Despite a strong performance by its lending division, Tree.com Inc. reports losses for the fourth quarter and year. The losses were, however, smaller than those in 2009.
Tree.com (NASDAQ:TREE) lost $12.5 million, or $1.12 per diluted share, in the fourth quarter on revenue of $51.2 million. That's up from a loss of $21 million, or $1.92 per diluted share, on revenue of $47.8 million a year earlier.
For the year, Tree.com lost $17.6 million, or $1.60 per diluted share, on $198.2 million in revenue. That's better than the $24.5 million, or $2.32 per diluted share, that Tree.com lost in 2009. The company had sales of $216.8 million in 2009.
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Tree.com curbs losses in 2010 | Charlotte Business Journal "We've been talking about the shift in the market that would come with rising interest rates, and we have been preparing for it," says Chief Executive Doug Lebda. "We are now executing our plans to grow and succeed in a very different market in 2011 than what we had in the last three years."
Charlotte-based Tree.com is best known for LendingTree, an online-mortgage exchange that links borrowers with lenders. The exchange had a rough fourth quarter, with operating losses growing to $4.7 million from $1.2 million a year ago. Revenue fell to $11.9 million from $18 million in the same period because the exchange matched fewer borrowers to lenders, leading to fewer closed loans.
But LendingTree has its own loan-making division, which has been a top performer. That was true again in 2010. The improvement for the quarter and year stems largely from improved numbers in that division, although the company also cut overhead costs in its corporate offices.
LendingTree Loans saw revenue rise 61 percent in the latest quarter to $37 million from $22.9 million in 2009. Its operating income hit $7.8 million, up 81 percent from the prior year.
Tree.com has concentrated on souping up its direct-lending operations. The company has increased the number of licensed loan officers by 39 percent in the past year. And the number is up 28 percent from September.
Losses grew sharply, however, in Tree.com's real estate division, home of its RealEstate.com operation.
Fourth-quarter operating losses swelled to $11.9 million from $3.6 million a year ago. Most of the increase was due to a $10.3 million impairment charge.
