Quotesmith.com Updates Financial Guidance for 2003
Quotesmith.com, Inc. (ticker: QUOT, exchange: NASDAQ) News Release - 10/02/2003
Quotesmith.com Updates Financial Guidance for 2003
DARIEN, IL(October 2, 2003) -- Quotesmith.com, Inc. (NASDAQ: QUOT), the only place on earth where you can get instant auto, life and health insurance quotes from more than 200 leading companies and have the freedom to buy from any company shown, today updated its financial guidance for the year ending December 31, 2003.
Revised 2003 Financial Guidance
Quotesmith.com is today revising the financial targets for 2003 that were announced on July 30, 2003. In July, the Company anticipated 2003 revenues of $10 to $10.5 million with a projected net profit of $100,000 to $400,000 and year-end cash and investments of $15 to $16 million.
The Company now anticipates 2003 revenues of approximately $9.5 to $10 million with a net loss of approximately $450,000 to $650,000 and year-end cash and investments of $14.5 to $15 million. Depreciation, amortization and other non-cash charges for 2003 are expected to total $1.0 million.
In 2002 the Company reported a net loss of $2.7 million on revenue of $10.8 million.
Commenting on these revisions, Quotesmith.com chairman and CEO Robert Bland stated, "We are revising our 2003 financial guidance downward due to a reduction in anticipated revenues from our term life insurance business which accounts for nearly 70% of our total revenues. Weaker-than-expected life insurance orders in the third quarter has led us to conclude that we will not achieve third and fourth-quarter internal growth targets that we had anticipated and announced on July 30, 2003. On a positive note, we expect to wind up 2003 with a non-advertising cost structure that will be approximately $4 million below that of 2002."
Quotesmith.com believes that its current capital structure is adequate to reach profitability without the necessity of additional debt or equity financing. This guidance, which is subject to change, is based upon a wide range of business factors and assumptions known or believed to be true by the Company as of this date.
Quotesmith.com does not confirm or update its financial projections except in compliance with Regulation FD nor does the Company provide confirmation or update of its financial targets except through public announcements.
Originally founded in 1984 as Quotesmith Corporation, the Company owns and operates Insure.com, a popular online insurance marketplace and consumer insurance information service. Visitors to Insure.com can obtain comparative auto, life & health quotes from more than 200 leading companies and have the freedom to buy insurance from the company of their choice. The Insure.com Web site also provides helpful insurance decision-making tools and calculators and supports an online library of more than 3,000 originally authored insurance articles that are not available from any other single source. Insure.com also provides personalized insurance brokerage and policy placement services for its customers through the use of licensed, in-house agents. Shares of Quotesmith.com trade on the Nasdaq SmallCap Market under the symbol "QUOT."
Cautions about Forward-Looking Statements
This announcement may contain forward-looking statements that involve risks, assumptions and uncertainties pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. This announcement also contains forward-looking statements about events and circumstances that have not yet occurred and may not occur. These forward-looking statements are inherently difficult to predict. Expressions of future goals and similar expressions including, without limitation, "intend," "may," "plans," "will," "believe," "should," "could," "hope," "expects," "expected," "does not currently expect," "anticipates," "predicts," "potential" and "forecast," reflecting something other than historical fact, are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. Investors should be aware that actual results may differ materially from the results predicted and reported results should not be considered an indication of future performance. Reported Web site activity and/or quotes are not necessarily indicative of any present or future revenue. The Company will not necessarily update the information in this press release if any forward-looking statement later turns out to be inaccurate. Potential risks and uncertainties include, among others, declines in the life insurance industry, level of acceptance of purchasing insurance over the Internet by consumers, unpredictability of future revenues, potential fluctuations in quarterly operating results, seasonality, consumer trends, competition, risks of system interruption, the evolving nature of its business model, the increasingly competitive online commerce environment, dependence on continuing growth of online commerce, risks associated with capacity constraints and the management of growth as well as the risks associated with potential terrorism threats and the war in Iraq. More information about potential factors that could affect the Company's financial results are included in the Company's Annual Report on Form 10-K for the year ended December 31, 2002 and the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2003, both of which are on file with the United States Securities and Exchange Commission. Quotesmith.com, Insure.com QuotesmithPro are service marks of Quotesmith.com, Inc. All other names are trademarks of their respective owners. � 2003 Quotesmith.com, Inc. All rights reserved.
SOURCE Quotesmith.com, Inc.
CONTACT: Phillip A. Perillo, CFO, (630)515-0170, ext. 295, firstname.lastname@example.org