Exhibit 99.1
During the first quarter of 2012, IAC/InterActiveCorp (the “Company”) realigned its reportable segments. The Company has created a new segment called “Local” that includes ServiceMagic, which was previously reported as its own separate segment, and CityGrid Media, which has been moved from the Search segment. In addition, DailyBurn has been moved from the Search segment to the Media & Other segment and Pronto has been moved from the Media & Other segment to the Search segment. There have been no changes to the Match segment. The tables below reflect these changes (unaudited; dollars in thousands):
| | 2011 | | 2010 | | 2009 | |
| | Q1 | | Q2 | | Q3 | | Q4 | | FYE 12/31 | | Q1 | | Q2 | | Q3 | | Q4 | | FYE 12/31 | | FYE 12/31 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Revenue: | | | | | | | | | | | | | | | | | | | | | | | |
Search | | $ | 233,851 | | $ | 238,328 | | $ | 258,875 | | $ | 309,453 | | $ | 1,040,507 | | $ | 195,098 | | $ | 189,186 | | $ | 197,271 | | $ | 223,729 | | $ | 805,284 | | $ | 649,642 | |
Match | | 111,597 | | 116,429 | | 132,328 | | 157,673 | | 518,027 | | 89,275 | | 96,961 | | 106,197 | | 108,290 | | 400,723 | | 342,598 | |
Local | | 70,931 | | 80,410 | | 80,124 | | 71,953 | | 303,418 | | 59,836 | | 69,976 | | 69,097 | | 64,840 | | 263,749 | | 230,426 | |
Media & Other | | 44,133 | | 50,405 | | 45,715 | | 57,976 | | 198,229 | | 34,158 | | 38,351 | | 40,864 | | 55,068 | | 168,441 | | 125,598 | |
Inter-segment elimination | | (299 | ) | (168 | ) | (158 | ) | (112 | ) | (737 | ) | (189 | ) | (230 | ) | (463 | ) | (500 | ) | (1,382 | ) | (1,569 | ) |
Total | | $ | 460,213 | | $ | 485,404 | | $ | 516,884 | | $ | 596,943 | | $ | 2,059,444 | | $ | 378,178 | | $ | 394,244 | | $ | 412,966 | | $ | 451,427 | | $ | 1,636,815 | | $ | 1,346,695 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Operating Income (Loss): | | | | | | | | | | | | | | | | | | | | | | | |
Search | | $ | 48,621 | | $ | 50,651 | | $ | 45,508 | | $ | 59,226 | | $ | 204,006 | | $ | 36,169 | | $ | 34,554 | | $ | 33,141 | | $ | 24,492 | | $ | 128,356 | | $ | (967,657 | ) |
Match | | 23,429 | | 40,999 | | 36,677 | | 36,450 | | 137,555 | | 13,702 | | 25,490 | | 38,126 | | 38,049 | | 115,367 | | 84,655 | |
Local | | 5,834 | | 9,326 | | 7,324 | | 3,049 | | 25,533 | | (1,371 | ) | 4,514 | | 3,811 | | 1,451 | | 8,405 | | 3,974 | |
Media & Other | | (5,283 | ) | (4,668 | ) | (4,485 | ) | (5,735 | ) | (20,171 | ) | (5,157 | ) | (4,729 | ) | (4,699 | ) | (40,400 | ) | (54,985 | ) | (25,226 | ) |
Corporate | | (35,265 | ) | (38,077 | ) | (38,284 | ) | (37,535 | ) | (149,161 | ) | (34,418 | ) | (35,196 | ) | (32,695 | ) | (45,039 | ) | (147,348 | ) | (133,733 | ) |
Total | | $ | 37,336 | | $ | 58,231 | | $ | 46,740 | | $ | 55,455 | | $ | 197,762 | | $ | 8,925 | | $ | 24,633 | | $ | 37,684 | | $ | (21,447 | ) | $ | 49,795 | | $ | (1,037,987 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
Non-cash compensation expense: | | | | | | | | | | | | | | | | | | | | | | | |
Search | | $ | 77 | | $ | (291 | ) | $ | 4 | | $ | 8 | | $ | (202 | ) | $ | 147 | | $ | 89 | | $ | 310 | | $ | 84 | | $ | 630 | | $ | 663 | |
Match | | — | | — | | 423 | | 1,219 | | 1,642 | | 26 | | (179 | ) | — | | — | | (153 | ) | 154 | |
Local | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | 150 | |
Media & Other | | 50 | | 171 | | 275 | | 278 | | 774 | | 120 | | 159 | | 162 | | 197 | | 638 | | 846 | |
Corporate | | 20,034 | | 23,127 | | 22,183 | | 21,030 | | 86,374 | | 21,252 | | 20,979 | | 16,586 | | 24,348 | | 83,165 | | 68,268 | |
Total | | $ | 20,161 | | $ | 23,007 | | $ | 22,885 | | $ | 22,535 | | $ | 88,588 | | $ | 21,545 | | $ | 21,048 | | $ | 17,058 | | $ | 24,629 | | $ | 84,280 | | $ | 70,081 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Amortization of intangibles and goodwill impairment: | | | | | | | | | | | | | | | | | | | | | |
Search | | $ | 202 | | $ | 202 | | $ | 768 | | $ | 4 | | $ | 1,176 | | $ | 201 | | $ | 202 | | $ | 202 | | $ | 11,201 | | $ | 11,806 | | $ | 1,064,356 | |
Match | | 1,559 | | 1,336 | | 3,107 | | 11,075 | | 17,077 | | 1,078 | | 3,793 | | 1,228 | | 744 | | 6,843 | | 4,940 | |
Local | | 467 | | 442 | | 443 | | 1,399 | | 2,751 | | 601 | | 514 | | 624 | | 527 | | 2,266 | | 3,234 | |
Media & Other | | 229 | | 220 | | 220 | | 384 | | 1,053 | | 1,294 | | 247 | | 248 | | 32,800 | | 34,589 | | 1,369 | |
Corporate | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Total | | $ | 2,457 | | $ | 2,200 | | $ | 4,538 | | $ | 12,862 | | $ | 22,057 | | $ | 3,174 | | $ | 4,756 | | $ | 2,302 | | $ | 45,272 | | $ | 55,504 | | $ | 1,073,899 | |
| | 2011 | | 2010 | | 2009 | |
| | Q1 | | Q2 | | Q3 | | Q4 | | FYE 12/31 | | Q1 | | Q2 | | Q3 | | Q4 | | FYE 12/31 | | FYE 12/31 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Amortization of non-cash marketing: | | | | | | | | | | | | | | | | | | | | | | | |
Search | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 6,494 | |
Match | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | 4,375 | |
Local | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | 4,999 | |
Media & Other | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Corporate | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Total | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 15,868 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Operating Income Before Amortization: | | | | | | | | | | | | | | | | | | | | | | | |
Search | | $ | 48,900 | | $ | 50,562 | | $ | 46,280 | | $ | 59,238 | | $ | 204,980 | | $ | 36,517 | | $ | 34,845 | | $ | 33,653 | | $ | 35,777 | | $ | 140,792 | | $ | 103,856 | |
Match | | 24,988 | | 42,335 | | 40,207 | | 48,744 | | 156,274 | | 14,806 | | 29,104 | | 39,354 | | 38,793 | | 122,057 | | 94,124 | |
Local | | 6,301 | | 9,768 | | 7,767 | | 4,448 | | 28,284 | | (770 | ) | 5,028 | | 4,435 | | 1,978 | | 10,671 | | 12,357 | |
Media & Other | | (5,004 | ) | (4,277 | ) | (3,990 | ) | (5,073 | ) | (18,344 | ) | (3,743 | ) | (4,323 | ) | (4,289 | ) | (7,403 | ) | (19,758 | ) | (23,011 | ) |
Corporate | | (15,231 | ) | (14,950 | ) | (16,101 | ) | (16,505 | ) | (62,787 | ) | (13,166 | ) | (14,217 | ) | (16,109 | ) | (20,691 | ) | (64,183 | ) | (65,465 | ) |
Total | | $ | 59,954 | | $ | 83,438 | | $ | 74,163 | | $ | 90,852 | | $ | 308,407 | | $ | 33,644 | | $ | 50,437 | | $ | 57,044 | | $ | 48,454 | | $ | 189,579 | | $ | 121,861 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Depreciation: | | | | | | | | | | | | | | | | | | | | | | | |
Search | | $ | 6,166 | | $ | 5,399 | | $ | 9,824 | | $ | 4,095 | | $ | 25,484 | | $ | 8,534 | | $ | 9,392 | | $ | 7,526 | | $ | 10,302 | | $ | 35,754 | | $ | 31,395 | |
Match | | 2,300 | | 2,278 | | 2,481 | | 3,721 | | 10,780 | | 3,028 | | 2,878 | | 2,612 | | 2,524 | | 11,042 | | 9,821 | |
Local | | 2,195 | | 2,392 | | 2,738 | | 3,063 | | 10,388 | | 1,755 | | 1,942 | | 2,022 | | 2,066 | | 7,785 | | 6,259 | |
Media & Other | | 499 | | 308 | | 362 | | 385 | | 1,554 | | 232 | | 262 | | 282 | | 297 | | 1,073 | | 2,744 | |
Corporate | | 2,279 | | 2,073 | | 2,079 | | 2,082 | | 8,513 | | 2,244 | | 2,151 | | 2,156 | | 1,692 | | 8,243 | | 11,172 | |
Total | | $ | 13,439 | | $ | 12,450 | | $ | 17,484 | | $ | 13,346 | | $ | 56,719 | | $ | 15,793 | | $ | 16,625 | | $ | 14,598 | | $ | 16,881 | | $ | 63,897 | | $ | 61,391 | |
Reconciliation of Operating Income Before Amortization to operating income (loss) to net earnings (loss) attributable to IAC shareholders:
| | 2011 | | 2010 | | 2009 | |
| | Q1 | | Q2 | | Q3 | | Q4 | | FYE 12/31 | | Q1 | | Q2 | | Q3 | | Q4 | | FYE 12/31 | | FYE 12/31 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Operating Income Before Amortization | | $ | 59,954 | | $ | 83,438 | | $ | 74,163 | | $ | 90,852 | | $ | 308,407 | | $ | 33,644 | | $ | 50,437 | | $ | 57,044 | | $ | 48,454 | | $ | 189,579 | | $ | 121,861 | |
Non-cash compensation expense | | (20,161 | ) | (23,007 | ) | (22,885 | ) | (22,535 | ) | (88,588 | ) | (21,545 | ) | (21,048 | ) | (17,058 | ) | (24,629 | ) | (84,280 | ) | (70,081 | ) |
Amortization of intangibles | | (2,457 | ) | (2,200 | ) | (4,538 | ) | (12,862 | ) | (22,057 | ) | (3,174 | ) | (4,756 | ) | (2,302 | ) | (17,240 | ) | (27,472 | ) | (157,031 | ) |
Amortization of non-cash marketing | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | (15,868 | ) |
Goodwill impairment | | — | | — | | — | | — | | — | | — | | — | | — | | (28,032 | ) | (28,032 | ) | (916,868 | ) |
Operating income (loss) | | 37,336 | | 58,231 | | 46,740 | | 55,455 | | 197,762 | | 8,925 | | 24,633 | | 37,684 | | (21,447 | ) | 49,795 | | (1,037,987 | ) |
Equity in (losses) income of unconsolidated affiliates | | (1,879 | ) | (8,720 | ) | (15,078 | ) | (10,623 | ) | (36,300 | ) | (22,613 | ) | (4,002 | ) | (547 | ) | 1,486 | | (25,676 | ) | (14,014 | ) |
Other income (expense), net | | 752 | | 5,637 | | 4,308 | | (637 | ) | 10,060 | | 5,236 | | 103 | | 819 | | (7,591 | ) | (1,433 | ) | 105,002 | |
Earnings (loss) from continuing operations before income taxes | | 36,209 | | 55,148 | | 35,970 | | 44,195 | | 171,522 | | (8,452 | ) | 20,734 | | 37,956 | | (27,552 | ) | 22,686 | | (946,999 | ) |
Income tax (provision) benefit | | (16,041 | ) | (9,518 | ) | 32,003 | | (2,397 | ) | 4,047 | | (6,145 | ) | (5,313 | ) | (15,516 | ) | (5,105 | ) | (32,079 | ) | (9,474 | ) |
Earnings (loss) from continuing operations | | 20,168 | | 45,630 | | 67,973 | | 41,798 | | 175,569 | | (14,597 | ) | 15,421 | | 22,440 | | (32,657 | ) | (9,393 | ) | (956,473 | ) |
Gain on Liberty Exchange | | — | | — | | — | | — | | — | | — | | — | | — | | 140,768 | | 140,768 | | — | |
(Loss) earnings from discontinued operations, net of tax | | (1,948 | ) | (2,488 | ) | (3,922 | ) | 4,366 | | (3,992 | ) | (4,727 | ) | (2,586 | ) | (4,795 | ) | (24,915 | ) | (37,023 | ) | (23,439 | ) |
Net earnings (loss) | | 18,220 | | 43,142 | | 64,051 | | 46,164 | | 171,577 | | (19,324 | ) | 12,835 | | 17,645 | | 83,196 | | 94,352 | | (979,912 | ) |
Net (earnings) loss attributable to noncontrolling interests | | (150 | ) | (718 | ) | 922 | | 2,602 | | 2,656 | | 619 | | 756 | | (136 | ) | 3,768 | | 5,007 | | 1,090 | |
Net earnings (loss) attributable to IAC shareholders | | $ | 18,070 | | $ | 42,424 | | $ | 64,973 | | $ | 48,766 | | $ | 174,233 | | $ | (18,705 | ) | $ | 13,591 | | $ | 17,509 | | $ | 86,964 | | $ | 99,359 | | $ | (978,822 | ) |
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 and (5) one-time items. The Company believes this measure is useful to investors because it represents the 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 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.
