Insure.com, Inc. Reports First Quarter 2009 Financial Results
April 29 2009 - 6:30AM
PR Newswire (US)
- Revenues increase 1.4 percent to $4.0 million in Q1 2009 DARIEN,
Ill., April 29 /PRNewswire-FirstCall/ -- Insure.com, Inc. (NASDAQ:
NSUR), the only place on earth where you can get auto, life,
health, home and business insurance quotes from over 100 leading
companies and have the freedom to buy from the company of your
choice, today announced financial results for the first quarter
ended March 31, 2009. Financial Results Insure.com reported
revenues of $4.02 million for the first quarter of 2009, an
increase of 1.4 percent from revenues of $3.97 million for the same
quarter of 2008. Net income for the quarter was $192,000, or $0.03
per share, compared to a loss of $512,000, or $0.07 per share, for
the first quarter of 2008. "We are pleased to report improved
financial results in the first quarter of 2009," said Robert Bland,
chairman and CEO. "As a result of actions taken over recent
quarters to prune ad expenses, perform better tracking on our leads
and avoid long term media spending commitments, we experienced
markedly improved ad efficiencies and business model leverage
during the first quarter. And despite widespread economic
anxieties, new life insurance lead flows were very strong during
the first quarter." Phil Perillo, chief financial officer,
remarked, "Our bottom line improved by more than $700,000 in the
first quarter of 2009 compared to the first quarter of 2008.
Advertising expenses were $593,000 in the first quarter, compared
to $1.3 million for the first quarter of 2008, whereas unique
initial quoted leads, a key leading indicator for us, rose 34% to
75,000 in Q1 2009 from 56,000 in Q1 of 2008. Cash flow from
operations was a positive $367,000 for the first quarter of 2009.
We also successfully completed a multi-year legacy systems
migration project in April, which will improve our competitive
posture. We currently have no large information technology
expenditures on the horizon." Insure.com has a strong balance sheet
with no debt. Cash and investments in marketable securities totaled
$9.2 million at March 31, 2009, and depreciation and amortization
charges were $189,000 for the first quarter of 2009 compared to
$207,000 for the first quarter of 2008. Stockholders' equity
amounted to $16.5 million at March 31, 2009, as compared to $16.4
million at December 31, 2008. Insure.com has a stock repurchase
plan in place. During the first quarter of 2009, the Company
repurchased 8,700 shares and is currently authorized by its board
to repurchase up to 478,000 additional shares in the open market or
in negotiated transactions. About Insure.com Originally founded in
1984 as Quotesmith Corporation, Insure.com owns and operates a
comprehensive consumer information service and companion insurance
brokerage service that caters to the needs of self-directed
insurance shoppers. Visitors to the Company's flagship Web site,
http://www.insure.com/, are able to obtain free, instant car
insurance quotes, instant life insurance quotes, home, business and
health insurance quotes from leading insurers and have the freedom
to buy online or by phone from any company shown. Insure.com also
plays home to over 2,000 originally authored articles on various
insurance topics and also provides free insurance decision-making
tools that are not available from any other single source.
Insure.com generates revenues from receipt of industry-standard
commissions, including back-end bonus commissions and volume-based
contingent bonus commissions that are paid by participating
insurance companies. We also generate advertising revenues from the
sale of Web site traffic to various third parties. Shares of the
Company's common stock trade on the Nasdaq Capital Market under the
symbol NSUR. Cautions about Forward-Looking Statements This
announcement may contain forward-looking statements that involve
risks, assumptions and uncertainties pursuant to the safe-harbor
provisions of the Private Securities Litigation Reform Act of 1995.
This announcement also contains forward-looking statements about
events and circumstances that have not yet occurred and may not
occur. These forward-looking statements are inherently difficult to
predict. Expressions of future goals and similar expressions
including, without limitation, "intend," "may," "plans," "will,"
"believe," "should," "could," "hope," "expects," "expected," "does
not currently expect," "anticipates," "predicts," "potential" and
"forecast," reflecting something other than historical fact, are
intended to identify forward-looking statements, but are not the
exclusive means of identifying such statements. Investors should be
aware that actual results may differ materially from the results
predicted and reported results should not be considered an
indication of future performance. Reported Web site activity and/or
quotes are not necessarily indicative of any present or future
revenue. The Company will not necessarily update the information in
this press release if any forward-looking statement later turns out
to be inaccurate. Potential risks and uncertainties include, among
others, concentration of common stock holdings, general price
declines within the life insurance industry, unpredictability of
future revenues, potential fluctuations in quarterly operating
results, competition, the evolving nature of its business model,
possible write down of intangible assets and goodwill, risks
associated with capacity constraints, management of growth and
potential legal liability arising out of misuse, breach of
confidentiality or error in the handling of confidential customer
information. More information about potential factors that could
affect the Company's financial results are included in the
Company's Annual Report on Form 10-K for the year ended December
31, 2008 which is on file with the United States Securities and
Exchange Commission. INSURE.COM, INC. STATEMENT OF OPERATIONS (In
thousands, except per share data) (Unaudited) Quarter Ended
------------- March 31, March 31, 2009 2008 ---- ---- Revenues:
Commissions and fees $4,023 $3,968 ----- ----- Expenses: Selling
& marketing 593 1,281 Operations 2,297 2,235 General &
administrative 820 872 Depreciation & amortization 189 207 ---
--- Total expenses 3,899 4,595 ----- ----- Operating income (loss)
124 (627) Investment income 68 115 -- --- Net income (loss) $192
$(512) ==== ===== Net income (loss) per common share, basic and
diluted $0.03 $(0.07) ===== ====== Weighted average common shares
and equivalents outstanding, basic and diluted 6,780 7,281 SELECTED
BALANCE SHEET DATA (In thousands) March 31, December 31, 2009 2008
---- ---- Cash and equivalents $1,455 $927 Investments 7,763 8,054
Commissions receivable 3,235 2,902 Intangibles and goodwill 4,567
4,681 Other assets 1,758 1,755 Total assets $18,778 $18,319 Total
current liabilities $2,299 $1,957 Total stockholders' equity 16,479
16,362 Total liabilities & stockholders' equity $18,778 $18,319
DATASOURCE: Insure.com, Inc. CONTACT: Phillip A. Perillo, Chief
Financial Officer of Insure.com, Inc., +1-630-515-0170, ext. 295,
Web Site: http://insure.com/
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