EFTA01378080.pdf

The accianpanying Notes to Caner & Financial Starements are an ;mecca( part o Mese statemeres F-23 Table of Contents Match Group, Inc. and Subsidiaries Combined statement of operations Years ended December 31, 2012 2013 2014 (In thousands, except per share data) Revenue $ 713,449 $ 803,089 $ 888.268 Operating costs and expenses: Cost of revenue (exclusive of depreciation shown separately below) 72,794 85,945 120.024 Selling and marketing expense 304,597 321,870 335,107 General and administrative expense 76.711 93.641 117.890 Product development expense 38,921 42,973 49.738 Depreciation 16.341 20.202 25.547 Amortization of intangibles 17,455 17,125 11,395 Total operating costs and expenses 526,819 581,756 659,701 Operating income 186,630 221,333 228,567 Interest expense—related party (29,489) (34,307) (25,541) Other (expense) income. net (7,428) 217 12,610 Earnings before income taxes 149,713 187,243 215.636 Income tax provision (59,432) (60,616) (67,277) Net earnings 90.281 126.627 148,359 Net earnings attributable to noncontrolling interests (4.606) (1.624) (595) Net earnings attributable to Match Group, Inc.'s shareholder $ 85,675 S 125.003 S 147.764 Unaudited pro forma net earnings per share attributable to Match Group, Inc.'s shareholder. Basic 5 8 74 12 54 14.71 Diluted 853 12 10 14.07 Basic, to give effect to dividend payment to IAC and anticipated 16-for-1 stock split 0.59 Diluted. to give effect to dividend payment to IAC and anticipated 16-for-1 stock split 5 057 Unaudited pro forma weighted average shares outstanding: Basic 9.800 9.969 10.047 Diluted 10,039 10,331 10.505 Bast, to give effect to dividend payment to IAC and anticipated 16-for-1 stock split 194.089 Diluted, to give effect to dividend payment to IAC and anticipated 16-for-1 stock split 201.412 Stock-based compensation expense by function: Cost of revenue 1,975 1,012 396 Selling and marketing expense 823 562 194 General and administrative expense 10,368 8,520 17,326 Product development expense 2,898 2,134 2.935 Total stock-based compensation expense 16.064 S 12,228 5 20.851 The accompanying Notes to Combenect Financial Statements aro an integral part d Mose statements F-24 Table of Contents Match Group, Inc. and Subsidiaries Combined statement of comprehensive income Years ended December 31, 2012 2013 2014 (In thousands) Net earnings $ 90.281 $ 126,627 $ 148,359 Other comprehensive income (loss). Change in foreign currency translation adjustment - 6.152 (60.101) hap.1veyeracc.govrAmlives reds/rasa/ SIS18910001047469150012431a2226458teil /lentil 1i9r2013 911:17 AIM CONFIDENTIAL - PURSUANT TO FED. R. GRIM. P. 6(e) DB-SDNY-0075240 CONFIDENTIAL SDNY_GM_00221424 EFTA01378080