Intersections Inc. (INTX) saw its loss widen to $8.11 million, or $0.35 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $4.33 million, or $0.22 a share.
Revenue during the quarter dropped 12.01 percent to $43.06 million from $48.94 million in the previous year period. Gross margin for the quarter contracted 111 basis points over the previous year period to 65.81 percent. Operating margin for the quarter stood at negative 17.15 percent as compared to a negative 13.44 percent for the previous year period.
Operating loss for the quarter was $7.39 million, compared with an operating loss of $6.58 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $3.52 million compared to negative $2.81 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 8.18 percent for the quarter compared to negative 5.74 percent in the last year period.
"The improvement in our third quarter consolidated adjusted EBITDA compared to the prior year was driven by our Core Business and is particularly encouraging as we prepared for the fourth quarter launch of our exciting new product, Privacy Now™ with Watson," said Michael Stanfield, chairman and chief executive officer.
Operating cash flow turns negative
Intersections Inc. has spent $6.73 million cash to meet operating activities during the nine month period as against cash inflow of $2.46 million in the last year period.
The company has spent $5.26 million cash to meet investing activities during the nine month period as against cash outgo of $4.06 million in the last year period.
Cash flow from financing activities was $14.32 million for the nine month period as against cash outgo of $1.55 million in the last year period.
Cash and cash equivalents stood at $13.80 million as on Sep. 30, 2016, up 68.71 percent or $5.62 million from $8.18 million on Sep. 30, 2015.
Working capital drops significantly
Intersections Inc. has witnessed a decline in the working capital over the last year. It stood at $8.83 million as at Sep. 30, 2016, down 30.47 percent or $3.87 million from $12.70 million on Sep. 30, 2015. Current ratio was at 1.26 as on Sep. 30, 2016, down from 1.40 on Sep. 30, 2015.
Cash conversion cycle (CCC) has increased to 32 days for the quarter from 26 days for the last year period. Days sales outstanding were almost stable at 41 days for the quarter, when compared with the last year period.
Days inventory outstanding has increased to 13 days for the quarter compared with 11 days for the previous year period. At the same time, days payable outstanding went down to 22 days for the quarter from 25 for the same period last year.
Debt increases substantially
Intersections Inc. has witnessed an increase in total debt over the last one year. It stood at $17.17 million as on Sep. 30, 2016, up 908.34 percent or $15.47 million from $1.70 million on Sep. 30, 2015. Total debt was 25.06 percent of total assets as on Sep. 30, 2016, compared with 2.10 percent on Sep. 30, 2015. Debt to equity ratio was at 0.85 as on Sep. 30, 2016, up from 0.04 as on Sep. 30, 2015.
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