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Mid-Year 2015 Business Update
August 25, 2015
© Intersections Inc. All Rights Reserved 2015
2
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 and other regulatory agencies to our industry;
the continued dependence on a small number of financial institutions to service our U.S. financial institution
customer base; our ability to execute our strategy and previously announced transformation plan; our incurring
additional restructuring and/or impairment charges; the timing and success of new product launches, including our
Identity Guard® and VOYCE™ and Voyce Pro™ platforms, 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 or
seek additional sources of debt financing. 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.
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 and other regulatory agencies to our industry;
the continued dependence on a small number of financial institutions to service our U.S. financial institution
customer base; our ability to execute our strategy and previously announced transformation plan; our incurring
additional restructuring and/or impairment charges; the timing and success of new product launches, including our
Identity Guard® and VOYCE™ and Voyce Pro™ platforms, 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 or
seek additional sources of debt financing. 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.
Please see the company’s release and website at www.intersections.com for additional details on quarterly results.
3
Second Quarter 2015 Results
4
• Identity Guard® is our flagship platform for growth with notable increases in
revenue and subscribers.
revenue and subscribers.
• Two recent financial institution client losses negatively impacted our Canadian
business.
business.
• U.S. financial institution subscribers continue to provide substantial revenue and
cash flow from declining subscriber base.
cash flow from declining subscriber base.
|
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Revenue Through June 30,
($millions)
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Subscribers at June 30,
(thousands)
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||||
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|
2015
|
2014
|
% Change
|
2015
|
2014
|
% Change
|
|
Identity Guard®
|
$26.5
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$23.8
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11.3%
|
379
|
331
|
14.5%
|
|
Canadian Business
|
$11.1
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$15.2
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-23.7%
|
176
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325
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-45.8%
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U.S. Financial Institutions
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$61.5
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$81.4
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-24.4%
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893
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1,559
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-42.7%
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Sub Total
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$99.1
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$120.4
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-17.7%
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1,448
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2,215
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-34.6%
|
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Other Business Units
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$8.4
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$9.9
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-15.2%
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|
|
|
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Consolidated Revenue
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$107.5
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$130.3
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-17.5%
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2015 Mid-Year Financial Highlights - Revenue
5
|
(in $ millions)
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Three Months Ended
June 30, |
Six Months Ended
June 30, |
||
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|
2015
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2014
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2015
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2014
|
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Consolidated Loss from Continuing
Operations before Income Taxes |
$(11.0)
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$(3.0)
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$(12.7)
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$(4.9)
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|
Non-cash impairment charges (a)
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$7.4
|
--
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$7.4
|
--
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Adjusted EBITDA (b)
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$(.5)
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$1.2
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$1.0
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$3.3
|
|
|
|
|
|
|
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Cash and cash equivalents
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$9.6
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$12.4
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$9.6
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$12.4
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(a) Non-cash impairment charge related to the remeasurement of our long-term investment in
White Sky, Inc. as a result of our acquisition of the White Sky assets in the second quarter.
White Sky, Inc. as a result of our acquisition of the White Sky assets in the second quarter.
(b) See reconciliation of non-GAAP financial measures in the back of this presentation.
Note: income tax expense for the three and six months ended June 30, 2015 includes a $16.0
million non-cash charge related to a valuation allowance recorded in the second quarter on
our non-current deferred tax assets.
million non-cash charge related to a valuation allowance recorded in the second quarter on
our non-current deferred tax assets.
2015 Financial Highlights
6
Where We Were & Where We Entered 2015
2011
•Regulatory environment
sets financial institution
add-on sales on steep
decline.
sets financial institution
add-on sales on steep
decline.
•$371 million revenue
mostly with financial
institutions.
mostly with financial
institutions.
•4.2 million subscribers
through FIs.
through FIs.
•$52.6 million adjusted
EBTIDA.*
EBTIDA.*
•$212 million market cap.
Entering 2015
•Revenue from financial
institution base continues
decline and regulatory
actions continue.
institution base continues
decline and regulatory
actions continue.
•$151 million financial
institution revenue base
in run-off, with 1.4 million
subscribers.
institution revenue base
in run-off, with 1.4 million
subscribers.
Ø $247 million 2014
consolidated
revenue.
consolidated
revenue.
•Four business units in
various stages of life
cycle.
various stages of life
cycle.
•$(2.6) million 2014
adjusted EBITDA.*
adjusted EBITDA.*
•$72 million market cap.
Liberal dividend policy suspended in 2014 due to financial institution revenue
declines
declines
Lost ~$121 million of revenue & 2.8
million subscribers from FIs
million subscribers from FIs
$140 million loss in market cap
$55 million reduction in adjusted EBTIDA
* Please see reconciliation of Non-GAAP financial measures in the back of this presentation.
7
Corporate Update
8
2015 Key Highlights
Personal Information Services
• CFPB Consent Order and Bank of America contract addendum are expected to reduce some of the relative
uncertainty of the run-off financial institution subscriber base.
uncertainty of the run-off financial institution subscriber base.
• Identity Guard® subscriber base is up 11% since December 2014 and revenue is up 11.3% compared to the first half
of 2014.
of 2014.
• Canadian business impacted by client subscriber cancellations and 30% decline in Canadian dollar since January
2013, however, we believe our joint marketing relationship has been strengthened and we have a growing pipeline
of new business.
2013, however, we believe our joint marketing relationship has been strengthened and we have a growing pipeline
of new business.
• New product in beta & scheduled for general release in fourth quarter 2015.
• Over $15.0 million annualized reduction in our cost base, including corporate costs.
Pet Health Monitoring
• Consumer launch revealed product is more professionally oriented than consumer oriented.
• Pivoted to a more professionally oriented product directed through veterinarians.
• Veterinarian clinic sign ups are on track.
• Opportunities for important partnerships are increasing and progressing.
Insurance and Other Consumer Services
• Completed asset acquisition of Health at Work, LLC in March 2015.
• Acquisition integration is proceeding as expected.
9
2017 Vision
We expect to have two high growth, subscription based businesses operating at
scale.
scale.
• The Identity Guard® business focused on personal information security for consumers.
• The Voyce™ business focused on providing innovative technology to the animal healthcare industry
in multiple markets.
in multiple markets.
We expect each business will be self sustaining and large enough to carry the
burden of an efficiently managed stand alone company.
burden of an efficiently managed stand alone company.
We expect to be in a position to separate the businesses on a tax efficient basis
after mid-2017 providing transparency into each businesses’ market value.
after mid-2017 providing transparency into each businesses’ market value.
We expect our Insurance and Other Consumer Services business (“Habits at
Work™”) to operate as part of our Identity Guard® business.
Work™”) to operate as part of our Identity Guard® business.
We expect Captira to become an attractive niche software and data business.
10
Strategic Plan - Key Initiatives
1. Identity Guard® Business
• Build mass-customizable solutions to provide advice and tools in prevention/detection/resolution of
personal information security.
personal information security.
• Re-build partner distribution channels outside the U.S.
• Build new partner base in the U.S.
• Relentless focus on product innovation, high quality customer service, and world-class compliance &
data security.
data security.
• Successfully manage FI subscriber base with Identity Guard® to minimize IT costs.
• Continue to attack cost base as FI revenue base reduces.
2. Voyce™ Business
• Successfully launch VoycePro™ through U.S. veterinary clinics.
• Build veterinary base through sales team and distributor.
• Integrate insurance and pharma partners.
• Continuously improve technology to stay leading edge.
• Rapidly move product to other pets, high value animals, and pharma.
• Open global markets.
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Strategic Plan - Key Initiatives, cont.
3. Habits at Work™
• Build first 2 behavior-linked products to take to market in employer groups.
• Provide channel partnership to Identity Guard® and Voyce™ businesses.
4. Captira
• Successfully launch bail bonds automation with large bail bonds issuers in the U.S.
• Achieve mass acceptance of automation solutions in bail bond and process service industries.
12
Strategic Plan - Future
Provide Leading Service in multiple categories:
• Personal information services to subscribers in the U.S. and Canada through
prevention/detection/resolution and high value personal activity analytics.
prevention/detection/resolution and high value personal activity analytics.
• Animal health monitoring for veterinarians with associated data analytics for pets, high value animals
and pharma research animals, globally.
and pharma research animals, globally.
• Behavior-linked wellness & insurance products to employer groups in the U.S.
• Software, data and analytics to automate the bail bonds and process server industry in the U.S.
Common Goals:
• Recurring revenue.
• Industry niches.
• Strong data analytics.
• Utilize historical corporate knowledge base.
13
Personal Information Services
(Referred to as our Identity Guard® Business)
14
Identity Guard® Business
Provides prevention, detection & resolution products and services to
help subscribers protect their personal information from misuse.
help subscribers protect their personal information from misuse.
• $130 million private label revenue base (LTM June 2015) from subscribers
acquired through U.S. financial institutions.
acquired through U.S. financial institutions.
• 893 thousand subscribers (June 30, 2015) decreasing at 1.5% per month
• Highly concentrated with one U.S. FI; contract amended in 2015
• No ongoing marketing or retention efforts
• Regulatory landscape clarified through CFPB consent order
• $51 million IDENTITY GUARD® revenue base (LTM June 2015).
• Flagship platform for U.S. growth
• 379 thousand U.S. subscribers (June 30, 2015) with 14.5% growth vs. June 2014
• $26 USD million Canadian revenue base (LTM June 2015).
• Leading provider of identity theft protection and credit monitoring in Canada
• 176 thousand subscribers (June 2015) marketed through a joint marketing arrangement
15
Identity Guard® Business Strategic Objectives
Objective #1
• Build and series launch new Prevention/Detection/Resolution product with final version in market by end
of Q1 2016.
of Q1 2016.
• Detection and real time monitoring strengthened through alternative data sources and intelligent
combination of data.
combination of data.
• Create a new and robust partner channel outside of FI world.
Objective #2
• Improve current 3-Bureau credit product to include enhanced monitoring features.
• Enhance and enrich customer experience in using the product.
• Maintain highest standard of compliance.
Objective #3
• Consolidate and simplify smaller legacy subscriber base products, to eliminate IT duplication and cost.
• Efficiently run-off legacy FI base to optimize revenue.
Objective #4
• Dedicate resources to Canadian business and drive product innovation.
• Win back accounts lost over the last 24 months to regain market share.
16
Identity Guard® Business Vision 2017
Mission: To be recognized as the leading provider of personalized data driven subscription
-based Personal Information Security products and services to consumers in the U.S. and
Canada.
-based Personal Information Security products and services to consumers in the U.S. and
Canada.
Product: Enhance existing 3B credit monitoring, and launch new
Prevention/Detection/Resolution product by Q2 2016.
Prevention/Detection/Resolution product by Q2 2016.
Revenue: Strong partner business established, complemented by Direct to Consumer
sales.
sales.
Geography: U.S. and Canadian businesses on parallel tracks, with dedicated teams,
products and platforms.
products and platforms.
Costs: Identity Guard® running a lean organization, with the risk appetite, IT platform,
products and go-to-market approach to avail itself of substantial growth in market
opportunity.
products and go-to-market approach to avail itself of substantial growth in market
opportunity.
Profitability: Optimize COGS to meet continuously-evolving customer needs efficiently
and effectively.
and effectively.
17
Build Identity Guard® Prevention, Detection, Resolution
Competitors offer “set it and forget it” products and services that don’t provide a complete
picture of identity theft and fraud. This gives consumers a false sense of protection - they’re
not actually engaged in the everyday management of their personal information security. And
they need to be.
picture of identity theft and fraud. This gives consumers a false sense of protection - they’re
not actually engaged in the everyday management of their personal information security. And
they need to be.
Consumers expect MORE.
We are developing tools and resources that work to empower the consumer and sustainably
address the ever-growing risks associated with data breaches, personal information being
gathered and sold, the internet of things and the data exhaust of today’s connected world.
address the ever-growing risks associated with data breaches, personal information being
gathered and sold, the internet of things and the data exhaust of today’s connected world.
We’re helping people take CONTROL of their Personal Information
Security.
Security.
18
• Create proactive solutions in Prevention, Detection and Resolution which can
be customized for each consumer for their lifestyle
be customized for each consumer for their lifestyle
• Provide access to tools and education that prevent future data loss and detect
existing threats
existing threats
• Enhance the alert engine to deliver personalized education based on consumer
need and understanding
need and understanding
• Improve the existing Victim Recovery Service and continue personalizing the
experience
experience
As the various components are brought out of beta and integrated into our
products, one will begin to see how we wish to change consumer behavior.
products, one will begin to see how we wish to change consumer behavior.
19
Pet Health Monitoring
(Referred to as our Voyce™ Business)
20
Voyce: Pet Health Monitoring Services
Voyce™ is a revolutionary health monitor and wellness
management system for every stage of a dog’s life.
management system for every stage of a dog’s life.
• Leverages Intersections core data analytics and digital marketing
capabilities.
capabilities.
• Opportunity to build & monetize proprietary data.
• Large ($58 billion in U.S.*), growing companion animal market
with observable information gap for pet parents and
veterinarians.
with observable information gap for pet parents and
veterinarians.
• Positioning as trusted and credible health tool in the domestic
animal market, highly differentiated from activity tracking toys
on the market.
animal market, highly differentiated from activity tracking toys
on the market.
• Professional monitoring and consumer services launched in
2015.
2015.
* 2014 spending on pets, up 52% since 2006; American Pet Products Association.
21
2015 Update: Voyce™ Pivoting to the Right Market
Key outcomes of Q1 controlled consumer launch of Voyce™
• Consumer reception lower than expected
• Product capabilities overwhelmed consumer
• Increased interest and demand noted from veterinary community for more professionally-
oriented product and service
oriented product and service
Our Response
• Repositioned marketing message and website for Q3 2015 re-launch
• Developed Voyce Pro™ product and service offering for veterinarians
Results
• Transition to Voyce Pro™ well received
• Product is viewed as transformative by veterinarians
• Program launched in late July 2015 and currently on-boarding hospitals
• Important partnership opportunities have increased and are moving forward
22
Voyce Pro™ Overview
• Voyce Pro™ is a comprehensive, easy to implement Wellness Monitoring Program for
veterinary professionals.
veterinary professionals.
• Voyce Pro™ enables remote monitoring of dog patients’ key vital signs including
resting heart and respiratory rates and other important wellness indicators using the
Voyce™ Health Monitor. Such indicators include calories burned, distance traveled,
intensity of activity, quality of rest and more.
resting heart and respiratory rates and other important wellness indicators using the
Voyce™ Health Monitor. Such indicators include calories burned, distance traveled,
intensity of activity, quality of rest and more.
• Voyce Pro™ allows veterinary teams to set customized data parameters for each
patient and will alert the hospital if the key vital signs and wellness indicators move
outside of those parameters.
patient and will alert the hospital if the key vital signs and wellness indicators move
outside of those parameters.
• The interactive Voyce Pro™ Veterinary Dashboard manages hospital patients enrolled
in Voyce Pro™, sending daily summaries, specific alerts, trending data, and more.
in Voyce Pro™, sending daily summaries, specific alerts, trending data, and more.
23
Voyce™ Positioning
Voyce™ is actively positioning itself as a trusted and credible health tool in the domestic animal
market, aggressively differentiating itself from activity tracking toys on the market. This positioning is
strongly supported by the launch of Voyce Pro™ in veterinary clinics nationwide. Communications
now also include specific conditions that Voyce™ can help consumers and veterinarians to identify
and manage.
market, aggressively differentiating itself from activity tracking toys on the market. This positioning is
strongly supported by the launch of Voyce Pro™ in veterinary clinics nationwide. Communications
now also include specific conditions that Voyce™ can help consumers and veterinarians to identify
and manage.
VOYCE™
The Health and Wellness Management System
The Health Monitor
•Resting Heart Rate
•Resting Respiratory Rate
•Activity & Intensity
•Quality of Rest
•Calories Burned
•Distance Traveled
The Interactive Wellness Management Center
• Customized Member Dashboard
• Health Trends
• Goal Setting
• Medication Reminders
• Symptom Checker
• Notes
• Caregiver Access
• Weekly Summaries
• Medical Record Storage
• Library (1,500+ expert-
written articles)
written articles)
24
Voyce™ Business 2015 and 2016 Objectives
1. Build Veterinarian clients as primary user base.
2. Advance Product to increase and enhance available markets (small animal and
international).
international).
3. Broaden markets with international governmental approvals and distributors.
4. Enhance “sale through” with partners who benefit from the data in their business
(pharma, food, insurance).
(pharma, food, insurance).
5. Succeed with internal sales force which opens channels for new products and
services.
services.
25
Voyce™ Business 2015 and 2016 Objectives, cont.
Product
• Introduce Voyce 2.0 (Chip version) early 2016
• Follow on with Voyce 3.0 for small dogs and cats 2016
• Introduce Voyce Equine 2016
• Receive approval for Voyce in Europe 2016
• Receive approval for Voyce in Mexico 2016
Markets
• Find and contract distributors in multiple non-U.S. Markets by early 2016
• Enter Mexico, Chile, Puerto Rico, Spain 2016
• Enter UK Germany 2016
26
Voyce™ Business 2015 and 2016 Objectives, cont.
Strategic Partners
• Sign agreements with large pharma
• Sign distribution agreement with technology company
• Commence insurance reimbursement plans for Voyce
• Sign a distributor to augment growth
• Sign a prescription food cooperation agreement
27
Voyce™ Business 2015 and 2016 Objectives, cont.
Veterinary hospital market penetration goals by year end 2016
2015
• 500+ Hospital locations by end of 2015
• 1,500+ Vets by end of 2015
• Objective for sustained sales through rate >2 per vet per month
2016
• 2,000+ Hospitals by end of 2016
• 6,000+ Vets by end of 2016
• Average sale through rate objective: >3 per vet per month
Since June 1, 2015 we have signed agreements covering 144 hospital locations.
28
Voyce Pro™ Overview Video
Voyce Pro™
The Wellness Monitoring Program
http://voyce.com/vets *
* The information on our web site, or on the site of any third-party provider linked to our
website, is not incorporated by reference into this presentation. Our web site address is
included here only as an inactive technical reference.
website, is not incorporated by reference into this presentation. Our web site address is
included here only as an inactive technical reference.
29
Voyce Pro™
Identify and manage common health conditions and treatments.
• Anxiety
• Behavior concerns
• Exercise tolerance
• Heart disease
• Heartworm treatment
• Joint disease
• Neuromuscular disease
• Obesity and weight management
• Osteoarthritis
• Pain
• Pre or post surgery
• Physical rehabilitation
• Respiratory disease
• Spinal disease
30
Voyce Pro™
The Health Monitor
The Voyce Health Monitor™ was developed in
collaboration with biomedical engineers, veterinary
experts, Cornell University College of Veterinary
Medicine and our partners at LifeLearn to provide
greater visibility into the lives of your dog patients
using reliable, objective data.
collaboration with biomedical engineers, veterinary
experts, Cornell University College of Veterinary
Medicine and our partners at LifeLearn to provide
greater visibility into the lives of your dog patients
using reliable, objective data.
Using non-invasive sensors and exclusive patented
technology, the Health Monitor gathers your
patients’ key vital signs and wellness indicators and
communicates them to your interactive Veterinary
Dashboard.
technology, the Health Monitor gathers your
patients’ key vital signs and wellness indicators and
communicates them to your interactive Veterinary
Dashboard.
31
Voyce Pro™
Voyce Pro™ is intuitive and easy to integrate into your veterinary practice.
Voyce Pro™
Monitors &
Analyzes
Monitors &
Analyzes
Veterinarian
Reviews
Reviews
Veterinarian
Follows Up
Follows Up
Veterinarian
Prescribes
Prescribes
1
4
2
3
4
32
Voyce Pro™
Veterinarian Prescribes
Monitor patients who are in critical
condition, experiencing chronic pain, high
-risk or post-operative, and clients who
desire ongoing care for their dog
condition, experiencing chronic pain, high
-risk or post-operative, and clients who
desire ongoing care for their dog
33
Voyce Pro™
Voyce Pro™ Monitors & Analyzes
Set customized parameters for
each individual patient
each individual patient
34
Voyce Pro™
Veterinarian Reviews
View multiple patients in one
comprehensive view
comprehensive view
35
Voyce Pro™
Veterinarian Reviews
Receive alerts about patients based on their
individual parameters
individual parameters
36
Voyce Pro™
Summary
Voyce Pro
Monitors &
Analyzes
Monitors &
Analyzes
Veterinarian
Reviews
Reviews
Veterinarian
Follows Up
Follows Up
Veterinarian
Prescribes
Prescribes
1
4
2
3
4
37
Voyce Pro™
The benefits of Voyce Pro™ to Veterinarians
•No inventory or investment required
•Improve compliance
•Increase patient visits
•Easy access to objective data and health trends
•Improve patient care and client loyalty
•Build stronger relationships
38
Voyce™ Business Vision 2017
Continuing to create a suite of technology based health and wellness products
serving the major animal markets-professional and consumer.
serving the major animal markets-professional and consumer.
Create a new standard in making segmented data a cornerstone of animal
treatment.
treatment.
Expanding a broad and internally controlled distribution capability for the
Voyce™ suite of products.
Voyce™ suite of products.
Considered a company that delivers high value and high utility with well
conceived, manufactured, delivered and serviced products for the animal world.
conceived, manufactured, delivered and serviced products for the animal world.
39
Insurance and Other Consumer Services
(Referred to as Habits at Work™)
40
Habits at Work™
Leverages proprietary methods, processes and data analytics to
provide health and wellness services to insurers, employers and
wellness groups through innovative behavior-linked products and
solutions. Manages and maximizes the cash flow from insurance and
membership products subscriber portfolio.
provide health and wellness services to insurers, employers and
wellness groups through innovative behavior-linked products and
solutions. Manages and maximizes the cash flow from insurance and
membership products subscriber portfolio.
$15.1 million revenue base (LTM June 2015) from subscribers acquired through partners
& affiliates.
& affiliates.
• 84 thousand subscribers (June 30, 2015)
• Concentrated with loan servicing organizations
• Minimal ongoing marketing efforts, primarily in run-off status
Over $1.0 million annualized health & wellness revenue base.
• March 2015 acquisition of Health at Work
Is a developing employer group sales channel for Identity Guard® and Voyce™.
41
Transformation Roadmap
From membership products sold through concentrated affiliate base to value-
added health and wellness product and service development and sales
organization.
added health and wellness product and service development and sales
organization.
ü Acquired assets of Health at Work in March 2015
• Founder retained as Habits at Work™ President; retained acquired management team
• Leader in development of behavior-linked employee benefit plans
• Proprietary platforms and associated methods, process and data analytics for behavior change
• Significant product development and go-to-market capabilities
ü Current Product suite: Employer-focused consulting tools to help them design highly attractive workplaces,
with employee programs designed to encourage keystone habits that drive higher levels of personal
performance and workplace productivity.
with employee programs designed to encourage keystone habits that drive higher levels of personal
performance and workplace productivity.
ü Products in development: Employee-focused programs that make practicing healthy habits at work easy and
rewarding by combining activity trackers, unique approaches to motivation (using BRATLAB™’s 80 distinct
influence methods), and social wellness programs including game mechanics and other drivers of
engagement.
rewarding by combining activity trackers, unique approaches to motivation (using BRATLAB™’s 80 distinct
influence methods), and social wellness programs including game mechanics and other drivers of
engagement.
ü Future product development: Employee-focused financial fitness and happiness/engagement programs,
behavior-linked employee benefits.
behavior-linked employee benefits.
42
Habits at Work™ 2017 Vision
Habits at Work™ expects to be known as a leading consulting firm specializing in
the design of habit creation solutions for employees and employers. We expect
to be known as the originators of the idea that Habits are your Destiny for
employees and companies. We expect to consult to many large, well known
employers throughout the U.S. and have case studies of excellent results both in
the U.S. and internationally.
the design of habit creation solutions for employees and employers. We expect
to be known as the originators of the idea that Habits are your Destiny for
employees and companies. We expect to consult to many large, well known
employers throughout the U.S. and have case studies of excellent results both in
the U.S. and internationally.
Our suite of employee focused habit creation programs and product partners,
and especially our future range of employer sponsored behavior linked insurance
products, are expected to be seen as innovative, highly attractive to “employers
of choice” and to their employees.
and especially our future range of employer sponsored behavior linked insurance
products, are expected to be seen as innovative, highly attractive to “employers
of choice” and to their employees.
BRATLAB™ is expected to be known as the leading research organization focused
on Habits, Habit creation and the actuarial value of the Health, Happiness and
Security habits of employees.
on Habits, Habit creation and the actuarial value of the Health, Happiness and
Security habits of employees.
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Bail Bonds Industry Solutions
(Referred to as Captira Analytical)
44
Captira Analytical is a leading provider of software-as-a-service (SAAS)
solutions designed to save time, save money and enhance decision
making in the bail bonds industry.
solutions designed to save time, save money and enhance decision
making in the bail bonds industry.
ü Proprietary solutions that automate common tasks and provide easy and
efficient ways for bail bondsmen, general agents and sureties to organize
and share data and make better underwriting decisions.
efficient ways for bail bondsmen, general agents and sureties to organize
and share data and make better underwriting decisions.
ü Partners with most of the major surety companies in the industry.
ü Leveraging platform to expand into the Process Server industry, a similarly
challenged and underserved industry. The Court Services industry is larger
than bail and suffers from many of the same organizational issues.
challenged and underserved industry. The Court Services industry is larger
than bail and suffers from many of the same organizational issues.
ü Growth strategy to increase acceptance in bail bonds industry by working
with sureties to deepen retail penetration and by quickly penetrating the
process server and document delivery market.
with sureties to deepen retail penetration and by quickly penetrating the
process server and document delivery market.
45
Strategic Position and 2017 Vision
Catalyst for Growth
• e-bonds & electronic inventory will
reshape the industry.
reshape the industry.
• Captira products are a toolkit poised for
this transition.
this transition.
• Positioned as leader to help firms see the
future and effect their strategies.
future and effect their strategies.
• Gaining sales traction and momentum in
the industry.
the industry.
2017 Vision
• Expect to be known as preeminent
business management & e-bond solution
provider in bail industry.
business management & e-bond solution
provider in bail industry.
• We expect our products to help take the
industry from desktop to mobile.
industry from desktop to mobile.
• Significant cost efficiencies realized from
mobile platform.
mobile platform.
• Proprietary data & analytics provided to
subscribers offering timely underwriting
and risk management information.
subscribers offering timely underwriting
and risk management information.
46
Outlook and Concluding Remarks
47
2015-2016 Expectations
• Continued revenue declines driven by reductions in our financial institutions subscriber base,
primarily as a result of normal attrition rates. Migrations of smaller financial institution subscriber
populations to Identity Guard® platform.
primarily as a result of normal attrition rates. Migrations of smaller financial institution subscriber
populations to Identity Guard® platform.
• Continued growth in our Identity Guard® subscriber base and revenue.
• New Identity Guard® product introduction focusing on prevention, detection & resolution.
• New partner relationships developed in the U.S. and through our Canadian partner.
• An established and growing network of Veterinarian hospitals offering VoycePro™ services.
• Voyce™ product advancements to address available markets (small animal, international, pharma,
food, insurance).
food, insurance).
• Sales traction of existing and new behavior linked insurance and wellness products to offset
continued revenue declines in our legacy insurance and other consumer products.
continued revenue declines in our legacy insurance and other consumer products.
• Continued evaluation of our liquidity needs including additional cost reduction programs and
seeking additional sources of debt financing.
seeking additional sources of debt financing.
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2015 - 2016 Guidance
a) We expect Intersections 2016 adjusted EBTIDA margins, excluding Pet Health Monitoring, to be
consistent with 2015 results.
consistent with 2015 results.
b) We expect Pet Health Monitoring 2016 adjusted EBTIDA loss to be 55% to 65% of the 2015
results with cash flow turning positive in late 2016.
results with cash flow turning positive in late 2016.
Adjusted EBITDA before share related compensation and non-cash impairment charges is a Non-GAAP financial measure. Adjusted
EBITDA includes estimated severance and related restructuring expenses. For a reconciliation of our Non-GAAP financial measures, see
analysis at the end of this presentation.
EBITDA includes estimated severance and related restructuring expenses. For a reconciliation of our Non-GAAP financial measures, see
analysis at the end of this presentation.
49
2017 Vision
We expect to have two high growth, subscription based businesses operating at
scale.
scale.
• The Identity Guard® business focused on personal information security for consumers.
• The Voyce™ business focused on providing innovative technology to the animal healthcare industry
in multiple markets.
in multiple markets.
We expect each business will be self sustaining and large enough to carry the
burden of an efficiently managed stand alone company.
burden of an efficiently managed stand alone company.
We expect to be in a position to separate the businesses on a tax efficient basis
after mid-2017 providing transparency into each businesses’ market value.
after mid-2017 providing transparency into each businesses’ market value.
We expect Habits at Work™ to operate as part of our Identity Guard® business
We expect Captira to become an attractive niche software and data business.
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Reconciliation of GAAP Financial Measures
This presentation 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 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.
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 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.
51
Reconciliation of Non-GAAP Financial Measures
52
Reconciliation of Non-GAAP Financial Measures
53
Reconciliation of Non-GAAP Financial Measures
54
Thank You
Corporate Headquarters
Intersections Inc.
3901 Stonecroft Boulevard
Chantilly, VA 20151
Toll-free: 800.695.7536
www.intersections.com
Investor Relations
Ron Barden, CFO
IR@intersections.com
Tel: 703.488.6100