CHARLOTTE, N.C., July 28, 2016 /PRNewswire/ --
- Revenue of $94.3 million; up 71%
over second quarter 2015
- Variable Marketing Margin of $34.0
million; up 59% over second quarter 2015
- Net Income from Continuing Operations of $9.0 million; up 41% over second quarter
2015
- Record Adjusted EBITDA of $16.7
million; up 88% over second quarter 2015
- Net Income per Diluted Share from Continuing Operations of
$0.71
- Adjusted Net Income per Share of $0.92
- Record revenue from mortgage products of $56.0 million, up 51% over second quarter
2015
- Increasing full-year 2016 Variable Marketing Margin and
Adjusted EBITDA guidance
LendingTree, Inc. (NASDAQ: TREE), operator of LendingTree.com,
the nation's leading online loan marketplace, today announced
results for the quarter ended June 30,
2016.
"We're thrilled to report another terrific quarter," said
Doug Lebda, founder, Chairman and
CEO. "We managed the business remarkably well through
well-publicized headwinds in the personal loan industry. We
delivered another new record in adjusted EBITDA for the fourth
consecutive quarter and grew net income per diluted share by
thirty-one percent sequentially over the first quarter," continued
Lebda. "The second quarter's results demonstrate the
resiliency of our model and give me even more confidence in our
future prospects and opportunities for growth."
Gabe Dalporto, Chief Financial
Officer added, "Having weathered the challenges we saw during the
second quarter, we're increasing our variable marketing margin and
adjusted EBITDA outlook for the rest of the year. Our
fundamentals remain strong as we're expanding our lender network
and growing consumer loan requests across categories while
continuing to deliver innovative solutions to drive consumer
finance online."
Second Quarter 2016 Business Highlights
- Total loan requests in the quarter grew to 3.6 million, up 84%
over second quarter 2015.
- Record revenue from mortgage products of $56.0 million represents an increase of 51% over
second quarter 2015. Mortgage originations nationwide grew 4% year
over year, according to a survey of industry estimates.
- Revenue from all lending categories grew compared to the prior
year period.
- In personal loans, we added 6 new lenders including a major
national financial services company and grew loan requests 23%
sequentially on reduced marketing expense.
- In home equity, we grew loan requests 48% sequentially and
added a major national bank. 4 of the top 5 largest national banks
are now partnering with LendingTree in home equity.
- Enrollment growth in My LendingTree continued, as more than 3.3
million consumers have now joined the My LendingTree
personalization platform. Revenue contribution from My LendingTree
grew 98% compared to the prior year.
LendingTree
Selected Financial Metrics
|
(In millions,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q/Q
|
|
|
|
|
Y/Y
|
|
|
Q2
2016
|
|
Q1
2016
|
|
%
Change
|
|
|
Q2
2015
|
|
%
Change
|
|
Revenue by
Product
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage Products
(1)
|
$
|
56.0
|
|
|
$
|
55.0
|
|
|
2
|
%
|
|
|
$
|
37.2
|
|
|
51
|
%
|
|
Non-Mortgage Products
(2)
|
38.3
|
|
|
39.7
|
|
|
(4)
|
%
|
|
|
17.9
|
|
|
114
|
%
|
|
Total
Revenue
|
$
|
94.3
|
|
|
$
|
94.7
|
|
|
—
|
%
|
|
|
$
|
55.1
|
|
|
71
|
%
|
|
Non-Mortgage % of
Total
|
41
|
%
|
|
42
|
%
|
|
|
|
|
32
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and
Marketing Expense
|
|
|
|
|
|
|
|
|
|
|
|
Exchanges Marketing
Expense (3)
|
$
|
60.3
|
|
|
$
|
60.6
|
|
|
—
|
%
|
|
|
$
|
33.7
|
|
|
79
|
%
|
|
Other Selling &
Marketing
|
4.2
|
|
|
4.5
|
|
|
(7)
|
%
|
|
|
3.2
|
|
|
31
|
%
|
|
Selling and
Marketing Expense
|
$
|
64.5
|
|
|
$
|
65.1
|
|
|
(1)
|
%
|
|
|
$
|
36.9
|
|
|
75
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Variable Marketing
Margin (4)
|
$
|
34.0
|
|
|
$
|
34.1
|
|
|
—
|
%
|
|
|
$
|
21.4
|
|
|
59
|
%
|
|
Variable Marketing
Margin % of Revenue
|
36
|
%
|
|
36
|
%
|
|
|
|
|
39
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Before Income
Taxes
|
$
|
12.6
|
|
|
$
|
11.7
|
|
|
8
|
%
|
|
|
$
|
6.7
|
|
|
88
|
%
|
|
Income Tax
Expense
|
$
|
(3.6)
|
|
|
$
|
(4.8)
|
|
|
(25)
|
%
|
|
|
$
|
(0.3)
|
|
|
1100
|
%
|
|
Net Income from
Continuing Operations
|
$
|
9.0
|
|
|
$
|
6.9
|
|
|
30
|
%
|
|
|
$
|
6.4
|
|
|
41
|
%
|
|
Net Income from
Cont. Ops. % of Revenue
|
10
|
%
|
|
7
|
%
|
|
|
|
|
12
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income per
Share from Cont. Ops.
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.76
|
|
|
$
|
0.58
|
|
|
31
|
%
|
|
|
$
|
0.57
|
|
|
33
|
%
|
|
Diluted
|
$
|
0.71
|
|
|
$
|
0.54
|
|
|
31
|
%
|
|
|
$
|
0.52
|
|
|
37
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(5)
|
$
|
16.7
|
|
|
$
|
15.8
|
|
|
6
|
%
|
|
|
$
|
8.9
|
|
|
88
|
%
|
|
Adjusted EBITDA %
of Revenue (5)
|
18
|
%
|
|
17
|
%
|
|
|
|
|
16
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net
Income (5)
|
$
|
11.7
|
|
|
$
|
9.8
|
|
|
19
|
%
|
|
|
$
|
7.8
|
|
|
50
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net
Income per Share (5)
|
$
|
0.92
|
|
|
$
|
0.76
|
|
|
21
|
%
|
|
|
$
|
0.63
|
|
|
46
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Includes the purchase
mortgage and refinance mortgage products.
|
(2)
|
Includes the home
equity, reverse mortgage, personal loan, credit card, small
business loan, student loan, auto loan, 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 2016 Financial Highlights
- Consolidated revenue of $94.3
million represents an increase of $39.2 million, or 71%, over revenue in the second
quarter 2015.
- Variable Marketing Margin of $34.0
million represents an increase of $12.6 million, or 59%, over second quarter 2015.
At 36% of revenue, Variable Marketing Margin percentage was
consistent with the prior quarter despite the inclusion of
$0.5 million in television commercial
production expense.
- Net Income from Continuing Operations of $9.0 million was up 41% over second quarter 2015.
Net Income from Continuing Operations as a percent of revenue of
10% declined compared to 12% in second quarter 2015 primarily due
to higher income tax provision.
- Record Adjusted EBITDA of $16.7
million increased $7.8
million, or 88%, over second quarter 2015. Adjusted EBITDA
as percent of revenue improved to 18% from 16% in the second
quarter 2015.
- Income per diluted share from continuing operations of
$0.71 was up 37% over second quarter
2015.
- Adjusted Net Income per share of $0.92, representing growth of 46% year over year.
Both GAAP and Adjusted Net Income per share reflect the full
$3.6 million income tax expense
recorded in accordance with GAAP. Income tax expense benefited by
approximately $1.5 million in
relation to a federal research and development tax credit recorded
during the quarter.
- During the second quarter 2016, the company repurchased 107
thousand shares of its stock at a weighted-average price per share
of $71.15 for aggregate consideration
of $7.6 million. As of June 30, 2016, the company has $49.1 million in repurchase authorization
remaining.
Business Outlook - 2016
LendingTree is providing Revenue, Variable Marketing Margin, and
Adjusted EBITDA guidance for third quarter 2016, and updating
full-year 2016 guidance, as follows:
For third quarter 2016:
- Revenue is anticipated to be $96.0 -
$99.0 million, an increase of 38% - 42% over third quarter
2015.
- Variable Marketing Margin is anticipated to be in the range of
$35.0 - $36.5 million, growing 44% -
50% over third quarter 2015.
- Adjusted EBITDA is anticipated to be in the range of
$16.5 - $17.5 million, implying
year-over-year growth of 50% - 59%.
For full-year 2016:
- Revenue guidance remains in the range of $380 - $390 million, or 49% - 53% over full-year
2015.
- Variable Marketing Margin is now anticipated to be $137 - $139 million, or 44% - 46% over full-year
2015, due to improved margin outlook. This represents an increase
from prior guidance of $134 - $137
million.
- Adjusted EBITDA is now anticipated to be in the range of
$64 - $66 million, or 57% - 62%
compared to full-year 2015, an increase from prior guidance of
$62 - $65 million.
LendingTree is not able to provide a reconciliation of projected
adjusted EBITDA to the most directly comparable expected GAAP
results due to the unknown effect, timing and potential
significance of the effects of legal matters and tax
considerations. Expenses associated with legal matters and
tax consequences have in the past, and may in the future,
significantly affect GAAP results in a particular period.
Quarterly Conference Call
A conference call to discuss LendingTree's second quarter 2016
financial results will be webcast live today, July 28, 2016 at 9:00 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
12:00 PM ET on Tuesday, August 2, 2016. To listen to the
telephone replay, call toll-free (855) 859-2056 with passcode
#48780452. Callers outside the United
States and Canada may dial
(404) 537-3406 with passcode #48780452.
LENDINGTREE, INC. AND
SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(Unaudited)
|
|
|
Three Months
Ended June 30,
|
|
Six Months
Ended June 30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in thousands, except per share
amounts)
|
Revenue
|
$
|
94,290
|
|
|
$
|
55,136
|
|
|
$
|
189,003
|
|
|
$
|
106,071
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
Cost of revenue
(exclusive of depreciation shown separately below)
|
3,464
|
|
|
1,991
|
|
|
6,937
|
|
|
3,966
|
|
Selling and marketing
expense
|
64,538
|
|
|
36,877
|
|
|
129,597
|
|
|
69,714
|
|
General and
administrative expense
|
8,553
|
|
|
7,039
|
|
|
17,812
|
|
|
14,267
|
|
Product
development
|
3,781
|
|
|
2,390
|
|
|
7,666
|
|
|
4,563
|
|
Depreciation
|
1,174
|
|
|
717
|
|
|
2,172
|
|
|
1,371
|
|
Amortization of
intangibles
|
72
|
|
|
37
|
|
|
97
|
|
|
99
|
|
Restructuring and
severance
|
72
|
|
|
388
|
|
|
72
|
|
|
394
|
|
Litigation
settlements and contingencies
|
(79)
|
|
|
(1,078)
|
|
|
90
|
|
|
(796)
|
|
Total costs and
expenses
|
81,575
|
|
|
48,361
|
|
|
164,443
|
|
|
93,578
|
|
Operating
income
|
12,715
|
|
|
6,775
|
|
|
24,560
|
|
|
12,493
|
|
Other income
(expense), net:
|
|
|
|
|
|
|
|
Interest
expense
|
(141)
|
|
|
(64)
|
|
|
(283)
|
|
|
(62)
|
|
Income before
income taxes
|
12,574
|
|
|
6,711
|
|
|
24,277
|
|
|
12,431
|
|
Income tax
expense
|
(3,572)
|
|
|
(272)
|
|
|
(8,370)
|
|
|
(579)
|
|
Net income from
continuing operations
|
9,002
|
|
|
6,439
|
|
|
15,907
|
|
|
11,852
|
|
Loss from
discontinued operations
|
(1,150)
|
|
|
(1,717)
|
|
|
(2,353)
|
|
|
(1,943)
|
|
Net income and
comprehensive income
|
$
|
7,852
|
|
|
$
|
4,722
|
|
|
$
|
13,554
|
|
|
$
|
9,909
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
11,795
|
|
|
11,382
|
|
|
11,863
|
|
|
11,343
|
|
Diluted
|
12,730
|
|
|
12,334
|
|
|
12,800
|
|
|
12,257
|
|
Income per share
from continuing operations:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.76
|
|
|
$
|
0.57
|
|
|
$
|
1.34
|
|
|
$
|
1.04
|
|
Diluted
|
$
|
0.71
|
|
|
$
|
0.52
|
|
|
$
|
1.24
|
|
|
$
|
0.97
|
|
Loss per share
from discontinued operations:
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.10)
|
|
|
$
|
(0.15)
|
|
|
$
|
(0.20)
|
|
|
$
|
(0.17)
|
|
Diluted
|
$
|
(0.09)
|
|
|
$
|
(0.14)
|
|
|
$
|
(0.18)
|
|
|
$
|
(0.16)
|
|
Net income per
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.67
|
|
|
$
|
0.41
|
|
|
$
|
1.14
|
|
|
$
|
0.87
|
|
Diluted
|
$
|
0.62
|
|
|
$
|
0.38
|
|
|
$
|
1.06
|
|
|
$
|
0.81
|
|
Amounts include
non-cash compensation, as follows:
|
|
|
|
|
|
|
|
Cost of
revenue
|
$
|
29
|
|
|
$
|
24
|
|
|
$
|
70
|
|
|
$
|
44
|
|
Selling and marketing
expense
|
655
|
|
|
385
|
|
|
1,381
|
|
|
655
|
|
General and
administrative expense
|
1,129
|
|
|
1,125
|
|
|
2,439
|
|
|
2,731
|
|
Product
development
|
616
|
|
|
385
|
|
|
1,172
|
|
|
825
|
|
LENDINGTREE, INC. AND
SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
(Unaudited)
|
|
|
June 30,
2016
|
|
December 31,
2015
|
|
(in thousands, except par value and share
amounts)
|
ASSETS:
|
|
|
|
Cash and cash
equivalents
|
$
|
159,611
|
|
|
$
|
206,975
|
|
Restricted cash and
cash equivalents
|
4,087
|
|
|
6,541
|
|
Accounts receivable,
net
|
41,733
|
|
|
29,873
|
|
Prepaid and other
current assets
|
5,195
|
|
|
2,085
|
|
Current assets of
discontinued operations
|
—
|
|
|
110
|
|
Total current
assets
|
210,626
|
|
|
245,584
|
|
Property and
equipment, net
|
12,939
|
|
|
9,415
|
|
Goodwill
|
4,007
|
|
|
3,632
|
|
Intangible assets,
net
|
15,395
|
|
|
10,992
|
|
Deferred income tax
assets
|
19,090
|
|
|
20,977
|
|
Other non-current
assets
|
917
|
|
|
1,039
|
|
Non-current assets of
discontinued operations
|
4,142
|
|
|
4,142
|
|
Total
assets
|
$
|
267,116
|
|
|
$
|
295,781
|
|
|
|
|
|
LIABILITIES:
|
|
|
|
Accounts payable,
trade
|
$
|
1,345
|
|
|
$
|
5,741
|
|
Accrued expenses and
other current liabilities
|
37,228
|
|
|
34,885
|
|
Current liabilities
of discontinued operations
|
14,057
|
|
|
13,401
|
|
Total current
liabilities
|
52,630
|
|
|
54,027
|
|
Other non-current
liabilities
|
1,618
|
|
|
586
|
|
Non-current
liabilities of discontinued operations
|
27
|
|
|
26
|
|
Total
liabilities
|
54,275
|
|
|
54,639
|
|
Commitments and
contingencies
|
|
|
|
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; 13,945,565 and
13,865,620 shares issued, respectively, and 11,785,411 and
12,392,093 shares outstanding, respectively
|
139
|
|
|
139
|
|
Additional paid-in
capital
|
1,013,021
|
|
|
1,006,688
|
|
Accumulated
deficit
|
(736,570)
|
|
|
(750,124)
|
|
Treasury stock
2,160,154 and 1,473,527 shares, respectively
|
(63,749)
|
|
|
(15,561)
|
|
Total
shareholders' equity
|
212,841
|
|
|
241,142
|
|
Total liabilities
and shareholders' equity
|
$
|
267,116
|
|
|
$
|
295,781
|
|
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,
2016
|
March 31,
2016
|
June 30,
2015
|
|
|
|
|
Adjusted
EBITDA
|
$
|
16,660
|
|
$
|
15,797
|
|
$
|
8,902
|
|
Adjusted EBITDA %
of revenue
|
18
|
%
|
17
|
%
|
16
|
%
|
Adjustments to
reconcile to net income from continuing operations:
|
|
|
|
Depreciation
|
(1,174)
|
|
(998)
|
|
(717)
|
|
Amortization of
intangibles
|
(72)
|
|
(25)
|
|
(37)
|
|
Interest
expense
|
(141)
|
|
(142)
|
|
(64)
|
|
Income tax
expense
|
(3,572)
|
|
(4,798)
|
|
(272)
|
|
Adjusted net
income
|
11,701
|
|
9,834
|
|
7,812
|
|
|
|
|
|
Non-cash
compensation
|
(2,429)
|
|
(2,633)
|
|
(1,919)
|
|
Loss on disposal of
assets
|
(140)
|
|
(127)
|
|
(10)
|
|
Estimated settlement
for unclaimed property
|
—
|
|
—
|
|
(134)
|
|
Acquisition
expense
|
(137)
|
|
—
|
|
—
|
|
Restructuring and
severance
|
(72)
|
|
—
|
|
(388)
|
|
Litigation
settlements and contingencies (1)
|
79
|
|
(169)
|
|
1,078
|
|
Net income from
continuing operations
|
$
|
9,002
|
|
$
|
6,905
|
|
$
|
6,439
|
|
Net income from
continuing operations % of revenue
|
10
|
%
|
7
|
%
|
12
|
%
|
|
|
|
|
Adjusted net
income per share
|
$
|
0.92
|
|
$
|
0.76
|
|
$
|
0.63
|
|
Adjustments to
reconcile adjusted net income to net income from continuing
operations
|
$
|
(0.21)
|
|
$
|
(0.22)
|
|
$
|
(0.11)
|
|
Adjustments to
reconcile effect of dilutive securities
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
Net income per
diluted share from continuing operations
|
$
|
0.71
|
|
$
|
0.54
|
|
$
|
0.52
|
|
|
|
|
|
Adjusted weighted
average diluted shares outstanding
|
12,730
|
|
12,873
|
|
12,334
|
|
Effect of dilutive
securities
|
—
|
|
—
|
|
—
|
|
Weighted average
diluted shares outstanding
|
12,730
|
|
12,873
|
|
12,334
|
|
Effect of dilutive
securities
|
935
|
|
942
|
|
952
|
|
Weighted average
basic shares outstanding
|
11,795
|
|
11,931
|
|
11,382
|
|
|
|
(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 from continuing
operations and GAAP income (loss) per diluted share.
Adjusted net income and adjusted net income per share supplement
GAAP income 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.
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) gain/loss on disposal of assets, (3)
restructuring and severance expenses, (4) litigation settlements,
contingencies and legal fees for certain patent litigation, (5)
adjustments for acquisitions or dispositions, and (6) one-time
items.
Adjusted net income is defined as net income (loss) from
continuing operations excluding (1) non-cash compensation expense,
(2) gain/loss on disposal of assets, (3) restructuring and
severance expenses, (4) litigation settlements, contingencies and
legal fees for certain patent litigation, (5) adjustments for
acquisitions or dispositions, and (6) 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; default rates on loans,
particularly unsecured loans; demand by investors for unsecured
personal loans; the effect of such demand on interest rates for
personal loans and consumer demand for personal loans; 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, 2015, in our quarterly report on
Form 10-Q for the period ended March 31,
2016 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 its network of over
400 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.