Exhibit 99.1
During the fourth quarter of 2009, IAC/InterActiveCorp (“IAC” or the “Company”) renamed and realigned its reportable segments. The Company’s Media & Advertising segment has been renamed “Search”, and its Emerging Businesses segment has been renamed “Media & Other.” Evite has been moved from the Search segment (formerly Media & Advertising) to the Media & Other segment (formerly Emerging Businesses). The tables below reflect these changes (unaudited; dollars in thousands):
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| 2009 |
| 2008 |
| 2007 |
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| Q1 |
| Q2 |
| Q3 |
| YTD |
| Q1 |
| Q2 |
| Q3 |
| Q4 |
| FYE 12/31 |
| FYE 12/31 |
| ||||||||||
Revenue: |
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Search |
| $ | 165,973 |
| $ | 166,583 |
| $ | 170,202 |
| $ | 502,758 |
| $ | 212,416 |
| $ | 182,774 |
| $ | 189,903 |
| $ | 180,433 |
| $ | 765,526 |
| $ | 745,996 |
|
Match |
| 90,060 |
| 88,291 |
| 80,992 |
| 259,343 |
| 90,536 |
| 93,282 |
| 93,540 |
| 88,147 |
| 365,505 |
| 348,733 |
| ||||||||||
ServiceMagic |
| 31,353 |
| 42,400 |
| 43,902 |
| 117,655 |
| 28,948 |
| 35,871 |
| 33,799 |
| 25,296 |
| 123,914 |
| 93,385 |
| ||||||||||
Media & Other |
| 46,382 |
| 44,494 |
| 43,497 |
| 134,373 |
| 48,303 |
| 53,686 |
| 54,841 |
| 59,614 |
| 216,444 |
| 164,068 |
| ||||||||||
Inter-segment elimination |
| (1,758 | ) | (1,723 | ) | (2,016 | ) | (5,497 | ) | (9,547 | ) | (11,449 | ) | (2,803 | ) | (2,495 | ) | (26,294 | ) | (19,600 | ) | ||||||||||
Total |
| $ | 332,010 |
| $ | 340,045 |
| $ | 336,577 |
| $ | 1,008,632 |
| $ | 370,656 |
| $ | 354,164 |
| $ | 369,280 |
| $ | 350,995 |
| $ | 1,445,095 |
| $ | 1,332,582 |
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|
| 2009 |
| 2008 |
| 2007 |
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|
| Q1 |
| Q2 |
| Q3 |
| YTD |
| Q1 |
| Q2 |
| Q3 |
| Q4 |
| FYE 12/31 |
| FYE 12/31 |
| ||||||||||
Operating Income (Loss): |
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Search |
| $ | 1,209 |
| $ | 9,118 |
| $ | 20,154 |
| $ | 30,481 |
| $ | 30,300 |
| $ | 27,941 |
| $ | 31,415 |
| $ | 7,800 |
| $ | 97,456 |
| $ | 27,100 |
|
Match |
| 9,742 |
| 28,397 |
| 23,873 |
| 62,012 |
| 7,136 |
| 19,626 |
| 23,978 |
| 24,750 |
| 75,490 |
| 65,780 |
| ||||||||||
ServiceMagic |
| 2,003 |
| 5,680 |
| 4,318 |
| 12,001 |
| 5,610 |
| 8,906 |
| 8,111 |
| 1,356 |
| 23,983 |
| 17,587 |
| ||||||||||
Media & Other |
| (12,821 | ) | (10,222 | ) | (8,286 | ) | (31,329 | ) | (8,309 | ) | (7,311 | ) | (6,699 | ) | (30,359 | ) | (52,678 | ) | (18,545 | ) | ||||||||||
Corporate |
| (33,257 | ) | (29,066 | ) | (32,938 | ) | (95,261 | ) | (45,845 | ) | (55,596 | ) | (79,443 | ) | (25,328 | ) | (206,212 | ) | (170,426 | ) | ||||||||||
Total |
| $ | (33,124 | ) | $ | 3,907 |
| $ | 7,121 |
| $ | (22,096 | ) | $ | (11,108 | ) | $ | (6,434 | ) | $ | (22,638 | ) | $ | (21,781 | ) | $ | (61,961 | ) | $ | (78,504 | ) |
|
| 2009 |
| 2008 |
| 2007 |
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|
| Q1 |
| Q2 |
| Q3 |
| YTD |
| Q1 |
| Q2 |
| Q3 |
| Q4 |
| FYE 12/31 |
| FYE 12/31 |
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Operating Income Before Amortization: |
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Search |
| $ | 10,255 |
| $ | 15,881 |
| $ | 26,559 |
| $ | 52,695 |
| $ | 36,530 |
| $ | 34,030 |
| $ | 38,119 |
| $ | 27,632 |
| $ | 136,311 |
| $ | 85,388 |
|
Match |
| 9,941 |
| 28,546 |
| 26,793 |
| 65,280 |
| 10,139 |
| 22,865 |
| 30,274 |
| 27,988 |
| 91,266 |
| 78,367 |
| ||||||||||
ServiceMagic |
| 2,801 |
| 6,709 |
| 9,940 |
| 19,450 |
| 6,149 |
| 9,445 |
| 8,651 |
| 1,999 |
| 26,244 |
| 20,764 |
| ||||||||||
Media & Other |
| (11,177 | ) | (9,236 | ) | (7,715 | ) | (28,128 | ) | (6,826 | ) | (5,990 | ) | (5,379 | ) | (14,006 | ) | (32,201 | ) | (5,103 | ) | ||||||||||
Corporate |
| (14,988 | ) | (16,155 | ) | (16,692 | ) | (47,835 | ) | (27,356 | ) | (37,423 | ) | (41,201 | ) | (15,542 | ) | (121,522 | ) | (98,932 | ) | ||||||||||
Total |
| $ | (3,168 | ) | $ | 25,745 |
| $ | 38,885 |
| $ | 61,462 |
| $ | 18,636 |
| $ | 22,927 |
| $ | 30,464 |
| $ | 28,071 |
| $ | 100,098 |
| $ | 80,484 |
|
1
Reconciliation of Operating Income Before Amortization to operating (loss) income to net (loss) earnings attributable to IAC shareholders:
|
| 2009 |
| 2008 |
| 2007 |
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|
| Q1 |
| Q2 |
| Q3 |
| YTD |
| Q1 |
| Q2 |
| Q3 |
| Q4 |
| FYE 12/31 |
| FYE 12/31 |
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Operating Income Before Amortization |
| $ | (3,168 | ) | $ | 25,745 |
| $ | 38,885 |
| $ | 61,462 |
| $ | 18,636 |
| $ | 22,927 |
| $ | 30,464 |
| $ | 28,071 |
| $ | 100,098 |
| $ | 80,484 |
|
Non-cash compensation expense |
| (18,580 | ) | (13,592 | ) | (16,515 | ) | (48,687 | ) | (18,886 | ) | (18,611 | ) | (38,677 | ) | (10,365 | ) | (86,539 | ) | (73,585 | ) | ||||||||||
Amortization of non-cash marketing |
| (2,305 | ) | (200 | ) | (4,999 | ) | (7,504 | ) | (2,796 | ) | (3,071 | ) | (6,138 | ) | (7,997 | ) | (20,002 | ) | (49,670 | ) | ||||||||||
Amortization of intangibles |
| (8,015 | ) | (8,046 | ) | (10,250 | ) | (26,311 | ) | (8,062 | ) | (7,679 | ) | (8,287 | ) | (19,890 | ) | (43,918 | ) | (35,733 | ) | ||||||||||
Goodwill impairment |
| (1,056 | ) | — |
| — |
| (1,056 | ) | — |
| — |
| — |
| (11,600 | ) | (11,600 | ) | — |
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Operating (loss) income |
| (33,124 | ) | 3,907 |
| 7,121 |
| (22,096 | ) | (11,108 | ) | (6,434 | ) | (22,638 | ) | (21,781 | ) | (61,961 | ) | (78,504 | ) | ||||||||||
Other income (expense), net |
| 563 |
| 60,829 |
| 50,960 |
| 112,352 |
| 11,691 |
| (100,476 | ) | (63,964 | ) | 308,193 |
| 155,444 |
| 74,414 |
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(Loss) earnings from continuing operations before income taxes |
| (32,561 | ) | 64,736 |
| 58,081 |
| 90,256 |
| 583 |
| (106,910 | ) | (86,602 | ) | 286,412 |
| 93,483 |
| (4,090 | ) | ||||||||||
Income tax benefit (provision) |
| 2,679 |
| (22,143 | ) | (34,269 | ) | (53,733 | ) | (4,036 | ) | 22,274 |
| 85,335 |
| (65,876 | ) | 37,697 |
| (2,321 | ) | ||||||||||
(Loss) earnings from continuing operations |
| (29,882 | ) | 42,593 |
| 23,812 |
| 36,523 |
| (3,453 | ) | (84,636 | ) | (1,267 | ) | 220,536 |
| 131,180 |
| (6,411 | ) | ||||||||||
Gain on sale of discontinued operations, net of tax |
| — |
| — |
| — |
| — |
| — |
| 22,547 |
| 767 |
| — |
| 23,314 |
| 33,524 |
| ||||||||||
Income (loss) from discontinued operations, net of tax |
| 1,238 |
| (2,196 | ) | (2,514 | ) | (3,472 | ) | 55,939 |
| (359,992 | ) | (14,718 | ) | 2,227 |
| (316,544 | ) | (173,196 | ) | ||||||||||
Net (loss) earnings |
| (28,644 | ) | 40,397 |
| 21,298 |
| 33,051 |
| 52,486 |
| (422,081 | ) | (15,218 | ) | 222,763 |
| (162,050 | ) | (146,083 | ) | ||||||||||
Net loss attributable to noncontrolling interest |
| 258 |
| 416 |
| 384 |
| 1,058 |
| 330 |
| 484 |
| 381 |
| 4,654 |
| 5,849 |
| 2,014 |
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Net (loss) earnings attributable to IAC shareholders |
| $ | (28,386 | ) | $ | 40,813 |
| $ | 21,682 |
| $ | 34,109 |
| $ | 52,816 |
| $ | (421,597 | ) | $ | (14,837 | ) | $ | 227,417 |
| $ | (156,201 | ) | $ | (144,069 | ) |
The Company’s primary metric is Operating Income Before Amortization, which is defined as operating income excluding, if applicable: (1) non-cash compensation expense, (2) amortization of non-cash marketing, (3) amortization and impairment of intangibles, (4) goodwill impairment, (5) pro forma adjustments for significant acquisitions, and (6) one-time items. The Company believes this measure is useful to investors because it represents the consolidated operating results from IAC’s segments, taking into account depreciation, which it believes is an ongoing cost of doing business, but excluding the effects of any other non-cash expenses. Operating Income Before Amortization has certain limitations in that it does not take into account the impact to IAC’s statement of operations of certain expenses, including non-cash compensation, non-cash marketing, and acquisition related accounting. IAC endeavors to compensate for the limitations of the non-GAAP measure presented by providing the comparable U.S. GAAP measure with equal or greater prominence and a reconciliation of the non-GAAP measure to net earnings (loss) attributable to IAC shareholders. 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.
