2019 Q4 Form 10-K Financial Statement

#000143462121000002 Filed on March 01, 2021

View on sec.gov

Income Statement

Concept 2019 Q4 2018 Q4 2018
Revenue $255.2M $202.7M $764.9M
YoY Change 25.91% 25.92% 23.82%
Cost Of Revenue $16.70M $13.80M $36.40M
YoY Change 21.01% 170.59% 111.34%
Gross Profit $238.5M $188.9M $305.1M
YoY Change 26.26% 21.17% 21.38%
Gross Profit Margin 93.46% 93.2% 39.89%
Selling, General & Admin $195.3M $156.6M $601.5M
YoY Change 24.71% 10.44% 19.27%
% of Gross Profit 81.89% 82.9% 197.13%
Research & Development $9.400M $8.100M $26.96M
YoY Change 16.05% 50.0% 50.39%
% of Gross Profit 3.94% 4.29% 8.83%
Depreciation & Amortization $17.00M $12.10M $7.385M
YoY Change 40.5% 108.62% 4.23%
% of Gross Profit 7.13% 6.41% 2.42%
Operating Expenses $221.8M $176.7M $628.5M
YoY Change 25.52% 15.49% 20.34%
Operating Profit $9.021M $2.428M $56.19M
YoY Change 271.54% -1487.43% 69.59%
Interest Expense -$4.900M -$4.100M $12.44M
YoY Change 19.51% 36.67% 76.96%
% of Operating Profit -54.32% -168.86% 22.13%
Other Income/Expense, Net $400.0K $100.0K $0.00
YoY Change 300.0% -150.0% -100.0%
Pretax Income $4.500M -$1.600M $43.74M
YoY Change -381.25% -51.52% 70.15%
Income Tax $3.100M -$2.100M -$65.58M
% Of Pretax Income 68.89% -149.91%
Net Earnings $1.900M -$3.300M $96.50M
YoY Change -157.58% -57.14% 518.59%
Net Earnings / Revenue 0.74% -1.63% 12.62%
Basic Earnings Per Share $0.14 -$0.26 $7.72
Diluted Earnings Per Share $0.13 -$0.24 $6.85
COMMON SHARES
Basic Shares Outstanding 13.00M shares 12.83M shares 12.50M shares
Diluted Shares Outstanding 14.10M shares

Balance Sheet

Concept 2019 Q4 2018 Q4 2018
SHORT-TERM ASSETS
Cash & Short-Term Investments $60.20M $105.1M $105.1M
YoY Change -42.72% -71.49% -71.49%
Cash & Equivalents $60.24M $105.1M $105.1M
Short-Term Investments
Other Short-Term Assets $15.70M $38.00M $38.00M
YoY Change -58.68% 136.02% 136.02%
Inventory
Prepaid Expenses
Receivables $113.5M $91.07M $91.10M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $189.4M $234.2M $234.2M
YoY Change -19.11% -46.54% -46.53%
LONG-TERM ASSETS
Property, Plant & Equipment $31.36M $23.18M $23.20M
YoY Change 35.33% -36.39% -36.26%
Goodwill $420.1M $348.3M
YoY Change 20.61% 207.27%
Intangibles $181.6M $205.7M
YoY Change -11.73% 153.56%
Long-Term Investments $0.00
YoY Change
Other Assets $4.330M $2.168M $84.70M
YoY Change 99.72% 13.51% 245.71%
Total Long-Term Assets $758.5M $661.9M $661.9M
YoY Change 14.59% 159.16% 159.06%
TOTAL ASSETS
Total Short-Term Assets $189.4M $234.2M $234.2M
Total Long-Term Assets $758.5M $661.9M $661.9M
Total Assets $948.0M $896.1M $896.1M
YoY Change 5.79% 29.22% 29.21%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $2.900M $15.10M $15.10M
YoY Change -80.79% 62.37% 62.37%
Accrued Expenses $112.8M $93.19M $82.90M
YoY Change 20.99% 20.74% 34.58%
Deferred Revenue $600.0K $400.0K
YoY Change 50.0%
Short-Term Debt $75.00M $125.0M $125.0M
YoY Change -40.0%
Long-Term Debt Due $75.00M $125.0M
YoY Change -40.0%
Total Short-Term Liabilities $230.7M $262.0M $262.0M
YoY Change -11.93% 77.58% 77.63%
LONG-TERM LIABILITIES
Long-Term Debt $264.4M $250.9M $250.9M
YoY Change 5.36% 5.35% 5.33%
Other Long-Term Liabilities $4.752M $8.360M $36.10M
YoY Change -43.16% 423.48% 179.84%
Total Long-Term Liabilities $269.1M $259.3M $287.0M
YoY Change 3.79% 8.13% 14.3%
TOTAL LIABILITIES
Total Short-Term Liabilities $230.7M $262.0M $262.0M
Total Long-Term Liabilities $269.1M $259.3M $287.0M
Total Liabilities $545.6M $549.9M $549.9M
YoY Change -0.78% 37.96% 37.75%
SHAREHOLDERS EQUITY
Retained Earnings -$592.7M -$610.5M
YoY Change -2.92% -13.82%
Common Stock $1.178B $1.134B
YoY Change 3.86% 4.29%
Preferred Stock
YoY Change
Treasury Stock (at cost) $183.2M $177.7M
YoY Change 3.08% 108.84%
Treasury Stock Shares 2.641M shares 2.619M shares
Shareholders Equity $402.3M $346.2M $346.2M
YoY Change
Total Liabilities & Shareholders Equity $948.0M $896.1M $896.1M
YoY Change 5.79% 29.22% 29.21%

Cashflow Statement

Concept 2019 Q4 2018 Q4 2018
OPERATING ACTIVITIES
Net Income $1.900M -$3.300M $96.50M
YoY Change -157.58% -57.14% 518.59%
Depreciation, Depletion And Amortization $17.00M $12.10M $7.385M
YoY Change 40.5% 108.62% 4.23%
Cash From Operating Activities $45.30M $57.80M $110.7M
YoY Change -21.63% 60.56% 12.16%
INVESTING ACTIVITIES
Capital Expenditures -$4.800M -$4.300M -$14.90M
YoY Change 11.63% 104.76% 86.25%
Acquisitions
YoY Change
Other Investing Activities $0.00 -$298.9M -$368.1M
YoY Change -100.0% 454.37%
Cash From Investing Activities -$4.900M -$303.2M -$383.0M
YoY Change -98.38% 14338.1% 414.59%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $91.49M
YoY Change 399.96%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -30.90M 85.30M $4.843M
YoY Change -136.23% -904.72% -98.09%
NET CHANGE
Cash From Operating Activities 45.30M 57.80M 110.7M
Cash From Investing Activities -4.900M -303.2M -$383.0M
Cash From Financing Activities -30.90M 85.30M $4.843M
Net Change In Cash 9.500M -160.1M -$378.2M
YoY Change -105.93% -787.12% -311.65%
FREE CASH FLOW
Cash From Operating Activities $45.30M $57.80M $110.7M
Capital Expenditures -$4.800M -$4.300M -$14.90M
Free Cash Flow $50.10M $62.10M $125.6M
YoY Change -19.32% 62.99% 17.71%

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<div style="margin-bottom:6pt;margin-top:12pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Accounting Estimates</span></div><div style="margin-bottom:6pt;text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">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><div style="margin-bottom:6pt;text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Significant estimates underlying the accompanying consolidated financial statements, including discontinued operations, include: 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; assumptions related to the determination of stock-based compensation; and the determination of right-of-use assets and lease liabilities. </span></div><div style="margin-bottom:6pt;text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company considered the impact of the COVID-19 pandemic on the assumptions and estimates used when preparing its financial statements including, but not limited to, the allowance for doubtful accounts, valuation allowances, contract asset and contingent consideration. These assumptions and estimates may change as new events occur and additional information is obtained. If economic conditions caused by the COVID-19 pandemic do not recover as currently estimated by management, such future changes may have an adverse impact on the Company's results of operations, financial position and liquidity.</span></div>
CY2020 us-gaap Concentration Risk Credit Risk
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<div style="margin-bottom:6pt;margin-top:12pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Certain Risks and Concentrations</span></div><div style="margin-bottom:6pt;text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">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="margin-bottom:6pt;text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Financial instruments, which potentially subject the Company to concentration of credit risk at December 31, 2020, 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="margin-bottom:6pt;text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">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="margin-bottom:6pt;text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">For the years ended December 31, 2020 and 2019, one network partner accounted for 15% and 12%, respectively, 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, 2018.</span></div><div style="margin-bottom:6pt;text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">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>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.
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30981000 USD
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764865000 USD
CY2018 tree Costof Revenueand Marketing Expense
CostofRevenueandMarketingExpense
459728000 USD
CY2018 us-gaap Gross Profit
GrossProfit
305137000 USD
CY2018 us-gaap Other Cost Of Operating Revenue
OtherCostOfOperatingRevenue
27587000 USD
CY2018 us-gaap Other Selling And Marketing Expense
OtherSellingAndMarketingExpense
49375000 USD
CY2018 us-gaap General And Administrative Expense
GeneralAndAdministrativeExpense
101219000 USD
CY2018 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
26958000 USD
CY2018 us-gaap Depreciation Depletion And Amortization
DepreciationDepletionAndAmortization
7385000 USD
CY2018 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
23468000 USD
CY2018 us-gaap Business Combination Contingent Consideration Arrangements Change In Amount Of Contingent Consideration Liability1
BusinessCombinationContingentConsiderationArrangementsChangeInAmountOfContingentConsiderationLiability1
10788000 USD
CY2018 us-gaap Restructuring Charges
RestructuringCharges
2352000 USD
CY2018 us-gaap Litigation Settlement Expense
LitigationSettlementExpense
-186000 USD
CY2018 us-gaap Operating Income Loss
OperatingIncomeLoss
56191000 USD
CY2018 us-gaap Interest Expense
InterestExpense
12437000 USD
CY2018 us-gaap Other Income
OtherIncome
-10000 USD
CY2018 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
43744000 USD

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