LendingTree Narrows Loss
August 1, 2002
Online Lender Exchange Posts $24.5 Million In Second-Quarter Revenues
Inman News Features
Charlotte, N.C.-based LendingTree, an online lending exchange and technology provider, today announced financial results for the second quarter ended June 30, 2002. The company said it posted record revenue and lower losses for the quarter. Revenue was $24.5 million, an increase of 55 percent compared with the second quarter of last year. Total revenue for the first half of 2002 was $45.7 million.
Net loss attributable to common shareholders in the second quarter was $1.1 million or $0.05 per share. The company lost $11.2 million in the second quarter of 2001, according to its quarterly filing with the Securities Exchange Commission.
LendingTree founder and CEO Doug Lebda said lenders "continued to compete more aggressively for consumers loans" on the compnay?s exchange during the quarter. He also said the average closing rate increased from 11.4 percent in the first quarter to a record high of 14 percent in the recent quarter.
LendingTree CFO Keith Hall said the company expects to achieve positive net income on a generally accepted accounting standards, or GAAP, basis in the third quarter and its ifrst positive earnings per share in the fourth quarter.
Hall also said the company had $13.9 million in cash and no outstanding balances on its available credit facilities.
"Based on our current cash position and outlook for positive operating results for the balance of the year, we remain confident that we will have more than adequate cash to fund our operating needs for the foreseeable future," he said.
Copyright: Inman News Service