Intersections / INTX

About Intersections

14901 Bogle Dr., Chantilly, Va. 20151
www.intersections.com | 703-488-6100 | Founded: 1996

Industry: Financial Services | Category: Public Companies

Intersections offers its services directly to consumers and through its relationships with some of the largest credit card companies in the nation, and it is seeking to form relationships with insurance companies, mortgage companies, brokerages, associations and others.
The number of subscribers to Intersections' identity-theft services grew to 4.6 million in 2006 from 3.6 million in 2005. Still, profit was down: Net income for the year ended Dec. 31, 2006, was $9.4 million, compared with $12.5 million for the previous year.
A mix-up with a credit card company caused Intersections to lose about $1.4 million in the fourth quarter of 2006 after it experienced "a significant increase in credit card declines," according to a filing with the Securities and Exchange Commission. Intersections said that the spike occurred at the same time the credit card company's system was being converted and that it initially thought the declines might be the result of that change, so it continued to provide services to those customers. In the first quarter of this year, Intersections said it collected about $490,000 by rebilling the affected customers, but the company still expects to cancel service to 250,000 to 300,000 subscribers.
The company said it has adjusted its projections to account for the difference.
Meanwhile, the company paid $1.2 million in severance payments to departing former senior executives, such as the former president of its consumer and small business division.
In May 2006, the company created a subsidiary called Screening International to provide personnel and vendor background screening services to businesses worldwide. Intersections acquired Chartered Marketing Services in July, which allowed the company to expand its services to consumer discounts on health-care, home, and auto-related expenses, access to professional and legal information, and life, accidental death and disability insurance products.
Intersections also signed a four-year agreement to operate a nonprofit organization set up by credit card companies to provide assistance to identity-theft victims.

2006 Financial Data

Revenues: $201,051,000 | Net Income: $9,436,000
Asssets: $179,467,000 | Earnings Per Share: $0.54
Total employees: 933 | Local employees: 933