2023 Q1 Form 10-K Financial Statement

#000143462123000003 Filed on February 28, 2023

View on sec.gov

Income Statement

Concept 2023 Q1 2022 Q4 2022
Revenue $200.5M $202.1M $985.0M
YoY Change -29.19% -21.77% -10.33%
Cost Of Revenue $13.76M $13.53M $57.77M
YoY Change -11.57% -6.36% 0.82%
Gross Profit $79.96M $188.5M $368.9M
YoY Change -19.61% -22.68% -10.09%
Gross Profit Margin 39.88% 93.3% 37.46%
Selling, General & Admin $173.8M $173.2M $854.6M
YoY Change -27.63% -22.45% -7.85%
% of Gross Profit 217.36% 91.89% 231.64%
Research & Development $14.66M $13.14M $55.55M
YoY Change 4.29% -4.25% 5.08%
% of Gross Profit 18.33% 6.97% 15.06%
Depreciation & Amortization $4.795M $8.803M $20.10M
YoY Change -1.22% -40.16% 12.2%
% of Gross Profit 6.0% 4.67% 5.45%
Operating Expenses $188.4M $195.2M $910.2M
YoY Change -25.86% -22.49% -7.16%
Operating Profit -$13.01M -$6.661M -$32.76M
YoY Change 343.46% -16.64% -507.87%
Interest Expense $25.03M -$6.024M $26.01M
YoY Change -433.5% -59.8% -44.49%
% of Operating Profit
Other Income/Expense, Net $1.834M $2.037M $3.843M
YoY Change -183500.0% -97.55% -96.88%
Pretax Income $13.85M -$11.34M -$54.93M
YoY Change -232.68% -118.84% -165.05%
Income Tax $395.0K -$937.0K $133.0M
% Of Pretax Income 2.85%
Net Earnings $13.46M -$10.40M -$188.0M
YoY Change -224.3% -121.71% -371.94%
Net Earnings / Revenue 6.71% -5.15% -19.08%
Basic Earnings Per Share $1.05 -$14.69
Diluted Earnings Per Share $1.04 -$0.81 -$14.69
COMMON SHARES
Basic Shares Outstanding 12.81M shares 12.79M shares 12.79M shares
Diluted Shares Outstanding 12.94M shares 12.79M shares

Balance Sheet

Concept 2023 Q1 2022 Q4 2022
SHORT-TERM ASSETS
Cash & Short-Term Investments $150.1M $298.8M $298.8M
YoY Change -23.69% 18.95% 18.95%
Cash & Equivalents $150.1M $298.8M $298.8M
Short-Term Investments
Other Short-Term Assets $28.27M $32.06M $32.06M
YoY Change 4.24% 25.79% 25.79%
Inventory
Prepaid Expenses
Receivables $83.66M $83.06M $83.06M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $262.0M $414.0M $414.0M
YoY Change -22.5% 10.57% 10.57%
LONG-TERM ASSETS
Property, Plant & Equipment $57.41M $59.16M $126.2M
YoY Change -18.77% -18.37% -15.76%
Goodwill $420.1M $420.1M
YoY Change 0.0% 0.0%
Intangibles $56.27M $58.32M
YoY Change -27.72% -32.0%
Long-Term Investments $174.6M $174.6M $174.6M
YoY Change 0.83% 10.4% 10.4%
Other Assets $6.319M $6.101M $6.101M
YoY Change -9.33% -12.11% -94.51%
Total Long-Term Assets $780.3M $785.3M $785.3M
YoY Change -17.99% -15.1% -15.1%
TOTAL ASSETS
Total Short-Term Assets $262.0M $414.0M $414.0M
Total Long-Term Assets $780.3M $785.3M $785.3M
Total Assets $1.042B $1.199B $1.199B
YoY Change -19.17% -7.7% -7.7%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $4.473M $2.030M $2.030M
YoY Change -54.86% 19.98% 19.98%
Accrued Expenses $84.83M $75.10M $67.32M
YoY Change -21.37% -29.64% -29.76%
Deferred Revenue $1.000M $900.0K
YoY Change 0.0% 12.5%
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $2.500M $2.500M $2.500M
YoY Change -98.52% -98.49% -98.49%
Total Short-Term Liabilities $91.80M $82.53M $82.53M
YoY Change -68.04% -69.93% -69.93%
LONG-TERM LIABILITIES
Long-Term Debt $625.4M $813.5M $813.5M
YoY Change 10.84% 70.14% 70.14%
Other Long-Term Liabilities $329.0K $308.0K $88.54M
YoY Change -3.52% -12.25% -8.26%
Total Long-Term Liabilities $625.7M $813.8M $902.1M
YoY Change 10.83% 70.08% 56.97%
TOTAL LIABILITIES
Total Short-Term Liabilities $91.80M $82.53M $82.53M
Total Long-Term Liabilities $625.7M $813.8M $902.1M
Total Liabilities $811.3M $991.4M $991.4M
YoY Change -14.47% 16.45% 16.45%
SHAREHOLDERS EQUITY
Retained Earnings -$701.8M -$715.3M
YoY Change 33.09% 25.1%
Common Stock $1.199B $1.189B
YoY Change 5.81% -4.31%
Preferred Stock
YoY Change
Treasury Stock (at cost) $266.2M $266.2M
YoY Change 0.0% 19.27%
Treasury Stock Shares 3.355M shares 3.355M shares
Shareholders Equity $231.0M $207.9M $207.9M
YoY Change
Total Liabilities & Shareholders Equity $1.042B $1.199B $1.199B
YoY Change -19.17% -7.7% -7.7%

Cashflow Statement

Concept 2023 Q1 2022 Q4 2022
OPERATING ACTIVITIES
Net Income $13.46M -$10.40M -$188.0M
YoY Change -224.3% -121.71% -371.94%
Depreciation, Depletion And Amortization $4.795M $8.803M $20.10M
YoY Change -1.22% -40.16% 12.2%
Cash From Operating Activities $13.16M $16.65M $42.97M
YoY Change 31.57% -60.7% -68.07%
INVESTING ACTIVITIES
Capital Expenditures $2.452M $2.473M $11.44M
YoY Change -170.76% -154.35% -132.63%
Acquisitions
YoY Change
Other Investing Activities $0.00 $7.000K -$7.000K
YoY Change -100.0% -99.98% -100.02%
Cash From Investing Activities -$2.452M -$2.466M -$27.88M
YoY Change -86.72% -105.9% -376.9%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $43.01M
YoY Change 7.5%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -$159.6M -875.0K $32.54M
YoY Change 246.14% -98.18% -151.36%
NET CHANGE
Cash From Operating Activities $13.16M 16.65M 42.97M
Cash From Investing Activities -$2.452M -2.466M -$27.88M
Cash From Financing Activities -$159.6M -875.0K $32.54M
Net Change In Cash -$148.9M 13.30M $47.63M
YoY Change 130.57% -63.0% -41.41%
FREE CASH FLOW
Cash From Operating Activities $13.16M $16.65M $42.97M
Capital Expenditures $2.452M $2.473M $11.44M
Free Cash Flow $10.70M $14.17M $31.52M
YoY Change -20.5% -69.78% -81.42%

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CY2021 us-gaap Provision For Doubtful Accounts
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CY2022 us-gaap Allowance For Doubtful Accounts Receivable Write Offs
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CY2021 us-gaap Allowance For Doubtful Accounts Receivable Write Offs
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CY2020 us-gaap Allowance For Doubtful Accounts Receivable Write Offs
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CY2022 us-gaap Allowance For Doubtful Accounts Receivable Recoveries
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CY2021 us-gaap Allowance For Doubtful Accounts Receivable Recoveries
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CY2020 us-gaap Allowance For Doubtful Accounts Receivable Recoveries
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CY2021 tree Accounts Receivable Assets Held For Sale
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CY2021Q4 us-gaap Allowance For Doubtful Accounts Receivable
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CY2020Q4 us-gaap Allowance For Doubtful Accounts Receivable
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CY2022 us-gaap Use Of Estimates
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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; 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 consolidated 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 worsen, such future changes may have an adverse impact on the Company's results of operations, financial position and liquidity.</span></div>
CY2022 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, 2022, 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, 2022 and December 31, 2021, there were no network partners accounting for more than 10% of total revenue. For the year ended December 31, 2020, one network partner accounted for 15% of total consolidated revenue, all of which was recorded within the Insurance segment.</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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CY2022 tree Incremental Common Shares Attributable To Restricted Stock Units
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CY2021 tree Incremental Common Shares Attributable To Restricted Stock Units
IncrementalCommonSharesAttributableToRestrictedStockUnits
89000 shares
CY2020 tree Incremental Common Shares Attributable To Restricted Stock Units
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CY2021 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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CY2020 us-gaap Business Combination Contingent Consideration Arrangements Change In Amount Of Contingent Consideration Liability1
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4400000 usd
CY2022 us-gaap Severance Costs1
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3300000 usd
CY2022 us-gaap Restructuring Reserve Settled Without Cash2
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CY2021Q4 us-gaap Restructuring Reserve
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CY2022 us-gaap Payments For Restructuring
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CY2022 us-gaap Restructuring Reserve Settled Without Cash2
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1083000 usd
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RestructuringReserve
304000 usd

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