Quotesmith.com
Inc. (QUOT, Financial) filed Quarterly Report for the period ended 2010-03-31.
Quotesmith.com
Inc. has a market cap of $21 million; its shares were traded at around $3.11 with a P/E ratio of 7.4 and P/S ratio of 1.4.
Cash used by operating activities was approximately $442,000 for the first three months of 2010, compared with cash provided by operating activities of $367,000 for the same period in 2009. During the first quarter of 2010, the net loss and a decrease in current liabilities exceeded non-cash expenses for depreciation and amortization, plus the net decrease in receivables. As discussed above, the net result for the first three months of 2010 showed a decline of $982,000 from the net profit shown in the first three months of 2009, as revenue decreased by $1,600,000 while expenses decreased by $595,000. Accounts payable and accrued liabilities decreased $222,000 in the first quarter primarily due to the timing of payments being made. In 2009, non-cash expenses for depreciation, amortization and stock option compensation, along with an increase in accounts payable, when added to the net profit provided positive cash flow from operations.
Cash was provided by investing activities during the first three months of 2010 in the amount of $1,156,000, as investment maturities exceeded the reinvestment of funds and the purchase of fixed assets. Cash provided by investing activities was $181,000 in the first three months of 2009, as funds reinvested and used to purchase fixed assets were exceeded by the proceeds from maturities.
Cash of $9,000 from the exercise of stock options provided cash from financing activities in the first quarter of 2010. Cash of $21,000 was used to repurchase our common stock during the first three months of 2009, accounting for the cash used by financing activities.
Substantially all of our investments are subject to interest rate risk. We consider all investments as available-for-sale, and accumulated unrealized gains on those investments totaled $52,000 at March 31, 2010. There was an unrealized gain of $64,000 at December 31, 2009.
Our bonus commission revenues relate to the amount of premiums paid for new insurance policies to a single insurance company. In other words, if consumers purchase policies from a fewer number of insurance companies our bonus commissions may be higher than if the same policies were purchased from a larger number of insurance companies. The decision to purchase a policy from a particular insurance company typically relates to, among other factors, price of the policy and rating of the insurance company, both of which are factors over which we have no control. Insurance companies often change their prices during the year for competitive reasons. This may reduce the number of policies placed with that insurance company which may then reduce our potential bonus commissions. In addition, we have no control over the bonus commission rates that are set by each individual insurance company. As a result of these factors, we are unable to control the amount and timing of bonus commission revenues we receive in any particular quarter or year and these amounts may fluctuate significantly. Bonus commission revenues were $509,000 and $710,000 for the quarters ended March 31, 2010 and 2009, respectively.
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Inc. (QUOT, Financial) filed Quarterly Report for the period ended 2010-03-31.
Quotesmith.com
Inc. has a market cap of $21 million; its shares were traded at around $3.11 with a P/E ratio of 7.4 and P/S ratio of 1.4.
Highlight of Business Operations:
Depreciation and Amortization. Depreciation and amortization charges increased $16,000, or 8%, in the first quarter of 2010 when compared to the results in the comparable period in 2009. Depreciation expense increased $24,000 in the first quarter, as our new customer management system went live in the second quarter of 2009, and we began to depreciate the costs associated with it. This was partially offset by a decrease in amortization expense related to the insurance contract renewals acquired in 2004, which declines each year, as described above.Cash used by operating activities was approximately $442,000 for the first three months of 2010, compared with cash provided by operating activities of $367,000 for the same period in 2009. During the first quarter of 2010, the net loss and a decrease in current liabilities exceeded non-cash expenses for depreciation and amortization, plus the net decrease in receivables. As discussed above, the net result for the first three months of 2010 showed a decline of $982,000 from the net profit shown in the first three months of 2009, as revenue decreased by $1,600,000 while expenses decreased by $595,000. Accounts payable and accrued liabilities decreased $222,000 in the first quarter primarily due to the timing of payments being made. In 2009, non-cash expenses for depreciation, amortization and stock option compensation, along with an increase in accounts payable, when added to the net profit provided positive cash flow from operations.
Cash was provided by investing activities during the first three months of 2010 in the amount of $1,156,000, as investment maturities exceeded the reinvestment of funds and the purchase of fixed assets. Cash provided by investing activities was $181,000 in the first three months of 2009, as funds reinvested and used to purchase fixed assets were exceeded by the proceeds from maturities.
Cash of $9,000 from the exercise of stock options provided cash from financing activities in the first quarter of 2010. Cash of $21,000 was used to repurchase our common stock during the first three months of 2009, accounting for the cash used by financing activities.
Substantially all of our investments are subject to interest rate risk. We consider all investments as available-for-sale, and accumulated unrealized gains on those investments totaled $52,000 at March 31, 2010. There was an unrealized gain of $64,000 at December 31, 2009.
Our bonus commission revenues relate to the amount of premiums paid for new insurance policies to a single insurance company. In other words, if consumers purchase policies from a fewer number of insurance companies our bonus commissions may be higher than if the same policies were purchased from a larger number of insurance companies. The decision to purchase a policy from a particular insurance company typically relates to, among other factors, price of the policy and rating of the insurance company, both of which are factors over which we have no control. Insurance companies often change their prices during the year for competitive reasons. This may reduce the number of policies placed with that insurance company which may then reduce our potential bonus commissions. In addition, we have no control over the bonus commission rates that are set by each individual insurance company. As a result of these factors, we are unable to control the amount and timing of bonus commission revenues we receive in any particular quarter or year and these amounts may fluctuate significantly. Bonus commission revenues were $509,000 and $710,000 for the quarters ended March 31, 2010 and 2009, respectively.
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