Tree.com, Inc. Announces Special Cash Dividend of $1.00 per Share and Updates
Fourth Quarter 2012 Guidance
CHARLOTTE, N.C., Dec. 6, 2012
CHARLOTTE, N.C., Dec. 6, 2012 /PRNewswire/ --Tree.com, Inc. (NASDAQ: TREE),
the parent company of wholly owned subsidiary LendingTree, LLC, today
announced that its Board of Directors has approved a special cash dividend of
$1.00 per share. Additionally, the company expects to meet or exceed the
upper end of its most recent guidance, which was $14 million Adjusted
Exchanges EBITDA for the full year 2012, and $2.5 million Adjusted EBITDA from
continuing operations for the fourth quarter 2012.
(Logo: http://photos.prnewswire.com/prnh/20110518/MM04466LOGO )
Doug Lebda, chairman and CEO of Tree.com, noted, "As we committed to our
shareholders, we are examining all the potential uses of our cash, and in
addition to our continued share buyback plan, we believe it is appropriate at
this time to return capital to our shareholders. Following this dividend, we
will still have substantial capital resources to explore prudent acquisition
opportunities, operate our business, and continue to repurchase our stock. We
will continue to explore all of these avenues, in addition to the possibility
of future dividends, and keep our shareholders appropriately informed of our
Commenting on the increased guidance for the fourth quarter, Lebda continued,
"Sales to lenders and our marketing performance have continued to outperform
our expectations, countering the typical seasonal trends in the fourth
quarter. We are continuing to take market share and gain momentum which bodes
well for our 2013 growth plans."
The $1.00 special cash dividend is payable on December 26, 2012 to
shareholders of record on December 17, 2012. The total amount of the special
dividend paid to shareholders will be approximately $11.5 million based on the
current number of shares outstanding and will be paid using cash on hand.
Definitions of Certain Financial Measures
EBITDA is a non-GAAP measure defined as operating income or loss (which
excludes interest expense and taxes) excluding amortization of intangibles and
Adjusted EBITDA is a non-GAAP measure defined as EBITDA excluding (1) non-cash
compensation expense, (2) non-cash intangible asset impairment charges, (3)
gain/loss on disposal of assets, (4) restructuring expenses, (5) litigation
settlements and contingencies, (6) pro forma adjustments for significant
acquisitions or dispositions, and (7) one-time items.
Adjusted Exchanges EBITDA is defined as Adjusted EBITDA from continuing
operations, plus modeled revenue for leads provided to the company's former
mortgage origination business, minus Exchanges selling and marketing expense
allocated to the company's former mortgage origination business and recorded
in discontinued operations.
Tree.com is not able to provide a reconciliation of projected adjusted
Exchanges EBITDA or adjusted EBITDA to expected reported results due to the
unknown effect, timing and potential significance of the effects of the
wind-down of discontinued operations and tax considerations.
Non-GAAP measures should be considered in addition to results prepared in
accordance with GAAP, but should not be considered a substitute for or
superior to GAAP results. For further information on Tree.com's non-GAAP
measures, see Tree.com's press release dated November 5, 2012, including as
Exhibit 99.1 to Form 8-K filed with the Securities and Exchange Commission on
November 5, 2012.
Variable marketing margin is defined as revenue minus the portion of selling
and marketing expense attributable to the business for variable costs paid for
advertising, direct marketing and related expenses. This metric excludes
overhead, fixed costs and personnel-related expenses.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of
The matters contained in the discussion above may be considered to be
"forward-looking statements" within the meaning of the Securities Act of 1933
and the Securities Exchange Act of 1934, as amended by the Private Securities
Litigation Reform Act of 1995. Those statements include statements regarding
the intent, belief or current expectations or anticipations of Tree.com and
members of our management team. Factors currently known to management that
could cause actual results to differ materially from those in forward-looking
statements include the following: adverse conditions in the primary and
secondary mortgage markets and in the economy, particularly interest rates;
seasonality of results; potential liabilities to secondary market purchasers;
changes in the Company's relationships with network lenders; breaches of
network security or the misappropriation or misuse of personal consumer
information; failure to provide competitive service; failure to maintain brand
recognition; ability to attract and retain customers in a cost-effective
manner; ability to develop new products and services and enhance existing
ones; competition; allegations of failure to comply with existing or changing
laws, rules or regulations, or to obtain and maintain required licenses;
failure of network lenders or other affiliated parties to comply with
regulatory requirements; failure to maintain the integrity of systems and
infrastructure; liabilities as a result of privacy regulations; failure to
adequately protect intellectual property rights or allegations of infringement
of intellectual property rights; and changes in management. These and
additional factors to be considered are set forth under "Risk Factors" in our
Annual Report on Form 10-K for the period ended December 31, 2011, our
Quarterly Reports on Form 10-Q for the periods ended March 31, 2012 and June
30, 2012, and in our other filings with the Securities and Exchange
Commission. We undertake no obligation to update or revise forward-looking
statements to reflect changed assumptions, the occurrence of unanticipated
events or changes to future operating results or expectations.
About Tree.com, Inc.
Tree.com, Inc. (NASDAQ: TREE) is the parent of several brands and
businessesthat provide information, tools, advice, products and services for
critical transactions in consumers' lives. Our family of brands includes:
LendingTree®, GetSmart®, DegreeTree®, LendingTreeAutos, DoneRight!®,
ServiceTree^SM, InsuranceTree® and HealthTree.Together, these brands serve as
an ally for consumers who are looking to comparison shop for loans, education,
auto, home services and other services from multiple businesses and
professionals who will compete for their business.
Tree.com, Inc. is headquartered in Charlotte, N.C. and maintains operations
solely in the United States. For more information, please visitwww.tree.com.
SOURCE Tree.com, Inc.
Contact: Megan Greuling, +1-704-943-8208, Megan.Greuling@tree.com
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