CHARLOTTE, N.C., Oct. 26, 2015 /PRNewswire/ -- LendingTree,
Inc. (NASDAQ: TREE), operator of LendingTree.com, the nation's
leading online loan marketplace, today announced results for the
quarter ended September 30, 2015.
"LendingTree performed exceptionally well in the third quarter,
recording year-over-year growth in every lending category," said
Doug Lebda, Chairman and CEO. "In
mortgage, our increasingly analytics-driven approach to sales
provided for meaningful wins. We brought on new lenders while
increasing sales within our existing lender network, and we
invested heavily into marketing to drive additional volume. These
results and our continued momentum in new categories give us the
confidence to, once again, raise our outlook for this year and
issue full-year 2016 guidance."
Gabe Dalporto, Chief Financial
Officer added, "In another record quarter, we're pleased to see the
accelerated growth trajectory of both our mortgage and non-mortgage
offerings. We are particularly excited about credit cards, which
has emerged as a significant revenue driver, delivering
$2.7 million in revenue in Q3, up
from less than half a million in the prior quarter. In addition to
terrific performance in the business, I am also happy to announce
that last week, we closed on a $125
million revolving credit facility. We're seeing an
accelerating number of acquisition opportunities in the market and
while none are immediately actionable, this facility gives us the
flexibility to execute on attractive and accretive
opportunities."
Third Quarter 2015 Business Highlights
- Revenue from mortgage products of $44.2
million, represents an increase of 38% over third quarter
2014 and an increase of 19% sequentially versus second quarter
2015.
- Revenue from non-mortgage products of $25.6 million in the third quarter represents an
increase of 175% over the third quarter 2014 and now comprises 37%
of total revenue.
- Included in the non-mortgage results, revenue from our personal
loans offering grew to $15.6 million,
up 325% over third quarter 2014 and up 35% sequentially.
- Also included in non-mortgage, revenue from our credit cards
product grew to $2.7 million from
$0.4 million in the prior
quarter.
- Enrollment growth in My LendingTree continued, as more than 2
million consumers have now joined the My LendingTree
personalization platform. Notably, we achieved the second million
users in approximately half the time it took to obtain the first
million.
LendingTree
Selected Financial Metrics
|
(In millions,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q/Q
|
|
|
|
|
Y/Y
|
|
|
Q3
2015
|
|
Q2
2015
|
|
%
Change
|
|
|
Q3
2014
|
|
%
Change
|
|
Revenue by
Product
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage Products
(1)
|
$
|
44.2
|
|
|
$
|
37.2
|
|
|
19
|
%
|
|
|
$
|
32.0
|
|
|
38
|
%
|
|
Non-Mortgage Products
(2)
|
25.6
|
|
|
17.9
|
|
|
43
|
%
|
|
|
9.3
|
|
|
175
|
%
|
|
Total
Revenue
|
$
|
69.8
|
|
|
$
|
55.1
|
|
|
27
|
%
|
|
|
$
|
41.3
|
|
|
69
|
%
|
|
Non-Mortgage % of
Total
|
37
|
%
|
|
32
|
%
|
|
|
|
|
23
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and
Marketing Expense
|
|
|
|
|
|
|
|
|
|
|
|
Exchanges Marketing
Expense (3)
|
$
|
45.5
|
|
|
$
|
33.7
|
|
|
35
|
%
|
|
|
$
|
24.6
|
|
|
85
|
%
|
|
Other
Marketing
|
3.4
|
|
|
3.2
|
|
|
6
|
%
|
|
|
2.6
|
|
|
31
|
%
|
|
Selling and
Marketing Expense
|
$
|
48.9
|
|
|
$
|
36.9
|
|
|
33
|
%
|
|
|
$
|
27.2
|
|
|
80
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Variable Marketing
Margin (4)
|
$
|
24.3
|
|
|
$
|
21.4
|
|
|
14
|
%
|
|
|
$
|
16.7
|
|
|
46
|
%
|
|
Variable Marketing
Margin % of Revenue
|
35
|
%
|
|
39
|
%
|
|
|
|
|
40
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income from
Continuing Operations
|
$
|
7.4
|
|
|
$
|
6.4
|
|
|
16
|
%
|
|
|
$
|
0.6
|
|
|
1133
|
%
|
|
Net Income from
Cont. Ops. % of Revenue
|
11
|
%
|
|
12
|
%
|
|
|
|
|
1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income per
Share from Cont. Ops.
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.65
|
|
|
$
|
0.57
|
|
|
14
|
%
|
|
|
$
|
0.05
|
|
|
1200
|
%
|
|
Diluted
|
$
|
0.59
|
|
|
$
|
0.52
|
|
|
13
|
%
|
|
|
$
|
0.05
|
|
|
1080
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(5)
|
$
|
11.0
|
|
|
$
|
8.9
|
|
|
24
|
%
|
|
|
$
|
5.8
|
|
|
90
|
%
|
|
Adjusted EBITDA %
of Revenue (5)
|
16
|
%
|
|
16
|
%
|
|
|
|
|
14
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net
Income (5)
|
$
|
9.8
|
|
|
$
|
7.8
|
|
|
26
|
%
|
|
|
$
|
4.9
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net
Income per Share (5)
|
$
|
0.79
|
|
|
$
|
0.63
|
|
|
25
|
%
|
|
|
$
|
0.41
|
|
|
93
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Includes the purchase
mortgage, refinance mortgage and rate table products.
|
(2)
|
Includes the home
equity, reverse mortgage, personal loan, credit card, 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.
|
Third Quarter 2015 Financial Highlights
- Record total revenue in the third quarter 2015 of $69.8 million represents an increase of
$28.5 million, or 69%, over revenue
in the third quarter 2014.
- Record Variable Marketing Margin of $24.3 million represents an increase of
$7.6 million, or 46%, over third
quarter 2014. At 35% of revenue, this reflects an increased
investment in brand-building television advertising.
- Adjusted EBITDA of $11.0 million
increased $5.2 million, or 90%, over
third quarter 2014.
- Adjusted Net Income per Share of $0.79 represents an increase of $0.38, or 93%, over third quarter 2014.
- Working capital increased to $95.1
million at September 30, 2015,
compared with $88.7 million at
June 30, 2015. Working capital is
calculated as current assets (including unrestricted and restricted
cash) minus current liabilities (including loan loss
reserves).
- On October 22, 2015, the company
entered into a credit agreement providing for a five-year
$125 million senior secured revolving
credit facility to finance potential acquisitions and other growth
initiatives, capital expenditures, and general corporate
purposes.
Business Outlook - 2015 & 2016
LendingTree is increasing Revenue, Variable Marketing Margin and
Adjusted EBITDA guidance for full-year 2015 and issuing full-year
2016 guidance, as follows:
For full-year 2015:
- Revenue is now anticipated to be $244 -
$247 million, or 46% - 48% over full-year 2014, an increase
from previous guidance of $225 - $230
million. This implies fourth quarter revenue of $68.1 - $71.1 million
- Variable Marketing Margin is now anticipated to be in the range
of $89 - $91 million, an increase of
37% - 40% over full-year 2014 and up from previous guidance of
$86 - $89 million. This implies
fourth quarter variable marketing margin of $22 - $24 million.
- Adjusted EBITDA is now anticipated to be in the range of
$38.3 - $38.8 million, implying
year-over-year growth of 75% - 78%, an increase from previous
guidance of $35 - $36 million. This
implies fourth quarter Adjusted EBITDA of $9.5 - $10.0 million.
For full-year 2016:
- Revenue is anticipated to be in the range of $315 - $320 million, or 28% - 30% over the
midpoint of FY 2015 guidance.
- Variable Marketing Margin is anticipated to be $108 - $112 million, an increase of 20% - 24%
over the midpoint of FY 2015 guidance.
- Adjusted EBITDA is anticipated to be in the range of
$50 - $52 million, implying
year-over-year growth of 30% - 35% compared to the midpoint of FY
2015 guidance.
Quarterly Conference Call
A conference call to discuss LendingTree's third quarter 2015
financial results will be webcast live today, October 26, 2015 at 8:00
AM 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, October 31, 2015. To listen to the
telephone replay, call toll-free (855) 859-2056 with passcode
#60717703. Callers outside the United
States and Canada may dial
(404) 537-3406 with passcode #60717703.
LENDINGTREE, INC. AND
SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(Unaudited)
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(in thousands, except per share amounts)
|
Revenue
|
$
|
69,804
|
|
|
$
|
41,306
|
|
|
$
|
175,875
|
|
|
$
|
123,486
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
Cost of revenue
(exclusive of depreciation) (1)
|
2,436
|
|
|
2,110
|
|
|
6,402
|
|
|
5,670
|
|
Selling and marketing
expense (1)
|
48,901
|
|
|
27,168
|
|
|
118,615
|
|
|
83,581
|
|
General and
administrative expense (1)
|
7,069
|
|
|
6,590
|
|
|
21,336
|
|
|
18,201
|
|
Product development
(1)
|
2,675
|
|
|
1,658
|
|
|
7,238
|
|
|
5,416
|
|
Depreciation
|
764
|
|
|
840
|
|
|
2,135
|
|
|
2,541
|
|
Amortization of
intangibles
|
25
|
|
|
41
|
|
|
124
|
|
|
96
|
|
Restructuring and
severance
|
28
|
|
|
7
|
|
|
422
|
|
|
232
|
|
Litigation
settlements and contingencies
|
133
|
|
|
2,338
|
|
|
(663)
|
|
|
10,430
|
|
Total costs and
expenses
|
62,031
|
|
|
40,752
|
|
|
155,609
|
|
|
126,167
|
|
Operating income
(loss)
|
7,773
|
|
|
554
|
|
|
20,266
|
|
|
(2,681)
|
|
Other income
(expense), net:
|
|
|
|
|
|
|
|
Interest
expense
|
(1)
|
|
|
(1)
|
|
|
(63)
|
|
|
(1)
|
|
Income (loss)
before income taxes
|
7,772
|
|
|
553
|
|
|
20,203
|
|
|
(2,682)
|
|
Income tax (expense)
benefit
|
(389)
|
|
|
2
|
|
|
(968)
|
|
|
86
|
|
Net income (loss)
from continuing operations
|
7,383
|
|
|
555
|
|
|
19,235
|
|
|
(2,596)
|
|
Loss from
discontinued operations
|
(1,295)
|
|
|
(174)
|
|
|
(3,238)
|
|
|
(3,679)
|
|
Net income
(loss)
|
$
|
6,088
|
|
|
$
|
381
|
|
|
$
|
15,997
|
|
|
$
|
(6,275)
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
11,445
|
|
|
11,182
|
|
|
11,378
|
|
|
11,180
|
|
Diluted
|
12,489
|
|
|
11,836
|
|
|
12,379
|
|
|
11,180
|
|
Income (loss) per
share from continuing operations:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.65
|
|
|
$
|
0.05
|
|
|
$
|
1.69
|
|
|
$
|
(0.23)
|
|
Diluted
|
$
|
0.59
|
|
|
$
|
0.05
|
|
|
$
|
1.55
|
|
|
$
|
(0.23)
|
|
Loss per share
from discontinued operations:
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.11)
|
|
|
$
|
(0.02)
|
|
|
$
|
(0.28)
|
|
|
$
|
(0.33)
|
|
Diluted
|
$
|
(0.10)
|
|
|
$
|
(0.01)
|
|
|
$
|
(0.26)
|
|
|
$
|
(0.33)
|
|
Net income (loss)
per share:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.53
|
|
|
$
|
0.03
|
|
|
$
|
1.41
|
|
|
$
|
(0.56)
|
|
Diluted
|
$
|
0.49
|
|
|
$
|
0.03
|
|
|
$
|
1.29
|
|
|
$
|
(0.56)
|
|
(1) Amounts
include non-cash compensation, as follows:
|
|
|
|
|
|
|
|
Cost of
revenue
|
$
|
24
|
|
|
$
|
11
|
|
|
$
|
68
|
|
|
$
|
24
|
|
Selling and marketing
expense
|
425
|
|
|
205
|
|
|
1,080
|
|
|
664
|
|
General and
administrative expense
|
1,178
|
|
|
1,292
|
|
|
3,909
|
|
|
3,281
|
|
Product
development
|
351
|
|
|
278
|
|
|
1,176
|
|
|
854
|
|
LENDINGTREE, INC. AND
SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
(Unaudited)
|
|
|
|
September
30, 2015
|
|
December
31,
2014
|
|
(in thousands, except par value and share
amounts)
|
ASSETS:
|
|
|
|
Cash and cash
equivalents
|
$
|
106,251
|
|
|
$
|
86,212
|
|
Restricted cash and
cash equivalents
|
18,621
|
|
|
18,716
|
|
Accounts receivable,
net
|
25,181
|
|
|
13,611
|
|
Prepaid and other
current assets
|
1,708
|
|
|
931
|
|
Current assets of
discontinued operations
|
289
|
|
|
189
|
|
Total current
assets
|
152,050
|
|
|
119,659
|
|
Property and
equipment, net
|
7,959
|
|
|
5,257
|
|
Goodwill
|
3,632
|
|
|
3,632
|
|
Intangible assets,
net
|
11,017
|
|
|
11,141
|
|
Other non-current
assets
|
126
|
|
|
102
|
|
Non-current assets of
discontinued operations
|
—
|
|
|
100
|
|
Total
assets
|
$
|
174,784
|
|
|
$
|
139,891
|
|
|
|
|
|
LIABILITIES:
|
|
|
|
Accounts payable,
trade
|
$
|
6,245
|
|
|
$
|
1,060
|
|
Accrued expenses and
other current liabilities
|
36,174
|
|
|
25,521
|
|
Current liabilities
of discontinued operations
|
14,529
|
|
|
12,055
|
|
Total current
liabilities
|
56,948
|
|
|
38,636
|
|
Other non-current
liabilities
|
273
|
|
|
—
|
|
Deferred income
taxes
|
4,738
|
|
|
4,738
|
|
Non-current
liabilities of discontinued operations
|
31
|
|
|
151
|
|
Total
liabilities
|
61,990
|
|
|
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; 13,013,767 and
12,854,517 shares issued, respectively, and 11,540,240 and
11,386,240 shares outstanding, respectively
|
130
|
|
|
129
|
|
Additional paid-in
capital
|
910,399
|
|
|
909,751
|
|
Accumulated
deficit
|
(782,174)
|
|
|
(798,171)
|
|
Treasury stock
1,473,527 and 1,468,277 shares, respectively
|
(15,561)
|
|
|
(15,343)
|
|
Total
shareholders' equity
|
112,794
|
|
|
96,366
|
|
Total liabilities
and shareholders' equity
|
$
|
174,784
|
|
|
$
|
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
|
|
September 30,
2015
|
June 30,
2015
|
September 30,
2014
|
|
|
|
|
Adjusted
EBITDA
|
$
|
10,999
|
|
$
|
8,902
|
|
$
|
5,791
|
|
Adjusted EBITDA %
of revenue
|
16
|
%
|
16
|
%
|
14
|
%
|
Adjustments to
reconcile to net income from continuing operations:
|
|
|
|
Depreciation
|
(764)
|
|
(717)
|
|
(840)
|
|
Amortization of
intangibles
|
(25)
|
|
(37)
|
|
(41)
|
|
Interest
expense
|
(1)
|
|
(64)
|
|
(1)
|
|
Income tax (expense)
benefit
|
(389)
|
|
(272)
|
|
2
|
|
Adjusted net
income
|
9,820
|
|
7,812
|
|
4,911
|
|
|
|
|
|
Non-cash
compensation
|
(1,978)
|
|
(1,919)
|
|
(1,786)
|
|
Loss on disposal of
assets
|
(64)
|
|
(10)
|
|
(185)
|
|
Estimated settlement
for unclaimed property
|
—
|
|
(134)
|
|
—
|
|
Acquisition
expense
|
(234)
|
|
—
|
|
(40)
|
|
Restructuring and
severance
|
(28)
|
|
(388)
|
|
(7)
|
|
Litigation
settlements and contingencies (1)
|
(133)
|
|
1,078
|
|
(2,338)
|
|
Net income from
continuing operations
|
$
|
7,383
|
|
$
|
6,439
|
|
$
|
555
|
|
Net income from
continuing operations % of revenue
|
11
|
%
|
12
|
%
|
1
|
%
|
|
|
|
|
Adjusted net
income per share
|
$
|
0.79
|
|
$
|
0.63
|
|
$
|
0.41
|
|
Adjustments to
reconcile adjusted net income to net income from continuing
operations
|
$
|
(0.20)
|
|
$
|
(0.11)
|
|
$
|
(0.36)
|
|
Adjustments to
reconcile effect of dilutive securities
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
Net income per
diluted share from continuing operations
|
$
|
0.59
|
|
$
|
0.52
|
|
$
|
0.05
|
|
|
|
|
|
Adjusted weighted
average diluted shares outstanding
|
12,489
|
|
12,334
|
|
11,836
|
|
Effect of dilutive
securities
|
—
|
|
—
|
|
—
|
|
Weighted average
diluted shares outstanding
|
12,489
|
|
12,334
|
|
11,836
|
|
Effect of dilutive
securities
|
1,044
|
|
952
|
|
654
|
|
Weighted average
basic shares outstanding
|
11,445
|
|
11,382
|
|
11,182
|
|
|
|
(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 in the
second quarter 2015.
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
September 30, 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.