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):  May 9, 2005

 

IAC/INTERACTIVECORP

(Exact name of Registrant as specified in charter)

 

Delaware

 

0-20570

 

59-2712887

(State or other jurisdiction

 

(Commission File

 

(IRS Employer

of incorporation)

 

Number)

 

Identification No.)

 

 

 

 

 

152 West 57th Street, New York, NY

 

10019

(Address of principal executive offices)

 

(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:

 

ý Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

ý 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

 

The Registrant is filing supplemental financial information, attached hereto as Exhibit 99.1.  The attached document refers to non-GAAP measures, within the meaning of Regulation G.  Additional information regarding those non-GAAP measures can be found in the Registrant’s public filings, including its Current Report on Form 8-K filed May 4, 2005.

 

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 thereunto duly authorized.

 

 

IAC/INTERACTIVECORP

 

 

 

 

 

By:

/s/

Gregory R. Blatt

 

 

Name:

Gregory R. Blatt

 

Title:

Executive Vice President and

 

 

General Counsel

 

 

Date: May 9, 2005

 

3


 

EXHIBIT INDEX

 

Exhibit No.

 

Description

 

 

 

99.1

 

Supplemental Financial Information.

 

4


EXHIBIT 99.1

 

IAC/InterActiveCorp

Q1 2005 Earnings

Supplemental Financial Information and Operating Metrics

 

 

 

Table of Contents

 

 

Financial Information:

Segment Results

Historical Financial Results for the Businesses Comprising IAC and Expedia

 

Operating Metrics:

Gross Transaction Value & International Revenue

IAC Travel

Electronic Retailing

Ticketing and Personals

Financial Services & Real Estate

 

 


 

IAC/InterActiveCorp

Segment Results and Reconciliations

($ in millions, rounding differences may exist)

 

 

 

2003

 

2004

 

2005

 

 

 

FYE 12/31

 

Q1

 

Q2

 

Q3

 

Q4

 

FYE 12/31

 

Q1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IAC Travel (a) (b)

 

$

2,610.1

 

$

494.0

 

$

559.9

 

$

577.1

 

$

502.4

 

$

2,133.4

 

$

563.9

 

Electronic Retailing:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HSN U.S.

 

1,763.7

 

467.8

 

438.2

 

437.1

 

562.9

 

1,905.9

 

498.0

 

HSN International

 

348.4

 

93.3

 

79.5

 

73.7

 

102.1

 

348.6

 

104.7

 

Total Electronic Retailing

 

2,112.1

 

561.1

 

517.7

 

510.8

 

665.0

 

2,254.5

 

602.6

 

Ticketing

 

743.2

 

202.3

 

195.1

 

182.0

 

188.9

 

768.2

 

211.3

 

Personals

 

185.3

 

48.8

 

48.5

 

49.7

 

50.9

 

198.0

 

54.2

 

IAC Local and Media Services (b)

 

230.3

 

32.1

 

41.0

 

35.3

 

146.9

 

255.3

 

41.2

 

Financial Services and Real Estate

 

55.8

 

39.7

 

44.6

 

47.9

 

57.5

 

189.8

 

105.8

 

Teleservices

 

294.3

 

71.8

 

72.5

 

74.5

 

75.0

 

293.9

 

77.1

 

Other

 

(21.3

)

(6.0

)

(6.6

)

(6.3

)

(9.1

)

(28.0

)

(9.1

)

Total Revenue

 

$

6,209.8

 

$

1,443.8

 

$

1,472.7

 

$

1,471.1

 

$

1,677.4

 

$

6,065.0

 

$

1,647.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income Before Amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IAC Travel (b)

 

$

523.8

 

$

127.6

 

$

174.9

 

$

183.1

 

$

161.0

 

646.6

 

$

168.5

 

Electronic Retailing:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HSN U.S.

 

168.3

 

41.6

 

41.6

 

43.1

 

68.4

 

194.7

 

56.5

 

HSN International

 

4.7

 

1.3

 

0.4

 

(2.1

)

8.1

 

7.7

 

3.3

 

Total Electronic Retailing

 

173.0

 

42.9

 

42.0

 

41.1

 

76.5

 

202.4

 

59.8

 

Ticketing

 

144.5

 

46.8

 

46.7

 

32.4

 

38.3

 

164.3

 

47.0

 

Personals

 

31.0

 

6.3

 

9.5

 

4.5

 

7.2

 

27.6

 

5.4

 

IAC Local and Media Services (b)

 

26.2

 

(13.6

)

(16.3

)

(12.8

)

49.8

 

7.2

 

(11.9

)

Financial Services and Real Estate

 

1.2

 

3.1

 

5.6

 

6.5

 

6.2

 

21.4

 

9.7

 

Teleservices

 

12.5

 

3.2

 

4.2

 

5.9

 

3.8

 

17.1

 

4.2

 

Corporate Expense and other adjustments

 

(79.3

)

(22.6

)

(21.1

)

(19.2

)

(31.0

)

(93.9

)

(29.9

)

Intersegment Elimination

 

(0.8

)

0.4

 

—

 

—

 

—

 

0.4

 

—

 

Total Operating Income Before Amortization

 

$

832.1

 

$

194.1

 

$

245.5

 

$

241.5

 

$

311.9

 

$

993.0

 

$

253.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization, merger costs and pro forma adjustments (c)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IAC Travel (b)

 

$

176.8

 

$

42.9

 

$

43.1

 

$

42.7

 

$

75.3

 

$

204.0

 

$

38.6

 

Electronic Retailing:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HSN U.S.

 

50.8

 

13.2

 

13.2

 

13.2

 

13.2

 

52.9

 

13.2

 

HSN International

 

1.3

 

0.3

 

0.3

 

0.3

 

0.3

 

1.3

 

0.3

 

Total Electronic Retailing

 

52.1

 

13.6

 

13.6

 

13.6

 

13.6

 

54.2

 

13.6

 

Ticketing

 

28.0

 

6.2

 

6.2

 

7.2

 

6.8

 

26.4

 

7.0

 

Personals

 

16.9

 

3.5

 

1.7

 

1.7

 

1.8

 

8.7

 

1.1

 

IAC Local and Media Services (b)

 

55.6

 

14.2

 

13.8

 

11.6

 

4.6

 

44.3

 

1.3

 

Financial Services and Real Estate

 

17.7

 

6.6

 

6.8

 

6.7

 

8.8

 

29.0

 

13.0

 

Teleservices (d)

 

—

 

—

 

—

 

—

 

184.8

 

184.8

 

—

 

Corporate Expense and other adjustments

 

112.7

 

68.1

 

54.7

 

57.2

 

60.5

 

240.5

 

50.8

 

Total amortization, merger costs and pro forma adj.

 

$

459.8

 

$

155.0

 

$

140.0

 

$

140.9

 

$

356.1

 

$

792.0

 

$

125.3

 

 

 

The financial, statistical and other information contained herein is unaudited.

 

2


IAC/InterActiveCorp

Segment Results and Reconciliations

($ in millions, rounding differences may exist)

 

 

 

2003

 

2004

 

2005

 

 

 

FYE 12/31

 

Q1

 

Q2

 

Q3

 

Q4

 

FYE 12/31

 

Q1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating (Loss) Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IAC Travel (b)

 

$

347.0

 

$

84.7

 

$

131.8

 

$

140.3

 

$

85.7

 

442.6

 

$

129.9

 

Electronic Retailing:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HSN U.S.

 

117.5

 

28.4

 

28.3

 

29.9

 

55.1

 

141.7

 

43.3

 

HSN International

 

3.4

 

0.9

 

0.0

 

(2.4

)

7.8

 

6.4

 

3.0

 

Total Electronic Retailing

 

120.9

 

29.3

 

28.4

 

27.5

 

63.0

 

148.1

 

46.2

 

Ticketing

 

116.5

 

40.7

 

40.5

 

25.2

 

31.6

 

137.9

 

40.0

 

Personals

 

14.1

 

2.8

 

7.8

 

2.8

 

5.4

 

18.8

 

4.4

 

IAC Local and Media Services (b)

 

(29.4

)

(27.8

)

(30.2

)

(24.4

)

45.3

 

(37.1

)

(13.1

)

Financial Services and Real Estate

 

(16.5

)

(3.6

)

(1.2

)

(0.2

)

(2.7

)

(7.6

)

(3.3

)

Teleservices (d)

 

12.5

 

3.2

 

4.2

 

5.9

 

(181.0

)

(167.7

)

4.2

 

Corporate Expense and other adjustments

 

(192.0

)

(90.7

)

(75.8

)

(76.5

)

(91.5

)

(334.5

)

(80.7

)

Intersegment Elimination

 

(0.8

)

0.4

 

—

 

—

 

—

 

0.4

 

—

 

Total operating income

 

$

372.3

 

$

39.1

 

$

105.5

 

$

100.6

 

$

(44.2

)

$

201.0

 

$

127.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total other income (expense), net (e)

 

(133.2

)

32.7

 

45.1

 

31.5

 

41.5

 

150.8

 

16.1

 

Earnings (loss) from continuing operations before income taxes and minority interest

 

239.0

 

71.8

 

150.6

 

132.1

 

(2.6

)

351.9

 

143.7

 

Income tax expense

 

(66.3

)

(28.4

)

(58.5

)

(43.6

)

(42.8

)

(173.4

)

(74.0

)

Minority interest

 

(52.8

)

(0.5

)

(1.0

)

(0.1

)

(1.3

)

(2.9

)

(0.4

)

Earnings (loss) from continuing operations

 

119.9

 

42.9

 

91.1

 

88.5

 

(46.7

)

175.7

 

69.4

 

Discontinued Operations, net of tax (f)

 

47.5

 

(1.3

)

(17.9

)

4.3

 

4.1

 

(10.8

)

2.8

 

Earnings (loss) before preferred dividend

 

167.4

 

41.5

 

73.2

 

92.7

 

(42.6

)

164.9

 

72.2

 

Preferred dividend

 

(13.1

)

(3.3

)

(3.3

)

(3.3

)

(3.3

)

(13.1

)

(3.3

)

Net income (loss) available to common shareholders

 

$

154.3

 

$

38.3

 

$

69.9

 

$

89.5

 

$

(45.9

)

$

151.8

 

$

68.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Net Income to Adjusted EPS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

$

154.3

 

$

38.3

 

$

69.9

 

$

89.5

 

$

(45.9

)

$

151.8

 

$

68.9

 

Amortization of distribution and marketing expense

 

51.4

 

6.3

 

4.7

 

3.3

 

3.7

 

18.0

 

0.4

 

Amortization of compensation expense

 

128.2

 

69.0

 

55.3

 

57.8

 

59.6

 

241.7

 

50.5

 

Amortization of intangibles and goodwill

 

268.5

 

79.7

 

79.9

 

79.8

 

108.0

 

347.5

 

74.4

 

Goodwill impairment

 

—

 

—

 

—

 

—

 

184.8

 

184.8

 

—

 

Merger costs (c)

 

11.8

 

—

 

—

 

—

 

—

 

—

 

—

 

Discontinued operations, net of tax (f)

 

(47.5

)

1.3

 

17.9

 

(4.3

)

(4.1

)

10.8

 

(2.8

)

Equity gains (losses) in VUE (e)

 

224.5

 

0.4

 

(11.0

)

(0.6

)

(4.9

)

(16.2

)

21.2

 

Impact of pro forma adjustments, income taxes and minority interest (g)

 

(191.0

)

(57.7

)

(46.3

)

(50.8

)

(59.7

)

(214.5

)

(45.0

)

Preferred dividends

 

13.1

 

3.3

 

3.3

 

3.3

 

3.3

 

13.1

 

3.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Net Income

 

$

613.2

 

$

140.5

 

$

173.7

 

$

177.9

 

$

244.8

 

$

737.0

 

$

170.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EPS weighted average shares outstanding (h)

 

770.1

 

777.5

 

776.5

 

760.8

 

761.1

 

769.0

 

763.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EPS

 

$

0.80

 

$

0.18

 

$

0.22

 

$

0.23

 

$

0.32

 

$

0.96

 

$

0.22

 

 

 

The financial, statistical and other information contained herein is unaudited.

 

3


IAC/InterActiveCorp

Segment Results and Reconciliations

($ in millions, rounding differences may exist)

 

 

 

2003

 

2004

 

2005

 

 

 

FYE 12/31

 

Q1

 

Q2

 

Q3

 

Q4

 

FYE 12/31

 

Q1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental: Depreciation by segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IAC Travel (b)

 

$

39.4

 

$

10.0

 

$

10.1

 

$

10.7

 

$

10.8

 

$

41.7

 

$

11.3

 

Electronic Retailing:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HSN U.S.

 

44.3

 

10.2

 

10.2

 

10.4

 

11.4

 

42.2

 

10.2

 

HSN International

 

9.7

 

2.6

 

2.5

 

2.6

 

2.6

 

10.3

 

2.4

 

Total Electronic Retailing

 

54.1

 

12.7

 

12.7

 

13.0

 

14.0

 

52.5

 

12.5

 

Ticketing

 

30.3

 

7.3

 

7.7

 

8.6

 

9.7

 

33.4

 

8.8

 

Personals

 

10.7

 

3.3

 

3.3

 

3.4

 

4.8

 

14.8

 

3.0

 

IAC Local and Media Services (b)

 

5.7

 

1.8

 

2.0

 

1.7

 

2.5

 

8.0

 

2.5

 

Financial Services and Real Estate

 

1.2

 

0.9

 

0.9

 

0.8

 

0.9

 

3.5

 

1.4

 

Teleservices

 

23.5

 

4.8

 

4.6

 

4.3

 

4.0

 

17.7

 

3.8

 

Corporate Expense and other adjustments

 

5.8

 

1.3

 

1.3

 

1.5

 

1.9

 

6.0

 

1.8

 

Total Depreciation

 

$

170.8

 

$

42.2

 

$

42.7

 

$

44.1

 

$

48.7

 

$

177.7

 

$

45.2

 

 

 

(a)

As part of the integration of IACT's businesses, Hotels.com conformed its merchant hotels business practices with those of the other IACT businesses. As a result, beginning January 1, 2004, IAC commenced reporting revenue for Hotels.com on a net basis, consistent with Expedia's historical practice. Prior period results were not restated for GAAP purposes; see page 7 of this document for a presentation of prior year results as though they had also been reported on a net basis. There was no impact to operating income or Operating Income Before Amortization from the change in reporting.

(b)

IAC Travel includes results from TripAdvisor, which previously had been part of IAC Local and Media Services.

(c)

Merger costs incurred by Expedia, Hotels.com and Ticketmaster in 2003 for investment banking, legal and accounting fees were related directly to the mergers and are treated as non-recurring for calculating Operating Income Before Amortization and Adjusted Net Income. These costs were incurred solely in relation to the mergers, but may not be capitalized since Expedia, Hotels.com and Ticketmaster were considered the targets in the transaction for accounting purposes. These costs do not directly benefit operations in any manner, would not normally be recorded by IAC if not for the fact it already consolidated these entities, and are all related to the same transaction, as IAC simultaneously announced its intention to commence its exchange offer for the companies in 2002. The majority of costs are for advisory services provided by investment bankers, and the amounts incurred in 2003 were pursuant to the same fee letters entered into by each company in 2002. Given these factors, IAC believes it is appropriate to consider these costs as one-time. Operating Income Before Amortization by segment is presented before one-time items.

(d)

Teleservices Q4 2004 operating income includes a $184.8 million impairment charge related to goodwill.

(e)

In Q1 2003, IAC took a charge of $245 million pretax and $149 million after-tax, or $.29 per diluted share, in connection with VUE's $4.5 billion impairment charge of which IAC recorded its 5.44% proportionate interest.

(f)

Discontinued operations consists of the results of Avaltus, ECS/Styleclick and Euvia in 2003, 2004 and Q1 2005. Discontinued operations in Q2 2003 included a $37 million tax benefit related to the shut-down of Styleclick.

(g)

Pro forma adjustments in 2003 represent the impact of the merger with Ticketmaster, which closed January 17, 2003, the merger with Hotels.com, which closed June 23, 2003, and the merger with Expedia, which closed August 8, 2003. Also included is the impact of these transactions on shares outstanding. Pro forma adjustments do not impact 2004 and Q1 2005.

(h)

For Adjusted EPS purposes, the impact of RSUs is based on the weighted average amount of RSUs outstanding, as compared with shares outstanding for GAAP purposes, which includes RSUs on a treasury method basis.

 

 

The financial, statistical and other information contained herein is unaudited.

 

4


 

Historical Financial Results for the Businesses Comprising IAC and Expedia (a) (b)

($ in millions, rounding differences may exist)

 

 

 

 

 

2004

 

2005

 

 

 

 

 

Q1

 

Q2

 

Q3

 

Q4

 

FYE 12/31

 

Q1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Businesses Comprising IAC

 

 

 

$

1,034

 

$

990

 

$

972

 

$

1,243

 

$

4,238

 

$

1,168

 

Businesses Comprising Expedia

 

 

 

413

 

487

 

504

 

439

 

1,843

 

485

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income Before Amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Businesses Comprising IAC

 

 

 

$

115

 

$

111

 

$

98

 

$

196

 

$

520

 

$

143

 

Businesses Comprising Expedia

 

 

 

102

 

155

 

163

 

147

 

567

 

140

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Businesses Comprising IAC

 

 

 

$

63

 

$

61

 

$

49

 

$

(63

)

$

110

 

$

101

 

Businesses Comprising Expedia

 

 

 

67

 

120

 

128

 

110

 

425

 

108

 

 

(a)

The businesses comprising IAC will consist of all segments except IAC Travel, as shown on page 2-4, plus Interval International and TV Travel Shop ("TVTS").

 

The businesses comprising Expedia will consist of IAC Travel, as shown on page 2-4, but will exclude Interval International and TVTS.

(b)

Results for the businesses after the spin-off exclude the impact of corporate expense.

 

 

The financial, statistical and other information contained herein is unaudited.

 

5


 

IAC/InterActiveCorp

Gross Transaction Value and International Revenue

($ in millions, rounding differences may exist)

 

 

 

2003

 

2004

 

2005

 

 

 

FYE 12/31

 

Q1

 

Q2

 

Q3

 

Q4

 

FYE 12/31

 

Q1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Gross Transaction Value ("GTV")

 

$

17,486

 

$

5,491

 

$

5,306

 

$

5,114

 

$

5,165

 

$

21,075

 

$

6,364

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interactive GTV (a)

 

$

15,031

 

$

4,931

 

$

4,792

 

$

4,654

 

$

4,518

 

$

18,895

 

$

5,864

 

% of Total

 

86

%

90

%

90

%

91

%

87

%

90

%

92

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Internet GTV (b)

 

$

12,932

 

$

4,370

 

$

4,302

 

$

4,170

 

$

3,940

 

$

16,782

 

$

5,324

 

% of Total

 

74

%

80

%

81

%

82

%

76

%

80

%

84

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International GTV

 

$

2,973

 

$

1,094

 

$

1,009

 

$

1,095

 

$

1,212

 

$

4,410

 

$

1,536

 

% of Total

 

17

%

20

%

19

%

21

%

23

%

21

%

24

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International Revenue (c)

 

$

988

 

$

236

 

$

230

 

$

249

 

$

287

 

$

1,003

 

$

294

 

% of Total

 

16

%

16

%

16

%

17

%

17

%

17

%

18

%

 

(a)

Interactive GTV is defined as GTV which was generated from the TV or online from Expedia, Hotels.com, Hotwire, Interval, TV Travel Shop, HSN, HSN.com, Ticketmaster.com, Personals, EPI.com, and LendingTree.

(b)

Internet GTV is defined as GTV which was generated online from Expedia, Hotels.com, Hotwire, Interval, HSN.com, Ticketmaster.com, Personals, EPI.com, and LendingTree.

(c)

International revenues are determined by geographic point of sale. 2003 reflects Hotels.com international revenue reported on a gross basis and by point of destination.

 

 

The financial, statistical and other information contained herein is unaudited.

 

6


 

IAC/InterActiveCorp

IAC Travel

(rounding differences may exist)

 

 

 

2003

 

2004

 

2005

 

 

 

FYE 12/31

 

Q1

 

Q2

 

Q3

 

Q4

 

FYE 12/31

 

Q1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Bookings by Geography (mm) (a) (b)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic

 

$

         8,635

 

$

         2,837

 

$

         2,809

 

 $        2,685

 

$

         2,350

 

$

       10,681

 

$

         3,245

 

International

 

1,441

 

652

 

581

 

692

 

621

 

2,547

 

947

 

Total

 

$

       10,076

 

$

         3,489

 

$

         3,390

 

$

         3,377

 

$

         2,971

 

$

       13,227

 

$

         4,192

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Revenue by Geography (mm) (a) (c) (d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic

 

$

         1,431

 

$

            408

 

$

            465

 

$

            465

 

$

            398

 

$

         1,736

 

$

            446

 

International

 

239

 

86

 

95

 

112

 

104

 

398

 

117

 

Total

 

$

         1,670

 

$

            494

 

$

            560

 

$

            577

 

$

            502

 

$

         2,133

 

$

            564

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Bookings by Brand (mm) (a) (b)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expedia

 

$

         7,908

 

$

         2,672

 

$

         2,636

 

$

         2,647

 

$

         2,409

 

$

       10,364

 

$

         3,444

 

Hotels.com

 

1,576

 

494

 

470

 

461

 

350

 

1,775

 

483

 

Other

 

591

 

323

 

285

 

269

 

211

 

1,088

 

265

 

Total

 

$

       10,076

 

$

         3,489

 

$

         3,390

 

$

         3,377

 

$

         2,971

 

$

       13,227

 

$

         4,192

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Bookings by Agency/Merchant (mm) (a) (b)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency

 

$

         5,880

 

$

         1,895

 

$

         1,928

 

$

         1,917

 

$

         1,776

 

$

         7,517

 

$

         2,417

 

Merchant

 

4,196

 

1,594

 

1,462

 

1,460

 

1,195

 

5,711

 

1,775

 

Total

 

$

       10,076

 

$

         3,489

 

$

         3,390

 

$

         3,377

 

$

         2,971

 

$

       13,227

 

$

         4,192

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Packages Revenue (mm) (a)

 

$

            333

 

$

            104

 

$

            111

 

$

            112

 

$

              95

 

$

            422

 

$

            118

 

Number of Transactions (mm) (a) (e)

 

26.2

 

8.2

 

8.5

 

9.2

 

7.6

 

33.5

 

9.7

 

Merchant hotel room nights (mm) (a) (f)

 

26.3

 

7.0

 

8.3

 

9.1

 

7.4

 

31.7

 

7.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interval:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Members (000s)

 

1,594

 

1,622

 

1,651

 

1,681

 

1,696

 

1,696

 

1,717

 

Confirmations (000s)

 

792

 

266

 

211

 

204

 

181

 

861

 

270

 

Share of confirmations online

 

14.4

%

17.2

%

17.5

%

20.2

%

19.4

%

18.5

%

21.0

%

 

(a)

Includes actual results for Hotwire from its acquisition date of November 5, 2003.

(b)

Total retail value of transactions booked during a specified time period, including taxes and fees, for both agency and merchant transactions.

(c)

Represents revenue as if Hotels.com revenue was presented on a net basis for all periods. Please see page 4, footnote (a) for detailed explanation.

(d)

IAC Travel includes results from TripAdvisor from its acquisition date of April 28, 2004, which previously had been part of IAC Local and Media Services.

(e)

Transactions are reported as booked.

(f)

Merchant hotel room nights are reported as stayed for Expedia and Hotels.com, and booked for Hotwire.

 

 

The financial, statistical and other information contained herein is unaudited.

 

7


 

IAC/InterActiveCorp

Electronic Retailing

(in millions except per unit data, rounding differences may exist)

 

 

 

2003

 

2004

 

2005

 

 

 

FYE 12/31

 

Q1

 

Q2

 

Q3

 

Q4

 

FYE 12/31

 

Q1

 

HSN- U.S.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units shipped (a)

 

41.6

 

10.1

 

9.5

 

9.2

 

11.7

 

40.5

 

10.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit%

 

37.1

%

36.4

%

38.0

%

38.2

%

36.6

%

37.3

%

37.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return rate (a)

 

17.7

%

16.8

%

16.9

%

15.5

%

15.8

%

16.2

%

15.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product mix (b):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home Hard Goods

 

28

%

27

%

25

%

27

%

35

%

28

%

25

%

Home Fashions

 

13

%

14

%

13

%

16

%

15

%

14

%

15

%

Jewelry

 

23

%

17

%

22

%

19

%

19

%

21

%

17

%

Health/Beauty

 

24

%

31

%

28

%

26

%

22

%

26

%

30

%

Apparel/Accessories

 

11

%

11

%

13

%

11

%

9

%

11

%

13

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Price Point (a)

 

$

46.62

 

$

51.02

 

$

50.22

 

$

51.50

 

$

51.99

 

$

51.22

 

$

53.66

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HSN total homes (end of period)

 

81.2

 

83.3

 

84.1

 

85.0

 

85.7

 

85.7

 

87.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HSN/ America's Store FTEs (end of period) (c)

 

71.5

 

72.8

 

73.4

 

73.9

 

74.1

 

74.1

 

75.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

America's Store FTE's (end of period)

 

14.2

 

13.7

 

14.2

 

14.7

 

15.3

 

15.3

 

15.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HSN.com% of Sales

 

14

%

15

%

15

%

16

%

17

%

16

%

18

%

 

 

 

 

 

HSN International (Households as of end of period)

(ownership% as of 3/31/05 in parentheses)

 

 

 

2003

 

2004

 

2005

 

 

 

FYE 12/31

 

Q1

 

Q2

 

Q3

 

Q4

 

FYE 12/31

 

Q1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HSE Germany (includes Austria and Switzerland) (100%)

 

32.0

 

32.9

 

33.0

 

33.0

 

33.2

 

33.2

 

33.2

 

TVSN (China) (21%)

 

64.0

 

64.0

 

64.0

 

64.0

 

64.0

 

64.0

 

64.0

 

Shop Channel (Japan) (30%)

 

16.1

 

16.6

 

17.0

 

17.4

 

17.7

 

17.7

 

18.0

 

 

(a)

Units, average price point and return rate do not include Liquidation and services.

(b)

In Q1 2004, HSN reclassified certain items in its product mix. Product Mix includes TV, HSN.com and Continuity only. All prior periods have been adjusted to show comparable numbers.

(c)

FTEs applies a 50% weighting towards DBS homes.

 

 

The financial, statistical and other information contained herein is unaudited.

 

8


 

IAC/InterActiveCorp

Ticketing

( in millions, rounding differences may exist)

 

 

 

2003

 

2004

 

2005

 

 

 

FYE 12/31

 

Q1

 

Q2

 

Q3

 

Q4

 

FYE 12/31

 

Q1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of tickets sold

 

100.0

 

26.7

 

23.3

 

22.6

 

25.7

 

98.3

 

27.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross value of tickets sold

 

$

4,867

 

$

1,326

 

$

1,270

 

$

1,103

 

$

1,288

 

$

4,987

 

$

1,384

 

 

 

 

 

 

Personals

(in 000's)

 

 

 

2003

 

2004

 

2005

 

 

 

FYE 12/31

 

Q1

 

Q2

 

Q3

 

Q4

 

FYE 12/31

 

Q1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Paid Subscribers

 

939.4

 

1,011.7

 

997.6

 

989.8

 

982.8

 

982.8

 

1,074.5

 

 

 

The financial, statistical and other information contained herein is unaudited.

 

9


 

IAC/InterActiveCorp

Financial Services & Real Estate

(rounding differences may exist)

 

 

 

2003

 

2004

 

2005

 

 

 

FYE 12/31

 

Q1

 

Q2

 

Q3

 

Q4

 

FYE 12/31

 

Q1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan closings - units (000s) (b)

 

310.3

 

63.3

 

70.1

 

65.9

 

64.4

 

263.7

 

64.4

 

Loan closings - dollars (mm) (b)

 

$

34,338

 

$

6,301

 

$

7,847

 

$

6,871

 

$

7,483

 

$

28,503

 

$

9,589

 

Real Estate closings - units (000s)

 

7.0

 

1.6

 

2.6

 

3.0

 

3.3

 

10.5

 

3.0

 

Real Estate closings - dollars (mm)

 

$

1,674.8

 

$

381.1

 

$

647.3

 

$

762.3

 

$

778.1

 

$

2,568.8

 

$

697.8

 

Total Transactions - units (000s) (c)

 

6,777

 

1,836

 

1,672

 

1,705

 

1,575

 

6,788

 

1,656

 

Revenue per Transaction

 

$

23.63

 

$

21.65

 

$

26.68

 

$

28.11

 

$

36.50

 

$

27.96

 

$

63.89

 

 

Note: The acquisition of LendingTree closed on August 8, 2003.

 

 

(a)

Metrics are presented for full year 2003 for comparison purposes.

 

(b)

Loan closings consist of direct loans and loans through the exchange.

 

(c)

Transactions are comprised of lending and real estate transmits and closings. For qualifying forms sent to multiple parties, each transmit is counted as a transaction.

 

 

The financial, statistical and other information contained herein is unaudited.

 

10