2019 Q4 Form 10-K Financial Statement

#000143462120000015 Filed on February 27, 2020

View on sec.gov

Income Statement

Concept 2019 Q4 2018 Q4 2018 Q3
Revenue $255.2M $202.7M $197.1M
YoY Change 25.91% 25.92% 14.91%
Cost Of Revenue $16.70M $13.80M $10.84M
YoY Change 21.01% 170.59% 146.99%
Gross Profit $238.5M $188.9M $186.2M
YoY Change 26.26% 21.17% 11.44%
Gross Profit Margin 93.46% 93.2% 94.5%
Selling, General & Admin $195.3M $156.6M $147.4M
YoY Change 24.71% 10.44% 8.0%
% of Gross Profit 81.89% 82.9% 79.14%
Research & Development $9.400M $8.100M $6.608M
YoY Change 16.05% 50.0% 37.52%
% of Gross Profit 3.94% 4.29% 3.55%
Depreciation & Amortization $17.00M $12.10M $1.895M
YoY Change 40.5% 108.62% 5.39%
% of Gross Profit 7.13% 6.41% 1.02%
Operating Expenses $221.8M $176.7M $154.0M
YoY Change 25.52% 15.49% 9.01%
Operating Profit $9.021M $2.428M $20.29M
YoY Change 271.54% -1487.43% 16.24%
Interest Expense -$4.900M -$4.100M -$2.400M
YoY Change 19.51% 36.67% -14.29%
% of Operating Profit -54.32% -168.86% -11.83%
Other Income/Expense, Net $400.0K $100.0K -$69.00K
YoY Change 300.0% -150.0% -69.74%
Pretax Income $4.500M -$1.600M $17.83M
YoY Change -381.25% -51.52% 23.61%
Income Tax $3.100M -$2.100M -$10.53M
% Of Pretax Income 68.89% -59.09%
Net Earnings $1.900M -$3.300M $25.70M
YoY Change -157.58% -57.14% 182.42%
Net Earnings / Revenue 0.74% -1.63% 13.04%
Basic Earnings Per Share $0.14 -$0.26 $2.01
Diluted Earnings Per Share $0.13 -$0.24 $1.86
COMMON SHARES
Basic Shares Outstanding 13.00M shares 12.83M shares 12.80M shares
Diluted Shares Outstanding 13.85M shares

Balance Sheet

Concept 2019 Q4 2018 Q4 2018 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $60.20M $105.1M $265.2M
YoY Change -42.72% -71.49% -23.17%
Cash & Equivalents $60.24M $105.1M $265.2M
Short-Term Investments
Other Short-Term Assets $15.70M $38.00M $16.60M
YoY Change -58.68% 136.02% 20.29%
Inventory
Prepaid Expenses
Receivables $113.5M $91.07M $79.44M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $189.4M $234.2M $361.3M
YoY Change -19.11% -46.54% -14.62%
LONG-TERM ASSETS
Property, Plant & Equipment $31.36M $23.18M $40.45M
YoY Change 35.33% -36.39% 14.44%
Goodwill $420.1M $348.3M $166.3M
YoY Change 20.61% 207.27% 46.47%
Intangibles $181.6M $205.7M $95.97M
YoY Change -11.73% 153.56% 12.55%
Long-Term Investments $0.00
YoY Change
Other Assets $4.330M $2.168M $1.708M
YoY Change 99.72% 13.51% 106.78%
Total Long-Term Assets $758.5M $661.9M $382.4M
YoY Change 14.59% 159.16% 49.06%
TOTAL ASSETS
Total Short-Term Assets $189.4M $234.2M $361.3M
Total Long-Term Assets $758.5M $661.9M $382.4M
Total Assets $948.0M $896.1M $743.6M
YoY Change 5.79% 29.22% 9.41%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $2.900M $15.10M $13.40M
YoY Change -80.79% 62.37% 272.22%
Accrued Expenses $112.8M $93.19M $68.71M
YoY Change 20.99% 20.74% -0.05%
Deferred Revenue $600.0K $400.0K $300.0K
YoY Change 50.0%
Short-Term Debt $75.00M $125.0M $0.00
YoY Change -40.0%
Long-Term Debt Due $75.00M $125.0M
YoY Change -40.0%
Total Short-Term Liabilities $230.7M $262.0M $108.4M
YoY Change -11.93% 77.58% -1.21%
LONG-TERM LIABILITIES
Long-Term Debt $264.4M $250.9M $247.7M
YoY Change 5.36% 5.35% 5.35%
Other Long-Term Liabilities $4.752M $8.360M $2.077M
YoY Change -43.16% 423.48% 41.0%
Total Long-Term Liabilities $269.1M $259.3M $249.8M
YoY Change 3.79% 8.13% 5.57%
TOTAL LIABILITIES
Total Short-Term Liabilities $230.7M $262.0M $108.4M
Total Long-Term Liabilities $269.1M $259.3M $249.8M
Total Liabilities $545.6M $549.9M $367.2M
YoY Change -0.78% 37.96% -2.57%
SHAREHOLDERS EQUITY
Retained Earnings -$592.7M -$610.5M -$607.2M
YoY Change -2.92% -13.82% -13.34%
Common Stock $1.178B $1.134B $1.125B
YoY Change 3.86% 4.29% 4.5%
Preferred Stock
YoY Change
Treasury Stock (at cost) $183.2M $177.7M $142.3M
YoY Change 3.08% 108.84% 92.03%
Treasury Stock Shares 2.641M shares 2.619M shares 2.444M shares
Shareholders Equity $402.3M $346.2M $376.5M
YoY Change
Total Liabilities & Shareholders Equity $948.0M $896.1M $743.6M
YoY Change 5.79% 29.22% 9.41%

Cashflow Statement

Concept 2019 Q4 2018 Q4 2018 Q3
OPERATING ACTIVITIES
Net Income $1.900M -$3.300M $25.70M
YoY Change -157.58% -57.14% 182.42%
Depreciation, Depletion And Amortization $17.00M $12.10M $1.895M
YoY Change 40.5% 108.62% 5.39%
Cash From Operating Activities $45.30M $57.80M $41.90M
YoY Change -21.63% 60.56% 165.19%
INVESTING ACTIVITIES
Capital Expenditures -$4.800M -$4.300M -$3.900M
YoY Change 11.63% 104.76% 69.57%
Acquisitions
YoY Change
Other Investing Activities $0.00 -$298.9M -$57.50M
YoY Change -100.0% 342.31%
Cash From Investing Activities -$4.900M -$303.2M -$61.40M
YoY Change -98.38% 14338.1% 301.31%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -30.90M 85.30M -8.600M
YoY Change -136.23% -904.72% -21.1%
NET CHANGE
Cash From Operating Activities 45.30M 57.80M 41.90M
Cash From Investing Activities -4.900M -303.2M -61.40M
Cash From Financing Activities -30.90M 85.30M -8.600M
Net Change In Cash 9.500M -160.1M -28.10M
YoY Change -105.93% -787.12% 170.19%
FREE CASH FLOW
Cash From Operating Activities $45.30M $57.80M $41.90M
Capital Expenditures -$4.800M -$4.300M -$3.900M
Free Cash Flow $50.10M $62.10M $45.80M
YoY Change -19.32% 62.99% 153.04%

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CY2017 us-gaap Provision For Doubtful Accounts
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CY2019 us-gaap Use Of Estimates
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<div style="line-height:120%;padding-top:16px;text-align:justify;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;font-weight:bold;">Accounting Estimates</span></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:24px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">Management is required to make certain estimates and assumptions during the preparation of the consolidated financial statements in accordance with GAAP. These estimates and assumptions impact the reported amount of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements. They also impact the reported amount of net earnings during any period. Actual results could differ from those estimates. </span></div>Significant estimates underlying the accompanying consolidated financial statements, including discontinued operations, include: loan loss obligations; the recoverability of long-lived assets, goodwill and intangible assets; the determination of income taxes payable and deferred income taxes, including related valuation allowances; fair value of assets acquired in a business combination; contingent consideration related to business combinations; litigation accruals; HLC ownership related claims; contract assets; various other allowances, reserves and accruals; and assumptions related to the determination of stock-based compensation.
CY2019 us-gaap Concentration Risk Credit Risk
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<div style="line-height:120%;padding-top:16px;text-align:justify;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;font-weight:bold;">Certain Risks and Concentrations</span></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:24px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">LendingTree's business is subject to certain risks and concentrations including dependence on third-party technology providers, exposure to risks associated with online commerce security and credit card fraud.</span></div><div style="line-height:120%;padding-top:8px;text-align:justify;text-indent:24px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">Financial instruments, which potentially subject the Company to concentration of credit risk at </span><span style="font-family:inherit;font-size:10pt;">December 31, 2019</span><span style="font-family:inherit;font-size:10pt;">, consist primarily of cash and cash equivalents and accounts receivable, as disclosed in the consolidated balance sheet. Cash and cash equivalents are in excess of Federal Deposit Insurance Corporation insurance limits, but are maintained with quality financial institutions of high credit. The Company requires certain Network Partners to maintain security deposits with the Company, which in the event of non-payment, would be applied against any accounts receivable outstanding.</span></div><div style="line-height:120%;padding-top:8px;text-align:justify;text-indent:24px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">Due to the nature of the mortgage lending industry, interest rate fluctuations may negatively impact future revenue from the Company's marketplace.</span></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:24px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">For the year ended December 31, </span><span style="font-family:inherit;font-size:10pt;">2019</span><span style="font-family:inherit;font-size:10pt;">, one network partner accounted for </span><span style="font-family:inherit;font-size:10pt;"><span>12%</span></span><span style="font-family:inherit;font-size:10pt;"> of total consolidated revenue, all of which was recorded within the Insurance segment. No Network Partners accounted for more than 10% of total consolidated revenue for the year ended December 31, </span><span style="font-family:inherit;font-size:10pt;">2018</span><span style="font-family:inherit;font-size:10pt;">. For the year ended December 31, </span><span style="font-family:inherit;font-size:10pt;">2017</span><span style="font-family:inherit;font-size:10pt;">, another network partner accounted for </span><span style="font-family:inherit;font-size:10pt;"><span>11%</span></span><span style="font-family:inherit;font-size:10pt;"> of total consolidated revenue, which was recorded within the Home and Consumer segments.</span></div><div style="line-height:120%;padding-top:8px;text-align:justify;text-indent:24px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">Lenders and lead purchasers participating on the Company's marketplace can offer their products directly to consumers through brokers, mass marketing campaigns or through other traditional methods of credit distribution. These lenders and lead purchasers can also offer their products online, either directly to prospective borrowers, through one or more online competitors, or both. If a significant number of potential consumers are able to obtain loans and other products from Network Partners without utilizing the Company's services, the Company's ability to generate revenue may be limited. Because the Company does not have exclusive relationships with the Network Partners whose loans and other financial products are offered on its online marketplace, consumers may obtain offers from these Network Partners without using its service.</span></div><div style="line-height:120%;padding-top:8px;text-align:justify;text-indent:24px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">Other than a support services office in India, the Company's operations are geographically limited to and dependent upon the economic condition of the United States. </span></div>
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21000 USD
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593000 USD
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289000 USD
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170000 USD
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428000 USD
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310000 USD
CY2017 us-gaap Income Tax Reconciliation Nondeductible Expense Meals And Entertainment
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90000 USD
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270000 USD
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18100000 USD
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57349000 USD
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23100000 USD
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CY2018 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Liability Purchases Sales Issuances Settlements
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19700000 USD
CY2017 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Liability Purchases Sales Issuances Settlements
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11318000 USD
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CY2018 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Liability Settlements
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CY2017 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Liability Settlements
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33464000 USD
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38837000 USD
CY2017Q4 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliations Recurring Basis Liability Value
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57349000 USD
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3300000 USD
CY2019 tree Charitable Contribution
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10000000.0 USD
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19000 USD
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18500 USD
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18000 USD
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2000000.0 USD
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1400000 USD
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900000 USD
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5159000 USD
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-8855000 USD
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