DARIEN, Ill., Feb. 4 /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 year and
fourth quarter ended December 31, 2008. Financial Results
Insure.com reported revenues of $3.5 million for the fourth quarter
of 2008, a decrease of 22 percent from revenues of $4.5 million for
the same quarter of 2007. The net loss for the quarter was $655,000
or $0.10 per share, compared to a profit of $462,000, or $0.06 per
share, for the fourth quarter of 2007. For the full year of 2008,
revenues totaled $15.7 million, down 13 percent from revenues of
$18.0 million in 2007. The net loss for 2008 was $999,000, or $0.14
per share, compared to a loss of $175,000, or $0.02 per share in
2007. "Our fourth quarter and full year 2008 financial performance
was impacted by our previous decision to stop selling life
insurance leads, which reduced 2008 revenue by almost $1 million,
in favor of retaining those leads for use by our in-house agent
sales force. In 2008 we also experienced increased new agent
expenses, which are front-loaded and precede commission revenue,
and an unexpected drop in paid policies during the fourth quarter,"
said Robert Bland, chairman and CEO. "In 2008 we were able to
reduce policy acquisition costs as our agents became more efficient
with lead follow-ups. As new agents mature and become more
productive, we expect them to generate commission revenue streams
that will exceed the revenue that could have been generated from
selling leads. Submitted life insurance applications were 8,589 in
the fourth quarter vs. 6,057 in the fourth quarter of 2007." Phil
Perillo, chief financial officer, added, "Our 2008 revenues were
also hurt by an increase in first-year lapses on policies where we
have not yet received the full first-year annual commission,
perhaps due to the national economic climate. We record first-year
commission revenues on the full annual premium when a life policy
goes in force. So if a customer stops paying and lapses during the
first year, we will not realize all of the revenue we had
anticipated. While we set up a reserve at the time revenue is
recognized, our lapses exceeded the reserve, resulting in a
$200,000 charge against revenue in the fourth quarter due to an
increase in the reserve. We cannot say with certainty at this time
whether the lapse of first-year policies is a trend or a one-time
event." Insure.com has a strong balance sheet with no debt. Cash
and investments in marketable securities totaled $9.0 million at
December 31, 2008, and our total 2008 cash flow from operations was
a positive $93,000. Stockholders' equity amounted to $16.4 million
at December 31, 2008, as compared to $19.2 million at December 31,
2007, with about $1.8 million of the decrease coming from the
repurchase of 510,000 shares of Company stock during the year. The
Company is currently authorized by its board to repurchase up to
487,000 additional shares in the open market or in negotiated
transactions. About Insure.com 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 and leads 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, 2007 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 Year Ended December 31,
December 31, 2008 2007 2008 2007 Revenues 3,506 4,523 15,667 18,020
Expenses: Selling and marketing 715 1,247 3,942 5,687 Operations
2,432 2,020 8,875 8,860 General and administrative 904 708 3,432
3,306 Depreciation and amortization 187 205 786 784 Total expenses
4,238 4,180 17,035 18,637 Operating income (loss) (732) 343 (1,368)
(617) Investment income (net) 77 119 369 442 Net income (loss)
$(655) $462 $(999) $(175) Net income (loss) per common share, basic
and diluted $(0.10) $0.06 $(0.14) $(0.02) Diluted average common
shares and equivalents outstanding: 6,777 7,355 7,012 7,294
SELECTED BALANCE SHEET DATA (In thousands) December 31, December
31, 2008 2007 Cash and equivalents $4,373 $2,072 Investments 4,608
8,941 Commissions receivable 2,902 3,263 Intangibles and goodwill
4,681 5,148 Other assets 1,755 1,515 Total assets $18,319 $20,939
Total current liabilities $1,957 $1,695 Total stockholders' equity
16,362 19,244 Total liabilities & stockholders' equity $18,319
$20,939 DATASOURCE: Insure.com, Inc. CONTACT: Phillip A. Perillo,
Chief Financial Officer of Insure.com, Inc., +1-630-515-0170, ext.
295, Web site: http://www.insure.com/
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