SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2012

SEGMENT INFORMATION

SEGMENT INFORMATION

NOTE 17—SEGMENT INFORMATION

        Effective December 31, 2012, we expanded our reportable segments from one to two, consisting of mortgage and non-mortgage. The change was made as the convergence of economic similarities associated with our mortgage and non-mortgage operating segments was no longer expected. This decision was made in connection with the update of our annual budget and forecast, which occurs in the fourth quarter each year. The non-mortgage reportable segment consists of our auto, education and home services operating segments, which are not yet mature businesses, and have been aggregated. Prior period results have been reclassified to conform with the change in reportable segments.

        The expenses presented below for each segment include allocations of certain corporate expenses that are identifiable and directly benefit those segments. The unallocated expenses are those corporate overhead expenses that are not directly attributable to a segment and include: corporate expenses such as finance, legal, executive technology support and human resources, as well as elimination of inter-segment revenue and costs.

        Adjusted EBITDA is the primary metric by which the chief operating decision maker evaluates the performance of its businesses, on which its internal budgets are based and by which management is 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 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) adjustments for significant acquisitions or dispositions, and (7) one-time items.

        Assets and other balance sheet information are not used by the chief operating decision maker.

        In the tables below, the Company has updated its annual data to reflect the change in reportable operating segments for the years ended December 31, 2012 and 2011(in thousands):

	For the Year Ended December 31, 2012:
	Mortgage		Non-Mortgage			Corporate			Total
Revenue	$	61,176	$	14,620		$	1,647		$	77,443
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
Adjustments to reconcile to Income/loss before Taxes:
Operating income (loss)										(2,851	)
Interest Expense										(881	)
Income/(Loss) Before Income Taxes									$	(3,732	)

	For the Year Ended December 31, 2011:
	Mortgage			Non-Mortgage			Corporate			Total
Revenue	$	40,253		$	17,655		$	(3,291	)	$	54,617
Cost of revenue (exclusive of depreciation shown separately below)		3,779			276			78			4,133
Selling and marketing expense		31,759			14,490			413			46,662
General and administrative expense		3,261			2,113			14,377			19,751
Product development		1,429			1,444			330			3,203
Depreciation		1,417			2,632			974			5,023
Amortization of intangibles		455			423			13			891
Restructuring expense		368			294			418			1,080
Litigation settlements and contingencies		1			—			5,731			5,732
Asset impairments		250			—			29,000			29,250
Total costs and expenses		42,719			21,672			51,334			115,725
Operating income (loss)		(2,466	)		(4,017	)		(54,625	)		(61,108	)
Adjustments to reconcile to Adjusted EBITDA:
Amortization of intangibles		455			423			13			891
Depreciation		1,417			2,632			974			5,023
Restructuring expense		368			294			418			1,080
Asset impairments		250			—			29,000			29,250
Loss on disposal of assets		173			102			36			311
Non-cash compensation		550			351			2,876			3,777
Litigation settlements and contingencies		1			—			5,731			5,732
Post-acquisition adjustments		—			(652	)		—			(652	)
Adjusted EBITDA	$	748		$	(867	)	$	(15,577	)	$	(15,696	)
Adjustments to reconcile to Income/loss before Taxes:
Operating income (loss)											(61,108	)
Interest Expense											(368	)
Income/(Loss) Before Income Taxes										$	(61,476	)