June Stocks
June Stocks
Intersections (NASDAQ:INTX):+32% Tapping The Internet Security Stocks
INTX was trading about $3.50 on June 1st and has now doubled trading up 32% to around $8 per share. I have always thought the macro demand for the security space could and should expand beyond many of the stupid names we all know like Norton and McAfee. It takes a bit to get to know these smaller companies but Intersections has a very simple path to follow and it’s called earnings and margin. Plus this tells you about the microcaps and how they can double and triple in 1 Quarter if they turn the corner.
Intersections Inc announced financial results for the quarter ended June 30, 2010. Revenue for the second quarter of 2010 was $98.9 million as compared to $90.3 million for the second quarter of 2009, an increase of 9.5 percent. Consolidated adjusted EBITDA before share based compensation for the second quarter of 2010 was $14.7 million compared to $4.9 million for the second quarter of 2009, and net income was $5.2 million for the quarter, compared to a net loss of $2.7 million for the quarter ended June 30, 2009. Consolidated adjusted EBITDA before share based compensation for the first six months of 2010 was $21.0 million compared to $10.0 million for the first six months of 2009. Net income for the six months ended June 30, 2010 was $4.1 million, compared to a net loss of $3.2 million for the six months ended June 30, 2009. Cash flow provided by operations for the three and six months ended June 30, 2010 was approximately $17.4 million and $26.3 million, respectively. Diluted earnings per share were $0.29 for the second quarter of 2010, compared to a diluted loss per share of ($0.15) for the second quarter of 2009, and diluted earnings per share for the six months end June 30, 2010 were $0.23 compared to ($0.18) for the six months ended June 30, 2009. Michael Stanfield, CEO commented, “Our second quarter results exceeded our expectations, and demonstrate the strong cash generating capabilities of our Consumer Products and Services segment. At the same time, successful turnaround efforts in our other business lines have eliminated the drain we experienced from these segments in prior quarters. With the previously announced divestiture of our pre-employment background screening business and strong prospects in our core consumer identity theft protection services, we believe we are on the right path for creating significant shareholder value.”
Board of Directors Declares Quarterly Cash Dividend and Increases Share Repurchase Authorization
Intersections also announced that its Board of Directors has declared an ongoing regular quarterly cash dividend on its common stock of $0.15 per share. The first dividend will be paid on September 10, 2010 to stockholders of record at the close of business on August 31, 2010. Based on yesterday’s closing price of $6.00 per share, this represents an annual dividend yield of 10%. While the company expects to continue to pay dividends on an ongoing quarterly basis for the foreseeable future, any future dividend payments will be reviewed individually and declared by the Board at its discretion.
In addition, the Board of Directors has authorized management to consider financing alternatives that may be used to increase the company’s debt, with the cash proceeds potentially being used to pay special dividends and/or make stock repurchases. The Board of Directors had previously authorized the Company to repurchase up to $20 million of shares, of which approximately $10.5 million remained available for future purchases. Yesterday, the Board of Directors increased the Company’s authorization to a total of up to $30 million of shares, and the total now available for future purchases is approximately $20.5 million. The Company expects to fund repurchases through a combination of cash on hand, cash generated by operations, borrowings or other future financing transactions, or a combination thereof. Repurchases may be made from time to time, depending on market conditions, share price and other factors, on the open market, in block trades, through privately negotiated transactions or otherwise, or any combination of methods. The share repurchase program does not obligate the Company to acquire any specific number of shares in any period, and may be modified, suspended or discontinued at any time without notice to shareholders.
“In the 12 months ended June 30, 2010, our consolidated adjusted EBITDA before share based compensation and non cash impairments was nearly $30 million. Our outlook for the rest of the year and going forward into 2011 is for continued improvement in our trailing 12 month adjusted EBITDA before share based compensation and non-cash impairment. Adjusted EBITDA in the Third and Fourth Quarters of 2010 will be lower than the Second Quarter of 2010 due to an increase in marketing, the loss of EBITDA contribution following the sale of SI, and expenditures related to launching new clients in the second half of 2010. By focusing on what we do best and instituting an ongoing regular quarterly cash dividend, we hope to reward our patient shareholders and encourage investors to recognize the intrinsic value of our core business,” according to Mr. Stanfield.
For more information visit http://www.worldmarketmedia.com/779/section.aspx/2229/post/intersections-nasdaqintx32-tapping-the-internet-security-stocks
Stock Market Trading Discussion for June 15
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