life insurance
Insure.com, Inc. (Nasdaq: NSUR)
announced today that it has sold its Insure.com brand name and related media
assets for $16 million in cash to QuinStreet, Inc. Insure.com, Inc. (the
Company) intends to change its corporate name to Life Quotes, Inc. and will
continue its business under its Life Quotes and Consumer Insurance Guide brand
names. The Company will retain all of its remaining balance sheet assets,
national brokerage contracts with 25 leading life insurance companies, 50
fully licensed insurance agents, call center operations, customer and prospect
lists, and nearly all of its current inbound affiliate and traffic
partnerships.
The Company acquired the Insure.com name and website for $1.6 million in
December 2001. Revenue from this asset sale transaction will be recorded as
an extraordinary, one-time gain in the fourth quarter of 2009. The Company
does not anticipate paying any federal income taxes on this gain because it
has a current federal tax loss carry forward of $49 million.
"We have sold our Insure.com name and specified website content in a
significant cash transaction that we think is in the best long-term interest
of our shareholders," remarked Robert Bland, chairman and CEO of the Company.
"This transaction has other benefits to our shareholders and employees in that
it will allow us to focus on our brokerage operation and insurance marketing
businesses. As a result of this transaction, we are projecting reduced
revenues of approximately 10-15 percent with increased marketing expenses for
the next 2-6 quarters as we rebuild under a new brand name and move from a
content-based website to a transaction-based website."
Phil Perillo, CFO, remarked, "This transaction, which calls for a $15 million
cash payment now and a $1.0 million payment in 365 days, significantly
increases our shareholders' equity and stockpile of cash. As a result of this
asset sale, the Company now has approximately $24 million of cash and
investments, no debt, stockholders' equity of $31.4 million and a book value
of approximately $4.98 per share."
The Company's board of directors voted unanimously in favor of this asset sale
and intends to hire an investment banker and review all of its options for use
of the transaction proceeds, which the Company intends to return to
shareholders in some fashion.
Insure.com, Inc. (Nasdaq: NSUR)
announced today that it has sold its Insure.com brand name and related media
assets for $16 million in cash to QuinStreet, Inc. Insure.com, Inc. (the
Company) intends to change its corporate name to Life Quotes, Inc. and will
continue its business under its Life Quotes and Consumer Insurance Guide brand
names. The Company will retain all of its remaining balance sheet assets,
national brokerage contracts with 25 leading life insurance companies, 50
fully licensed insurance agents, call center operations, customer and prospect
lists, and nearly all of its current inbound affiliate and traffic
partnerships.
The Company acquired the Insure.com name and website for $1.6 million in
December 2001. Revenue from this asset sale transaction will be recorded as
an extraordinary, one-time gain in the fourth quarter of 2009. The Company
does not anticipate paying any federal income taxes on this gain because it
has a current federal tax loss carry forward of $49 million.
"We have sold our Insure.com name and specified website content in a
significant cash transaction that we think is in the best long-term interest
of our shareholders," remarked Robert Bland, chairman and CEO of the Company.
"This transaction has other benefits to our shareholders and employees in that
it will allow us to focus on our brokerage operation and insurance marketing
businesses. As a result of this transaction, we are projecting reduced
revenues of approximately 10-15 percent with increased marketing expenses for
the next 2-6 quarters as we rebuild under a new brand name and move from a
content-based website to a transaction-based website."
Phil Perillo, CFO, remarked, "This transaction, which calls for a $15 million
cash payment now and a $1.0 million payment in 365 days, significantly
increases our shareholders' equity and stockpile of cash. As a result of this
asset sale, the Company now has approximately $24 million of cash and
investments, no debt, stockholders' equity of $31.4 million and a book value
of approximately $4.98 per share."
The Company's board of directors voted unanimously in favor of this asset sale
and intends to hire an investment banker and review all of its options for use
of the transaction proceeds, which the Company intends to return to
shareholders in some fashion.
