Attached files
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| 8-K - 8-K - Match Group, Inc. | coveritemsandsignatures.htm |
Exhibit 99.1
The tables below reflect the Company's changes in reportable segments using Adjusted EBITDA, the Company’s new non-U.S. GAAP financial measure. For more information on these changes, see Item 7.01 in this Form 8-K.
2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | FYE 12/31 | Q1 | Q2 | Q3 | Q4 | FYE 12/31 | FYE 12/31 | |||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||||||||||||||||
Search & Applications | $ | 397,192 | $ | 427,449 | $ | 407,291 | $ | 373,018 | $ | 1,604,950 | $ | 343,198 | $ | 348,762 | $ | 370,227 | $ | 403,608 | $ | 1,465,795 | $ | 1,040,507 | |||||||||||||||||||||
The Match Group | 192,875 | 197,987 | 205,196 | 209,332 | 805,390 | 174,499 | 178,587 | 178,352 | 182,784 | 714,222 | 519,195 | ||||||||||||||||||||||||||||||||
Media | 44,995 | 57,495 | 50,299 | 38,645 | 191,434 | 15,687 | 38,199 | 52,574 | 57,591 | 164,051 | 68,996 | ||||||||||||||||||||||||||||||||
eCommerce | 107,297 | 116,591 | 94,438 | 103,740 | 422,066 | 107,325 | 115,134 | 113,378 | 121,345 | 457,182 | 431,483 | ||||||||||||||||||||||||||||||||
Inter-segment elimination | (110 | ) | (111 | ) | (352 | ) | (280 | ) | (853 | ) | (109 | ) | (70 | ) | (61 | ) | (77 | ) | (317 | ) | (737 | ) | |||||||||||||||||||||
Total | $ | 742,249 | $ | 799,411 | $ | 756,872 | $ | 724,455 | $ | 3,022,987 | $ | 640,600 | $ | 680,612 | $ | 714,470 | $ | 765,251 | $ | 2,800,933 | $ | 2,059,444 | |||||||||||||||||||||
Operating income (loss): | |||||||||||||||||||||||||||||||||||||||||||
Search & Applications | $ | 86,983 | $ | 89,346 | $ | 87,756 | $ | 76,032 | $ | 340,117 | $ | 73,490 | $ | 74,067 | $ | 69,036 | $ | 89,051 | $ | 305,644 | $ | 204,006 | |||||||||||||||||||||
The Match Group | 37,359 | 53,129 | 60,164 | 77,503 | 228,155 | 28,945 | 56,232 | 54,520 | 60,469 | 200,166 | 134,486 | ||||||||||||||||||||||||||||||||
Media | (7,157 | ) | (2,033 | ) | (5,558 | ) | (6,055 | ) | (20,803 | ) | (5,708 | ) | (6,438 | ) | (11,620 | ) | (23,136 | ) | (46,902 | ) | (13,206 | ) | |||||||||||||||||||||
eCommerce | (4,493 | ) | (4,603 | ) | 9,285 | (250 | ) | (61 | ) | 2,283 | 9,649 | 4,905 | (1,514 | ) | 15,323 | 22,674 | |||||||||||||||||||||||||||
Corporate | (28,141 | ) | (29,143 | ) | (29,643 | ) | (34,278 | ) | (121,205 | ) | (36,245 | ) | (36,034 | ) | (38,808 | ) | (39,576 | ) | (150,663 | ) | (150,198 | ) | |||||||||||||||||||||
Total | $ | 84,551 | $ | 106,696 | $ | 122,004 | $ | 112,952 | $ | 426,203 | $ | 62,765 | $ | 97,476 | $ | 78,033 | $ | 85,294 | $ | 323,568 | $ | 197,762 | |||||||||||||||||||||
Non-cash compensation expense: | |||||||||||||||||||||||||||||||||||||||||||
Search & Applications | $ | 3 | $ | — | $ | — | $ | — | $ | 3 | $ | 8 | $ | 9 | $ | 9 | $ | 8 | $ | 34 | $ | (202 | ) | ||||||||||||||||||||
The Match Group | (157 | ) | 363 | 336 | 580 | 1,122 | 907 | 556 | 560 | 795 | 2,818 | 1,642 | |||||||||||||||||||||||||||||||
Media | 205 | 213 | 219 | (4 | ) | 633 | 268 | 236 | 62 | 204 | 770 | 427 | |||||||||||||||||||||||||||||||
eCommerce | (29 | ) | — | — | — | (29 | ) | (78 | ) | 26 | 26 | 24 | (2 | ) | 222 | ||||||||||||||||||||||||||||
Corporate | 12,641 | 11,244 | 13,810 | 13,581 | 51,276 | 20,361 | 19,614 | 22,694 | 19,336 | 82,005 | 86,499 | ||||||||||||||||||||||||||||||||
Total | $ | 12,663 | $ | 11,820 | $ | 14,365 | $ | 14,157 | $ | 53,005 | $ | 21,466 | $ | 20,441 | $ | 23,351 | $ | 20,367 | $ | 85,625 | $ | 88,588 | |||||||||||||||||||||
Depreciation: | |||||||||||||||||||||||||||||||||||||||||||
Search & Applications | $ | 3,865 | $ | 6,413 | $ | 3,865 | $ | 4,034 | $ | 18,177 | $ | 3,291 | $ | 3,385 | $ | 3,343 | $ | 4,976 | $ | 14,995 | $ | 25,484 | |||||||||||||||||||||
The Match Group | 4,706 | 4,838 | 5,043 | 5,616 | 20,203 | 3,537 | 3,742 | 4,502 | 4,558 | 16,339 | 10,780 | ||||||||||||||||||||||||||||||||
Media | 523 | 524 | 526 | 551 | 2,124 | 179 | 295 | 424 | 500 | 1,398 | 703 | ||||||||||||||||||||||||||||||||
eCommerce | 2,619 | 2,993 | 1,648 | 1,627 | 8,887 | 3,045 | 2,732 | 2,749 | 2,684 | 11,210 | 11,239 | ||||||||||||||||||||||||||||||||
Corporate | 2,303 | 2,268 | 2,407 | 2,540 | 9,518 | 2,063 | 2,071 | 2,132 | 2,273 | 8,539 | 8,513 | ||||||||||||||||||||||||||||||||
Total | $ | 14,016 | $ | 17,036 | $ | 13,489 | $ | 14,368 | $ | 58,909 | $ | 12,115 | $ | 12,225 | $ | 13,150 | $ | 14,991 | $ | 52,481 | $ | 56,719 | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | FYE 12/31 | Q1 | Q2 | Q3 | Q4 | FYE 12/31 | FYE 12/31 | |||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||||||||
Amortization of intangibles: | |||||||||||||||||||||||||||||||||||||||||||
Search & Applications | $ | 6,663 | $ | 6,661 | $ | 6,891 | $ | 7,339 | $ | 27,554 | $ | 2 | $ | 3 | $ | 147 | $ | 7,316 | $ | 7,468 | $ | 1,176 | |||||||||||||||||||||
The Match Group | 4,540 | 5,106 | 3,153 | 4,327 | 17,126 | 6,515 | 4,990 | 3,342 | 2,608 | 17,455 | 17,077 | ||||||||||||||||||||||||||||||||
Media | 249 | 293 | 272 | 256 | 1,070 | — | 280 | 880 | 5,019 | 6,179 | 3 | ||||||||||||||||||||||||||||||||
eCommerce | 2,626 | 6,077 | 2,716 | 2,674 | 14,093 | 524 | 532 | 843 | 2,770 | 4,669 | 3,801 | ||||||||||||||||||||||||||||||||
Corporate | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Total | $ | 14,078 | $ | 18,137 | $ | 13,032 | $ | 14,596 | $ | 59,843 | $ | 7,041 | $ | 5,805 | $ | 5,212 | $ | 17,713 | $ | 35,771 | $ | 22,057 | |||||||||||||||||||||
Acquisition-related contingent consideration fair value adjustments: | |||||||||||||||||||||||||||||||||||||||||||
Search & Applications | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||
The Match Group | 1,458 | 4,249 | 632 | (5,996 | ) | 343 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Media | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
eCommerce | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Corporate | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Total | $ | 1,458 | $ | 4,249 | $ | 632 | $ | (5,996 | ) | $ | 343 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||
Adjusted EBITDA: | |||||||||||||||||||||||||||||||||||||||||||
Search & Applications | $ | 97,514 | $ | 102,420 | $ | 98,512 | $ | 87,405 | $ | 385,851 | $ | 76,791 | $ | 77,464 | $ | 72,535 | $ | 101,351 | $ | 328,141 | $ | 230,464 | |||||||||||||||||||||
The Match Group | 47,906 | 67,685 | 69,328 | 82,030 | 266,949 | 39,904 | 65,520 | 62,924 | 68,430 | 236,778 | 163,985 | ||||||||||||||||||||||||||||||||
Media | (6,180 | ) | (1,003 | ) | (4,541 | ) | (5,252 | ) | (16,976 | ) | (5,261 | ) | (5,627 | ) | (10,254 | ) | (17,413 | ) | (38,555 | ) | (12,073 | ) | |||||||||||||||||||||
eCommerce | 723 | 4,467 | 13,649 | 4,051 | 22,890 | 5,774 | 12,939 | 8,523 | 3,964 | 31,200 | 37,936 | ||||||||||||||||||||||||||||||||
Corporate | (13,197 | ) | (15,631 | ) | (13,426 | ) | (18,157 | ) | (60,411 | ) | (13,821 | ) | (14,349 | ) | (13,982 | ) | (17,967 | ) | (60,119 | ) | (55,186 | ) | |||||||||||||||||||||
Total | $ | 126,766 | $ | 157,938 | $ | 163,522 | $ | 150,077 | $ | 598,303 | $ | 103,387 | $ | 135,947 | $ | 119,746 | $ | 138,365 | $ | 497,445 | $ | 365,126 | |||||||||||||||||||||
Reconciliation of Adjusted EBITDA to operating income to net earnings attributable to IAC shareholders:
2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | FYE 12/31 | Q1 | Q2 | Q3 | Q4 | FYE 12/31 | FYE 12/31 | |||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 126,766 | $ | 157,938 | $ | 163,522 | $ | 150,077 | $ | 598,303 | $ | 103,387 | $ | 135,947 | $ | 119,746 | $ | 138,365 | $ | 497,445 | $ | 365,126 | |||||||||||||||||||||
Non-cash compensation expense | (12,663 | ) | (11,820 | ) | (14,365 | ) | (14,157 | ) | (53,005 | ) | (21,466 | ) | (20,441 | ) | (23,351 | ) | (20,367 | ) | (85,625 | ) | (88,588 | ) | |||||||||||||||||||||
Depreciation | (14,016 | ) | (17,036 | ) | (13,489 | ) | (14,368 | ) | (58,909 | ) | (12,115 | ) | (12,225 | ) | (13,150 | ) | (14,991 | ) | (52,481 | ) | (56,719 | ) | |||||||||||||||||||||
Amortization of intangibles | (14,078 | ) | (18,137 | ) | (13,032 | ) | (14,596 | ) | (59,843 | ) | (7,041 | ) | (5,805 | ) | (5,212 | ) | (17,713 | ) | (35,771 | ) | (22,057 | ) | |||||||||||||||||||||
Acquisition-related contingent consideration fair value adjustments | (1,458 | ) | (4,249 | ) | (632 | ) | 5,996 | (343 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||||
Operating income | 84,551 | 106,696 | 122,004 | 112,952 | 426,203 | 62,765 | 97,476 | 78,033 | 85,294 | 323,568 | 197,762 | ||||||||||||||||||||||||||||||||
Equity in (losses) income of unconsolidated affiliates | (91 | ) | (1,078 | ) | (3,253 | ) | (2,193 | ) | (6,615 | ) | (5,901 | ) | (19,009 | ) | (3,298 | ) | 2,863 | (25,345 | ) | (36,300 | ) | ||||||||||||||||||||||
Interest expense | (7,663 | ) | (7,658 | ) | (7,623 | ) | (10,652 | ) | (33,596 | ) | (1,347 | ) | (1,364 | ) | (1,391 | ) | (2,047 | ) | (6,149 | ) | (5,430 | ) | |||||||||||||||||||||
Other income (expense), net | 1,658 | (4 | ) | 16,719 | 11,936 | 30,309 | 2,756 | (368 | ) | 447 | (5,847 | ) | (3,012 | ) | 15,490 | ||||||||||||||||||||||||||||
Earnings from continuing operations before income taxes | 78,455 | 97,956 | 127,847 | 112,043 | 416,301 | 58,273 | 76,735 | 73,791 | 80,263 | 289,062 | 171,522 | ||||||||||||||||||||||||||||||||
Income tax (provision) benefit | (25,746 | ) | (39,416 | ) | (36,126 | ) | (33,214 | ) | (134,502 | ) | (27,120 | ) | (28,634 | ) | (27,606 | ) | (35,855 | ) | (119,215 | ) | 4,047 | ||||||||||||||||||||||
Earnings from continuing operations | 52,709 | 58,540 | 91,721 | 78,829 | 281,799 | 31,153 | 48,101 | 46,185 | 44,408 | 169,847 | 175,569 | ||||||||||||||||||||||||||||||||
(Loss) earnings from discontinued operations, net of tax | (944 | ) | (1,068 | ) | 3,914 | 24 | 1,926 | 3,684 | (4,641 | ) | (5,624 | ) | (2,470 | ) | (9,051 | ) | (3,992 | ) | |||||||||||||||||||||||||
Net earnings | 51,765 | 57,472 | 95,635 | 78,853 | 283,725 | 34,837 | 43,460 | 40,561 | 41,938 | 160,796 | 171,577 | ||||||||||||||||||||||||||||||||
Net loss (earnings) attributable to noncontrolling interests | 1,872 | 818 | 1,305 | (1,936 | ) | 2,059 | (359 | ) | (128 | ) | 156 | (1,199 | ) | (1,530 | ) | 2,656 | |||||||||||||||||||||||||||
Net earnings attributable to IAC shareholders | $ | 53,637 | $ | 58,290 | $ | 96,940 | $ | 76,917 | $ | 285,784 | $ | 34,478 | $ | 43,332 | $ | 40,717 | $ | 40,739 | $ | 159,266 | $ | 174,233 | |||||||||||||||||||||
The Company's primary financial measure is Adjusted EBITDA, which is defined as operating income excluding: (1) non-cash compensation expense; (2) depreciation; and (3) acquisition-related items consisting of (i) amortization of intangible assets and goodwill and intangible asset impairments and (ii) gains and losses recognized on changes in the fair value of contingent consideration arrangements. The Company believes this measure is useful for analysts and investors as this measure allows a more meaningful comparison between our performance and that of our competitors. Moreover, our management uses this measure internally to evaluate the performance of our business as a whole and our individual business segments. The above items are excluded from our Adjusted EBITDA measure because these items are non-cash in nature, and we believe that by excluding these items, Adjusted EBITDA corresponds more closely to the cash operating income generated from our business, from which capital investments are made and debt is serviced. Adjusted EBITDA has certain limitations in that it does not take into account the impact to IAC's statement of operations of certain expenses. IAC endeavors to compensate for the limitations of the non-U.S. GAAP measure presented by providing the comparable U.S. GAAP measure with equal or greater prominence. The information presented above should be read in conjunction with IAC's historical consolidated financial statements and notes thereto found on the U.S. Securities and Exchange Commission's website at http://www.sec.gov.