EX-99.1 2 exhibit.htm PRESS RELEASE JAN 26, 2010 exhibit.htm



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News Release




Investor Relations Contact:
Alex Wellins
The Blueshirt Group, for Insweb
415-217-5861
alex@blueshirtgroup.com

InsWeb Reports Fourth Quarter and Fiscal 2009 Results
·  
Record fourth fiscal quarter revenue of $8.7 million
·  
Record fourth quarter Adjusted EBITDA of $785,000

SACRAMENTO, Calif., January 26, 2010 – InsWeb Corp. (NASDAQ: INSW), a leading online insurance marketplace, today announced results for the fourth quarter and year ended December 31, 2009.
 
Revenues for fiscal 2009 were $35.2 million, a decrease of 6% as compared to $37.5 million for fiscal 2008. Net loss for fiscal 2009 was $1.3 million, or $0.26 per diluted share. This compares with net loss of $2.2 million, or $0.46 per diluted share, for fiscal 2008.
 
 
Revenues for the fourth quarter of 2009 were $8.7 million, a decrease of approximately 3% as compared to $8.9 million in the third quarter of 2009, and an increase of approximately 31% as compared to $6.6 million in the fourth quarter of 2008. Net income for the fourth quarter of 2009 was $705,000, or $0.14 per diluted share. This compares with a net loss of $870,000, or $0.18 per diluted share, in the third quarter of 2009, and a net loss of $1.3 million or $0.27 per diluted share, in the fourth quarter of 2008.
 
 
Adjusted EBITDA, a non-GAAP financial measure used by InsWeb’s management and defined below, was $785,000 in the fourth quarter of 2009, as compared to Adjusted EBITDA of $191,000 in the third quarter of 2009 and to an Adjusted EBITDA loss of $1.2 million in the fourth quarter of 2008. Adjusted EBITDA for fiscal 2009 was income of $103,000, compared to a loss of $1.2 million for fiscal 2008.
 
 
“InsWeb ended 2009 on a positive note, with record fourth quarter revenue and Adjusted EBITDA results,” stated InsWeb Chairman & CEO Hussein Enan. “The proactive steps we have taken to align our cost structure with the revenue run-rate of the company resulted in profitability.   Going forward, we intend to continue to focus on maintaining profitability and improving our model in the near term despite the on-going effects of the economic downturn on our carrier and marketing partners.”
 
Non-GAAP Financial Information
In evaluating InsWeb’s business, the Company’s management considers and uses Adjusted EBITDA as a supplemental measure of operating performance.  Adjusted EBITDA refers to a financial measure that the Company defines as net income (loss) excluding interest, taxes, depreciation, amortization, share-based compensation, and other non-recurring gains and losses that are not related to the Company’s continuing operations.  This measure is an essential component of InsWeb’s internal planning process because it facilitates period-to-period comparisons of the Company’s operating performance by eliminating potential differences in net income (loss) caused by the existence and timing of non-cash charges and non-recurring gains and losses.  Furthermore, Adjusted EBITDA reflects the key revenue and expense items for which InsWeb’s operating managers are responsible.



 
 
InsWeb Corporation
 
    
 
NON-GAAP FINANCIAL MEASURE AND RECONCILIATION
 
    
 
(In thousands)
    
 
(unaudited)
    
 
Three months ended
Twelve months ended
 
December 31,
September 30,
December 31,
December 31,
December 31,
 
2009
2009
2008
2009 Year
2008 Year
Net income (loss)
$                 705
$          (870)
$          (1,304)
$         (1,261)
$          (2,163)
     Less
          
        Interest income
5
3
48
28
244
     Add
          
        Provision (benefit) for income taxes
-
-
-
-
(44)
                     Share-based compensation expense
28
644
63
820
640
                                 Depreciation and amortization of property,
         equipment and intangible assets from continuing
         operations
46
47
48
188
169
        Severance and related
11
373
-
384
300
       Other non-recurring expenses
-
-
-
-
110
Adjusted EBITDA from continuing operations
   $                  785
  $              191
  $            (1,241)
 $                103
     $           (1,232)

Adjusted EBITDA is not a measurement of the Company’s financial performance under U.S. GAAP and has limitations as an analytical tool.  You should not consider it in isolation or as a substitute for the Company’s U.S. GAAP net income (loss).  The principal limitations of this measure are that: 1) it does not reflect the Company’s actual expenses and may thus have the effect of inflating or reducing the Company’s net income (loss) and net income (loss) per share; and 2) it may not be comparable to Adjusted EBITDA as reported by other companies.

 
 
 
About InsWeb
InsWeb Corporation (NASDAQ: INSW) owns and operates a network of leading insurance marketplace and education websites. Founded in 1995 and headquartered in Sacramento, California, InsWeb’s primary properties include InsWeb.com, InsuranceRates.com, BestInsuranceMatch.com, FreeInsuranceAdvice.com, LocalInsuranceAgents.com, and AgentInsider.com. In 2008, more than 10 million consumers turned to InsWeb for answers to their insurance questions. To learn more about InsWeb Corporation, visit www.InsWeb.com.

For further information regarding InsWeb Corporation, please review the Company’s filings with the Securities and Exchange Commission, including Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K, and in particular Management’s Discussion and Analysis of Financial Condition and Results of Operations.
This news release contains forward-looking statements reflecting management's current forecast of certain aspects of the Company's future. It is based on current information, which we have assessed, but which by its nature is dynamic and subject to rapid and even abrupt changes. Forward-looking statements include statements expressing the intent, belief or current expectations of the Company and members of our management team regarding: projected future revenues, revenue growth, expenses, profitability and financial position; marketing and consumer acquisition; the results of strategic initiatives, including BestInsuranceMatch.com, FreeInsuranceAdvice.com and InsuranceRates.com; increased or decreased participation by insurance companies, agents and other purchasers of consumer leads; and product and technological implementations. The Company's actual results might differ materially from those stated or implied by such forward-looking statements due to risks and uncertainties associated with the Company's business, which include, but are not limited to: variations in consumer usage of the internet to shop for and purchase insurance; the willingness and capability of insurance companies or other insurance entities to offer their products or instant quotes on the Company’s website or through the Company’s licensed subsidiaries; changes in the Company's relationships with existing insurance companies or other customers, including, changes due to consolidation within the insurance industry; the effects of competition on the Company’s consumer acquisition strategies;the Company's ability to attract and integrate new insurance providers and strategic partners; implementation and consumer acceptance of new product or service offerings; the outcome of litigation in which the Company is a party; insurance and financial services industry regulation; fluctuations in operating results; or other unforeseen factors. The forward-looking statements should be considered in the context of these and other risk factors disclosed in the Company's filings with the Securities and Exchange Commission.

“INSWEB” and “AGENTINSIDER” are registered service marks of InsWeb Corporation. All marks above are those of InsWeb Corporation, except for those of insurance insurers, brokers, agents, industry organizations, financial institutions, online partners, service providers, other mentioned companies and educational institutions, which are the marks of their respective entities.

 
 
 

 
INSWEB CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
[ Amounts in thousands, except per share amounts ]
[  unaudited  ]
                 
       
 Three months ended
  
        Year ended
       
December 31,
  
December 31,
       
2009
2008
  
2009
2008
Revenues:
              
 
Transactions                                                          
$8,670
$6,598
  
$ 35,002
$ 37,275
 
Other                                                          
41
48
  
167
222
Total revenues
8,711
6,646
  
35,169
37,497
                 
Operating expenses:
            
 
Direct marketing
5,684
4,610
  
23,397
26,650
 
Sales and marketing                                                          
1,282
1,749
  
6,588
5,982
 
Technology
467
891
  
3,418
3,292
 
General and administrative                                                          
578
748
  
3,055
4,024
Total operating expenses                                                             
8,011
7,998
  
36,458
39,948
Income (loss) from operations                                                             
700
(1,352)
  
(1,289)
(2,451)
     Interest income                                                             
5
48
  
28
244
Income (loss) before income taxes                                                             
705
(1,304)
  
(1,261)
(2,207)
Income tax benefit                                                             
-
-
  
-
(44)
Net income (loss)                                                             
$705
$(1,304)
  
$(1,261)
$(2,163)
 
Net income (loss) per share:
          
Basic                                                        
$0.15
$(0.27)
  
$(0.26)
$(0.46)
Diluted                                                        
$0.14
$(0.27)
  
$(0.26)
$(0.46)
           
Weighted average shares used in computing
          
net income (loss) per share:
          
Basic                                                        
4,806
4,780
  
4,796
4,703
Diluted                                                        
5,076
4,780
  
4,796
4,703

 
 
 

INSWEB CORPORATION
    
CONDENSED CONSOLIDATED BALANCE SHEETS
    
[Amounts in thousands]
    
[unaudited]
    
         
December 31,
  
December 31,
  
         
2009
  
2008
  
ASSETS
              
                 
Current assets:
              
 
Cash and cash equivalents
$6,401
  
$9,238
  
 
Accounts receivable, net
2,014
  
1,450
  
 
Prepaid expenses and other current assets
710
  
711
  
 
Restricted cash
2,105
  
-
  
   
Total current assets
11,230
  
11,399
  
                 
Related party receivable                                                                                  
311
  
304
  
Property and equipment                                                                                  
109
  
249
  
Other assets                                                                                  
230
  
329
  
 
Total assets
$11,880
  
$12,281
  
               
LIABILITIES AND SHAREHOLDERS' EQUITY
          
                 
Current liabilities:
              
 
Accounts payable
$2,113
  
$2,138
  
 
Accrued expenses
635
  
1,014
  
 
Deferred revenue
804
  
437
  
   
Total current liabilities
3,552
  
3,589
  
               
Commitments and contingencies
Shareholders' equity:
            
 
Common stock
8
  
8
  
 
Paid-in capital
207,617
  
206,719
  
 
Treasury stock
(6,334)
  
(6,334)
  
 
Unrealized gain on available-for-sale securities
-
  
1
  
 
Accumulated deficit
(192,963)
  
(191,702)
  
   
Total shareholders' equity
8,328
  
8,692
  
 
Total liabilities and shareholders’ equity
$11,880
  
$12,281