IAC Inc.
01/15/2025 | Press release | Distributed by Public on 01/15/2025 15:01
Consolidated Financial Statements Form 8 K
The tables below reflect the break-out of Care.com as a new reportable segment described in Item 7.01 of this Form 8-K. The information presented below should be read in conjunction with IAC Inc.'s historical consolidated financial statements and notes thereto found on the U.S. Securities and Exchange Commission's website at http://www.sec.gov.
| 2022 | 2023 | 2024 | ||||||||||||||||
| FYE 12/31 | Q1 | Q2 | Q3 | Q4 | FYE 12/31 | Q1 | Q2 | Q3 | ||||||||||
| (Unaudited; in thousands) | ||||||||||||||||||
| Revenue | ||||||||||||||||||
| Dotdash Meredith | $ | 1,934,699 | $ | 387,582 | $ | 413,998 | $ | 417,457 | $ | 475,856 | $ | 1,694,893 | $ | 390,540 | $ | 425,161 | $ | 439,463 |
| Angi Inc. | 1,764,355 | 355,497 | 351,587 | 351,231 | 300,433 | 1,358,748 | 305,390 | 315,134 | 296,719 | |||||||||
| Care.com | 362,570 | 94,547 | 87,620 | 101,558 | 91,314 | 375,039 | 92,527 | 87,650 | 95,746 | |||||||||
| Search | 731,431 | 152,475 | 177,036 | 166,068 | 133,459 | 629,038 | 108,473 | 101,756 | 88,284 | |||||||||
| Emerging & Other | 460,895 | 97,856 | 84,765 | 78,267 | 59,130 | 320,018 | 34,014 | 19,886 | 18,565 | |||||||||
| Inter-segment eliminations | (18,670) | (3,686) | (3,417) | (3,240) | (2,158) | (12,501) | (1,264) | (60) | (58) | |||||||||
| Total revenue | $ | 5,235,280 | $ | 1,084,271 | $ | 1,111,589 | $ | 1,111,341 | $ | 1,058,034 | $ | 4,365,235 | $ | 929,680 | $ | 949,527 | $ | 938,719 |
| Operating (loss) income | ||||||||||||||||||
|
Dotdash Meredith(a)(b)
|
$ | (188,091) | $ | (111,234) | $ | (17,820) | $ | (3,573) | $ | (18,111) | $ | (150,738) | $ | (20,829) | $ | 18,338 | $ | 22,061 |
| Angi Inc. | (75,620) | (10,881) | (15,381) | (7,862) | 7,626 | (26,498) | 2,716 | 9,187 | 7,817 | |||||||||
| Care.com | 31,189 | 17,546 | 5,836 | 16,489 | 5,333 | 45,204 | 13,071 | 328 | 15,732 | |||||||||
| Search | 83,398 | 10,770 | 13,961 | 12,011 | 7,456 | 44,198 | 4,356 | 4,624 | 2,389 | |||||||||
| Emerging & Other | (188,028) | (5,690) | (3,785) | (15,883) | (1,083) | (26,441) | (21,081) | (6,773) | (2,618) | |||||||||
| Corporate | (137,619) | (36,107) | (38,284) | (33,919) | (38,178) | (146,488) | (37,411) | (37,703) | (29,055) | |||||||||
| Total operating (loss) income | $ | (474,771) | $ | (135,596) | $ | (55,473) | $ | (32,737) | $ | (36,957) | $ | (260,763) | $ | (59,178) | $ | (11,999) | $ | 16,326 |
| Stock-based compensation expense | ||||||||||||||||||
| Dotdash Meredith | $ | (21,755) | $ | (5,091) | $ | (5,570) | $ | (6,411) | $ | (6,429) | $ | (23,501) | $ | (7,349) | $ | (6,680) | $ | (5,832) |
| Angi Inc. | (50,802) | (12,712) | (10,297) | (10,581) | (9,824) | (43,414) | (9,397) | (8,672) | (10,024) | |||||||||
| Care.com | - | - | - | - | - | - | - | - | - | |||||||||
| Search | - | - | - | - | - | - | - | - | - | |||||||||
| Emerging & Other | (2,373) | (517) | (188) | (596) | (504) | (1,805) | (410) | (253) | (478) | |||||||||
| Corporate | (48,546) | (10,621) | (14,138) | (11,374) | (12,328) | (48,461) | (11,751) | (13,494) | (11,897) | |||||||||
| Total stock-based compensation expense | $ | (123,476) | $ | (28,941) | $ | (30,193) | $ | (28,962) | $ | (29,085) | $ | (117,181) | $ | (28,907) | $ | (29,099) | $ | (28,231) |
| Depreciation | ||||||||||||||||||
|
Dotdash Meredith(b)
|
$ | (41,385) | $ | (33,366) | $ | (16,868) | $ | (8,728) | $ | (11,295) | $ | (70,257) | $ | (8,555) | $ | (6,018) | $ | (5,714) |
| Angi Inc. | (77,523) | (25,190) | (22,004) | (22,493) | (23,917) | (93,604) | (23,849) | (24,324) | (17,568) | |||||||||
| Care.com | (1,609) | (674) | (531) | (618) | (1,415) | (3,238) | (1,810) | (1,045) | (1,058) | |||||||||
| Search | (88) | (21) | (21) | (22) | (21) | (85) | (21) | (21) | (62) | |||||||||
| Emerging & Other | (829) | (268) | (199) | (124) | (167) | (758) | (23) | (13) | (19) | |||||||||
| Corporate | (9,552) | (1,653) | (1,660) | (1,791) | (2,050) | (7,154) | (2,315) | (2,027) | (2,024) | |||||||||
| Total depreciation | $ | (130,986) | $ | (61,172) | $ | (41,283) | $ | (33,776) | $ | (38,865) | $ | (175,096) | $ | (36,573) | $ | (33,448) | $ | (26,445) |
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| 2022 | 2023 | 2024 | ||||||||||||||||
| FYE 12/31 | Q1 | Q2 | Q3 | Q4 | FYE 12/31 | Q1 | Q2 | Q3 | ||||||||||
| (Unaudited; in thousands) | ||||||||||||||||||
| Amortization of intangibles | ||||||||||||||||||
| Dotdash Meredith | $ | (277,712) | $ | (49,660) | $ | (49,474) | $ | (56,697) | $ | (123,906) | $ | (279,737) | $ | (35,167) | $ | (35,388) | $ | (35,034) |
| Angi Inc. | (13,774) | (2,662) | (2,663) | (2,633) | - | (7,958) | - | - | - | |||||||||
| Care.com | (14,101) | (2,122) | (1,893) | (1,894) | (1,854) | (7,763) | (1,552) | (1,322) | (1,321) | |||||||||
| Search | - | - | - | - | - | - | - | - | - | |||||||||
| Emerging & Other | (2,131) | (162) | (153) | (149) | (48) | (512) | (9) | - | - | |||||||||
| Corporate | - | - | - | - | - | - | - | - | - | |||||||||
| Total amortization of intangibles | $ | (307,718) | $ | (54,606) | $ | (54,183) | $ | (61,373) | $ | (125,808) | $ | (295,970) | $ | (36,728) | $ | (36,710) | $ | (36,355) |
| Acquisition-related contingent consideration fair value adjustment | ||||||||||||||||||
| Dotdash Meredith | $ | 612 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - |
| Angi Inc. | - | - | - | - | - | - | - | - | - | |||||||||
| Care.com | - | - | - | - | - | - | - | - | - | |||||||||
| Search | - | - | - | - | - | - | - | - | - | |||||||||
| Emerging & Other | - | - | - | - | - | - | - | - | - | |||||||||
| Corporate | - | - | - | - | - | - | - | - | - | |||||||||
| Total acquisition-related contingent consideration fair value adjustment | $ | 612 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - |
| Goodwill impairment | ||||||||||||||||||
| Dotdash Meredith | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - |
| Angi Inc. | - | - | - | - | - | - | - | - | - | |||||||||
| Care.com | - | - | - | - | - | - | - | - | - | |||||||||
| Search | - | - | - | - | - | - | - | - | - | |||||||||
| Emerging & Other | (112,753) | - | - | (9,000) | - | (9,000) | - | - | - | |||||||||
| Corporate | - | - | - | - | - | - | - | - | - | |||||||||
| Total goodwill impairment | $ | (112,753) | $ | - | $ | - | $ | (9,000) | $ | - | $ | (9,000) | $ | - | $ | - | $ | - |
|
Adjusted EBITDA(c)
|
||||||||||||||||||
|
Dotdash Meredith(a)
|
$ | 152,149 | $ | (23,117) | $ | 54,092 | $ | 68,263 | $ | 123,519 | $ | 222,757 | $ | 30,242 | $ | 66,424 | $ | 68,641 |
| Angi Inc. | 66,479 | 29,683 | 19,583 | 27,845 | 41,367 | 118,478 | 35,962 | 42,183 | 35,409 | |||||||||
| Care.com | 46,899 | 20,342 | 8,260 | 19,001 | 8,602 | 56,205 | 16,433 | 2,695 | 18,111 | |||||||||
| Search | 83,486 | 10,791 | 13,982 | 12,033 | 7,477 | 44,283 | 4,377 | 4,645 | 2,451 | |||||||||
| Emerging & Other | (69,942) | (4,743) | (3,245) | (6,014) | (364) | (14,366) | (20,639) | (6,507) | (2,121) | |||||||||
| Corporate | (79,521) | (23,833) | (22,486) | (20,754) | (23,800) | (90,873) | (23,345) | (22,182) | (15,134) | |||||||||
| Total Adjusted EBITDA | $ | 199,550 | $ | 9,123 | $ | 70,186 | $ | 100,374 | $ | 156,801 | $ | 336,484 | $ | 43,030 | $ | 87,258 | $ | 107,357 |
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The following table reconciles net (loss) earnings attributable to IAC shareholders to operating (loss) income to Adjusted EBITDA:
| 2022 | 2023 | 2024 | ||||||||||||||||
| FYE 12/31 | Q1 | Q2 | Q3 | Q4 | FYE 12/31 | Q1 | Q2 | Q3 | ||||||||||
| (Unaudited; in thousands) | ||||||||||||||||||
| Net (loss) earnings attributable to IAC shareholders | $ | (1,170,170) | $ | 417,775 | $ | (89,045) | $ | (390,538) | $ | 327,750 | $ | 265,942 | $ | 45,031 | $ | (142,232) | $ | (243,719) |
| Add back: | ||||||||||||||||||
| Net (loss) earnings attributable to noncontrolling interest | (22,285) | (2,456) | (2,585) | (1,484) | (1,100) | (7,625) | (59) | 765 | 6,274 | |||||||||
|
Earnings from discontinued operations, net of tax(d)
|
(2,694) | - | - | - | - | - | - | - | - | |||||||||
| Income tax (benefit) provision | (331,087) | 139,502 | (24,297) | (118,838) | 112,451 | 108,818 | 54,688 | (34,638) | (115,839) | |||||||||
| Other expense (income), net | 217,785 | (23,749) | (10,985) | (25,455) | (3,673) | (63,862) | (34,805) | (54,693) | (16,363) | |||||||||
| Unrealized loss (gain) on investment in MGM Resort International | 723,515 | (704,840) | 32,362 | 463,421 | (512,611) | (721,668) | (163,751) | 179,284 | 346,272 | |||||||||
| Interest expense | 110,165 | 38,172 | 39,077 | 40,157 | 40,226 | 157,632 | 39,718 | 39,515 | 39,701 | |||||||||
| Operating (loss) income | (474,771) | (135,596) | (55,473) | (32,737) | (36,957) | (260,763) | (59,178) | (11,999) | 16,326 | |||||||||
| Add back: | ||||||||||||||||||
| Stock-based compensation expense | 123,476 | 28,941 | 30,193 | 28,962 | 29,085 | 117,181 | 28,907 | 29,099 | 28,231 | |||||||||
| Depreciation | 130,986 | 61,172 | 41,283 | 33,776 | 38,865 | 175,096 | 36,573 | 33,448 | 26,445 | |||||||||
| Amortization of intangibles | 307,718 | 54,606 | 54,183 | 61,373 | 125,808 | 295,970 | 36,728 | 36,710 | 36,355 | |||||||||
| Acquisition-related contingent consideration fair value adjustment | (612) | - | - | - | - | - | - | - | - | |||||||||
| Goodwill impairment | 112,753 | - | - | 9,000 | - | 9,000 | - | - | - | |||||||||
| Adjusted EBITDA | $ | 199,550 | $ | 9,123 | $ | 70,186 | $ | 100,374 | $ | 156,801 | $ | 336,484 | $ | 43,030 | $ | 87,258 | $ | 107,357 |
Note: On November 1, 2023, Angi Inc. completed the sale of Total Home Roofing, LLC ("Roofing") and has reflected it as a discontinued operation in its standalone financial statements. Roofing did not meet the threshold to be reflected as a discontinued operation at the IAC level. During Q4 2023, IAC moved Roofing to Emerging & Other and prior period financial information was recast to conform to this presentation. As a result, Angi Inc's revenue, operating (loss) income and Adjusted EBITDA in IAC's financial results will agree to the corresponding amounts in Angi Inc.'s standalone financial statements.
(a)The 2022 operating loss of $188.1 million and Adjusted EBITDA of $152.1 million at Dotdash Meredith include $73.2 million of restructuring costs and $7.1 million of transaction-related costs associated with the acquisition of Meredith. Restructuring costs were related to several actions to improve efficiencies and better align Dotdash Meredith's cost structure following the acquisition of Meredith on December 1, 2021, including (i) the discontinuation of certain print publications and the shutdown of PeopleTV, (ii) a voluntary retirement program, (iii) the consolidation of certain leased spaces and (iv) a reduction in force plan. Q1 2023 operating loss of $111.2 million and Adjusted EBITDA loss of $23.1 million at Dotdash Meredith include $44.7 million of impairment charges of a right-of-use asset related to unoccupied leased office space.
(b)The 2022 operating loss of $188.1 million and depreciation of $41.4 million at Dotdash Meredith include $7.0 million of restructuring costs primarily related to the impairment of leasehold improvements and furniture and equipment related to the consolidation of certain leased spaces following the Meredith acquisition. Q1 2023 operating loss of $111.2 million and depreciation of $33.4 million at Dotdash Meredith include $25.3 million of impairment charges related to leasehold improvements and furniture and equipment related to unoccupied leased office space. Q2 2023 operating loss of $17.8 million and depreciation of $16.9 million at Dotdash Meredith include a $4.2 million write-off of certain leasehold improvements and furniture and equipment.
(c)Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("Adjusted EBITDA") is defined as operating income excluding: (1) stock-based compensation expense; (2) depreciation; and (3) acquisition-related items consisting of (i) amortization of intangible assets and impairments of goodwill and intangible assets, if applicable, and (ii) gains and losses recognized on changes in the fair value of contingent consideration arrangements, if applicable. We believe this measure is useful for analysts and investors as this measure allows a more meaningful comparison between our performance and that of our competitors. Adjusted EBITDA has certain limitations because it excludes the impact of these expenses.
(d)On May 25, 2021, the Company completed the separation of its Vimeo business from the remaining businesses of the Company through a series of transactions that resulted in the transfer of its Vimeo business to Vimeo, Inc., (formerly named Vimeo Holdings, Inc., "Vimeo"), and Vimeo becoming an independent, separately traded public company through a spin-off from IAC. Vimeo was presented as discontinued operations within IAC's consolidated financial statements for all periods prior to May 25, 2021. Earnings from discontinued operations in 2022 include $2.7 million of income tax benefit related to the Company's allocation of certain federal and state net operating losses to Vimeo based on the filing of its 2021 tax returns.
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