Summary of information by segment and reconciliations to Adjusted EBITDA and income (loss) before income taxes |
Summarized information by segment and reconciliations to Adjusted EBITDA and income (loss) before income taxes is as follows (in thousands): | | | | | | | | | | | | | | | | | | Three Months Ended September 30, 2014 | | Lending | | Other | | Corporate | | Total | Revenue | $ | 37,644 |
| | $ | 3,662 |
| | $ | — |
| | $ | 41,306 |
| Costs and expenses: | | | | | | | | Cost of revenue (exclusive of depreciation shown separately below) | 1,990 |
| | 120 |
| | — |
| | 2,110 |
| Selling and marketing expense | 24,707 |
| | 2,461 |
| | — |
| | 27,168 |
| General and administrative expense | 1,129 |
| | 900 |
| | 4,561 |
| | 6,590 |
| Product development | 1,419 |
| | 239 |
| | — |
| | 1,658 |
| Depreciation | 432 |
| | 329 |
| | 79 |
| | 840 |
| Amortization of intangibles | — |
| | 41 |
| | — |
| | 41 |
| Restructuring and severance | — |
| | (3 | ) | | 10 |
| | 7 |
| Litigation settlements and contingencies | — |
| | — |
| | 2,338 |
| | 2,338 |
| Total costs and expenses | 29,677 |
| | 4,087 |
| | 6,988 |
| | 40,752 |
| Operating income (loss) | 7,967 |
| | (425 | ) | | (6,988 | ) | | 554 |
| Adjustments to reconcile to Adjusted EBITDA: | |
| | |
| | |
| | |
| Amortization of intangibles | — |
| | 41 |
| | — |
| | 41 |
| Depreciation | 432 |
| | 329 |
| | 79 |
| | 840 |
| Restructuring and severance | — |
| | (3 | ) | | 10 |
| | 7 |
| Loss on disposal of assets | — |
| | 185 |
| | — |
| | 185 |
| Non-cash compensation | 580 |
| | 221 |
| | 985 |
| | 1,786 |
| Acquisition expense | — |
| | 40 |
| | — |
| | 40 |
| Litigation settlements and contingencies | — |
| | — |
| | 2,338 |
| | 2,338 |
| Adjusted EBITDA | $ | 8,979 |
| | $ | 388 |
| | $ | (3,576 | ) | | $ | 5,791 |
| | | | | | | | | Operating income | |
| | |
| | |
| | $ | 554 |
| Interest expense | |
| | |
| | |
| | (1 | ) | Income before income taxes | |
| | |
| | |
| | $ | 553 |
|
| | | | | | | | | | | | | | | | | | Three Months Ended September 30, 2013 (a) | | Lending | | Other | | Corporate | | Total | Revenue | $ | 34,716 |
| | $ | 2,627 |
| | $ | — |
| | $ | 37,343 |
| Costs and expenses: | | | | | | | | Cost of revenue (exclusive of depreciation shown separately below) | 1,545 |
| | 168 |
| | 20 |
| | 1,733 |
| Selling and marketing expense | 23,089 |
| | 1,743 |
| | — |
| | 24,832 |
| General and administrative expense | 711 |
| | 604 |
| | 4,295 |
| | 5,610 |
| Product development | 990 |
| | 227 |
| | — |
| | 1,217 |
| Depreciation | 357 |
| | 426 |
| | 108 |
| | 891 |
| Amortization of intangibles | — |
| | 33 |
| | — |
| | 33 |
| Restructuring and severance | 1 |
| | (77 | ) | | 6 |
| | (70 | ) | Litigation settlements and contingencies | — |
| | — |
| | 2,875 |
| | 2,875 |
| Total costs and expenses | 26,693 |
| | 3,124 |
| | 7,304 |
| | 37,121 |
| Operating income (loss) | 8,023 |
| | (497 | ) | | (7,304 | ) | | 222 |
| Adjustments to reconcile to Adjusted EBITDA: | |
| | |
| | |
| | |
| Amortization of intangibles | — |
| | 33 |
| | — |
| | 33 |
| Depreciation | 357 |
| | 426 |
| | 108 |
| | 891 |
| Restructuring and severance | 1 |
| | (77 | ) | | 6 |
| | (70 | ) | Loss on disposal of assets | — |
| | — |
| | 1 |
| | 1 |
| Non-cash compensation | 411 |
| | 220 |
| | 781 |
| | 1,412 |
| Litigation settlements and contingencies | — |
| | — |
| | 2,875 |
| | 2,875 |
| Adjusted EBITDA | $ | 8,792 |
| | $ | 105 |
| | $ | (3,533 | ) | | $ | 5,364 |
| | | | | | | | | Operating loss | |
| | |
| | |
| | $ | 222 |
| Interest expense | |
| | |
| | |
| | (4 | ) | Loss before income taxes | |
| | |
| | |
| | $ | 218 |
|
| | (a) | For comparative purposes, revenue from and expenses related to personal loan offerings have been recast from the "Other" category to the lending segment. |
| | | | | | | | | | | | | | | | | | Nine Months Ended September 30, 2014 | | Lending | | Other | | Corporate | | Total | Revenue | $ | 113,621 |
| | $ | 9,865 |
| | $ | — |
| | $ | 123,486 |
| Costs and expenses: | | | | | | | | Cost of revenue (exclusive of depreciation shown separately below) | 5,308 |
| | 362 |
| | — |
| | 5,670 |
| Selling and marketing expense | 77,278 |
| | 6,303 |
| | — |
| | 83,581 |
| General and administrative expense | 3,622 |
| | 2,297 |
| | 12,282 |
| | 18,201 |
| Product development | 4,516 |
| | 900 |
| | — |
| | 5,416 |
| Depreciation | 1,195 |
| | 1,063 |
| | 283 |
| | 2,541 |
| Amortization of intangibles | — |
| | 96 |
| | — |
| | 96 |
| Restructuring and severance | 162 |
| | 12 |
| | 58 |
| | 232 |
| Litigation settlements and contingencies | — |
| | — |
| | 10,430 |
| | 10,430 |
| Total costs and expenses | 92,081 |
| | 11,033 |
| | 23,053 |
| | 126,167 |
| Operating income (loss) | 21,540 |
| | (1,168 | ) | | (23,053 | ) | | (2,681 | ) | Adjustments to reconcile to Adjusted EBITDA: | |
| | |
| | |
| | |
| Amortization of intangibles | — |
| | 96 |
| | — |
| | 96 |
| Depreciation | 1,195 |
| | 1,063 |
| | 283 |
| | 2,541 |
| Restructuring and severance | 162 |
| | 12 |
| | 58 |
| | 232 |
| Loss on disposal of assets | — |
| | 220 |
| | 17 |
| | 237 |
| Non-cash compensation | 1,707 |
| | 655 |
| | 2,461 |
| | 4,823 |
| Acquisition expense | — |
| | 114 |
| | — |
| | 114 |
| Litigation settlements and contingencies | — |
| | — |
| | 10,430 |
| | 10,430 |
| Adjusted EBITDA | $ | 24,604 |
| | $ | 992 |
| | $ | (9,804 | ) | | $ | 15,792 |
| | | | | | | | | Operating loss | |
| | |
| | |
| | (2,681 | ) | Interest expense | |
| | |
| | |
| | (1 | ) | Loss before income taxes | |
| | |
| | |
| | $ | (2,682 | ) |
| | | | | | | | | | | | | | | | | | Nine Months Ended September 30, 2013 (a) | | Lending | | Other | | Corporate | | Total | Revenue | $ | 94,170 |
| | $ | 8,037 |
| | $ | 622 |
| | $ | 102,829 |
| Costs and expenses: | | | | | | | | Cost of revenue (exclusive of depreciation shown separately below) | 4,095 |
| | 505 |
| | 439 |
| | 5,039 |
| Selling and marketing expense | 62,371 |
| | 6,097 |
| | 5 |
| | 68,473 |
| General and administrative expense | 2,563 |
| | 1,534 |
| | 13,720 |
| | 17,817 |
| Product development | 3,166 |
| | 748 |
| | — |
| | 3,914 |
| Depreciation | 1,076 |
| | 1,269 |
| | 303 |
| | 2,648 |
| Amortization of intangibles | — |
| | 119 |
| | — |
| | 119 |
| Restructuring and severance | 24 |
| | 48 |
| | 4 |
| | 76 |
| Litigation settlements and contingencies | — |
| | — |
| | 6,812 |
| | 6,812 |
| Total costs and expenses | 73,295 |
| | 10,320 |
| | 21,283 |
| | 104,898 |
| Operating income (loss) | 20,875 |
| | (2,283 | ) | | (20,661 | ) | | (2,069 | ) | Adjustments to reconcile to Adjusted EBITDA: | |
| | |
| | |
| | |
| Amortization of intangibles | — |
| | 119 |
| | — |
| | 119 |
| Depreciation | 1,076 |
| | 1,269 |
| | 303 |
| | 2,648 |
| Restructuring and severance | 24 |
| | 48 |
| | 4 |
| | 76 |
| Loss on disposal of assets | — |
| | — |
| | 25 |
| | 25 |
| Non-cash compensation | 1,307 |
| | 457 |
| | 2,514 |
| | 4,278 |
| Discretionary cash bonus | — |
| | — |
| | 920 |
| | 920 |
| Litigation settlements and contingencies | — |
| | — |
| | 6,812 |
| | 6,812 |
| Adjusted EBITDA | $ | 23,282 |
| | $ | (390 | ) | | $ | (10,083 | ) | | $ | 12,809 |
| | | | | | | | | Operating loss | |
| | |
| | |
| | (2,069 | ) | Interest expense | |
| | |
| | |
| | (18 | ) | Loss before income taxes | |
| | |
| | |
| | $ | (2,087 | ) |
| | (a) | For comparative purposes, revenue from and expenses related to personal loan offerings have been recast from the "Other" category to the lending segment. |
|