CHARLOTTE, N.C., Aug. 3,
2015 /PRNewswire/ -- LendingTree, Inc. (NASDAQ: TREE),
operator of LendingTree.com, the nation's leading online loan
marketplace, today announced results for the quarter ended
June 30, 2015.
"We couldn't be more pleased with this quarter's results," said
Doug Lebda, Chairman and CEO. "The
online lending market continues to expand and LendingTree is
positioned perfectly to capture an increased share of a burgeoning
market. With another quarter of continued growth, we're especially
pleased to see our non-mortgage revenue more than double
year-over-year, and grow 29 percent over the prior quarter. Our
continued business strength in both mortgage and non-mortgage
categories gives us confidence to increase our guidance for the
remainder of the year."
Gabe Dalporto, Chief Financial
Officer added, "While we're thrilled with our performance on both
the top and bottom-line during the quarter, we were also able to
accelerate the investment in our brand campaign, reflected in this
quarter's results. Revenue from our mortgage products remains
strong due in part to increased lender demand and our ability to
deliver volume increases while sustaining monetization. Meanwhile,
revenue from our personal loans marketplace has grown exponentially
with the number of matched consumers experiencing 42 percent growth
quarter-over-quarter. Additionally, our credit cards business is
quickly gaining momentum, experiencing a 75 percent lift in revenue
quarter-over-quarter and proving to be a promising driver of
growth."
Second Quarter 2015 Business Highlights
- Record revenue from mortgage products of $37.2 million represents an increase of 7% over
second quarter 2014 and reflects our highest output since the sale
of LendingTree Loans in Q2 2013.
- Record revenue from non-mortgage products of $17.9 million in the second quarter represents an
increase of 139% over the second quarter 2014 and now represents
32% of total revenue. Included in the non-mortgage results,
revenue from our personal loans offering grew to $11.6 million, up nearly four times over the
prior year and up 46% sequentially. Notably, we recorded
year-over-year growth in all of our non-mortgage lending
categories.
- Enrollment growth in My LendingTree continued, as more than 1.4
million consumers have now joined the My LendingTree
personalization platform, up from 900 thousand in late April.
|
LendingTree
Selected Financial Metrics
|
|
(In millions,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q/Q
|
|
|
|
|
Y/Y
|
|
|
Q2
2015
|
|
Q1
2015
|
|
%
Change
|
|
|
Q2
2014
|
|
%
Change
|
|
|
Revenue by
Product
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage Products
(1)
|
$
|
37.2
|
|
|
$
|
37.0
|
|
|
1
|
%
|
|
|
$
|
34.7
|
|
|
7
|
%
|
|
|
Non-Mortgage Products
(2)
|
17.9
|
|
|
13.9
|
|
|
29
|
%
|
|
|
7.5
|
|
|
139
|
%
|
|
|
Total
Revenue
|
$
|
55.1
|
|
|
$
|
50.9
|
|
|
8
|
%
|
|
|
$
|
42.1
|
|
|
31
|
%
|
|
|
Non-Mortgage % of
Total
|
32
|
%
|
|
27
|
%
|
|
|
|
|
18
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and
Marketing Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchanges Marketing
Expense (3)
|
$
|
33.7
|
|
|
$
|
29.7
|
|
|
13
|
%
|
|
|
$
|
26.4
|
|
|
28
|
%
|
|
|
Other
Marketing
|
3.2
|
|
|
3.1
|
|
|
3
|
%
|
|
|
2.6
|
|
|
23
|
%
|
|
|
Selling and
Marketing Expense
|
$
|
36.9
|
|
|
$
|
32.8
|
|
|
13
|
%
|
|
|
$
|
29.0
|
|
|
27
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Variable Marketing
Margin (4)
|
$
|
21.4
|
|
|
$
|
21.2
|
|
|
1
|
%
|
|
|
$
|
15.8
|
|
|
35
|
%
|
|
|
Variable Marketing
Margin % of Revenue
|
39
|
%
|
|
42
|
%
|
|
|
|
|
38
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income from
Continuing Operations
|
$
|
6.4
|
|
|
$
|
5.4
|
|
|
19
|
%
|
|
|
$
|
2.7
|
|
|
137
|
%
|
|
|
Net Income from
Cont. Ops. % of Revenue
|
12
|
%
|
|
11
|
%
|
|
|
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income per
Share from Cont. Ops.
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.57
|
|
|
$
|
0.48
|
|
|
19
|
%
|
|
|
$
|
0.24
|
|
|
138
|
%
|
|
|
Diluted
|
$
|
0.52
|
|
|
$
|
0.44
|
|
|
18
|
%
|
|
|
$
|
0.23
|
|
|
126
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(5)
|
$
|
8.9
|
|
|
$
|
8.9
|
|
|
—
|
%
|
|
|
$
|
5.5
|
|
|
62
|
%
|
|
|
Adjusted EBITDA %
of Revenue (5)
|
16
|
%
|
|
18
|
%
|
|
|
|
|
13
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net
Income (5)
|
$
|
7.8
|
|
|
$
|
7.9
|
|
|
(1)%
|
|
|
|
$
|
4.6
|
|
|
70
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net
Income per Share (5)
|
$
|
0.63
|
|
|
$
|
0.65
|
|
|
(3)%
|
|
|
|
$
|
0.39
|
|
|
62
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Includes the purchase
mortgage, refinance mortgage and rate table products.
|
|
(2)
|
Includes the home
equity, reverse mortgage, personal loan, small business loan,
student loan, auto loan, education, home services, insurance and
personal credit products.
|
|
(3)
|
Defined as the
portion of selling and marketing expense attributable to variable
costs paid for advertising, direct marketing and related expenses,
which excludes overhead, fixed costs and personnel-related
expenses.
|
|
(4)
|
Defined as revenue
minus Exchanges marketing expense and is considered an operating
metric.
|
|
(5)
|
Adjusted EBITDA,
adjusted EBITDA % of revenue, adjusted net income and adjusted net
income per share are non-GAAP measures. Please see
"LendingTree's Reconciliation of Non-GAAP Measures to GAAP" and
"LendingTree's Principles of Financial Reporting" below for more
information.
|
Second Quarter 2015 Financial and Operating
Highlights
- Record total revenue in the second quarter 2015 of $55.1 million represents an increase of
$13.0 million, or 31%, over revenue
in the second quarter 2014.
- Record Variable Marketing Margin of $21.4 million represents an increase of
$5.6 million, or 35%, over second
quarter 2014. At 39% of revenue, this reflects the expensing
of a substantial portion of new television commercials produced in
the quarter.
- Adjusted EBITDA of $8.9 million
increased $3.4 million, or 62%, over
second quarter 2014.
- Adjusted Net Income per Share of $0.63 represents an increase of $0.24, or 62%, over second quarter 2014.
- Working capital was $88.7 million
at June 30, 2015, compared with
$86.4 million at March 31, 2015. Working capital is calculated as
current assets (including unrestricted and restricted cash) minus
current liabilities (including loan loss reserves).
Business Outlook - 2015
LendingTree is providing revenue, Variable Marketing Margin and
Adjusted EBITDA guidance for the third quarter 2015 and increasing
its full-year 2015 outlook, as follows:
For third quarter 2015:
- Revenue is anticipated to be in the range of $60 - $62 million, a 45% - 50% increase over
third quarter 2014.
- Variable Marketing Margin is anticipated to be $22.5 - $23.5 million, an increase of 35% - 41%
over third quarter 2014.
- Adjusted EBITDA is anticipated to be in the range of
$9.2 - $9.7 million, up 59% - 67%
over third quarter 2014.
For full-year 2015:
- Revenue is now anticipated to be $225 -
$230 million, or 34% - 37% over full-year 2014, an increase
from previous guidance of $202 - $208
million.
- Variable Marketing Margin is now anticipated to be in the range
of $86.0 - $89.0 million, an increase
of 32% - 37% over full-year 2014 and up from previous guidance of
$78.0 - $82.0 million.
- Adjusted EBITDA is now anticipated to be in the range of
$35.0 - $36.0 million, implying
year-over-year growth of 60% - 65%, an increase from previous
guidance of $30.0 - $31.0
million.
Quarterly Conference Call
A conference call to discuss LendingTree's second quarter 2015
financial results will be webcast live today, August 3, 2015 at 5:00 PM
Eastern Time (ET). The live audiocast is open to the public
and will be available on LendingTree's investor relations website
at http://investors.lendingtree.com/. The call may also be accessed
toll-free via phone at (877) 606-1416. Callers outside the United States and Canada may dial (707) 287-9313. Following
completion of the call, a recorded replay of the webcast will be
available on LendingTree's investor relations website until
11:59 PM ET on Saturday, August 8, 2015. To listen to the
telephone replay, call toll-free (855) 859-2056 with passcode
#72680126. Callers outside the United
States and Canada may dial
(404) 537-3406 with passcode #72680126.
|
LENDINGTREE, INC. AND
SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF OPERATIONS
(Unaudited)
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(in thousands, except per share amounts)
|
|
Revenue
|
$
|
55,136
|
|
|
$
|
42,144
|
|
|
$
|
106,071
|
|
|
$
|
82,180
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
Cost of revenue
(exclusive of depreciation) (1)
|
1,991
|
|
|
1,895
|
|
|
3,966
|
|
|
3,560
|
|
|
Selling and marketing
expense (1)
|
36,877
|
|
|
28,964
|
|
|
69,714
|
|
|
56,413
|
|
|
General and
administrative expense (1)
|
7,039
|
|
|
5,478
|
|
|
14,267
|
|
|
11,611
|
|
|
Product development
(1)
|
2,390
|
|
|
1,826
|
|
|
4,563
|
|
|
3,758
|
|
|
Depreciation
|
717
|
|
|
946
|
|
|
1,371
|
|
|
1,701
|
|
|
Amortization of
intangibles
|
37
|
|
|
27
|
|
|
99
|
|
|
55
|
|
|
Restructuring and
severance
|
388
|
|
|
23
|
|
|
394
|
|
|
225
|
|
|
Litigation
settlements and contingencies
|
(1,078)
|
|
|
385
|
|
|
(796)
|
|
|
8,092
|
|
|
Total costs and
expenses
|
48,361
|
|
|
39,544
|
|
|
93,578
|
|
|
85,415
|
|
|
Operating income
(loss)
|
6,775
|
|
|
2,600
|
|
|
12,493
|
|
|
(3,235)
|
|
|
Other income
(expense), net:
|
|
|
|
|
|
|
|
|
Interest
expense
|
(64)
|
|
|
—
|
|
|
(62)
|
|
|
—
|
|
|
Income (loss)
before income taxes
|
6,711
|
|
|
2,600
|
|
|
12,431
|
|
|
(3,235)
|
|
|
Income tax (expense)
benefit
|
(272)
|
|
|
83
|
|
|
(579)
|
|
|
84
|
|
|
Net income (loss)
from continuing operations
|
6,439
|
|
|
2,683
|
|
|
11,852
|
|
|
(3,151)
|
|
|
Loss from
discontinued operations
|
(1,717)
|
|
|
(2,931)
|
|
|
(1,943)
|
|
|
(3,505)
|
|
|
Net income
(loss)
|
$
|
4,722
|
|
|
$
|
(248)
|
|
|
$
|
9,909
|
|
|
$
|
(6,656)
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
11,382
|
|
|
11,214
|
|
|
11,343
|
|
|
11,178
|
|
|
Diluted
|
12,334
|
|
|
11,849
|
|
|
12,257
|
|
|
11,178
|
|
|
Income (loss) per
share from continuing operations:
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.57
|
|
|
$
|
0.24
|
|
|
$
|
1.04
|
|
|
$
|
(0.28)
|
|
|
Diluted
|
$
|
0.52
|
|
|
$
|
0.23
|
|
|
$
|
0.97
|
|
|
$
|
(0.28)
|
|
|
Loss per share
from discontinued operations:
|
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.15)
|
|
|
$
|
(0.26)
|
|
|
$
|
(0.17)
|
|
|
$
|
(0.31)
|
|
|
Diluted
|
$
|
(0.14)
|
|
|
$
|
(0.25)
|
|
|
$
|
(0.16)
|
|
|
$
|
(0.31)
|
|
|
Net income (loss)
per share:
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.41
|
|
|
$
|
(0.02)
|
|
|
$
|
0.87
|
|
|
$
|
(0.60)
|
|
|
Diluted
|
$
|
0.38
|
|
|
$
|
(0.02)
|
|
|
$
|
0.81
|
|
|
$
|
(0.60)
|
|
|
(1) Amounts
include non-cash compensation, as follows:
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
$
|
24
|
|
|
$
|
7
|
|
|
$
|
44
|
|
|
$
|
13
|
|
|
Selling and marketing
expense
|
385
|
|
|
226
|
|
|
655
|
|
|
459
|
|
|
General and
administrative expense
|
1,125
|
|
|
928
|
|
|
2,731
|
|
|
1,989
|
|
|
Product
development
|
385
|
|
|
260
|
|
|
825
|
|
|
576
|
|
|
LENDINGTREE, INC. AND
SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
(Unaudited)
|
|
|
|
June 30,
2015
|
|
December 31,
2014
|
|
(in thousands, except par value and share
amounts)
|
|
ASSETS:
|
|
|
|
|
Cash and cash
equivalents
|
$
|
92,967
|
|
|
$
|
86,212
|
|
|
Restricted cash and
cash equivalents
|
18,622
|
|
|
18,716
|
|
|
Accounts receivable,
net
|
20,516
|
|
|
13,611
|
|
|
Prepaid and other
current assets
|
1,097
|
|
|
931
|
|
|
Current assets of
discontinued operations
|
259
|
|
|
189
|
|
|
Total current
assets
|
133,461
|
|
|
119,659
|
|
|
Property and
equipment, net
|
6,683
|
|
|
5,257
|
|
|
Goodwill
|
3,632
|
|
|
3,632
|
|
|
Intangible assets,
net
|
11,042
|
|
|
11,141
|
|
|
Other non-current
assets
|
101
|
|
|
102
|
|
|
Non-current assets of
discontinued operations
|
—
|
|
|
100
|
|
|
Total
assets
|
$
|
154,919
|
|
|
$
|
139,891
|
|
|
|
|
|
|
LIABILITIES:
|
|
|
|
|
Accounts payable,
trade
|
$
|
2,648
|
|
|
$
|
1,060
|
|
|
Accrued expenses and
other current liabilities
|
28,394
|
|
|
25,521
|
|
|
Current liabilities
of discontinued operations
|
13,670
|
|
|
12,055
|
|
|
Total current
liabilities
|
44,712
|
|
|
38,636
|
|
|
Other non-current
liabilities
|
119
|
|
|
—
|
|
|
Deferred income
taxes
|
4,738
|
|
|
4,738
|
|
|
Non-current
liabilities of discontinued operations
|
31
|
|
|
151
|
|
|
Total
liabilities
|
49,600
|
|
|
43,525
|
|
|
SHAREHOLDERS'
EQUITY:
|
|
|
|
|
Preferred stock $.01
par value; 5,000,000 shares authorized; none issued or
outstanding
|
|
|
|
|
Common stock $.01 par
value; 50,000,000 shares authorized; 12,990,402 and
12,854,517 shares issued, respectively, and 11,516,875 and
11,386,240 shares outstanding, respectively
|
130
|
|
|
129
|
|
|
Additional paid-in
capital
|
909,012
|
|
|
909,751
|
|
|
Accumulated
deficit
|
(788,262)
|
|
|
(798,171)
|
|
|
Treasury stock
1,473,527 and 1,468,277 shares, respectively
|
(15,561)
|
|
|
(15,343)
|
|
|
Total
shareholders' equity
|
105,319
|
|
|
96,366
|
|
|
Total liabilities
and shareholders' equity
|
$
|
154,919
|
|
|
$
|
139,891
|
|
LENDINGTREE'S RECONCILIATION OF NON-GAAP
MEASURES TO GAAP
Below is a reconciliation of adjusted EBITDA and adjusted net
income to net income from continuing operations, adjusted EBITDA %
of revenue to net income from continuing operations % of revenue
and adjusted net income per share to net income per diluted share
from continuing operations. See "LendingTree's Principles of
Financial Reporting" for further discussion of the Company's use of
these non-GAAP measures.
|
Three Months
Ended
|
|
June 30,
2015
|
March 31,
2015
|
June 30,
2014
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
8,902
|
|
$
|
8,936
|
|
$
|
5,520
|
|
|
Adjusted EBITDA %
of revenue
|
16
|
%
|
18
|
%
|
13
|
%
|
|
Adjustments to
reconcile to net income (loss) from continuing
operations:
|
|
|
|
|
Depreciation
|
(717)
|
|
(654)
|
|
(946)
|
|
|
Amortization of
intangibles
|
(37)
|
|
(62)
|
|
(27)
|
|
|
Interest (expense)
income
|
(64)
|
|
2
|
|
—
|
|
|
Income tax (expense)
benefit
|
(272)
|
|
(307)
|
|
83
|
|
|
Adjusted net
income
|
7,812
|
|
7,915
|
|
4,630
|
|
|
|
|
|
|
Non-cash
compensation
|
(1,919)
|
|
(2,336)
|
|
(1,421)
|
|
|
Loss on disposal of
assets
|
(10)
|
|
(28)
|
|
(44)
|
|
|
Estimated settlement
for unclaimed property
|
(134)
|
|
—
|
|
—
|
|
|
Acquisition
expense
|
—
|
|
150
|
|
(74)
|
|
|
Restructuring and
severance
|
(388)
|
|
(6)
|
|
(23)
|
|
|
Litigation
settlements and contingencies (1)
|
1,078
|
|
(282)
|
|
(385)
|
|
|
Net income from
continuing operations
|
$
|
6,439
|
|
$
|
5,413
|
|
$
|
2,683
|
|
|
Net income from
continuing operations % of revenue
|
12
|
%
|
11
|
%
|
6
|
%
|
|
|
|
|
|
Adjusted net
income per share
|
$
|
0.63
|
|
$
|
0.65
|
|
$
|
0.39
|
|
|
Adjustments to
reconcile adjusted net income to net income from continuing
operations
|
$
|
(0.11)
|
|
$
|
(0.21)
|
|
$
|
(0.16)
|
|
|
Adjustments to
reconcile effect of dilutive securities
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
|
Net income per
diluted share from continuing operations
|
$
|
0.52
|
|
$
|
0.44
|
|
$
|
0.23
|
|
|
|
|
|
|
Adjusted weighted
average diluted shares outstanding
|
12,334
|
|
12,165
|
|
11,849
|
|
|
Effect of dilutive
securities
|
—
|
|
—
|
|
—
|
|
|
Weighted average
diluted shares outstanding
|
12,334
|
|
12,165
|
|
11,849
|
|
|
Effect of dilutive
securities
|
952
|
|
861
|
|
635
|
|
|
Weighted average
basic shares outstanding
|
11,382
|
|
11,304
|
|
11,214
|
|
|
(1)
|
Includes legal fees
for certain patent litigation.
|
LENDINGTREE'S PRINCIPLES OF FINANCIAL REPORTING
LendingTree reports Earnings Before Interest, Taxes,
Depreciation and Amortization, as adjusted for certain items
discussed below ("Adjusted EBITDA"), Adjusted EBITDA % of revenue,
adjusted net income and adjusted net income per share as
supplemental measures to GAAP.
Adjusted EBITDA and Adjusted EBITDA % of revenue are primary
metrics by which LendingTree evaluates the operating performance of
its businesses, on which its marketing expenditures and internal
budgets are based and, in the case of adjusted EBITDA, by which
management and many employees are compensated. LendingTree believes
that investors should have access to the same set of tools that it
uses in analyzing its results. LendingTree believes that adjusted
net income and adjusted net income per share are useful financial
indicators that provide a different view of the financial
performance of the Company than adjusted EBITDA (the primary metric
by which LendingTree evaluates the operating performance of its
businesses) and the GAAP measures of net income (loss) from
continuing operations and GAAP income (loss) per diluted share.
Adjusted net income and adjusted net income per share supplement
GAAP income (loss) from continuing operations and GAAP income
(loss) per diluted share by enabling investors to make period to
period comparisons of those components of the nearest comparable
GAAP measures that management believes better reflect the
underlying financial performance of the Company's business
operations during particular financial reporting periods. Adjusted
net income and adjusted net income per share exclude certain
amounts, such as non-cash compensation, non-cash asset impairment
charges, gain/loss on disposal of assets, restructuring and
severance, litigation settlements, contingencies and legal fees for
certain patent litigation, and acquisition expenses, which are
recognized and recorded under GAAP in particular periods but which
might be viewed as not necessarily coinciding with the underlying
business operations for the periods in which they are so recognized
and recorded.
These non-GAAP measures should be considered in addition to
results prepared in accordance with GAAP, but should not be
considered a substitute for or superior to GAAP results.
LendingTree provides and encourages investors to examine the
reconciling adjustments between the GAAP and non-GAAP measures set
forth above. LendingTree is not able to provide a reconciliation of
projected adjusted EBITDA to expected reported results due to the
unknown effect, timing and potential significance of the effects of
the wind-down of discontinued operations and tax
considerations.
Definition of LendingTree's Non-GAAP Measures
EBITDA is defined as operating income or loss (which excludes
interest expense and taxes) excluding amortization of intangibles
and depreciation.
Adjusted EBITDA is defined as EBITDA excluding (1) non-cash
compensation expense, (2) non-cash asset impairment charges, (3)
gain/loss on disposal of assets, (4) restructuring and severance
expenses, (5) litigation settlements, contingencies and legal fees
for certain patent litigation, (6) adjustments for acquisitions or
dispositions, and (7) one-time items.
Adjusted net income is defined as net income (loss) from
continuing operations excluding (1) non-cash compensation expense,
(2) non-cash asset impairment charges, (3) gain/loss on disposal of
assets, (4) restructuring and severance expenses, (5) litigation
settlements, contingencies and legal fees for certain patent
litigation, (6) adjustments for acquisitions or dispositions, and
(7) one-time items.
Adjusted net income per share is defined as adjusted net income
divided by the adjusted weighted average diluted shares
outstanding. In cases where the Company reported GAAP losses
from continuing operations, the effects of potentially dilutive
securities are excluded from the calculation of net loss per
diluted share from continuing operations because their inclusion
would have been anti-dilutive. In such instances where the
Company reports GAAP net loss from continuing operations but
reports positive non-GAAP adjusted net income, the effects of
potentially dilutive securities are included in the denominator for
calculating adjusted net income per share.
LendingTree endeavors to compensate for the limitations of these
non-GAAP measures by also providing the comparable GAAP measures
with equal or greater prominence and descriptions of the
reconciling items, including quantifying such items, to derive the
non-GAAP measures. These non-GAAP measures may not be
comparable to similarly titled measures used by other
companies.
One-Time Items
Adjusted EBITDA and adjusted net income are adjusted for
one-time items, if applicable. Items are considered one-time in
nature if they are non-recurring, infrequent or unusual, and have
not occurred in the past two years or are not expected to recur in
the next two years, in accordance with SEC rules. For the periods
presented in this report, there are no adjustments for one-time
items, except for $0.1 million
related to an estimated settlement for unclaimed property.
Non-Cash Expenses That Are Excluded From LendingTree's
Adjusted EBITDA and Adjusted Net Income
Non-cash compensation expense consists principally of expense
associated with the grants of restricted stock, restricted stock
units and stock options. These expenses are not paid in cash and
LendingTree includes the related shares in its calculations of
fully diluted shares outstanding. Upon settlement of restricted
stock units, exercise of certain stock options or vesting of
restricted stock awards, the awards may be settled on a net basis,
with LendingTree remitting the required tax withholding amounts
from its current funds.
Amortization of intangibles are non-cash expenses relating
primarily to acquisitions. At the time of an acquisition, the
intangible assets of the acquired company, such as purchase
agreements, technology and customer relationships, are valued and
amortized over their estimated lives. Amortization of
intangibles are only excluded from Adjusted EBITDA.
Safe Harbor Statement Under the Private Securities Litigation
Reform Act of 1995
The matters contained in the discussion above may be considered
to be "forward-looking statements" within the meaning of the
Securities Act of 1933 and the Securities Exchange Act of 1934, as
amended by the Private Securities Litigation Reform Act of 1995.
Those statements include statements regarding the intent, belief or
current expectations or anticipations of LendingTree and members of
our management team. Factors currently known to management that
could cause actual results to differ materially from those in
forward-looking statements include the following: adverse
conditions in the primary and secondary mortgage markets and in the
economy, particularly interest rates; willingness of lenders to
make unsecured personal loans and purchase leads for such products
from the Company; seasonality of results; potential liabilities to
secondary market purchasers; changes in the Company's relationships
with network lenders; breaches of network security or the
misappropriation or misuse of personal consumer information;
failure to provide competitive service; failure to maintain brand
recognition; ability to attract and retain customers in a
cost-effective manner; ability to develop new products and services
and enhance existing ones; competition; allegations of failure to
comply with existing or changing laws, rules or regulations, or to
obtain and maintain required licenses; failure of network lenders
or other affiliated parties to comply with regulatory requirements;
failure to maintain the integrity of systems and infrastructure;
liabilities as a result of privacy regulations; failure to
adequately protect intellectual property rights or allegations of
infringement of intellectual property rights; and changes in
management. These and additional factors to be considered are set
forth under "Risk Factors" in our Annual Report on Form 10-K for
the period ended December 31, 2014
and our Quarterly Report on Form 10-Q for the period ended
March 31, 2015, and in our other
filings with the Securities and Exchange Commission. We undertake
no obligation to update or revise forward-looking statements to
reflect changed assumptions, the occurrence of unanticipated events
or changes to future operating results or expectations.
About LendingTree, Inc.
LendingTree, Inc. (NASDAQ: TREE) operates the nation's leading
online loan marketplace and provides consumers with an array of
online tools and information to help them find the best loans for
their needs. LendingTree's online marketplace connects
consumers with multiple lenders that compete for their business,
empowering consumers as they comparison-shop across a full suite of
loans and credit-based offerings. Since its inception,
LendingTree has facilitated more than 55 million loan
requests. LendingTree provides access to lenders offering
home loans, home equity loans/lines of credit, reverse mortgages,
personal loans, auto loans, small business loans, credit cards,
student loans and more.
LendingTree, Inc. is headquartered in Charlotte, NC and maintains operations solely
in the United States. For more
information, please visit www.lendingtree.com.
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SOURCE LendingTree, Inc.