thomas j. mcinerney evp & chief financial officer may 2006
TRANSCRIPT
Thomas J. McInerneyEVP & Chief Financial Officer
May 2006
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Building Businesses Across the Consumer Spectrum
Media
Membership
Services
Retailing
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Multiple Brands
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Financial Results – Q1 2006
RevenueOperating Income
Before Amortization
Q1 06 Q1 05 Growth Q1 06 Q1 05 Growth
Retailing $ 769
$ 599 28% $ 62 $ 59 4%
Services 482 380 27% 82 63 30%
Media & Advertising 118 91208
%12 (1) NM
Membership & Subscriptions
178 154 16% 29 27 8%
Emerging 8 4 111% (6) (3) -119%
Corporate & Other (5) (9) 46% (20) (34) 42%
Total $1,551
$ 1,136
36%$
158$
11142%
Adjusted* $1,266
$ 1,136
11%$
138$
12312%
$ in millions
* Excludes IAC Search & Media/Cornerstone/expenses and intercompany eliminations related to the spin-off.
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Net Cash – March 31, 2006
* $1.3 billion gross debt less $365 million LendingTree Loans debt that is non-
recourse to IAC.
Cash / Restricted Cash& Marketable Securities
Net Cashpro forma
Debt*
$2.4 Billion
$1.5 Billion
$0.9 Billion
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0.4%
10.8%
8.8%
2.3%
4.5%
6.0%4.9%
6.3%
7.9%8.6%
1.8%
5.5%
11.1%
Q1'03
Q1'04
Q1'05
Q1'06
Retailing: Get HSN Back On TrackTrailing Twelve Months Y/Y HSN Revenue Growth
7
OIBA +23% CAGR
Q1 ‘05 Q1 ‘06
Email Alerts (in millions)
220 325
TicketFast venues 1,802 2,295
TeamExchange teams
28 43
# Auctions Y/Y growth
NM+507
%
$ in millions
Ticketing: Capitalize on Strong Momentum
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Lending: Grow Through Cyclical ContractionYear-Over-Year Growth
Source: U.S. mortgage market growth derived from MBAA data (April 2006).
2002 2003 2004 2005 Q1 '06 E
IAC Lending Revenue
U.S. Purchase
72%
42%
10%
131%
37%
17%0%
13%U.S. Refinance
44%
-42%
-12%
14%
58%
-33%
2%
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Paid Subscribers
#1 ranking reflects reach position based upon unique visitors, including MSN Personals. Source:
ComScore, March 2006.
• 18 languages in 32 countries
• #1 in North America
• #1 in Europe / UK, Sweden,
Spain
• #1 in Australia
Global Strength
Subscribers at end of period, in thousands
Personals: Strengthen Worldwide Leadership
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Source: comScore Q Search, March 2006.
Search: Take Ask.com to the Next Level
30.6%
16.5%
36.4%
8.9%
5.5%5.9%7.6%
13.2%
28.0%
42.7%
March 2005 March 2006
IAS Search & Media Properties
Share of U.S. Search Queries
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Important Safe Harbor Statement Under The Private Securities Litigation Reform Act Of 1995
This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements relating to anticipated financial performance, business prospects, new developments and similar matters, and/or statements that use words such as "anticipates," "estimates," "expects," "intends," "believes" and similar expressions. These forward-looking statements are necessarily estimates reflecting the best judgment of IAC’s senior management, and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties are described in IAC’s filings with the U.S. Securities and Exchange Commission (the “SEC”), including its Annual Report on Form 10-K for the fiscal year ended 2005, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and 2005 Annual Proxy Statement. Other unknown or unpredictable factors also could have material adverse effects on IAC’s future results, performance or achievements. In light of these risks and uncertainties, the forward-looking events discussed in this presentation may not occur. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date stated, or if no date is stated, as of the date of this presentation.
IAC is not under any obligation and does not intend to make publicly available any update or other revisions to any of the forward-looking statements contained in this presentation to reflect circumstances existing after the date of this presentation or to reflect the occurrence of future events even if experience or future events make it clear that any expected results expressed or implied by those forward-looking statements will not be realized.
Prepared May 2006
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Reconciliation Operating Income Before Amortization to Operating Income
$ in millions; rounding differences may exist
Q1'06 Q1'05 Q1'06 Q1'05
Operating Income Before Amortization 61.6$ 59.3$ 81.8$ 63.0$ Amortization of Non-Cash Items (16.7) (13.6) (13.3) (19.6) Operating Income 44.9$ 45.7$ 68.5$ 43.4$
Q1'06 Q1'05 Q1'06 Q1'05
Operating Income Before Amortization 11.6$ (0.9)$ 28.7$ 26.6$ Amortization of Non-Cash Items (18.0) (0.1) (11.6) (9.0)Operating Income (6.4)$ (1.0)$ 17.1$ 17.6$
Q1'06 Q1'05 Q1'06 Q1'05
Operating Income Before Amortization (5.8)$ (2.6)$ (19.7)$ (34.0)$ Amortization of Non-Cash Items (0.1) (0.1) (24.7) (12.7)Operating Income (5.9)$ (2.7)$ (44.4)$ (46.7)$
Retailing Services
Media & Advertising Membership & Subscriptions
Emerging Businesses Corporate and Other
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Reconciliation Reported to Adjusted Revenue, Operating Income Before Amortization, and Operating Income
1Q'06 1Q'05 Growth
Revenue (as reported) 1,550.6$ 1,136.1$ 36%Excluding IAC Search & Media/Cornerstone (284.6)Revenue (Adjusted) 1,266.0 1,136.1 11%
Operating Income Before Amortization (as reported) 158.2$ 111.3$ 42%Excluding IAC Search & Media/Cornerstone/expenses and intercompany eliminations related to the Spin-off (20.2) 12.1Operating Income Before Amortization (Adjusted) 137.9$ 123.4$ 12%
Operating Income (as reported) 73.7$ 56.3$ 31%Excluding IAC Search & Media/Cornerstone/expenses and intercompany eliminations related to the Spin-off 0.3 12.1IAC (Adjusted) 74.0$ 68.4$ 8%
$ in millions; rounding differences may exist