Intersections Inc. Reports Fourth Quarter and Full Year 2012 Earnings and
Issues Full Year 2013 Guidance
CHANTILLY, Va. -- March 18, 2013
Intersections Inc. (NASDAQ: INTX) today announced financial results for the
quarter and year ended December 31, 2012. Revenue for the year ended December
31, 2012 was $349.2 million, as compared to $373.0 million for the year ended
December 31, 2011. Consolidated adjusted EBITDA before share related
compensation and non-cash asset impairment charges for the year ended December
31, 2012 was $58.7 million, compared to $52.1 million for the year ended
December 31, 2011. Net income for the year ended December 31, 2012 was $19.7
million, as compared to $18.6 million for the year ended December 31, 2011.
Cash flow provided by operations for the year ended December 31, 2012 was
$48.9 million. Diluted earnings per share increased to $1.04 for the year
ended December 31, 2012, from $0.97 for year ended December 31, 2011.
As of December 31, 2012, we had a cash balance of $25.6 million and $30.0
million of available borrowings under our revolving credit facility, which we
recently amended to extend the maturity date to November 2015. During the year
ended December 31, 2012, we paid down the $20.0 million balance on our
revolving credit facility. In addition, on March 15, 2013, we paid an ordinary
cash quarterly cash dividend of $0.20 per share of common stock, which
represents our 11th consecutive ordinary quarterly dividend. Based on the
closing price on March 15, 2013 of $10.85 per share, our quarterly cash
dividend represents an effective annual dividend yield of 7.4%.
Michael Stanfield, Chairman and Chief Executive Officer of Intersections
commented, “We are pleased with the strength of our results in 2012, and
remain confident in the value and quality of our products despite the
significant reduction in marketing by our traditional financial services
industry clients. As a result of changes in the financial services
marketplace, we are increasing our focus on non-financial institution clients,
consumer direct marketing, and diversified business investments going forward
and believe this will lead to a stronger, more diversified Intersections in
the years to come.”
Fourth Quarter 2012 Financial Highlights:
*Total subscribers decreased to approximately 4.5 million as of December
31, 2012 from 4.9 million as of December 31, 2011.
*Total consolidated revenue for the fourth quarter of 2012 was $84.4
million compared to $94.1 million for the fourth quarter of 2011.
*Consolidated net income for the quarter ended December 31, 2012 was $1.6
million, or $0.08 per diluted share, compared to $4.2 million, or $0.22
per diluted share, for the quarter ended December 31, 2011.
*Consolidated cash flow provided by operations for the quarter ended
December 31, 2012, was approximately $10.3 million.
Full Year 2012 Financial Highlights:
*Total consolidated revenue for the year ended December 31, 2012 was $349.2
million, compared to $373.0 million for the year ended December 31, 2011.
*Consolidated net income for the year ended December 31, 2012 was $19.7
million, or $1.04 per diluted share, compared to $18.6 million, or $0.97
per diluted share, for the year ended December 31, 2011.
*Consolidated cash flow provided by operations for the year ended December
31, 2012 was approximately $48.9 million.
Full Year 2013 Guidance:
Intersections is currently forecasting revenue in 2013 to be between 10
percent to 15 percent lower, and adjusted EBITDA in 2013 to be between 40% to
50% lower, as compared to 2012. These forecasts take into account decreased
revenue and earnings from business related to large financial institutions, an
increase of over $4 million in marketing expenses in our consumer direct
business, and a loss from operations of approximately $10 million from
investments to develop new and diversified businesses and to continue product
development in the identity and security arena.
As previously announced, Intersections' results for the fourth quarter and
full year 2012 and a business update will be discussed in more detail on March
18, 2013 at 5:00 p.m. Eastern Time 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 7:00 p.m. Eastern Time Monday, March 18, 2013 through Friday, March 22,
2013, at 888-286-8010, or if you are based internationally, at +1-617-801-6888
For additional commentary on Intersections’ fourth quarter and full year 2012
results please click on the 4th Quarter 2012 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 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
About Intersections (www.intersections.com)
Intersections Inc. (Nasdaq: INTX) is a leading provider of consumer identity
risk management services. Intersections provides various levels of service to
more than 8.0 million consumers. Those services are offered through North
America's leading financial institutions and directly to consumers under
Intersections’ award-winning Identity Guard® brand. Since 1996, Intersections
has protected the identities of more than 35 million consumers.
Eric Miller, 703-488-6100
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