Intersections Inc. has announced financial results for the quarter and year ended December 31, 2009.
Michael Stanfield, CEO, commented, “The year 2009 was a period of repositioning for Intersections. We are poised for 2010 to be a strong year with limited revenue growth but a significant improvement in profitability and strong cash flow. We anticipate that the profitability improvement should be driven by reductions in net investment in the Consumer Direct business as it generates increasing revenue to offset marketing costs, and by the swing towards profitability in our Business Services companies as a group.”
Year End Results:
Total revenue was $364.6 million for the year ended December 31, 2009, including $18.5 million from the Background Screening segment. Total revenue for the year ended December 31, 2008 was $361.6 million, including $27.8 million from the Background Screening segment.
Subscription revenue, net of marketing and commissions associated with subscription revenue, decreased 12.5 percent to $166.3 million for the year ended December 31, 2009, from $189.9 million for the comparable period in 2008. Subscription revenue, net of marketing and commissions associated with subscription revenue, is a non-GAAP financial measure that we believe is important to investors and one that we utilize in managing our business as subscription revenue normalizes the effect of changes in the mix of indirect and direct marketing arrangements.
Adjusted EBITDA before share-based compensation for the year ended December 31, 2009, prior to non-cash impairment charges, decreased to $18.6 million from $45.1 million for the comparable period in 2008.
Loss before taxes and noncontrolling interest was $10.4 million for the year ended December 31, 2009, including a loss before taxes and noncontrolling interest of $11.3 million for the Background Screening segment, $5.8 million for the Online Brand Protection segment, and $2.9 million for the Bail Bonds Industry Solutions segment. Loss before taxes and noncontrolling interest was $27.9 million for the year ended December 31, 2008, including a loss before taxes and noncontrolling interest of $19.7 million for the Background Screening segment, $14.9 million for the Online Brand Protection segment, and $4.1 million for the Bail Bonds Industry Solutions segment.
Net loss was $6.4 million, or ($0.36) per diluted share, for the year ended December 31, 2009, compared to net loss of $16.0 million, or ($0.93) per diluted share, for the year ended December 31, 2008.
Cash flow provided by operations for the year ended December 31, 2009 was approximately $17.4 million.
We recorded a $6.2 million non-cash impairment charge in the year ended December 31, 2009 related to the writedown to fair value of goodwill in our Background Screening segment. The continuing economic downturn in 2009 and the ongoing economic uncertainty were the primary factors in our decision to record this non-cash impairment charge.
Fourth Quarter 2009 Financial Highlights:
Total subscribers decreased to approximately 4.3 million as of December 31, 2009, compared to approximately 4.7 million subscribers as of December 31, 2008.
Total revenue for the fourth quarter of 2009 was $94.1 million, including $4.9 million from the Background Screening segment. Total revenue for the fourth quarter of 2008 was $88.1 million, including $5.3 million from the Background Screening segment.
Subscription revenue, net of marketing and commissions associated with subscription revenue, was $39.4 million for the fourth quarter of 2009, compared to $43.1 million for the fourth quarter of 2008, a decrease of 8.6 percent.
Loss before taxes and noncontrolling interest was $5.6 million for the fourth quarter of 2009, including a loss before taxes and noncontrolling interest of $954 thousand for the Background Screening segment, $2.1 million for the Online Brand Protection segment, and $1.3 million for the Bail Bonds Industry Solutions segment. Loss before taxes and noncontrolling interest was $44.1 million for the fourth quarter of 2008, which included a loss before taxes and noncontrolling interest of $16.3 million for the Background Screening segment, $14.2 million for the Online Brand Protection segment, and $2.0 million for the Bail Bonds Industry Solutions segment.
Net loss was $3.5 million, or ($0.20) per diluted share, for the quarter ended December 31, 2009, compared to a net loss of $26.5 million, or ($1.53) per diluted share,for the quarter ended December 31, 2008.
Cash flow provided by operations for the quarter ended December 31, 2009, was approximately $3.8 million.
See the attached schedule of “Other Data” for the reconciliation of the non-GAAP financial measures to the most comparable GAAP financial measures.
Intersections’ quarter and year end December 31, 2009 results will be discussed in more detail on March 16, 2010 at 5:00 pm EDT via teleconference. A live audio webcast will be available on Intersections’ Web site at www.intersections.com. Participants are encouraged to go to the selected Web site at least 15 minutes in advance to register, download, and install any necessary audio software. This webcast will be archived and available for replay after the teleconference. Additionally, the call will be available for telephonic replay from 8:00 p.m. Tuesday, March 16, 2010 through 5:00 p.m. Friday, March 19, 2010, at 888.286.8010, or if you are based internationally, at +1-617-801-6888 (Passcode: 40729421).
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 without limitation the effect of new subscriber additions.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.The Company undertakes no obligation to revise or update any forward-looking statements.
About Intersections Inc. (www.intersections.com)
Intersections Inc. (NASDAQ:INTX) is a leading global provider of consumer and corporate identity risk management services. Its premier identity theft, privacy, and consumer solutions are designed to provide high-value opportunities to its marketing partners, including leading financial institutions, Fortune 100 corporations, and other businesses. Intersections also markets full identity theft protection solutions under its brand, IDENTITY GUARD(R) (www.identityguard.com). Intersections’ consumer identity theft protection services have protected more than 30 million consumers.
To address the growing threat of corporate fraud, Intersections also offers cutting-edge identity management solutions to corporate clients including: data breach remediation, domestic and international pre-employment background screening, corporate identity theft protection and brand monitoring.
