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SEGMENT INFORMATION | 12 Months Ended
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Dec. 31, 2014
Segment Reporting [Abstract] |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company has one reportable segment, its lending operating segment. The Company formerly referred to this reportable segment as its mortgage segment. Its additional operating segments - auto, education and home services - are included in the "Other" category in the reconciliation of segment information below. The expenses presented below for the lending segment and the operating segments shown in the Other category include allocations of certain corporate expenses that are identifiable and directly benefit those segments. The unallocated expenses included in the "Corporate" category are those corporate overhead expenses that are not directly attributable to an operating segment and include: finance, legal, executive technology support and human resources. Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA"), a non-GAAP measure, is the primary metric by which the chief operating decision maker evaluates the performance of the Company's businesses, on which its marketing expenditures and internal budgets are based and by which management and many employees are compensated. Adjusted EBITDA is defined as operating income or loss (which excludes interest expense and taxes) adjusted to exclude amortization of intangibles and depreciation, and excludes (1) non-cash compensation expense, (2) non-cash asset impairment charges, (3) gain/loss on disposal of assets, (4) restructuring and severance expenses, (5) litigation settlements and contingencies and legal fees for certain patent litigation, (6) adjustments for acquisitions or dispositions and (7) one-time items. For the periods presented in this report, there are no adjustments for one-time items, except for a $0.9 million related to a discretionary cash bonus payment to employee stock option holders and a one-time contribution to an educational trust of $0.4 million. Assets and other balance sheet information are not used by the chief operating decision maker. Summarized information by segment and reconciliations to Adjusted EBITDA and income (loss) before income taxes is as follows (in thousands):
| Year Ended December 31, 2014
| Lending |  | Other |  | Corporate |  | Total
Revenue | $ | 154,504 |  |  | $ | 12,846 |  |  | $ | — |  |  | $ | 167,350 |
Costs and expenses: |  |  |  |  |  |  |
Cost of revenue (exclusive of depreciation shown separately below) | 7,399 |  |  | 504 |  |  | — |  |  | 7,903 |
Selling and marketing expense | 104,388 |  |  | 8,316 |  |  | — |  |  | 112,704 |
General and administrative expense | 4,898 |  |  | 3,979 |  |  | 17,006 |  |  | 25,883 |
Product development | 6,345 |  |  | 1,088 |  |  | 24 |  |  | 7,457 |
Depreciation | 1,596 |  |  | 1,284 |  |  | 365 |  |  | 3,245 |
Amortization of intangibles | — |  |  | 136 |  |  | — |  |  | 136 |
Restructuring and severance | 268 |  |  | 12 |  |  | 93 |  |  | 373 |
Litigation settlements and contingencies | — |  |  | 2 |  |  | 10,616 |  |  | 10,618 |
Total costs and expenses | 124,894 |  |  | 15,321 |  |  | 28,104 |  |  | 168,319 |
Operating income (loss) | 29,610 |  |  | (2,475 | ) |  | (28,104 | ) |  | (969 | )
Adjustments to reconcile to Adjusted EBITDA: |  |  |  |  |  |  |
Amortization of intangibles | — |  |  | 136 |  |  | — |  |  | 136 |
Depreciation | 1,596 |  |  | 1,284 |  |  | 365 |  |  | 3,245 |
Restructuring and severance | 268 |  |  | 12 |  |  | 93 |  |  | 373 |
Loss on disposal of assets | 45 |  |  | 220 |  |  | 17 |  |  | 282 |
Impairment of long-lived assets | — |  |  | 805 |  |  | — |  |  | 805 |
Non-cash compensation | 2,404 |  |  | 1,043 |  |  | 3,830 |  |  | 7,277 |
Acquisition expense | — |  |  | 60 |  |  | — |  |  | 60 |
Litigation settlements and contingencies | — |  |  | 2 |  |  | 10,616 |  |  | 10,618 |
Adjusted EBITDA | $ | 33,923 |  |  | $ | 1,087 |  |  | $ | (13,183 | ) |  | $ | 21,827 |
Operating loss |  |  |  |  |  |  | $ | (969 | )
Interest expense |  |  |  |  |  |  | (2 | )
Loss before income taxes |  |  |  |  |  |  | $ | (971 | )
| Year Ended December 31, 2013
| Lending |  | Other |  | Corporate |  | Total
Revenue | $ | 127,985 |  |  | $ | 10,632 |  |  | $ | 623 |  |  | $ | 139,240 |
Costs and expenses: |  |  |  |  |  |  |
Cost of revenue (exclusive of depreciation shown separately below) | 5,469 |  |  | 613 |  |  | 460 |  |  | 6,542 |
Selling and marketing expense | 83,694 |  |  | 7,449 |  |  | (22 | ) |  | 91,121 |
General and administrative expense | 3,629 |  |  | 2,245 |  |  | 18,784 |  |  | 24,658 |
Product development | 4,302 |  |  | 962 |  |  | — |  |  | 5,264 |
Depreciation | 1,453 |  |  | 1,642 |  |  | 406 |  |  | 3,501 |
Amortization of intangibles | — |  |  | 147 |  |  | — |  |  | 147 |
Restructuring and severance | 78 |  |  | 46 |  |  | 35 |  |  | 159 |
Litigation settlements and contingencies | — |  |  | 31 |  |  | 8,924 |  |  | 8,955 |
Total costs and expenses | 98,625 |  |  | 13,135 |  |  | 28,587 |  |  | 140,347 |
Operating income (loss) | 29,360 |  |  | (2,503 | ) |  | (27,964 | ) |  | (1,107 | )
Adjustments to reconcile to Adjusted EBITDA: |  |  |  |  |  |  |
Amortization of intangibles | — |  |  | 147 |  |  | — |  |  | 147 |
Depreciation | 1,453 |  |  | 1,642 |  |  | 406 |  |  | 3,501 |
Restructuring and severance | 78 |  |  | 46 |  |  | 35 |  |  | 159 |
Loss on disposal of assets | — |  |  | — |  |  | 165 |  |  | 165 |
Non-cash compensation | 1,681 |  |  | 689 |  |  | 3,257 |  |  | 5,627 |
Discretionary cash bonus | — |  |  | — |  |  | 920 |  |  | 920 |
Trust contribution |  |  | — |  |  | 350 |  |  | 350 |
Litigation settlements and contingencies | — |  |  | 31 |  |  | 8,924 |  |  | 8,955 |
Adjusted EBITDA | $ | 32,572 |  |  | $ | 52 |  |  | $ | (13,907 | ) |  | $ | 18,717 |
Operating loss |  |  |  |  |  |  |  |  |  | $ | (1,107 | )
Interest expense |  |  |  |  |  |  |  |  |  | (19 | )
Loss before income taxes |  |  |  |  |  |  |  |  |  | $ | (1,126 | )
| Year Ended December 31, 2012
| Lending |  | Other |  | Corporate |  | Total
Revenue | $ | 61,176 |  |  | $ | 14,620 |  |  | $ | 1,647 |  |  | $ | 77,443 |
Costs and expenses: |  |  |  |  |  |  |
Cost of revenue (exclusive of depreciation shown separately below) | 3,238 |  |  | 536 |  |  | 521 |  |  | 4,295 |
Selling and marketing expense | 35,250 |  |  | 13,677 |  |  | 7 |  |  | 48,934 |
General and administrative expense | 3,470 |  |  | 2,888 |  |  | 15,873 |  |  | 22,231 |
Product development | 2,277 |  |  | 1,258 |  |  | (6 | ) |  | 3,529 |
Depreciation | 1,536 |  |  | 1,991 |  |  | 578 |  |  | 4,105 |
Amortization of intangibles | — |  |  | 358 |  |  | — |  |  | 358 |
Restructuring and severance | 20 |  |  | 11 |  |  | (88 | ) |  | (57 | )
Litigation settlements and contingencies | — |  |  | — |  |  | (3,101 | ) |  | (3,101 | )
Total costs and expenses | 45,791 |  |  | 20,719 |  |  | 13,784 |  |  | 80,294 |
Operating income (loss) | 15,385 |  |  | (6,099 | ) |  | (12,137 | ) |  | (2,851 | )
Adjustments to reconcile to Adjusted EBITDA: |  |  |  |  |  |  |
Amortization of intangibles | — |  |  | 358 |  |  | — |  |  | 358 |
Depreciation | 1,536 |  |  | 1,991 |  |  | 578 |  |  | 4,105 |
Restructuring and severance | 20 |  |  | 11 |  |  | (88 | ) |  | (57 | )
Loss on disposal of assets | 388 |  |  | 345 |  |  | 5 |  |  | 738 |
Non-cash compensation | 987 |  |  | 507 |  |  | 3,093 |  |  | 4,587 |
Litigation settlements and contingencies | — |  |  | — |  |  | (3,101 | ) |  | (3,101 | )
Adjusted EBITDA | $ | 18,316 |  |  | $ | (2,887 | ) |  | $ | (11,650 | ) |  | $ | 3,779 |
Operating loss |  |  |  |  |  |  |  |  |  | (2,851 | )
Interest expense |  |  |  |  |  |  |  |  |  | (881 | )
Loss before income taxes |  |  |  |  |  |  |  |  |  | $ | (3,732 | )
Revenue by product category of the lending segment is as follows (in thousands):
| Year Ended Year Ended December 31,
| 2014 |  | 2013 |  | 2012
Mortgage products | $ | 134,137 |  |  | $ | 123,091 |  |  | $ | 59,362 |
Non-mortgage products | 20,367 |  |  | 4,894 |  |  | 1,814 |
Total lending revenue | $ | 154,504 |  |  | $ | 127,985 |  |  | $ | 61,176 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 + Details
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