Oct 28 2009
Life Quotes, Inc. (Nasdaq: QUOT), the only place on earth where you can get auto, life, health, home and business insurance quotes from over 100 leading companies and have the freedom to buy from the company of your choice, today announced financial results for the third quarter ended September 30, 2009.
Financial Results
Life Quotes reported revenues of $3.2 million for the third quarter of 2009, a decrease of 22 percent from revenues of $4.1 million for the same quarter of 2008. Net loss for the quarter was $1,038,000 or $0.15 per share, compared to a profit of $112,000, or $0.02 per share, for the third quarter of 2008.
For the nine months ended September 30, 2009, the Company is reporting a net loss of $1,085,000, or $0.16 per share, as compared to a loss of $344,000, or $0.05 per share in the same period last year.
"Our third quarter revenue was surprisingly impacted by a reduction in our average commission per policy sold," said Robert Bland, chairman and CEO. "Even though we sold 4,195 life insurance policies in the third quarter, an increase of almost 4% over the same period last year, our total first year commissions dropped by 11%, resulting in a decrease in revenue of about $300,000. We also experienced higher-than-expected first year policy lapses and higher revenue share obligations to affiliates that provide us with life insurance leads, accounting for the remainder of the decrease in commission revenue in Q3 2009."
Phil Perillo, chief financial officer, added, "Our click revenue also decreased by $326,000 in the third quarter of 2009. This resulted, in part, from a decrease in advertising, which generated fewer shoppers for lines of insurance other than life, which we sell to third parties. Also, as our call center has grown, we have fewer excess life leads to sell, further reducing click revenue. Our Q3 2009 results were also affected by approximately $117,000 in expenses related to the October 9, 2009 sale of our name and specified website assets, which we are required to recognize as Q3 expenses, even though the sale did not close until October."
Life Quotes has a strong balance sheet with no debt. Cash and investments in marketable securities totaled $8.9 million at September 30, 2009, and this figure was increased by $15 million in October as a result of our recently-announced sale of our brand name and website. As stated in our October 9, 2009 press release announcing the sale, the Company's Board of Directors is reviewing all of its options for use of the transaction proceeds.
Stockholders' equity amounted to $15.4 million at September 30, 2009, as compared to $16.4 million at December 31, 2008. The September 30, 2009 figure does not include the results of the sale.