Intersections Inc. Reports First Quarter 2008 Earnings

Intersections Inc. (NASDAQ:INTX) today announced financial results for the quarter ended March 31, 2008. Revenue for the first quarter of 2008 was $85.9 million, compared to $58.2 million for the quarter ended March 31, 2007 and $77.0 million for the quarter ended December 31, 2007, an increase of 47.6 percent and 11.5 percent, respectively. Net income for the quarter ended March 31, 2008 was $3.4 million, compared to $484 thousand for the quarter ended March 31, 2007 and $3.3 million for the quarter ended December 31, 2007. Diluted earnings per share ("EPS”) were $0.20 for the first quarter of 2008, compared to $0.03 for the first quarter of 2007 and $0.19 for the fourth quarter of 2007. "The first quarter of 2008 was a strong start to the year. Revenue and gross subscriber additions in the first quarter of 2008 continued the trends recorded in the latter half of 2007,” said Chairman and Chief Executive Officer, Michael Stanfield. "We are pleased with our overall business growth in the quarter, led by increases in direct marketing enrollments and the percentage of revenue coming from direct marketing programs, which creates top line growth and enhances subscriber value in our Consumer Products and Services segment. This top line growth is starting to translate into earnings growth, as reflected in our diluted EPS of $0.20 this quarter. We also are pleased with developments in our business services operations as well as the release of our new Identity Guard® Total Protection service offering and related new marketing campaigns and new corporate and service offering websites at www.intersections.com and www.identityguard.com.” Our financial results include our Other reporting segment, which includes Captira Analytical LLC, which was acquired on August 7, 2007, and Net Enforcers, Inc., which was acquired on November 30, 2007. First Quarter 2008 Financial Highlights: Total subscribers increased to approximately 5.6 million as of March 31, 2008, compared to approximately 5.3 million subscribers as of December 31, 2007. Subscriber additions of approximately 1.1 million in the first quarter of 2008 were partially offset by subscriber cancels of 856 thousand. Total revenue for the first quarter of 2008 was $85.9 million compared to $58.2 million for the first quarter of 2007 and $77.0 million for the fourth quarter of 2007. Subscription revenue, net of marketing and commissions associated with subscription revenue, increased to $46.6 million for the first quarter of 2008 from $31.9 million for the first quarter of 2007, and from $41.1 million for the fourth quarter of 2007, an increase of 46.1 percent and 13.2 percent, respectively. Subscription revenue, net of marketing and commissions associated with subscription revenue, is a non-GAAP financial measure that we believe is important to investors and one that we utilize in managing our business as subscription revenue normalizes the effect of changes in the mix of indirect and direct marketing arrangements. In the first quarter of 2008, we acquired membership agreements from Citibank, which is recorded as a customer related intangible asset, for approximately $30.2 million. Income before taxes and minority interest was $5.1 million for the first quarter of 2008, including a loss before taxes and minority interest of $1.4 million for SI, compared to $456 thousand for the first quarter of 2007, which included a loss before taxes and minority interest of $684 thousand for SI. Income before taxes and minority interest was $4.9 million for the fourth quarter of 2007 which included a loss before taxes and minority interest of $1.1 million for SI. Net income was $3.4 million, or $0.20 per diluted share, for the quarter ended March 31, 2008, compared to $484 thousand, or $0.03 per diluted share, for the quarter ended March 31, 2007. Cash flow provided by operations for the quarter ended March 31, 2008, was approximately $15.8 million. In the first quarter of 2008, we increased our long-term debt obligations by $27.6 million to finance the acquisition of Citibank membership agreements. Intersections’ quarter ended March 31, 2008 results will be discussed in more detail on May 7, 2008 at 5:00 pm EDT via teleconference. A live audio webcast will be available on Intersections’ Web site at www.intersections.com. Participants are encouraged to go to the selected Web site at least 15 minutes in advance to register, download, and install any necessary audio software. This webcast will be archived and available for replay after the teleconference. Additionally, the call will be available for telephonic replay from 7:00 p.m. Wednesday, May 7, 2008 through 5:00 p.m. Monday, May 12, 2008, at 888-.286-8010, or if you are based internationally, at +1-617-801-6888 (Passcode: 22052982). Statements in this press release relating to future plans, results, performance, expectations, achievements and the like are considered "forward-looking statements.” Those forward-looking statements involve known and unknown risks and are subject to change based on various factors and uncertainties that may cause actual results to differ materially from those expressed or implied by those statements, including without limitation the effect of new subscriber additions. Factors and uncertainties that may cause actual results to differ include but are not limited to the risks disclosed in the Company’s filings with the U.S. Securities and Exchange Commission. The Company undertakes no obligation to revise or update any forward-looking statements. About Us Intersections Inc. (NASDAQ: INTX) is a leading global provider of consumer and corporate identity risk management services. Its premier identity theft, privacy, and consumer solutions are designed to provide high value, revenue generating opportunities to its marketing partners, including leading financial institutions, Fortune 100 corporations and other businesses. Intersections also markets full identity theft protection solutions under its brand, IDENTITY GUARD®. Intersections’ consumer identity theft protection services actively safeguard more than 8 million consumers against identity theft. To address the growing threat of corporate fraud, Intersections and its subsidiaries provide cutting edge identity risk management solutions including: Pre-employment background screening, provided domestically through American Background Information Services, Inc., and internationally through Control Risks Screening Limited (London, United Kingdom) and Control Risks Screening PE (Singapore). Corporate brand protection, provided by Net Enforcers, Inc. Security breach remediation, provided by Intersections to enable companies to respond to security incidents and mitigate potential damage to their employees, customers, and corporate brands. Software and data management, provided by Captira Analytical, LLC to assist the bail bond industry in managing workflow and data requirements. Learn more at www.intersections.com.   INTERSECTIONS INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited)   Three Months Ended March 31, (in thousands, except per share data)   2008 2007   Revenue $ 85,894 $ 58,201 Operating expenses: Marketing 12,194 7,984 Commissions 18,486 9,642 Cost of revenue 28,500 23,046 General and administrative 16,275 14,244 Depreciation 2,341 2,147 Amortization   2,489     586     Total operating expenses   80,285     57,649     Income from operations 5,609 552 Interest income 98 285 Interest expense (565 ) (338 ) Other expense/(income), net   (18 )   (43 )   Income before income taxes and minority interest 5,124 456   Income tax expense   (2,099 )   (184 )   Income before minority interest 3,025 272   Minority interest in net loss of Screening International, LLC   414     212     Net income $ 3,439   $ 484       Net income per share - basic $ 0.20 $ 0.03   Net income per share - diluted $ 0.20 $ 0.03   Weighted average common shares outstanding - basic 17,162 16,956 Weighted average common shares outstanding – diluted 17,475 17,400     INTERSECTIONS INC. CONSOLIDATED BALANCE SHEETS (Unaudited)   March 31, December 31, 2008 2007 (in thousands) ASSETS   CURRENT ASSETS: Cash and cash equivalents $ 27,622 $ 19,780 Accounts receivable, net 23,463 25,471 Prepaid expenses and other current assets 4,675 6,217 Income tax receivable 2,187 4,329 Deferred subscription solicitation costs   24,470     21,912   Total current assets 82,417 77,709   PROPERTY AND EQUIPMENT—Net 17,835 18,817 GOODWILL 77,449 76,506 INTANGIBLE ASSETS—Net 44,542 16,855 OTHER ASSETS   20,052     16,381   TOTAL ASSETS $ 242,295   $ 206,268     LIABILITIES AND STOCKHOLDERS' EQUITY   CURRENT LIABILITIES: Note payable – current portion $ 7,013 $ 3,346 Note payable to Control Risks Group Ltd 900 900 Capital leases – current portion 872 1,001 Accounts payable 13,915 10,647 Accrued expenses and other current liabilities 16,897 15,187 Accrued payroll and employee benefits 3,189 4,945 Commissions payable 4,687 2,413 Deferred revenue 3,350 2,886 Deferred tax liability – current portion   7,058     6,019   Total current liabilities   57,881     47,344     NOTE PAYABLE - less current portion 44,260 22,347 OBLIGATIONS UNDER CAPITAL LEASES – less current portion 557 699 DERIVATIVE LIABILITY 606 - OTHER LONG-TERM LIABILITIES 2,465 2,071 DEFERRED TAX LIABILITY – less current portion   8,733     8,935   TOTAL LIABILITIES $ 114,502 $ 81,396   MINORITY INTEREST 9,604 10,024 STOCKHOLDERS' EQUITY:   Common stock 182 182 Additional paid-in capital 100,221 99,706 Treasury stock (9,516 ) (9,516 ) Retained earnings 27,796 24,357 Accumulated other comprehensive income-cash flow hedge relationship (606 ) - Accumulated other comprehensive income-other   112     119   Total stockholders' equity   118,189     114,848     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 242,295   $ 206,268     INTERSECTIONS INC. CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)   Three Months Ended March 31, 2008   2007 (in thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 3,439 $ 484 Adjustments to reconcile net income to net cash provided by/(used in) Depreciation 2,357 2,171 Amortization of intangible assets 2,489 586 Amortization of gain from sale leaseback (16 ) (24 ) Amortization of debt issuance cost 24 20 Provision for doubtful accounts 4 12 Share based compensation 1,031 552 Amortization of deferred subscription solicitation costs 12,338 6,970 Minority interest in net loss of Screening International, LLC (414 ) (212 ) Foreign currency transaction gains, net (9 ) - Changes in assets and liabilities, net of businesses acquired: Accounts receivable 2,004 (1,434 ) Prepaid expenses and other current assets 1,542 (254 ) Income tax receivable 2,142 587 Deferred subscription solicitation costs (16,466 ) (10,074 ) Other assets (931 ) (2,860 ) Accounts payable 3,237 4,046 Accrued expenses and other current liabilities 1,833 1,303 Accrued payroll and employee benefits (1,756 ) (3,449 ) Commissions payable 2,274 130 Deferred revenue 464 (1,896 ) Deferred income tax (202 ) (26 ) Other long-term liabilities   371     1,977   Net cash provided by/(used in) operating activities   15,755     (1,391 )   NET CASH (USED IN)/PROVIDED BY INVESTING ACTIVITIES: Sale of short term investments - 5,973 Cash paid in the acquisition of Intersections Insurance Services, Inc. - (5 ) Cash paid in the acquisition of Net Enforcers, Inc., net of cash received (805 ) - Cash paid in the acquisition of intangible membership agreements (30,176 ) - Acquisition of property and equipment   (1,588 )   (1,552 ) Net cash (used in)/provided by investing activities   (32,569 )   (4,416 )   NET CASH PROVIDED BY/(USED IN) FINANCING ACTIVITIES: Cash proceeds from stock options exercised 2 722 Withholding tax payment on vesting of restricted stock units (517 ) - Proceeds from debt issuance 27,611 - Debt issuance costs (133 ) - Repayments on note payable (2,031 ) (1,111 ) Note receivable - (160 ) Capital lease payments   (272 )   (327 ) Net cash provided by/(used in) financing activities   24,660     (876 )   EFFECT OF EXCHANGE RATE ON CASH (4 ) 1 INCREASE IN CASH AND CASH EQUIVALENTS 7,842 2,150 CASH AND CASH EQUIVALENTS—Beginning of period   19,780     15,580   CASH AND CASH EQUIVALENTS—End of period $ 27,622   $ 17,730     INTERSECTIONS INC. OTHER DATA (Unaudited)       Three Months Ended March 31, (dollars in thousands)     2008     2007     Subscribers at beginning of period 5,259 4,626 New subscribers – indirect 585 560 New subscribers – direct 562 388 Cancelled subscribers within first 90 days of subscription (287 ) (238 ) Cancelled subscribers after first 90 days of subscription   (569 )   (650 ) Subscribers at end of period   5,550     4,686     Indirect subscribers 62.1 % 65.8 % Direct subscribers   37.9     34.2     100.0 %   100.0 %   *Cancellations within first 90 days of subscription 25.0 % 25.1 % **Cancellations after first 90 days of subscription 29.8 % 30.4 %   ***Overall retention 61.8 % 61.6 %   Percentage of revenue from indirect marketing arrangements to total subscription revenue 26.3 % 36.7 %   Percentage of revenue from direct marketing arrangements to total subscription revenue   73.7     63.3     Total subscription revenue   100.0 %   100.0 %   Total revenue $ 85,894 $ 58,201 Revenue from transactional sales (8,640 ) (8,691 ) Revenue from lost/stolen credit card registry   (9 )   (20 ) Subscription revenue   77,245     49,490     Marketing and commissions 30,680 17,626 Commissions paid on transactional sales (2 ) (5 ) Commissions paid on lost/stolen credit card registry   (10 )   (6 ) Marketing and commissions associated with subscription revenue   30,668     17,615       Subscription revenue, net of marketing and commissions associated with subscription revenue $ 46,577   $ 31,875     * Percentage of cancellation within the first 90 days to new subscribers   ** Percentage of the number of subscribers at the beginning of the period plus new subscribers during the period less cancellations within the first 90 days   *** On a rolling 12 month basis by taking subscribers at the end of the period divided by the sum of the subscribers at the beginning of the period plus additions for the period   INTERSECTIONS INC. OTHER DATA, continued (Unaudited)   Intersections Inc. Reconciliation of Non-GAAP Financial Measures (dollars in thousands, except for per subscriber information)   The table below includes financial information prepared in accordance with accounting principles generally accepted in the United States, or GAAP, as well as other financial measures referred to as non-GAAP financial measures. Consolidated EBITDA before stock based compensation is presented in a manner consistent with the way management evaluates operating results and which management believes is useful to investors and others. An explanation regarding the company's use of non-GAAP financial measures and a reconciliation of non-GAAP financial measures used by the company to GAAP measures is provided below. These non-GAAP financial measures should be considered in addition to, but not as a substitute for, net income and the other information prepared in accordance with GAAP, and may not be comparable to similarly titled measures reported by other companies.   (1) Consolidated EBITDA before stock based compensation, represents consolidated income before income taxes plus non-cash stock based compensation, depreciation and amortization, investment income (expense), and other income (expense). We believe that the consolidated EBITDA before stock based compensation calculation provides useful information to investors because they are indicators of our operating performance. Consolidated EBITDA before stock based compensation is commonly used as a basis for investors and analysts to evaluate and compare the periodic and future operating performance and value of companies within our industry. Our Board of Directors and management use consolidated EBITDA before stock based compensation to evaluate the operating performance of the company and to make compensation and bonus determinations, and our lenders use consolidated EBITDA before stock based compensation as a measure of our ability to make interest payments and to comply with our debt covenants.   INTERSECTIONS INC. OTHER DATA, continued (Unaudited)   The following table reconciles consolidated income before income taxes to consolidated EBITDA before stock based compensation, as defined for the previous five quarters and year-to-date through December 31, 2007. In managing our business, we analyze our performance quarterly on a consolidated income before income tax basis.     2007 2008 For the Three Months Ended For the ThreeMonths Ended March 31   June 30   September 30   December 31 March 31 Reconciliation from consolidated income before income taxes to consolidated EBITDA before stock based compensation   Consolidated Income before income taxes $456 $1,733 $2,696 $4,859 $5,124 Plus Stock Based Compensation 552 737 737 689 1,031 Plus Depreciation 2,147 2,301 2,222 2,411 2,341 Plus Amortization 586 839 911 1,010 2,489 Investment expense, net 52 116 133 280 467 Other expense/(income) 42 (37) 18 (1,162) 18 Consolidated EBITDA before stock based compensation (1) $3,835 $5,689 $6,717 $8,087 $11,470   For the Year Ended December 31 2007 Reconciliation from consolidated income before income taxes to consolidated EBITDA before stock based compensation Consolidated Income before income taxes $9,744 Plus Stock Based Compensation 2,715 Plus Depreciation 9,081 Plus Amortization 3,346 Investment expense, net 581 Other income (1,139) Consolidated EBITDA before stock based compensation (1) $24,328 INTERSECTIONS INC. OTHER DATA, continued (Unaudited)   (2) Net Amortization and stock based compensation per share is not a measurement under GAAP, may not be similar to net amortization and stock based compensation per share measures of other companies and should be considered in addition to, but not as a substitute for, the information contained in our statement of operations. We believe that net amortization and stock based compensation per share provides useful information to investors because it is an indicator of operating performance since it excludes items that are not directly attributable to ongoing business operations, as well as a non-cash stock based compensation expense that we are required to record under Statement of Financial Accounting Standards No. 123 (Revised 2004), "Share-Based Payment." We believe our net amortization and stock based compensation per share calculations are commonly used as some of the bases for investors, analysts and credit rating agencies to evaluate and compare the periodic and future operating performance and value of companies.   The following table provides the consolidated Net Amortization and Stock Based Compensation per Share amount:     2007 2008 For the Three Months Ended For the Three Months Ended March 31   June 30   September 30   December 31 March 31 Net amortization and stock based compensation per share Amortization $ 586 $ 839 $ 911 $ 1,010 $ 2,489 Stock based compensation   552   737   737   689   1,031 Subtotal 1,138 1,576 1,648 1,699 3,520 Tax effect at 40%   455   630   659   680   1,408 Net amortization and stock based compensation 683 946 989 1,019 2,112 Diluted shares 17,400 17,558 17,560 17,544 17,475 Net amortization and stock based compensation per share (2) $ 0.04 $ 0.05 $ 0.06 $ 0.06 $ 0.12   INTERSECTIONS INC. OTHER DATA, continued (Unaudited)       For the Year Ended December 31 2007 Net amortization and stock based compensation per share Amortization $ 3,346 Stock based compensation   2,715   Subtotal 6,061 Tax effect at 40%   2,424   Net amortization and stock based compensation 3,637 Diluted shares 17,479 Net amortization and stock based compensation per share (2) $ 0.21     The following table provides components of Intersections' Consumer Products and Services (CPS) segment on a per ending subscriber per quarter basis:       2007 For the Three Months Ended 2008 For the Three Months Ended March 31   June 30   September 30   December 31 March 31 Per Ending Subscriber per Quarter   Revenue $ 11.01 $ 11.81 $ 12.86 $ 13.21 $ 14.12 Cost of revenue 4.12 4.14 4.52 4.21 4.39 Gross margin (4)(A) 6.89 7.66 8.35 9.00 9.72 Marketing 1.70 1.64 1.90 2.08 2.20 Commissions 2.06 2.51 2.83 3.19 3.33 Revenue less marketing and commissions (4)(B) 7.24 7.65 8.14 7.93 8.59 General and Administrative 2.35 2.30 2.18 2.10 2.03 Stock based compensation (0.12 ) (0.15 ) (0.15 ) (0.13 ) (0.19 ) EBITDA before stock based compensation (4)(C) 0.90 1.36 1.59 1.75 2.35     INTERSECTIONS INC. OTHER DATA, continued (Unaudited)   Intersections Inc. Reconciliation of Non-GAAP Financial Measures (dollars in thousands, except for per subscriber information)   The table above includes financial information prepared in accordance with accounting principles generally accepted in the United States, or GAAP, as well as other financial measures referred to as non-GAAP financial measures. EBITDA before stock based compensation, CPS Gross margin per ending subscriber, CPS Revenue less marketing and commissions per ending subscriber and CPS EBITDA before stock based compensation per ending subscriber are non-GAAP financial measures that are presented in a manner consistent with the way management evaluates operating results, and which management believes is useful to investors and others. An explanation regarding the company's use of non-GAAP financial measures and a reconciliation of non-GAAP financial measures used by the company to GAAP measures is provided below. These non-GAAP financial measures should be considered in addition to, but not as a substitute for, net income and the other information prepared in accordance with GAAP, and may not be comparable to similarly titled measures reported by other companies.   (3) CPS earnings before interest, tax, depreciation and amortization, or EBITDA before stock based compensation, represents income before income taxes plus non-cash stock based compensation, depreciation and amortization, investment income (expense), and other income (expense) for the CPS segment. We believe that the EBITDA before stock based compensation calculation provides useful information to investors because they are indicators of our operating performance. EBITDA before stock based compensation is commonly used as a basis for investors and analysts to evaluate and compare the periodic and future operating performance and value of companies within our industry. Our Board of Directors and management use EBITDA before stock based compensation to evaluate the operating performance of the CPS segment and to make compensation and bonus determinations, and our lenders use EBITDA before stock based compensation as a measure of our ability to make interest payments and to comply with our debt covenants.   The following table reconciles income before income taxes to EBITDA before stock based compensation, as defined for the previous five quarters and year-to-date through December 31, 2007. In managing our business, we analyze the performance of our segments quarterly on an income before income tax basis.   INTERSECTIONS INC. OTHER DATA, continued (Unaudited)     2007   2008 For the Three Months Ended For the Three Months Ended March 31   June 30   September 30   December 31 March 31   CPS reconciliation from income before income taxes to EBITDA before stock based compensation CPS Income before income taxes $ 1,141 $ 2,999 $ 4,278 $ 6,604 $ 7,398 Stock based compensation 552 737 737 689 1,031 Plus Depreciation 1,954 2,079 1,982 2,129 2,098 Plus Amortization 460 714 713 713 2,065 Investment expense, net 60 121 136 257 451 Other expense/(income)   41   (65 )   18   (1,194 )   27 EBITDA before stock based compensation (3) $ 4,208 $ 6,585 $ 7,864 $ 9,198 $ 13,070   For the Year Ended December 31 2007 CPS reconciliation from income before income taxes to EBITDA before stock based compensation CPS Income before income taxes $ 15,022 Stock based compensation 2,715 Plus Depreciation 8,144 Plus Amortization 2,600 Investment expense, net 574 Other income   (1,200 ) EBITDA before stock based compensation (3) $ 27,855   INTERSECTIONS INC. OTHER DATA, continued (Unaudited)   (4) A. CPS gross margin per ending subscriber represents CPS revenue less cost of revenue divided by the ending number of subscribers. We believe this measure is important to investors because it demonstrates our profitability trend on a per subscriber basis and is one that we use in managing our CPS business because it demonstrates our profitability trend on a per subscriber basis. B. CPS Revenue less marketing and commissions per ending subscriber represents CPS revenue less marketing and commissions divided by the ending number of subscribers. We believe this measure is important to investors and is one that we use in managing our CPS business because it normalizes the effect of changes in the mix of direct and indirect marketing arrangements and it demonstrates our profitability trend on a per subscriber basis. C. CPS EBITDA before stock based compensation per ending subscriber represents CPS EBITDA before stock based compensation (defined in section (1) above) divided by the ending number of subscribers. We believe this measure is important to investors because it demonstrates our profitability trend on a per subscriber basis and is one that we use in managing our CPS business because it demonstrates our profitability trend on a per subscriber basis.     2007 2008 For the Three Months Ended For the Three Months Ended March 31   June 30   September 30   December 31 March 31 A. CPS Gross Margin per Ending Subscriber Revenue $ 51,577 $ 57,251 $ 63,678 $ 69,462 $ 78,349 Less Cost of Revenue   19,296   20,094   22,366   22,135   24,381 Gross Margin 32,281 37,157 41,312 47,327 53,968 Ending Subscribers 4,686 4,850 4,950 5,259 5,551 CPS Gross Margin per Ending Subscriber 6.89 7.66 8.35 9.00 9.72   B. CPS Revenue Less Marketing and Commissions per Ending Subscriber Revenue $ 51,577 $ 57,251 $ 63,678 $ 69,462 $ 78,349 Less: Marketing 7,984 7,951 9,390 10,960 12,194 Commissions   9,642   12,195   13,992   16,795   18,486 Revenue Less Marketing and Commissions 33,951 37,105 40,296 41,707 47,669 Ending Subscribers 4,686 4,850 4,950 5,259 5,551 CPS Revenue Less Marketing and Commissions per Ending Subscriber 7.24 7.65 8.14 7.93 8.59   C. CPS EBITDA before stock based compensation per Ending Subscriber EBITDA before stock based compensation $ 4,208 $ 6,585 $ 7,864 $ 9,198 $ 13,070 Ending Subscribers 4,686 4,850 4,950 5,259 5,551 CPS EBITDA before stock based compensation per Ending Subscriber 0.90 1.36 1.59 1.75 2.35   INTERSECTIONS INC. OTHER DATA, continued (Unaudited)   For the Year Ended December 31 2007 A. CPS Gross Margin per Ending Subscriber Revenue $ 241,968 Less Cost of Revenue   83,891 Gross Margin 158,077 Ending Subscribers 5,259 CPS Gross Margin per Ending Subscriber 30.06   B. CPS Revenue Less Marketing and Commissions per Ending Subscriber Revenue $ 241,968 Less: Marketing 36,285 Commissions   52,624 Revenue Less Marketing and Commissions 153,059 Ending Subscribers 5,259 CPS Revenue Less Marketing and Commissions per Ending Subscriber 29.10   C. CPS EBITDA before stock based compensation per Ending Subscriber EBITDA before stock based compensation $ 27,855 Ending Subscribers 5,259 CPS EBITDA before stock based compensation per Ending Subscriber 5.30