CHANTILLY, Va.--(BUSINESS WIRE)--
Intersections Inc. (NASDAQ: INTX) today announced financial results for
the quarter ended June 30, 2014. Consolidated revenue for the quarter
ended June 30, 2014 was $64.3 million, as compared to $80.7 million for
the quarter ended June 30, 2013. Consolidated adjusted EBITDA before
share related compensation and non-cash impairment charges for the
quarter ended June 30, 2014 was $1.2 million, compared to $9.5 million
for the quarter ended June 30, 2013. Net (loss) for the quarter ended
June 30, 2014 was $(2.0) million, as compared to net income of $1.6
million for the quarter ended June 30, 2013. Consolidated revenue for
the six months ended June 30, 2014 was $130.3 million, as compared to
$162.3 million for the six months ended June 30, 2013. Consolidated
adjusted EBITDA before share related compensation and non-cash
impairment charges for the six months ended June 30, 2014 was $3.3
million compared to $19.9 million for the six months ended June 30,
2013. Net (loss) for the six months ended June 30, 2014 was $(4.8)
million, compared to net income of $3.8 million for the six months ended
June 30, 2013. Diluted loss per share was $(0.26) for the six months
ended June 30, 2014, as compared to diluted earnings per share of $0.20
for the six months ended June 30, 2013. As of June 30, 2014, we had a
cash and cash equivalents balance of $12.4 million.
Total subscribers as of June 30, 2014 decreased to approximately 2.3
million compared to 3.8 million as of June 30, 2013, approximately 46
thousand of whom remain in a non-billable status.
Consolidated net loss per share for the quarter ended June 30, 2014
was $(0.11) per diluted share, compared to consolidated net income per
share of $0.08 per diluted share, for the quarter ended June 30, 2013.
Our Pet Health Monitoring segment generated a loss from operations in
the quarter ended June 30, 2014 of approximately $(3.2) million which
was funded from available cash on hand. This segment has not yet
commenced sales and is expected to launch later in 2014.
Consolidated cash flow used in operations for the quarter ended June
30, 2014 was approximately $4.1 million.
We amended our Credit Agreement during the quarter to provide for a
$7.5 million revolving credit facility with a maturity date of March
31, 2015. The amendment also modified our financial covenants and
restricts our ability to pay ordinary dividends and make share
repurchases. As of June 30, 2014, we are able to borrow the full
amount available under the Credit Agreement.
Michael Stanfield, Chairman and Chief Executive Officer of Intersections
commented, “We are encouraged by our second quarter results and look
forward to the next several months as we continue to reignite growth at
Intersections by focusing on our Identity Guard® brand and the upcoming
launch of VOYCETM, our new pet health technology platform. We
are in the process of formulating a detailed plan intended to streamline
operations with a focus on our corporate and consumer products and
services cost structure, which we intend to present later this month to
our Board of Directors for approval. If this plan is approved or we
otherwise undertake additional cost-cutting initiatives, we would expect
our severance expense and cash used in operations to increase for the
remainder of 2014, followed thereafter by reductions to our cost of
revenue and general and administrative expenses. We anticipate providing
more information about our plan, as well as updated guidance in the
Second Quarter 2014 Financial Highlights:
Six Months Results:
Our Pet Health Monitoring segment generated a loss from operations of
approximately $(6.5) million which was funded from available cash on
Consolidated cash flow provided by operations for the six months ended
June 30, 2014 was approximately $1.5 million.
In the three months ended June 30, 2014, we ceased all business
activities in our subsidiary Intersections Business Intelligence
Services (D/B/A) Zumetrics®, which was included in our Market
Intelligence Segment. We determined that Zumetrics® met the requirements
for classification as a discontinued operation under U.S. GAAP and we
have recast our condensed consolidated statements of operations for the
periods presented. Loss from discontinued operations, net of tax, was
$318 thousand and $1.1 million for the three and six months ended June
30, 2014, respectively.
For additional commentary on Intersections’ second quarter 2014 results
please click on the 2nd Quarter 2014 presentation link under the
“Investor & Media” page of our website at www.intersections.com.
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 press release relating to future plans, results,
performance, expectations, achievements and the like are considered
“forward-looking statements.”Those forward-looking statements
involve known and unknown risks 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 and
our ability to execute our business strategy.Factors and
uncertainties that may cause actual results to differ include but are
not limited to the risks disclosed in the Company’s filings with the
U.S. Securities and Exchange Commission, as well as the risk that the
Company will not adopt any new plan, the risk that the Company will not
successfully implement any plan (if adopted), the risk that any plan
will not result in cost savings or improve operational efficiencies, and
the risk that any new plan will negatively impact the Company’s ability
to successfully operate its business.The Company undertakes no
obligation to revise or update any forward-looking statements.
About Intersections (www.intersections.com)
Intersections Inc. (Nasdaq: INTX) is a leading provider of identity risk
management, privacy protection and other subscription based services for
consumers. Our core services monitor personal information for our
consumers, aggregate it into digestible, consumer-friendly reports and
alerts, and provide personalized education and support to help our
customers understand their information and take the actions they deem
appropriate. Since its business was founded in 1996, Intersections has
protected the identities of more than 36 million consumers. To learn
more, visit http://www.intersections.com/.
Eric Miller, 703-488-6100
Source: Intersections Inc.