Attached files
| file | filename |
|---|---|
| 8-K - CURRENT REPORT - INTERSECTIONS INC | intersections-8k_081214.htm |
| EX-99.1 - PRESS RELEASE DATED AUGUST 11, 2014 - INTERSECTIONS INC | intersections-ex991_081214.htm |
| EX-99.3 - RECONCILIATION OF NON-GAAP FINANCIAL MEASURES - INTERSECTIONS INC | intersections-ex993_081214.htm |
Exhibit 99.2
Q2 2014 Investor Update
August 11, 2014
1
Intersections Corporate Overview
Statements in this presentation to future plans, results, performance,
expectations, achievements and the like are considered “forward-looking
statements.” These 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 SEC, 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.
expectations, achievements and the like are considered “forward-looking
statements.” These 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 SEC, 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.
2
Please see the company’s release and website at www.intersections.com for additional details on quarterly results.
About Intersections Inc.
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 our business was founded in 1996, Intersections has protected the
identities of more than 36 million consumers. To learn more, visit
www.intersections.com.
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 our business was founded in 1996, Intersections has protected the
identities of more than 36 million consumers. To learn more, visit
www.intersections.com.
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Founded:
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1996
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NASDAQ Symbol:
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INTX
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Headquarters:
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Chantilly, VA
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Consumers
Protected To Date: |
Over 36 million
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Fast Facts
3
Please see the company’s release and website at www.intersections.com for additional details on quarterly results.
Q2 2014 Operating Results
► Revenue for Q2 ‘14 was $64.3 million, compared to $80.7 million in Q2 ‘13 and $66.0
million in Q1 ‘14. The decrease in revenue from the same quarter last year continued to
be due to:
million in Q1 ‘14. The decrease in revenue from the same quarter last year continued to
be due to:
o The reduction, suspension or termination of marketing as well as cancellation of certain subscriber
portfolios by our U.S. financial institution clients
portfolios by our U.S. financial institution clients
o This was partially offset by increased revenue from our consumer direct product line
► Total subscribers decreased to approximately 2.3 million at the end of Q2 ‘14 compared to
3.8 million at the end of Q2’13 and 2.8 million at the end of Q1 ‘14.
3.8 million at the end of Q2’13 and 2.8 million at the end of Q1 ‘14.
o On a rolling 12 month basis our overall retention as of the end of Q2 ‘14 was 54.6% compared to
69.3% as of Q2 ‘13
69.3% as of Q2 ‘13
o Excluding the impact of involuntary subscriber cancelations by some of our banking clients the
underlying retention would have been 88.9% as of the end of Q2 ‘14 compared to 82.2 % as of Q1
‘14
underlying retention would have been 88.9% as of the end of Q2 ‘14 compared to 82.2 % as of Q1
‘14
4
Please see the company’s release and website at www.intersections.com for additional details on quarterly results.
Q1 2014 Operating Results (cont’d)
► Adjusted EBITDA before share related compensation and non-cash impairment charges for
Q2 ‘14 was $1.2 million, compared to $9.5 million in Q2 ‘13 and $2.1 million in Q1 ‘14.
The primary drivers of this decrease from the same quarter as last year are:
Q2 ‘14 was $1.2 million, compared to $9.5 million in Q2 ‘13 and $2.1 million in Q1 ‘14.
The primary drivers of this decrease from the same quarter as last year are:
o A decrease in revenue and income from our U.S. financial institution clients which was partially offset by
increased revenue from our consumer direct product line (in our CP&S segment)
increased revenue from our consumer direct product line (in our CP&S segment)
o A loss from operations of $3.2 million in our Pet Health Monitoring segment
o Partially offset by lower expenses in Corporate
► Net (loss) for Q2 ‘14 was $(2.0) million compared to net income of $1.6 million net for Q2
‘13 and a net (loss) of $(2.8) million for Q1 ‘14
‘13 and a net (loss) of $(2.8) million for Q1 ‘14
o Diluted loss per share was $(0.26) for the six months ended June 30, 2014, compared to diluted earnings per
share of $0.20 for the six months ended June 30, 2013
share of $0.20 for the six months ended June 30, 2013
► On June 26, 2014 Intersections entered into an amendment of its Credit Agreement that
provides a $7.5 million revolving credit facility
provides a $7.5 million revolving credit facility
o The amendment, among other things, restricts our ability to pay ordinary dividends and make share repurchases
o We are currently able to borrow the full $7.5 million available under the Credit Agreement
► We anticipate providing more information about our plan, as well as updated guidance in
the coming weeks.
the coming weeks.
5
Please see the company’s release and website at www.intersections.com for additional details on quarterly results.
** As of Q2 ‘14 we will no longer have a Market Intelligence segment as these operations ceased in Q2 2014.
Identity Guard®
6
►IDENTITY GUARD® is Intersections’ own brand of industry leading
identity risk management and privacy protection products.
identity risk management and privacy protection products.
►Our strategy is to expand of IDENTITY GUARD® business, through both
new partners and directly to consumers
new partners and directly to consumers
►Our IDENTITY GUARD® branded business grew in the 2nd Quarter of
2014 by 13% compared to 2nd Quarter 2013 and over 5% compared to
1st Quarter 2014.
2014 by 13% compared to 2nd Quarter 2013 and over 5% compared to
1st Quarter 2014.
►In Q1 2015 we expect to launch a new suite of IDENTITY GUARD®
privacy protection products to protect a much broader “mobile-centric
and social media” active consumer population.
privacy protection products to protect a much broader “mobile-centric
and social media” active consumer population.
Please see the company’s release and website at www.intersections.com for additional details on quarterly results.
“Count on IDENTITY GUARD® to help protect what makes you… you.” Visit www.identityguard.com to learn more.
Voyce TM
7
Please see the company’s release and website at www.intersections.com for additional details on quarterly results.
(1) According to the 2013-2014 American Pet Products Association National Pet Owners Survey there are approximately
83 million dogs owned in the United States.
Corporate Headquarters
Intersections Inc.
3901 Stonecroft Boulevard
Chantilly, VA 20151
Toll-free: 800.695.7536
www.intersections.com
Investor Relations
Eric S. Miller
IR@intersections.com
Tel: 703.488.6100
VOYCE
www.mydogsvoyce.com
Identity Guard
www.identityguard.com