued the following statement in response to a letter to its Board of Directors released by Osmium Partners, LLC on March 4, 2019:
“Leaf welcomes shareholder input as part of our constant focus on enhancing shareholder value. Members of our senior leadership team and representatives from our Board have been in ongoing discussions with Osmium over the past four months and have thoughtfully considered and discussed the ideas raised by Mr. Lewis in those conversations, all of which our Board has already evaluated and will continue to evaluate as appropriate going forward. The Leaf Board will carefully review and assess Osmium’s letter and we are happy to continue our dialogue with Mr. Lewis to ensure that his views receive due consideration along with the perspectives of our other investors.”
“Leaf Group’s business strategy is on track and showing results – and we are confident that our strategy will create long-term value for all of our shareholders. With an audience of over 54 million people, Leaf continues to grow revenue annually at over 20% year-over-year. We have recently returned to adjusted EBITDA profitability a quarter ahead of schedule, and expect 2019 to be our first full year of adjusted EBITDA profitability in five years. We also anticipate further operating leverage in the future as we focus on both organic and inorganic growth opportunities. Our Board is committed to acting in the best interests of all of our shareholders and regularly considers a full range of strategic options to enhance shareholder value.”
Goodwin Procter LLP is acting as Leaf’s legal counsel and GCA is acting as financial advisor.
About Leaf GroupLeaf Group Ltd. (NYSE: LEAF) is a diversified consumer internet company that builds enduring, creator-driven brands that reach passionate audiences in large and growing lifestyle categories, including fitness and wellness (Well+Good, Livestrong.com and MyPlate App), and art and design (Saatchi Art, Society6 and Hunker). For more information about Leaf Group, visit www.leafgroup.com.
Cautionary Information Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements set forth in this press release include statements regarding the company’s expectations concerning management’s plans, objectives and strategies, the company’s financial performance and its ability to generate long-term value for its shareholders, the impact of operational changes, the company’s operating leverage in pursuing growth opportunities, and the company’s upcoming 2019 Annual Meeting of Stockholders (the “2019 Annual Meeting”). In addition, statements containing words such as “guidance,” “may,” “believe,” “anticipate,” “expect,” “intend,” “plan,” “project,” “projections,” “business outlook,” and “estimate” or similar expressions constitute forward-looking statements. Actual results may differ materially from the results predicted, and reported results should not be considered an indication of future performance. These forward-looking statements involve risks and uncertainties regarding the company’s future financial performance; could cause actual results or developments to differ materially from those indicated due to a number of factors affecting Leaf Group’s operations, markets, products and services; and are based on current expectations, estimates and projections about the company’s industry, financial condition, operating performance and results of operations, including certain assumptions related thereto. Potential risks and uncertainties that could affect the company’s operating and financial results are described in Leaf Group’s annual report on Form 10-K for the fiscal year ending December 31, 2018 filed with the Securities and Exchange Commission (http://www.sec.gov) on March 4, 2019, as such risks and uncertainties may be updated from time to time in Leaf Group’s quarterly reports on Form 10-Q filed with the Securities and Exchange Commission, including, without limitation, information under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” These risks and uncertainties include, among others: the company’s ability to successfully drive and increase traffic to its marketplaces and media properties; the company’s ability to attract new and repeat customers and artists to its marketplaces and successfully grow its marketplace businesses; the impact of increasing mobile usage on the company’s marketplace businesses; changes in the methodologies of internet search engines, including ongoing algorithmic changes made by Google, Bing and Yahoo!; the effects of shifting consumption of media content and online shopping from desktop to mobile devices and/or social media platforms; the potential impact on advertising based revenue of lower ad unit rates, a reduction in online advertising spending, a loss of advertisers, lower advertising yields, increased availability of ad blocking software, particularly on mobile devices and/or ongoing changes in ad unit formats; the impact of certain changes made to the business model for the company’s media properties, including the ability to successfully launch, manage and grow new vertically focused web properties; the company’s ability to effectively integrate, manage, operate and grow acquired businesses; the company’s dependence on various agreements with a specific business partner for a significant portion of its advertising revenue; the company’s ability to successfully expand its current lines of business and grow new lines of business; changes in amortization or depreciation expense due to a variety of factors; potential write downs, reserves against or impairment of assets including receivables, goodwill, intangibles (including media content) or other assets; and the company’s ability to retain key personnel. The company does not intend to revise or update the information set forth in this press release, except as required by law, and may not provide this type of information in the future.
Investor ContactsJantoon Reigersman310-917-6413 IR@leafgroup.com
Shawn Milne415-264-3419 firstname.lastname@example.org
Media ContactSharna Daduk310-917-6405 email@example.com
John Christiansen/Matt ReidSard Verbinnen & Co415-618-8750/310-201-2040 LeafGroup-SVC@sardverb.com