CHANTILLY, Va.--(BUSINESS WIRE)--May 11, 2015--
Intersections Inc. (NASDAQ: INTX) today announced financial results for
the quarter ended March 31, 2015. Consolidated revenue for the quarter
ended March 31, 2015 was $55.5 million, compared to $66.0 million for
the quarter ended March 31, 2014. Consolidated adjusted EBITDA before
share related compensation and non-cash impairment charges for the
quarter ended March 31, 2015 was $1.5 million, compared to $2.1 million
for the quarter ended March 31, 2014. Net (loss) for the quarter ended
March 31, 2015 was $(1.2) million, compared to $(2.8) million for the
quarter ended March 31, 2014. Diluted (loss) per share for the quarter
ended March 31, 2015 was $(0.06), compared to $(0.15) for the quarter
ended March 31, 2014. As of March 31, 2015, we had a cash balance of
$10.1 million. In addition, as previously disclosed, we amended our Loan
Agreement in April 2015, and we are currently able to borrow the full
$5.0 million available under the Loan Agreement.
Michael Stanfield, Chairman and Chief Executive Officer of Intersections
commented, “We are pleased by our progress in the first quarter, and in
particular with strong IDENTITY GUARD® sales during the quarter, the
commercial launch of VOYCE™ in March, and the completion of our
acquisition of the business from Health at Work Wellness Actuaries LLC,
also in March. These accomplishments represent continued positive steps
in our strategy to reposition Intersections and lessen our dependence on
the legacy U.S. financial institution customer base.”
First Quarter 2015 Financial Highlights:
Subscribers in our Personal Information Services segment as of March
31, 2015 decreased to approximately 2.0 million, compared to 2.1
million as of December 31, 2014.
Consolidated net (loss) for the quarter ended March 31, 2015 was
$(1.2) million, or $(0.06) per diluted share, compared to $(2.8)
million, or $(0.15) per diluted share, for the quarter ended March 31,
The financial institution subscriber base decrease of 67 thousand
subscribers during the quarter ended March 31, 2015 was partially
offset by an increase of 39 thousand subscribers in our consumer
direct business. Revenue in our consumer direct business increased 9%
in the quarter ended March 31, 2015 as compared to the quarter ended
March 31, 2014.
We launched our VOYCE™ product and service in the three months ended
March 31, 2015 and began fulfilling orders. This segment generated a
(loss) from operations in the quarter ended March 31, 2015 of
approximately $(4.5) million, which was funded from available cash on
hand, compared to $(3.3) million in the quarter ended March 31, 2014.
Consolidated cash flow provided by operations for the quarter ended
March 31, 2015 was approximately $1.2 million, compared to $5.7
million for the quarter ended March 31, 2014.
On March 3, 2015, we acquired the business from Health at Work
Wellness Actuaries LLC (“HAW”), which designs wellness-driven health
plans and engagement programs for employers, insurers and wellness
groups. This acquisition aligns with our growth strategy to build our
Insurance and Other Consumer Services segment through a combination of
innovative insurance and non-insurance services for consumers,
employers and the insurance industry. In connection with this
acquisition, we issued approximately 413 thousand shares of restricted
common stock to HAW in the first quarter.
For additional commentary on Intersections’ first quarter 2015 results
please click on the 1st Quarter 2015 presentation link under the
“Investor & Media” page of our website at www.intersections.com.
Non-GAAP Financial Measures:
This earnings release presents several non-GAAP financial measures,
which we believe are important to investors and we utilize in managing
our business. These non-GAAP financial measures should be reviewed in
conjunction with the relevant GAAP financial measures and are not
presented as alternative measures of operating income, operating margin,
net income or earnings per share as determined in accordance with GAAP.
Intersections' Consolidated Financial Statements, "Other Data" and
reconciliations of these non-GAAP financial measures to the most
directly comparable GAAP financial measures and related notes can be
found in the "GAAP and Non-GAAP Measures" link under the "Investor &
Media" page on our website at www.intersections.com.
Statements in this presentation relating to future plans, results,
performance, expectations, achievements and the like are considered
“forward-looking statements.” You can identify forward-looking
statements by the fact that they do not relate strictly to historical or
current facts. These statements may include words such as “anticipate,”
“estimate,” “expect,” “project,'' “plan,” “intend,” “believe,” “may,”
“should,” “can have,” “likely” and other words and terms of similar
meaning in connection with any discussion of the timing or nature of
future operating or financial performance or other events. Those
forward-looking statements involve known and unknown risks and
uncertainties and are subject to change based on various factors and
uncertainties that may cause actual results to differ materially from
those expressed or implied by those statements, including the impact of
the regulatory environment on our business, including the outcome of the
CFPB investigation of our financial institution business; our ability to
execute our strategy and previously announced transformation plan; our
incurring additional restructuring and/or goodwill impairment charges;
the timing and success of new product launches, including our VOYCE™
product, adjustments in investments in our IDENTITY GUARD® and insurance
services businesses and other growth initiatives; our ability to control
costs; and our needs for additional capital to grow our business,
including our ability to maintain borrowing availability under our loan
agreement. Factors and uncertainties that may cause actual
results to differ include but are not limited to the risks disclosed
under “Forward-Looking Statements,” “Item 1. Business—Government
Regulation” and “Item 1A. Risk Factors” in the Company’s most recent
Annual Report on Form 10-K, and in its recent Quarterly Reports on Form
10-Q and other filings with the U.S. Securities and Exchange Commission.
The Company undertakes no obligation to revise or update any
forward-looking statements unless required by applicable law.
Intersections Inc. (Nasdaq: INTX) provides innovative, information based
solutions that help consumers manage risks and make better informed life
decisions. Under its IDENTITY GUARD® brand and other brands, the company
helps consumers monitor, manage and protect against the risks associated
with their identities and personal information. The company’s subsidiary
Intersections Insurance Services provides insurance and other services
that help consumers manage risks and achieve personal goals. The
company’s i4C Innovations subsidiary provides VOYCE™, a groundbreaking
pet wellness monitoring system for pet owners and veterinarians.
Headquartered in Chantilly, Virginia, the company was founded in 1996.
To learn more, visit www.intersections.com.
Source: Intersections Inc.
Eric Miller, 703-488-6100