Intersections Inc (INTX) saw its loss widen to $4.80 million, or $0.20 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $4.27 million, or $0.19 a share. Revenue during the quarter dropped 11.39 percent to $40.45 million from $45.65 million in the previous year period. Gross margin for the quarter expanded 27 basis points over the previous year period to 67.85 percent. Operating margin for the quarter stood at negative 10.52 percent as compared to a negative 8.61 percent for the previous year period.
Operating loss for the quarter was $4.25 million, compared with an operating loss of $3.93 million in the previous year period.
Adjusted EBITDA for the quarter stood at negative $1.60 million compared to negative $1.01 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 3.96 percent for the quarter compared to negative 2.22 percent in the last year period.
"We have made very good progress on a number of fronts during this quarter. We managed to significantly advance the exit of all businesses which are not aligned to our core business of providing identity and privacy protection products and services to discerning consumers in the U.S. and Canada," said Johan Roets, Chief Executive Officer. "We also refinanced our term loan with PEAK6 Investments, L.P., on more favorable terms than our prior term loan. Additionally, PEAK6 purchased a warrant to purchase 1,500,000 shares of our common stock, immediately exercisable at $5 per share, over 5 years. We have had important wins in our partner sales strategy (business-to-business-to-consumer) and have contracted with a very substantial U.S.-based global company to distribute our products and services to their subscriber base, starting in the third quarter of 2017.
Operating cash flow remains negative
Intersections Inc has spent $3.77 million cash to meet operating activities during the quarter as against cash outgo of $0.48 million in the last year period. The company has spent $1.63 million cash to meet investing activities during the quarter as against cash outgo of $1.88 million in the last year period.
The company has spent $0.55 million cash to carry out financing activities during the quarter as against cash inflow of $17.84 million in the last year period.
Cash and cash equivalents stood at $5.23 million as on Mar. 31, 2017, down 80.59 percent or $21.72 million from $26.95 million on Mar. 31, 2016.
Working capital turns negative
Working capital of Intersections Inc has turned negative to $3.44 million on Mar. 31, 2017 from positive $21.82 million on Mar. 31, 2016. Current ratio was at 0.88 as on Mar. 31, 2017, down from 1.59 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 5 days for the quarter from 22 days for the last year period. Days sales outstanding went down to 29 days for the quarter compared with 32 days for the same period last year.
Days inventory outstanding has decreased to 1 days for the quarter compared with 14 days for the previous year period. At the same time, days payable outstanding went up to 26 days for the quarter from 23 for the same period last year.
Debt comes down significantly
Intersections Inc has recorded a decline in total debt over the last one year. It stood at $13.60 million as on Mar. 31, 2017, down 31.81 percent or $6.34 million from $19.94 million on Mar. 31, 2016. Total debt was 28.79 percent of total assets as on Mar. 31, 2017, compared with 23.46 percent on Mar. 31, 2016. Debt to equity ratio was at 4.23 as on Mar. 31, 2017, up from 0.66 as on Mar. 31, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
