0000891103-14-000006.txt : 20140421 0000891103-14-000006.hdr.sgml : 20140421 20140421161636 ACCESSION NUMBER: 0000891103-14-000006 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20140421 ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20140421 DATE AS OF CHANGE: 20140421 FILER: COMPANY DATA: COMPANY CONFORMED NAME: IAC/INTERACTIVECORP CENTRAL INDEX KEY: 0000891103 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-RETAIL STORES, NEC [5990] IRS NUMBER: 592712887 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-20570 FILM NUMBER: 14774036 BUSINESS ADDRESS: STREET 1: 555 WEST 18TH STREET CITY: NEW YORK STATE: NY ZIP: 10011 BUSINESS PHONE: 2123147300 MAIL ADDRESS: STREET 1: 555 WEST 18TH STREET CITY: NEW YORK STATE: NY ZIP: 10011 FORMER COMPANY: FORMER CONFORMED NAME: INTERACTIVECORP DATE OF NAME CHANGE: 20030623 FORMER COMPANY: FORMER CONFORMED NAME: USA INTERACTIVE DATE OF NAME CHANGE: 20020508 FORMER COMPANY: FORMER CONFORMED NAME: USA NETWORKS INC DATE OF NAME CHANGE: 19980223 8-K 1 coveritemsandsignatures.htm 8-K Cover, Items and Signatures



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 21, 2014
IAC/INTERACTIVECORP
(Exact name of registrant as specified in charter)
Delaware
(State or other jurisdiction
of incorporation)
0-20570
(Commission
File Number)
59-2712887
(IRS Employer
Identification No.)

555 West 18th Street, New York, NY
(Address of principal executive offices)
10011
(Zip Code)
Registrant's telephone number, including area code: (212) 314-7300
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))





ITEM 7.01 REGULATION FD DISCLOSURE

During the first quarter of 2014, IAC/InterActiveCorp (the “Company” or the “Registrant”) realigned its reportable segments as follows:

•
The Company has created a new segment called "The Match Group" that includes Match, which was previously reported as its own separate segment, and DailyBurn and Tutor, which were previously in the Media and Other segments, respectively.
•
The businesses within the Local segment, HomeAdvisor, Felix and, for periods prior to July 1, 2013, CityGrid Media, were moved to the eCommerce segment, formerly called the Other segment.
•
There have been no changes to the Search & Applications segment.

In addition, the Company is introducing Adjusted EBITDA, a new non-U.S. GAAP financial measure, beginning with the first quarter of 2014. Going forward, the Company plans to regularly report Adjusted EBITDA and will no longer report Operating Income Before Amortization. We believe Adjusted EBITDA is a useful measure for analysts and investors as this measure allows a more meaningful comparison between our performance and that of our competitors. Moreover, our management uses this measure internally to evaluate the performance of our business as a whole and our individual business segments.

Attached and incorporated herein by reference as Exhibit 99.1 is certain financial information of the Company reflecting the changes in the Company’s reportable segments using Adjusted EBITDA, the Company’s new non-U.S. GAAP financial measure. The exhibit also contains a description of the reconciling items between Adjusted EBITDA and operating income, the comparable U.S. GAAP measure.

This supplemental financial information is being furnished by the Registrant pursuant to Regulation FD. The information set forth in Exhibit 99.1 refers to a non-U.S. GAAP financial measure within the meaning of Regulation G.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
Exhibit No.
 
Description
 
 
 
99.1
 
Supplemental financial information.

2


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
IAC/INTERACTIVECORP
 
 
 
By:
 
/s/ Gregg Winiarski
 
Name:
 
Gregg Winiarski
 
Title:
 
Senior Vice President, General Counsel and Secretary
Date: April 21, 2014


3
 EX-99.1 2 ex-991xdocument.htm EX - 99.1 EX - 99.1 - Document


Exhibit 99.1
 
The tables below reflect the Company's changes in reportable segments using Adjusted EBITDA, the Company’s new non-U.S. GAAP financial measure. For more information on these changes, see Item 7.01 in this Form 8-K.
 
2013
 
2012
 
2011
 
Q1
 
Q2
 
Q3
 
Q4
 
FYE 12/31
 
Q1
 
Q2
 
Q3
 
Q4
 
FYE 12/31
 
FYE 12/31
 
(In thousands)
Revenue:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Search & Applications
$
397,192

 
$
427,449

 
$
407,291

 
$
373,018

 
$
1,604,950

 
$
343,198

 
$
348,762

 
$
370,227

 
$
403,608

 
$
1,465,795

 
$
1,040,507

The Match Group
192,875

 
197,987

 
205,196

 
209,332

 
805,390

 
174,499

 
178,587

 
178,352

 
182,784

 
714,222

 
519,195

Media
44,995

 
57,495

 
50,299

 
38,645

 
191,434

 
15,687

 
38,199

 
52,574

 
57,591

 
164,051

 
68,996

eCommerce
107,297

 
116,591

 
94,438

 
103,740

 
422,066

 
107,325

 
115,134

 
113,378

 
121,345

 
457,182

 
431,483

Inter-segment elimination
(110
)
 
(111
)
 
(352
)
 
(280
)
 
(853
)
 
(109
)
 
(70
)
 
(61
)
 
(77
)
 
(317
)
 
(737
)
Total
$
742,249

 
$
799,411

 
$
756,872

 
$
724,455

 
$
3,022,987

 
$
640,600

 
$
680,612

 
$
714,470

 
$
765,251

 
$
2,800,933

 
$
2,059,444

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income (loss):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Search & Applications
$
86,983

 
$
89,346

 
$
87,756

 
$
76,032

 
$
340,117

 
$
73,490

 
$
74,067

 
$
69,036

 
$
89,051

 
$
305,644

 
$
204,006

The Match Group
37,359

 
53,129

 
60,164

 
77,503

 
228,155

 
28,945

 
56,232

 
54,520

 
60,469

 
200,166

 
134,486

Media
(7,157
)
 
(2,033
)
 
(5,558
)
 
(6,055
)
 
(20,803
)
 
(5,708
)
 
(6,438
)
 
(11,620
)
 
(23,136
)
 
(46,902
)
 
(13,206
)
eCommerce
(4,493
)
 
(4,603
)
 
9,285

 
(250
)
 
(61
)
 
2,283

 
9,649

 
4,905

 
(1,514
)
 
15,323

 
22,674

Corporate
(28,141
)
 
(29,143
)
 
(29,643
)
 
(34,278
)
 
(121,205
)
 
(36,245
)
 
(36,034
)
 
(38,808
)
 
(39,576
)
 
(150,663
)
 
(150,198
)
Total
$
84,551

 
$
106,696

 
$
122,004

 
$
112,952

 
$
426,203

 
$
62,765

 
$
97,476

 
$
78,033

 
$
85,294

 
$
323,568

 
$
197,762

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-cash compensation expense:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Search & Applications
$
3

 
$
—

 
$
—

 
$
—

 
$
3

 
$
8

 
$
9

 
$
9

 
$
8

 
$
34

 
$
(202
)
The Match Group
(157
)
 
363

 
336

 
580

 
1,122

 
907

 
556

 
560

 
795

 
2,818

 
1,642

Media
205

 
213

 
219

 
(4
)
 
633

 
268

 
236

 
62

 
204

 
770

 
427

eCommerce
(29
)
 
—

 
—

 
—

 
(29
)
 
(78
)
 
26

 
26

 
24

 
(2
)
 
222

Corporate
12,641

 
11,244

 
13,810

 
13,581

 
51,276

 
20,361

 
19,614

 
22,694

 
19,336

 
82,005

 
86,499

Total
$
12,663

 
$
11,820

 
$
14,365

 
$
14,157

 
$
53,005

 
$
21,466

 
$
20,441

 
$
23,351

 
$
20,367

 
$
85,625

 
$
88,588

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Search & Applications
$
3,865

 
$
6,413

 
$
3,865

 
$
4,034

 
$
18,177

 
$
3,291

 
$
3,385

 
$
3,343

 
$
4,976

 
$
14,995

 
$
25,484

The Match Group
4,706

 
4,838

 
5,043

 
5,616

 
20,203

 
3,537

 
3,742

 
4,502

 
4,558

 
16,339

 
10,780

Media
523

 
524

 
526

 
551

 
2,124

 
179

 
295

 
424

 
500

 
1,398

 
703

eCommerce
2,619

 
2,993

 
1,648

 
1,627

 
8,887

 
3,045

 
2,732

 
2,749

 
2,684

 
11,210

 
11,239

Corporate
2,303

 
2,268

 
2,407

 
2,540

 
9,518

 
2,063

 
2,071

 
2,132

 
2,273

 
8,539

 
8,513

Total
$
14,016

 
$
17,036

 
$
13,489

 
$
14,368

 
$
58,909

 
$
12,115

 
$
12,225

 
$
13,150

 
$
14,991

 
$
52,481

 
$
56,719











 
2013
 
2012
 
2011
 
Q1
 
Q2
 
Q3
 
Q4
 
FYE 12/31
 
Q1
 
Q2
 
Q3
 
Q4
 
FYE 12/31
 
FYE 12/31
 
(In thousands)
Amortization of intangibles:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Search & Applications
$
6,663

 
$
6,661

 
$
6,891

 
$
7,339

 
$
27,554

 
$
2

 
$
3

 
$
147

 
$
7,316

 
$
7,468

 
$
1,176

The Match Group
4,540

 
5,106

 
3,153

 
4,327

 
17,126

 
6,515

 
4,990

 
3,342

 
2,608

 
17,455

 
17,077

Media
249

 
293

 
272

 
256

 
1,070

 
—

 
280

 
880

 
5,019

 
6,179

 
3

eCommerce
2,626

 
6,077

 
2,716

 
2,674

 
14,093

 
524

 
532

 
843

 
2,770

 
4,669

 
3,801

Corporate
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
14,078

 
$
18,137

 
$
13,032

 
$
14,596

 
$
59,843

 
$
7,041

 
$
5,805

 
$
5,212

 
$
17,713

 
$
35,771

 
$
22,057

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquisition-related contingent consideration fair value adjustments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Search & Applications
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

The Match Group
1,458

 
4,249

 
632

 
(5,996
)
 
343

 
—

 
—

 
—

 
—

 
—

 
—

Media
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

eCommerce
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Corporate
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
1,458

 
$
4,249

 
$
632

 
$
(5,996
)
 
$
343

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted EBITDA:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Search & Applications
$
97,514

 
$
102,420

 
$
98,512

 
$
87,405

 
$
385,851

 
$
76,791

 
$
77,464

 
$
72,535

 
$
101,351

 
$
328,141

 
$
230,464

The Match Group
47,906

 
67,685

 
69,328

 
82,030

 
266,949

 
39,904

 
65,520

 
62,924

 
68,430

 
236,778

 
163,985

Media
(6,180
)
 
(1,003
)
 
(4,541
)
 
(5,252
)
 
(16,976
)
 
(5,261
)
 
(5,627
)
 
(10,254
)
 
(17,413
)
 
(38,555
)
 
(12,073
)
eCommerce
723

 
4,467

 
13,649

 
4,051

 
22,890

 
5,774

 
12,939

 
8,523

 
3,964

 
31,200

 
37,936

Corporate
(13,197
)
 
(15,631
)
 
(13,426
)
 
(18,157
)
 
(60,411
)
 
(13,821
)
 
(14,349
)
 
(13,982
)
 
(17,967
)
 
(60,119
)
 
(55,186
)
Total
$
126,766

 
$
157,938

 
$
163,522

 
$
150,077

 
$
598,303

 
$
103,387

 
$
135,947

 
$
119,746

 
$
138,365

 
$
497,445

 
$
365,126













Reconciliation of Adjusted EBITDA to operating income to net earnings attributable to IAC shareholders:
 
2013
 
2012
 
2011
 
Q1
 
Q2
 
Q3
 
Q4
 
FYE 12/31
 
Q1
 
Q2
 
Q3
 
Q4
 
FYE 12/31
 
FYE 12/31
 
(In thousands)
Adjusted EBITDA
$
126,766

 
$
157,938

 
$
163,522

 
$
150,077

 
$
598,303

 
$
103,387

 
$
135,947

 
$
119,746

 
$
138,365

 
$
497,445

 
$
365,126

Non-cash compensation expense
(12,663
)
 
(11,820
)
 
(14,365
)
 
(14,157
)
 
(53,005
)
 
(21,466
)
 
(20,441
)
 
(23,351
)
 
(20,367
)
 
(85,625
)
 
(88,588
)
Depreciation
(14,016
)
 
(17,036
)
 
(13,489
)
 
(14,368
)
 
(58,909
)
 
(12,115
)
 
(12,225
)
 
(13,150
)
 
(14,991
)
 
(52,481
)
 
(56,719
)
Amortization of intangibles
(14,078
)
 
(18,137
)
 
(13,032
)
 
(14,596
)
 
(59,843
)
 
(7,041
)
 
(5,805
)
 
(5,212
)
 
(17,713
)
 
(35,771
)
 
(22,057
)
Acquisition-related contingent consideration fair value adjustments
(1,458
)
 
(4,249
)
 
(632
)
 
5,996

 
(343
)
 
—

 
—

 
—

 
—

 
—

 
—

Operating income
84,551

 
106,696

 
122,004

 
112,952

 
426,203

 
62,765

 
97,476

 
78,033

 
85,294

 
323,568

 
197,762

Equity in (losses) income of unconsolidated affiliates
(91
)
 
(1,078
)
 
(3,253
)
 
(2,193
)
 
(6,615
)
 
(5,901
)
 
(19,009
)
 
(3,298
)
 
2,863

 
(25,345
)
 
(36,300
)
Interest expense
(7,663
)
 
(7,658
)
 
(7,623
)
 
(10,652
)
 
(33,596
)
 
(1,347
)
 
(1,364
)
 
(1,391
)
 
(2,047
)
 
(6,149
)
 
(5,430
)
Other income (expense), net
1,658

 
(4
)
 
16,719

 
11,936

 
30,309

 
2,756

 
(368
)
 
447

 
(5,847
)
 
(3,012
)
 
15,490

Earnings from continuing operations before income taxes
78,455

 
97,956

 
127,847

 
112,043

 
416,301

 
58,273

 
76,735

 
73,791

 
80,263

 
289,062

 
171,522

Income tax (provision) benefit
(25,746
)
 
(39,416
)
 
(36,126
)
 
(33,214
)
 
(134,502
)
 
(27,120
)
 
(28,634
)
 
(27,606
)
 
(35,855
)
 
(119,215
)
 
4,047

Earnings from continuing operations
52,709

 
58,540

 
91,721

 
78,829

 
281,799

 
31,153

 
48,101

 
46,185

 
44,408

 
169,847

 
175,569

(Loss) earnings from discontinued operations, net of tax
(944
)
 
(1,068
)
 
3,914

 
24

 
1,926

 
3,684

 
(4,641
)
 
(5,624
)
 
(2,470
)
 
(9,051
)
 
(3,992
)
Net earnings
51,765

 
57,472

 
95,635

 
78,853

 
283,725

 
34,837

 
43,460

 
40,561

 
41,938

 
160,796

 
171,577

Net loss (earnings) attributable to noncontrolling interests
1,872

 
818

 
1,305

 
(1,936
)
 
2,059

 
(359
)
 
(128
)
 
156

 
(1,199
)
 
(1,530
)
 
2,656

Net earnings attributable to IAC shareholders
$
53,637

 
$
58,290

 
$
96,940

 
$
76,917

 
$
285,784

 
$
34,478

 
$
43,332

 
$
40,717

 
$
40,739

 
$
159,266

 
$
174,233


The Company's primary financial measure is Adjusted EBITDA, which is defined as operating income excluding: (1) non-cash compensation expense; (2) depreciation; and (3) acquisition-related items consisting of (i) amortization of intangible assets and goodwill and intangible asset impairments and (ii) gains and losses recognized on changes in the fair value of contingent consideration arrangements. The Company believes this measure is useful for analysts and investors as this measure allows a more meaningful comparison between our performance and that of our competitors. Moreover, our management uses this measure internally to evaluate the performance of our business as a whole and our individual business segments. The above items are excluded from our Adjusted EBITDA measure because these items are non-cash in nature, and we believe that by excluding these items, Adjusted EBITDA corresponds more closely to the cash operating income generated from our business, from which capital investments are made and debt is serviced. Adjusted EBITDA has certain limitations in that it does not take into account the impact to IAC's statement of operations of certain expenses. IAC endeavors to compensate for the limitations of the non-U.S. GAAP measure presented by providing the comparable U.S. GAAP measure with equal or greater prominence. 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.