Tree.com, Inc. Announces Special Cash Dividend of $1.00 per Share
and Updates Fourth Quarter 2012 Guidance
CHARLOTTE, N.C., Dec. 6, 2012 /PRNewswire/ -- Tree.com, Inc.
(NASDAQ: TREE), the parent company of wholly owned subsidiary
LendingTree, LLC, today announced that its Board of Directors has
approved a special cash dividend of $1.00 per share. Additionally, the company
expects to meet or exceed the upper end of its most recent
guidance, which was $14 million
Adjusted Exchanges EBITDA for the full year 2012, and $2.5 million Adjusted EBITDA from continuing
operations for the fourth quarter 2012.
(Logo: http://photos.prnewswire.com/prnh/20110518/MM04466LOGO
)
Doug Lebda, chairman and CEO of
Tree.com, noted, "As we committed to our shareholders, we are
examining all the potential uses of our cash, and in addition to
our continued share buyback plan, we believe it is appropriate at
this time to return capital to our shareholders. Following this
dividend, we will still have substantial capital resources to
explore prudent acquisition opportunities, operate our business,
and continue to repurchase our stock. We will continue to explore
all of these avenues, in addition to the possibility of future
dividends, and keep our shareholders appropriately informed of our
strategy."
Commenting on the increased guidance for the fourth quarter,
Lebda continued, "Sales to lenders and our marketing performance
have continued to outperform our expectations, countering the
typical seasonal trends in the fourth quarter. We are
continuing to take market share and gain momentum which bodes well
for our 2013 growth plans."
The $1.00 special cash dividend is
payable on December 26, 2012 to
shareholders of record on December 17,
2012. The total amount of the special dividend paid to
shareholders will be approximately $11.5
million based on the current number of shares outstanding
and will be paid using cash on hand.
Definitions of Certain Financial Measures
EBITDA is a non-GAAP measure defined as operating income or loss
(which excludes interest expense and taxes) excluding amortization
of intangibles and depreciation.
Adjusted EBITDA is a non-GAAP measure defined as EBITDA
excluding (1) non-cash compensation expense, (2) non-cash
intangible asset impairment charges, (3) gain/loss on disposal of
assets, (4) restructuring expenses, (5) litigation settlements and
contingencies, (6) pro forma adjustments for significant
acquisitions or dispositions, and (7) one-time items.
Adjusted Exchanges EBITDA is defined as Adjusted EBITDA from
continuing operations, plus modeled revenue for leads provided to
the company's former mortgage origination business, minus Exchanges
selling and marketing expense allocated to the company's former
mortgage origination business and recorded in discontinued
operations.
Tree.com is not able to provide a reconciliation of projected
adjusted Exchanges EBITDA or 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.
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. For further
information on Tree.com's non-GAAP measures, see Tree.com's press
release dated November 5, 2012,
including as Exhibit 99.1 to Form 8-K filed with the Securities and
Exchange Commission on November 5,
2012.
Variable marketing margin is defined as revenue minus the
portion of selling and marketing expense attributable to the
business for variable costs paid for advertising, direct marketing
and related expenses. This metric excludes overhead, fixed costs
and personnel-related expenses.
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 Tree.com
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; 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, 2011, our Quarterly Reports on Form
10-Q for the periods ended March 31,
2012 and June 30, 2012, 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 Tree.com, Inc.
Tree.com, Inc. (NASDAQ: TREE) is
the parent of several brands and businesses that provide
information, tools, advice, products and services for critical
transactions in consumers' lives. Our family of brands
includes: LendingTree®, GetSmart®, DegreeTree®, LendingTreeAutos,
DoneRight!®, ServiceTreeSM, InsuranceTree® and
HealthTree. Together, these brands serve as an ally for
consumers who are looking to comparison shop for loans, education,
auto, home services and other services from multiple businesses and
professionals who will compete for their business.
Tree.com, Inc. is headquartered in Charlotte, N.C. and maintains operations
solely in the United States. For
more information, please visit www.tree.com.
SOURCE Tree.com, Inc.