SOURCE: InsWeb Corporation

InsWeb Corporation

April 01, 2011 09:00 ET

InsWeb Highlights Strong Cash Flow, Reduced Customer Concentration and Diversification of Consumer Lead Sources in 2010 Form 10-K Filing

SACRAMENTO, CA--(Marketwire - April 1, 2011) - InsWeb Corp. (NASDAQ: INSW), a leading online insurance comparison provider, today announced highlights from the Company's Form 10-K filing for the year ended December 31, 2010, filed today with the Securities and Exchange Commission (SEC) and accessible from the Company's investor relations website at http://investor.insweb.com/sec.cfm.

InsWeb achieved strong cash flow from operations for fiscal 2010, totaling $4.4 million, or $0.89 per share, as compared to cash used in operating activities of $(806,000) or $(0.17) per share, for fiscal 2009. For the fourth quarter ended December 31, 2010, cash flow from operations was $2.3 million, or $0.42 per share. Despite spending $6.0 million in cash to acquire Potrero Media in October 2010, InsWeb ended the year with approximately $8.5 million in cash and cash equivalents, short-term investments and restricted cash, unchanged from $8.5 million at the end of 2009. 

InsWeb continued to reduce customer concentration in fiscal 2010, as no single customer accounted for 10% or more of total revenues. This compares to one customer, which accounted for 10% of total revenues, in fiscal 2009. The company also continued to diversify its incoming lead sources. As previously reported during the Company's fourth quarter and 2010 earnings conference call, for the fourth quarter ended December 31, 2010, InsWeb's largest source of traffic accounted for just under 10% of total revenues as compared to over 22% of total revenues for the same period last year. More details on the Company's sources of consumer traffic and other metrics for fiscal years 2009 and 2010 may be found in its 2010 Form 10-K filing.

"Excerpts from our 10-K filing provide further evidence that we are making substantial progress against our operating goals including favorably managing overall gross margins, maintaining relatively flat non-direct marketing expenses and reducing our dependence on a single line of business or revenue source," said Hussein Enan, Chairman and CEO of InsWeb. "The Company generated strong cash flow from operations during fiscal 2010 and as previously reported, grew Adjusted EBITDA to $3.4 million, or $0.69 per share, from $103,000, or $0.02 per share, in the prior fiscal year."

The Company's fourth quarter and fiscal 2010 earnings release including reconciliation of GAAP to non-GAAP results may be accessed here.

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.

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, LocalInsuranceAgents.com, and AgentInsider.com. InsWeb has invented multiple e-commerce and online insurance distribution technologies and owns the following patents: 6,898,597; 7,107,325; 7,389,246; 7,640,176 and 7,707,505.

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; and increased or decreased participation by insurance companies, agents and other purchasers of consumer leads. 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. These risks and uncertainties are disclosed in the Company's Annual Reports on Form 10-K and other 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.

Contact Information

  • Investor Relations Contact:
    Jennifer Jarman
    The Blueshirt Group, for InsWeb
    415-217-5866
    Email Contact