| [August 13, 2015] |
 |
Intersections Inc. Reports Second Quarter 2015 Results and Announces Mid-Year Business Update Call
Intersections Inc. (NASDAQ: INTX) today announced financial results for
the quarter ended June 30, 2015. Consolidated revenue for the quarter
ended June 30, 2015 was $52.0 million, compared to $64.3 million for the
quarter ended June 30, 2014. Consolidated adjusted EBITDA before share
related compensation and non-cash impairment charges for the quarter
ended June 30, 2015 was $(516) thousand, compared to $1.2 million for
the quarter ended June 30, 2014. Net (loss) for the quarter ended June
30, 2015 was $(24.8) million, compared to $(2.0) million for the quarter
ended June 30, 2014. As described further below, the Company recorded
non-cash impairment charges of $7.4 million and $16.0 million related to
the remeasurement of its investment in White Sky, Inc. and the
establishment of a valuation allowance on its net deferred tax assets,
respectively, in the quarter ended June 30, 2015. Consolidated revenue
for the six months ended June 30, 2015 was $107.5 million, compared to
$130.3 million for the six months ended June 30, 2014. Consolidated
adjusted EBITDA before share related compensation and non-cash
impairment charges for the six months ended June 30, 2015 was $965
thousand, compared to $3.3 million for the six months ended June 30,
2014. Net (loss) for the six months ended June 30, 2015 was $(26.1)
million, compared to $(4.8) million for the quarter ended June 30, 2014.
Diluted (loss) per share for the six months ended June 30, 2015 was
$(1.36), compared to $(0.26) for the six months ended June 30, 2014. As
of June 30, 2015, we had a cash balance of $9.6 million, and no debt
outstanding under our revolving credit facility.
"Our second quarter earnings were negatively impacted by the non-cash
items described above. Our plan to build our business around the
Identity Guard® platform for protection of personal information, and our
Voyce™ platform for animal health and wellness monitoring is progressing
nicely. Our Identity Guard® subscriber base is up 11% since December
2014 and revenue is up 11.6% compared to the first six months of 2014.
We also acquired the assets of White Sky, Inc., with which we have had a
long term relationship through our investment and commercial
relationship, and have begun the integration of their product suite with
the Identity Guard® platform," commented Michael Stanfield, Chairman and
Chief Executive Officer of Intersections. Mr. Stanfield further noted
that, "We also announced the launch of VoycePro™, our monitoring service
for veterinarians, and began providing the service in August 2015. I am
looking forward to presenting more about our strategy and outlook on our
mid-year business update call scheduled for August 25, 2015."
Other Items:
-
The Company is pleased to bring the previously reported Civil
Investigative Demand and other information requests from the Consumer
Financial Protection Bureau to closure through the entry of a consent
order on July 6, 2015. As a result of the consent order, a $600
thousand charge before income taxes was recorded in the three months
ended June 30, 2015.
-
Revenue and profitability declines continue to be principally caused
by the declining subscriber base acquired through U.S. financial
institution clients. These clients ceased marketing add-on products as
early as 2012, and since then continue to cancel certain subscriber
portfolios. Revenue from these subscribers for the second quarter was
$28.8 million with a base of approximately 900 thousand subscribers as
of June 30, 2015.
-
As a consequence of the Company's declining profitability, the Company
recorded a $16.0 million non-cash charge in its income tax expense for
the three month period ended June 30, 2015 to establish a valuation
allowance on substantially all of its net deferred tax assets. The
timing of realization of these deferred tax assets will be dependent
on the timing of the Company's future profitability.
-
The consolidated (loss) from operations in the quarter ended June 30,
2015 includes approximately $(4.5) million from our Pet Health
Monitoring segment, which was funded from available cash on hand,
compared to $(3.2) million in the quarter ended June 30, 2014.
-
On June 26, 2015, we acquired substantially all of the net assets of
White Sky, Inc., in which we previously held an equity interest that
was recorded as a long-term, cost method investment. This acquisition
provides opportunities to expand our product integration and
development, marketing and operational efficiencies. Based upon the
estimated fair value of the business prior to the acquisition, we
recorded a non-cash impairment charge of $7.4 million before income
taxes in the quarter ended June 30, 2015.
-
Consolidated cash flows provided by operations for the quarter ended
June 30, 2015 was approximately $1.4 million, compared to cash flows
(used in) operations of $(4.1) million for the quarter ended June 30,
2014. Consolidated cash flows provided by operations for the six
months ended June 30, 2015 was approximately $2.6 million, compared to
cash flows provided by operations of $1.5 million for the six months
ended June 30, 2014.
Mid-Year 2015 Business Update Conference Call:
The Company also announced today that it will hold a conference call to
provide a mid-year 2015 business update on Tuesday, August 25, 2015 at
4:30 p.m. Eastern Time.
You may access the live webcast on the Investor's page at Intersections
Inc.'s website www.intersections.com.
You can also access the call by dialing the toll free numbers below. If
you wish to participate in the Q&A session, you must dial in.
|
|
|
|
|
|
WHAT:
|
|
|
Intersections Inc. Mid-Year 2015 Business Update Conference Call
|
|
|
|
|
|
|
WHEN:
|
|
|
August 25, 2015
|
|
|
|
|
4:30 p.m. Eastern Time
|
|
|
|
HOW:
|
|
|
Dial in: 888.713.4205
|
|
|
|
|
International: 617.213.4862
|
|
|
|
|
Participant Pass code: 67005655
|
|
|
|
|
|
To pre-register for the conference, please
click here.
The replay of the webcast will be available on this web-site for four
business days after the live call. The dial in for the replay is
888.286.8010 with the replay access code of 22636336.
Non-GAAP Financial Measures:
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 ACCOMPANYING TABLES AND FOOTNOTES TO THIS RELEASE AND in
the "GAAP and Non-GAAP Measures" link under the "Investor & Media" page
on our website at www.intersections.com.
Forward-Looking Statements:
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 investigation
or examination of our financial institution clients and the continuing
attention by the Consumer Financial Protection Bureau to our industry;
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.
About Intersections:
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.
|
|
|
INTERSECTIONS INC.
|
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(in thousands, except per share data)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
REVENUE:
|
|
|
|
|
|
|
|
|
|
Services
|
|
$
|
51,937
|
|
|
$
|
64,313
|
|
|
$
|
107,447
|
|
|
$
|
130,272
|
|
|
Hardware
|
|
|
31
|
|
|
|
-
|
|
|
|
33
|
|
|
|
-
|
|
|
Net revenue
|
|
|
51,968
|
|
|
|
64,313
|
|
|
|
107,480
|
|
|
|
130,272
|
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
Marketing
|
|
|
5,405
|
|
|
|
7,775
|
|
|
|
11,036
|
|
|
|
13,438
|
|
|
Commission
|
|
|
13,083
|
|
|
|
16,116
|
|
|
|
26,919
|
|
|
|
33,115
|
|
|
Cost of services revenue
|
|
|
15,160
|
|
|
|
21,015
|
|
|
|
32,945
|
|
|
|
43,140
|
|
|
Cost of hardware revenue
|
|
|
182
|
|
|
|
7
|
|
|
|
242
|
|
|
|
35
|
|
|
General and administrative
|
|
|
20,081
|
|
|
|
19,677
|
|
|
|
38,374
|
|
|
|
40,327
|
|
|
Impairment of intangibles and other long-lived assets
|
|
|
7,355
|
|
|
|
-
|
|
|
|
7,355
|
|
|
|
-
|
|
|
Depreciation
|
|
|
1,613
|
|
|
|
1,439
|
|
|
|
2,910
|
|
|
|
2,978
|
|
|
Amortization
|
|
|
156
|
|
|
|
853
|
|
|
|
275
|
|
|
|
1,706
|
|
|
Total operating expenses
|
|
|
63,035
|
|
|
|
66,882
|
|
|
|
120,056
|
|
|
|
134,739
|
|
|
LOSS FROM OPERATIONS
|
|
|
(11,067
|
)
|
|
|
(2,569
|
)
|
|
|
(12,576
|
)
|
|
|
(4,467
|
)
|
|
Interest income (expense)
|
|
|
21
|
|
|
|
(170
|
)
|
|
|
(82
|
)
|
|
|
(260
|
)
|
|
Other income (expense), net
|
|
|
10
|
|
|
|
(287
|
)
|
|
|
(72
|
)
|
|
|
(139
|
)
|
|
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
|
|
|
(11,036
|
)
|
|
|
(3,026
|
)
|
|
|
(12,730
|
)
|
|
|
(4,866
|
)
|
|
INCOME TAX (EXPENSE) BENEFIT
|
|
|
(13,804
|
)
|
|
|
1,309
|
|
|
|
(13,333
|
)
|
|
|
1,193
|
|
|
LOSS FROM CONTINUING OPERATIONS
|
|
|
(24,840
|
)
|
|
|
(1,717
|
)
|
|
|
(26,063
|
)
|
|
|
(3,673
|
)
|
|
LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX
|
|
|
-
|
|
|
|
(318
|
)
|
|
|
-
|
|
|
|
(1,147
|
)
|
|
NET LOSS
|
|
$
|
(24,840
|
)
|
|
$
|
(2,035
|
)
|
|
$
|
(26,063
|
)
|
|
$
|
(4,820
|
)
|
|
Basic and diluted loss per common share:
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations
|
|
$
|
(1.28
|
)
|
|
$
|
(0.09
|
)
|
|
$
|
(1.36
|
)
|
|
$
|
(0.20
|
)
|
|
Loss from discontinued operations
|
|
|
-
|
|
|
|
(0.02
|
)
|
|
|
-
|
|
|
|
(0.06
|
)
|
|
Basic and diluted loss per common share
|
|
$
|
(1.28
|
)
|
|
$
|
(0.11
|
)
|
|
$
|
(1.36
|
)
|
|
$
|
(0.26
|
)
|
|
Cash dividends paid per common share
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
0.20
|
|
|
Weighted average shares outstanding, basic and diluted
|
|
|
19,369
|
|
|
|
18,525
|
|
|
|
19,104
|
|
|
|
18,413
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTERSECTIONS INC.
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
(in thousands, except par value)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
|
|
|
2015
|
|
2014
|
|
ASSETS
|
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
9,584
|
|
|
$
|
11,325
|
|
|
Accounts receivable, net of allowance for doubtful accounts of $3
(2015) and $5 (2014)
|
|
|
12,158
|
|
|
|
15,479
|
|
|
Prepaid expenses and other current assets
|
|
|
6,624
|
|
|
|
8,289
|
|
|
Inventory, net
|
|
|
1,873
|
|
|
|
-
|
|
|
Income tax receivable
|
|
|
9,625
|
|
|
|
8,107
|
|
|
Deferred subscription solicitation costs
|
|
|
7,604
|
|
|
|
6,922
|
|
|
Total current assets
|
|
|
47,468
|
|
|
|
50,122
|
|
|
PROPERTY AND EQUIPMENT, net
|
|
|
14,298
|
|
|
|
14,764
|
|
|
DEFERRED TAX ASSET, net
|
|
|
-
|
|
|
|
11,849
|
|
|
LONG-TERM INVESTMENT
|
|
|
-
|
|
|
|
8,384
|
|
|
GOODWILL
|
|
|
20,081
|
|
|
|
17,398
|
|
|
INTANGIBLE ASSETS, net
|
|
|
2,105
|
|
|
|
763
|
|
|
OTHER ASSETS
|
|
|
563
|
|
|
|
1,301
|
|
|
TOTAL ASSETS
|
|
$
|
84,515
|
|
|
$
|
104,581
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
Accounts payable
|
|
$
|
4,489
|
|
|
$
|
5,356
|
|
|
Accrued expenses and other current liabilities
|
|
|
17,718
|
|
|
|
18,907
|
|
|
Accrued payroll and employee benefits
|
|
|
3,282
|
|
|
|
5,034
|
|
|
Commissions payable
|
|
|
435
|
|
|
|
468
|
|
|
Capital leases, current portion
|
|
|
514
|
|
|
|
592
|
|
|
Deferred revenue
|
|
|
3,242
|
|
|
|
2,869
|
|
|
Deferred tax liability, net, current portion
|
|
|
2,319
|
|
|
|
702
|
|
|
Total current liabilities
|
|
|
31,999
|
|
|
|
33,928
|
|
|
OBLIGATIONS UNDER CAPITAL LEASES, less current portion
|
|
|
1,044
|
|
|
|
981
|
|
|
OTHER LONG-TERM LIABILITIES
|
|
|
4,342
|
|
|
|
4,545
|
|
|
DEFERRED TAX LIABILITY
|
|
|
3,877
|
|
|
|
-
|
|
|
TOTAL LIABILITIES
|
|
|
41,262
|
|
|
|
39,454
|
|
|
STOCKHOLDERS' EQUITY:
|
|
|
|
|
|
Common stock at $0.01 par value, shares authorized 50,000; shares
issued 23,601 (2015) and 22,158 (2014); shares outstanding 20,376
(2015) and 18,978 (2014)
|
|
|
236
|
|
|
|
222
|
|
|
Additional paid-in capital
|
|
|
128,150
|
|
|
|
123,975
|
|
|
Treasury stock, shares at cost; 3,225 (2015) and 3,180 (2014)
|
|
|
(32,696
|
)
|
|
|
(32,696
|
)
|
|
Accumulated deficit
|
|
|
(52,437
|
)
|
|
|
(26,374
|
)
|
|
TOTAL STOCKHOLDERS' EQUITY
|
|
|
43,253
|
|
|
|
65,127
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
$
|
84,515
|
|
|
$
|
104,581
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTERSECTIONS INC.
|
|
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
|
|
(in thousands)
|
|
(unaudited)
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
|
2015
|
|
2014
|
|
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
Net loss
|
|
$
|
(26,063
|
)
|
|
$
|
(4,820
|
)
|
|
Adjustments to reconcile net loss to cash flows provided by
operating activities:
|
|
|
|
|
|
Depreciation
|
|
|
2,910
|
|
|
|
3,938
|
|
|
Amortization
|
|
|
275
|
|
|
|
1,706
|
|
|
Amortization of debt issuance cost
|
|
|
50
|
|
|
|
135
|
|
|
Provision for doubtful accounts
|
|
|
(2
|
)
|
|
|
(21
|
)
|
|
Loss on disposal of fixed assets
|
|
|
60
|
|
|
|
196
|
|
|
Share based compensation
|
|
|
3,001
|
|
|
|
2,676
|
|
|
Excess tax benefit upon vesting of restricted stock units and stock
option exercises
|
|
|
-
|
|
|
|
(275
|
)
|
|
Amortization of non-cash consideration exchanged for additional
investment
|
|
|
-
|
|
|
|
(618
|
)
|
|
Amortization of deferred subscription solicitation costs
|
|
|
8,748
|
|
|
|
8,558
|
|
|
Impairment
|
|
|
7,355
|
|
|
|
-
|
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
Accounts receivable
|
|
|
3,327
|
|
|
|
1,685
|
|
|
Prepaid expenses and other current assets
|
|
|
1,665
|
|
|
|
(2,652
|
)
|
|
Inventory, net
|
|
|
(1,873
|
)
|
|
|
-
|
|
|
Income tax, net
|
|
|
(445
|
)
|
|
|
(9,169
|
)
|
|
Deferred subscription solicitation costs
|
|
|
(9,431
|
)
|
|
|
(8,393
|
)
|
|
Other assets
|
|
|
1,959
|
|
|
|
(116
|
)
|
|
Accounts payable
|
|
|
(892
|
)
|
|
|
585
|
|
|
Accrued expenses and other current liabilities
|
|
|
(1,440
|
)
|
|
|
6,296
|
|
|
Accrued payroll and employee benefits
|
|
|
(1,948
|
)
|
|
|
(285
|
)
|
|
Commissions payable
|
|
|
(33
|
)
|
|
|
(19
|
)
|
|
Deferred revenue
|
|
|
330
|
|
|
|
384
|
|
|
Deferred income tax, net
|
|
|
15,252
|
|
|
|
1,881
|
|
|
Other long-term liabilities
|
|
|
(202
|
)
|
|
|
(150
|
)
|
|
Cash flows provided by operating activities
|
|
|
2,603
|
|
|
|
1,522
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
Cash paid for acquisition of technology related intangible
|
|
|
(202
|
)
|
|
|
(100
|
)
|
|
Cash paid for the business acquired from White Sky, Inc., net of
cash received
|
|
|
(625
|
)
|
|
|
-
|
|
|
Cash paid for the business acquired from Health at Work Wellness
Actuaries LLC
|
|
|
(1
|
)
|
|
|
-
|
|
|
Acquisition of property and equipment
|
|
|
(2,275
|
)
|
|
|
(3,880
|
)
|
|
Cash flows used in investing activities
|
|
|
(3,103
|
)
|
|
|
(3,980
|
)
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
Cash dividends paid on common shares
|
|
|
-
|
|
|
|
(3,674
|
)
|
|
Excess tax benefit upon vesting of restricted stock units and stock
option exercises
|
|
|
-
|
|
|
|
275
|
|
|
Capital lease payments
|
|
|
(417
|
)
|
|
|
(469
|
)
|
|
Withholding tax payment on vesting of restricted stock units and
stock option exercises
|
|
|
(824
|
)
|
|
|
(2,182
|
)
|
|
Cash flows used in financing activities
|
|
|
(1,241
|
)
|
|
|
(6,050
|
)
|
|
DECREASE IN CASH AND CASH EQUIVALENTS
|
|
|
(1,741
|
)
|
|
|
(8,508
|
)
|
|
CASH AND CASH EQUIVALENTS - Beginning of period
|
|
|
11,325
|
|
|
|
20,920
|
|
|
CASH AND CASH EQUIVALENTS - End of period
|
|
$
|
9,584
|
|
|
$
|
12,412
|
|
|
SUPPLEMENTAL DISCLOSURE OF NONCASH FINANCING AND INVESTING
ACTIVITIES:
|
|
|
|
|
|
Equipment obtained under capital lease, including acquisition costs
|
|
$
|
427
|
|
|
$
|
-
|
|
|
Equipment additions accrued but not paid
|
|
$
|
289
|
|
|
$
|
117
|
|
|
Withholding tax payments accrued on vesting of restricted stock
units and stock option exercises
|
|
$
|
-
|
|
|
$
|
13
|
|
|
Shares withheld in lieu of withholding taxes on vesting of
restricted stock awards
|
|
$
|
91
|
|
|
$
|
-
|
|
|
Shares issued in the business acquired from White Sky, Inc.
|
|
$
|
1,200
|
|
|
$
|
-
|
|
|
Shares issued in the business acquired from Health at Work Wellness
Actuaries LLC
|
|
$
|
1,551
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTERSECTIONS INC.
|
|
OTHER DATA
|
|
(unaudited)
|
|
|
|
In 2014, we reorganized our business into one that we believe will
build our IDENTITY GUARD® brand and Canadian business lines as
growth engines for our identity theft and privacy protection
solution, and we believe we continue to provide the highest level of
service for our existing U.S. financial institution clients. As a
result of the reorganization, we refined our criteria used to
calculate and report the other data in the tables below.
|
|
|
|
The following tables provide details of our Personal Information
Services segment revenue information for the three and six months
ended June 30, 2015 and 2014 (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
Personal Information Services Segment Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Bank of America
|
|
$
|
22,783
|
|
$
|
26,660
|
|
47.7
|
%
|
|
44.7
|
%
|
|
All other financial institution clients
|
|
|
6,001
|
|
|
13,151
|
|
12.5
|
%
|
|
22.1
|
%
|
|
Consumer direct
|
|
|
13,837
|
|
|
12,120
|
|
28.9
|
%
|
|
20.3
|
%
|
|
Canadian business lines
|
|
|
5,223
|
|
|
7,665
|
|
10.9
|
%
|
|
12.9
|
%
|
|
Total Personal Information Services revenue
|
|
$
|
47,844
|
|
$
|
59,596
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Bank of America
|
|
$
|
46,638
|
|
$
|
54,694
|
|
47.1
|
%
|
|
45.4
|
%
|
|
All other financial institution clients
|
|
|
14,842
|
|
|
26,739
|
|
15.0
|
%
|
|
22.2
|
%
|
|
Consumer direct
|
|
|
26,501
|
|
|
23,752
|
|
26.7
|
%
|
|
19.7
|
%
|
|
Canadian business lines
|
|
|
11,111
|
|
|
15,252
|
|
11.2
|
%
|
|
12.7
|
%
|
|
Total Personal Information Services revenue
|
|
$
|
99,092
|
|
$
|
120,437
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTERSECTIONS INC.
|
|
OTHER DATA, continued
|
|
(unaudited)
|
|
|
|
The following tables provide details of our Personal Information
Services segment subscriber information for the three and six months
ended June 30, 2015 and 2014 (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
Personal Information Services Segment Subscribers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2015 and 2014
|
|
|
|
Financial
Institution
|
|
Consumer
Direct
|
|
Canadian
Business Lines
|
|
Total
|
|
Balance at March 31, 2015
|
|
1,354
|
|
|
381
|
|
|
280
|
|
|
2,015
|
|
|
Additions
|
|
1
|
|
|
72
|
|
|
23
|
|
|
96
|
|
|
Cancellations
|
|
(462
|
)
|
|
(74
|
)
|
|
(127
|
)
|
|
(663
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Balance at June 30, 2015
|
|
893
|
|
|
379
|
|
|
176
|
|
|
1,448
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at March 31, 2014
|
|
1,985
|
|
|
324
|
|
|
328
|
|
|
2,637
|
|
|
Additions
|
|
7
|
|
|
57
|
|
|
34
|
|
|
98
|
|
|
Cancellations
|
|
(433
|
)
|
|
(50
|
)
|
|
(37
|
)
|
|
(520
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Balance at June 30, 2014
|
|
1,559
|
|
|
331
|
|
|
325
|
|
|
2,215
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2015 and 2014
|
|
|
|
Financial
Institution
|
|
Consumer
Direct
|
|
Canadian
Business Lines
|
|
Total
|
|
Balance at December 31, 2014
|
|
1,421
|
|
|
342
|
|
|
296
|
|
|
2,059
|
|
|
Additions
|
|
2
|
|
|
155
|
|
|
42
|
|
|
199
|
|
|
Cancellations
|
|
(530
|
)
|
|
(118
|
)
|
|
(162
|
)
|
|
(810
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Balance at June 30, 2015
|
|
893
|
|
|
379
|
|
|
176
|
|
|
1,448
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2013
|
|
2,067
|
|
|
301
|
|
|
332
|
|
|
2,700
|
|
|
Additions
|
|
23
|
|
|
126
|
|
|
69
|
|
|
218
|
|
|
Cancellations
|
|
(531
|
)
|
|
(96
|
)
|
|
(76
|
)
|
|
(703
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Balance at June 30, 2014
|
|
1,559
|
|
|
331
|
|
|
325
|
|
|
2,215
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTERSECTIONS INC.
|
|
OTHER DATA, continued
|
|
(unaudited)
|
|
|
|
Intersections Inc.
|
|
Reconciliation of Non-GAAP Financial Measures
|
|
|
|
The table below includes financial information prepared in
accordance with accounting principles generally accepted in the
United States, or GAAP, as well as other financial measures referred
to as non-GAAP financial measures. Consolidated adjusted EBITDA
before share related compensation and non-cash impairment charges is
presented in a manner consistent with the way management evaluates
operating results and which management believes is useful to
investors and others. Share related compensation includes non-cash
share based compensation, as well as dividend equivalent cash
payments to restricted stock unit ("RSU") holders. An explanation
regarding the company's use of non-GAAP financial measures and a
reconciliation of non-GAAP financial measures used by the company to
GAAP measures is provided below. These non-GAAP financial measures
should be considered in addition to, but not as a substitute for,
net income (loss) and the other information prepared in accordance
with GAAP, and may not be comparable to similarly titled measures
reported by other companies. Management strongly encourages
shareholders to review our financial statements and publicly-filed
reports in their entirety and not to rely on any single financial
measure.
|
|
|
|
Consolidated adjusted EBITDA before share related compensation and
non-cash impairment charges represents consolidated loss before
income taxes plus share related compensation, non-cash impairment of
goodwill, intangibles and other long-lived assets, depreciation and
amortization, interest expense and other (income) expense. We
believe that the consolidated adjusted EBITDA before share related
compensation and non-cash impairment charges calculation provides
useful information to investors because they are indicators of our
operating performance. Consolidated adjusted EBITDA before share
related compensation and non-cash impairment charges is commonly
used as a basis for investors and analysts to evaluate and compare
the periodic and future operating performance and value of companies
within our industry. Our Board of Directors and management use
consolidated adjusted EBITDA before share related compensation and
non-cash impairment charges to evaluate the operating performance of
the company and to make compensation determinations.
|
|
|
|
We provide this information to show the impact of share related
compensation on our operating results, as it is excluded from our
internal operating and budgeting plans and measurements of financial
performance; however, we do consider the dilutive impact to our
shareholders when awarding share related compensation and consider
both the Black-Scholes value and GAAP value (to the extent
applicable) in connection therewith, and value such awards
accordingly.
|
|
|
|
INTERSECTIONS INC.
|
|
OTHER DATA, continued
|
|
(unaudited)
|
|
|
|
We do not consider share related compensation charges when we
evaluate the performance of our individual business groups or
formulate our short and long-term operating plans. Due to its
nature, individual managers generally are unable to project the
impact of share related compensation and accordingly we do not hold
them accountable for the impact of equity award grants. When we
consider making share related compensation grants, we primarily take
into account the need to attract and retain high quality employees,
overall shareholder dilution and the Black-Scholes values of the
equity grant to the recipient, rather than the potential accounting
charges associated with such grants. For comparability purposes, we
believe it is useful to provide a non-GAAP financial measure that
excludes share related compensation in order to better understand
the long-term performance of our core business and to compare our
results to the results of our peer companies because of varying
available valuation methodologies and the variety of award types
that companies can use under GAAP. Furthermore, the value of share
related compensation is determined using a complex formula that
incorporates factors, such as market volatility, that are beyond our
control. Accordingly, we believe that the presentation of
consolidated adjusted EBITDA before share related compensation when
read in conjunction with our reported GAAP results can provide
useful supplemental information to our management, to investors and
to our lenders regarding financial and business trends relating to
our financial condition and results of operations.
|
|
|
|
Consolidated adjusted EBITDA before share related compensation and
non-cash impairment charges has limitations due to the fact it does
not include all compensation related expenses. For example, if we
only paid cash based compensation as opposed to a portion in share
related compensation, the cash compensation expense included in our
general and administrative expenses would be higher. We compensate
for this limitation by providing information required by GAAP about
outstanding share based awards in the footnotes to our financial
statements in our SEC filings. We believe equity based compensation
is an important element of our compensation program and all forms of
share related awards are valued and included as appropriate in our
operating results.
|
|
|
|
The following table reconciles consolidated loss before income taxes
to consolidated adjusted EBITDA before share related compensation
and non-cash impairment charges, as defined for the previous six
quarters and year-to-date through June 30, 2014 and 2015. In
managing our business, we analyze our performance quarterly on a
consolidated income (loss) before income tax basis.
|
|
|
|
|
|
|
|
|
INTERSECTIONS INC.
|
|
OTHER DATA, continued
|
|
(in thousands)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
|
2015
|
|
|
|
Three Months Ended
|
|
|
Three Months Ended
|
|
|
|
March 31
|
|
June 30
|
|
September 30
|
|
December 31
|
|
|
March 31
|
|
June 30
|
|
Reconciliation from consolidated loss before income taxes to
consolidated adjusted EBITDA before share related compensation and
non-cash impairment charges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated loss before income taxes
|
|
$
|
(1,840
|
)
|
|
$
|
(3,026
|
)
|
|
$
|
(9,756
|
)
|
|
$
|
(29,011
|
)
|
|
|
$
|
(1,695
|
)
|
|
$
|
(11,036
|
)
|
|
Non-cash share based compensation
|
|
|
1,190
|
|
|
|
1,486
|
|
|
|
509
|
|
|
|
1,240
|
|
|
|
|
1,574
|
|
|
|
1,427
|
|
|
Dividend equivalent payments to RSU holders and option holders
|
|
|
448
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
Impairment of goodwill, intangibles and other long-lived assets
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
25,837
|
|
|
|
|
-
|
|
|
|
7,355
|
|
|
Depreciation
|
|
|
1,540
|
|
|
|
1,439
|
|
|
|
1,276
|
|
|
|
1,401
|
|
|
|
|
1,297
|
|
|
|
1,613
|
|
|
Amortization
|
|
|
853
|
|
|
|
853
|
|
|
|
853
|
|
|
|
848
|
|
|
|
|
119
|
|
|
|
156
|
|
|
Interest expense (income), net
|
|
|
90
|
|
|
|
170
|
|
|
|
257
|
|
|
|
87
|
|
|
|
|
104
|
|
|
|
(21
|
)
|
|
Other (income) expense, net
|
|
|
(148
|
)
|
|
|
287
|
|
|
|
239
|
|
|
|
291
|
|
|
|
|
82
|
|
|
|
(10
|
)
|
|
Consolidated adjusted EBITDA before share related compensation and
non-cash impairment charges (1)
|
|
$
|
2,133
|
|
|
$
|
1,209
|
|
|
$
|
(6,622
|
)
|
|
$
|
693
|
|
|
|
$
|
1,481
|
|
|
$
|
(516
|
)
|
|
|
|
|
|
|
|
For the Six Months Ended
|
|
|
|
June 30,
|
|
|
|
|
2014
|
|
|
|
2015
|
|
|
Reconciliation from consolidated loss before income taxes to
consolidated adjusted EBITDA before share related compensation and
non-cash impairment charges
|
|
|
|
|
|
Consolidated loss before income taxes
|
|
$
|
(4,866
|
)
|
|
$
|
(12,731
|
)
|
|
Non-cash share based compensation
|
|
|
2,676
|
|
|
|
3,001
|
|
|
Dividend equivalent payments to RSU holders and option holders
|
|
|
448
|
|
|
|
-
|
|
|
Impairment of goodwill, intangibles and other long-lived assets
|
|
|
-
|
|
|
|
7,355
|
|
|
Depreciation
|
|
|
2,979
|
|
|
|
2,910
|
|
|
Amortization
|
|
|
1,706
|
|
|
|
275
|
|
|
Interest expense, net
|
|
|
260
|
|
|
|
83
|
|
|
Other expense, net
|
|
|
139
|
|
|
|
72
|
|
|
Consolidated adjusted EBITDA before share related compensation and
non-cash impairment charges (1)
|
|
$
|
3,342
|
|
|
$
|
965
|
|
|
|
|
__________________
|
|
(1)
|
|
For the reconciliation of certain non-GAAP measures visit our
website at www.intersections.com.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20150813006384/en/
[ Back To TMCnet.com's Homepage ]
|
