Third Quarter of Fiscal Year 2022 – Consolidated Earnings Highlights
Revenue of $275.1 million
Net Loss of $6.4 million
Adjusted EBITDA* of $13.0 million
No update to Full-Year Fiscal 2022 Revenue, Net Loss and Adjusted EBITDA Guidance: Revenue expected in a range of $810 million to $850 million Net Loss expected in a range of $255 million to $236 million Adjusted EBITDA* expected in a range of $(260) million to $(235) million
Third Quarter of Fiscal Year 2022 – Segment Highlights
Senior
Revenue of $233.2 million
Adjusted EBITDA* of $32.2 million
Approved Medicare Advantage policies grew 48% Year-Over-Year
Life
Revenue of $39.4 million
Final expense premiums grew 15% Year-Over-Year
Auto & Home
Revenue of $7.2 million
Total Auto & Home premiums grew 4% Year-Over-Year
OVERLAND PARK, Kan.--(BUSINESS WIRE)--SelectQuote, Inc. (NYSE: SLQT) reported consolidated revenue for the third quarter of fiscal year 2022 of $275.1 million compared to consolidated revenue for the third quarter of fiscal year 2021 of $265.3 million. Consolidated net loss for the third quarter of fiscal year 2022 was $6.4 million compared to consolidated net income for the third quarter of fiscal year 2021 of $35.2 million. Finally, consolidated Adjusted EBITDA* for the third quarter of fiscal year 2022 was $13.0 million, compared to consolidated Adjusted EBITDA* for the third quarter of fiscal year 2021 of $63.6 million.
Chief Executive Officer Tim Danker commented, “We were pleased with our third quarter results, which finished ahead of our internal expectations. During the quarter, we saw improved sales conversion rates and lower marketing cost per sale, which while early, gives us even more confidence about the steps we are taking to improve our operating and financial results. As we execute on our planned pullback in Medicare policy sales in the near term, we are focused now more than ever on delivering high-value business to our carrier partners and to improving the cash efficiency of our business. We are also thrilled with the continued momentum of the Population Health business, particularly our SelectRx pharmacy business, which ended April with over 23,000 members, a nearly 10-fold increase in less than a year.”
Raff Sadun, Chief Financial Officer, also commented, “As discussed on our second quarter call, a key aspect of our long-term strategy is to reduce the overall operating leverage of our business to deliver attractive returns in a wide range of potential market scenarios. We made major progress on that front during the quarter, identifying over $200 million in expense reduction opportunities, excluding our planned investments in the growth of our cash-efficient SelectRx business. Approximately 20% of those identified savings are fixed cost actions we already executed during the 3rd quarter. While we are not updating our 2022 guidance, so far we see similar trends in the fourth quarter and are more focused on full year 2023.”
*See reconciliation from GAAP to non-GAAP measures starting on page 11. |
Segment Results
We currently report on three segments: 1) Senior, 2) Life and 3) Auto & Home. The performance measures of the segments include total revenue and Adjusted EBITDA.* Costs of revenue, marketing and advertising, and technical development operating costs and expenses that are directly attributable to a segment are reported within the applicable segment. Indirect costs of revenue, marketing and advertising, and technical development operating costs and expenses are allocated to each segment based on varying metrics such as headcount. Adjusted EBITDA* is calculated as total revenue for the applicable segment less: direct and allocated costs of revenue, marketing and advertising, technical development, and general and administrative operating costs and expenses, excluding depreciation and amortization expense; gain or loss on disposal of property, equipment, and software; share-based compensation expense; restructuring expenses; and non-recurring expenses such as severance payments and transaction costs.
Financial Results
The following table provides the financial results for the Senior segment for the periods presented:
|
Three Months Ended
|
|
|
|
Nine Months Ended
|
|
|
|||||||||||||||
(in thousands) |
2022 |
|
2021 |
|
% Change |
|
2022 |
|
2021 |
|
% Change |
|||||||||||
Revenue |
$ |
233,172 |
|
|
$ |
215,600 |
|
|
8 |
% |
|
$ |
497,459 |
|
|
$ |
604,309 |
|
|
(18 |
)% |
|
Adjusted EBITDA* |
|
32,182 |
|
|
|
75,489 |
|
|
(57 |
)% |
|
|
(149,424 |
) |
|
|
218,946 |
|
|
(168 |
)% |
|
Adjusted EBITDA Margin* |
|
14 |
% |
|
|
35 |
% |
|
|
|
|
(30 |
)% |
|
|
36 |
% |
|
|
Operating Metrics
Submitted Policies
Submitted policies are counted when an individual completes an application with our licensed agent and provides authorization to the agent to submit the application to the insurance carrier partner. The applicant may have additional actions to take, such as providing additional information, before the application will be reviewed by the insurance carrier.
The following table shows the number of submitted policies for the periods presented:
|
Three Months Ended
|
|
|
|
Nine Months Ended
|
|
|
|||||||||||
|
2022 |
|
2021 |
|
% Change |
|
2022 |
|
2021 |
|
% Change |
|||||||
Medicare Advantage |
242,721 |
|
160,233 |
|
51 |
% |
|
678,827 |
|
454,772 |
|
49 |
% |
|||||
Medicare Supplement |
1,389 |
|
|
3,738 |
|
|
(63 |
)% |
|
6,318 |
|
|
24,287 |
|
|
(74 |
)% |
|
Dental, Vision and Hearing |
40,178 |
|
|
38,757 |
|
|
4 |
% |
|
122,214 |
|
|
101,819 |
|
|
20 |
% |
|
Prescription Drug Plan |
1,079 |
|
|
1,568 |
|
|
(31 |
)% |
|
6,193 |
|
|
10,243 |
|
|
(40 |
)% |
|
Other |
4,907 |
|
|
6,781 |
|
|
(28 |
)% |
|
11,436 |
|
|
12,603 |
|
|
(9 |
)% |
|
Total |
290,274 |
|
|
211,077 |
|
|
38 |
% |
|
824,988 |
|
|
603,724 |
|
|
37 |
% |
*See reconciliation from GAAP to non-GAAP measures starting on page 11. |
Approved Policies
Approved policies represents the number of submitted policies that were approved by our insurance carrier partners for the identified product during the indicated period. Not all approved policies will go in force.
The following table shows the number of approved policies for the periods presented:
|
Three Months Ended
|
|
|
|
Nine Months Ended
|
|
|
|||||||||||
|
2022 |
|
2021 |
|
% Change |
|
2022 |
|
2021 |
|
% Change |
|||||||
Medicare Advantage |
196,377 |
|
132,950 |
|
48 |
% |
|
546,031 |
|
384,137 |
|
42 |
% |
|||||
Medicare Supplement |
1,159 |
|
|
3,073 |
|
|
(62 |
)% |
|
4,654 |
|
|
19,849 |
|
|
(77 |
)% |
|
Dental, Vision and Hearing |
34,486 |
|
|
34,517 |
|
|
— |
% |
|
101,251 |
|
|
84,370 |
|
|
20 |
% |
|
Prescription Drug Plan |
1,095 |
|
|
2,109 |
|
|
(48 |
)% |
|
5,315 |
|
|
9,556 |
|
|
(44 |
)% |
|
Other |
3,836 |
|
|
5,129 |
|
|
(25 |
)% |
|
9,199 |
|
|
10,209 |
|
|
(10 |
)% |
|
Total |
236,953 |
|
|
177,778 |
|
|
33 |
% |
|
666,450 |
|
|
508,121 |
|
|
31 |
% |
Lifetime Value of Commissions per Approved Policy
Lifetime value of commissions per approved policy represents commissions estimated to be collected over the estimated life of an approved policy based on multiple factors, including but not limited to, contracted commission rates, carrier mix and expected policy persistency with applied constraints. The lifetime value of commissions per approved policy is equal to the sum of the commission revenue due upon the initial sale of a policy, and when applicable, an estimate of future renewal commissions.
The following table shows the lifetime value of commissions per approved policy for the periods presented:
|
Three Months Ended
|
|
|
|
Nine Months Ended
|
|
|
|||||||||||||||
(dollars per policy): |
2022 |
|
2021 |
|
% Change |
|
2022 |
|
2021 |
|
% Change |
|||||||||||
Medicare Advantage |
$ |
933 |
|
$ |
1,362 |
|
(31 |
)% |
|
$ |
935 |
|
$ |
1,290 |
|
(28 |
)% |
|||||
Medicare Supplement |
|
949 |
|
|
|
1,345 |
|
|
(29 |
)% |
|
|
1,275 |
|
|
|
1,263 |
|
|
1 |
% |
|
Dental, Vision and Hearing |
|
120 |
|
|
|
129 |
|
|
(7 |
)% |
|
|
123 |
|
|
|
140 |
|
|
(12 |
)% |
|
Prescription Drug Plan |
|
229 |
|
|
|
213 |
|
|
8 |
% |
|
|
235 |
|
|
|
230 |
|
|
2 |
% |
|
Other |
|
95 |
|
|
|
60 |
|
|
58 |
% |
|
|
77 |
|
|
|
95 |
|
|
(19 |
)% |
Per Unit Economics
Per unit economics represents total Medicare Advantage and Medicare Supplement commissions, other product commissions, other revenues, and costs associated with the Senior segment, each shown per number of approved Medicare Advantage and Medicare Supplement policies over a given time period. Management assesses the business on a per-unit basis to help ensure the revenue opportunity associated with a successful policy sale is attractive relative to the marketing acquisition cost. Because not all acquired leads result in a successful policy sale, all per-policy metrics are based on approved policies, which is the measure that triggers revenue recognition.
The Medicare Advantage and Medicare Supplement commission per MA/MS policy represents the lifetime value of commissions for policies sold in the period. Other commission per MA/MS policy represents the lifetime value of commissions for other products sold in the period, including dental, vision and hearing, prescription drug plan, and other products, which management views as additional commission revenue on our agents’ core function of MA/MS policy sales. Other per MA/MS policy represents the production bonuses, lead sales revenue from InsideResponse, and updated estimates of prior period variable consideration based on actual policy renewals in the current period. Total operating expenses per MA/MS policy represents all of the operating expenses within the Senior segment. The Revenue to customer acquisition cost (“CAC”) multiple represents total revenue per MA/MS policy as a multiple of total marketing acquisition cost, which represents the direct costs of acquiring leads. These costs are included in marketing and advertising expense within the total operating expenses per MA/MS policy.
The following table shows per unit economics for the periods presented. Based on the seasonality of the Senior segment and the fluctuations between quarters, we believe that the most relevant view of per unit economics is on a rolling 12-month basis. All per-MA/MS policy metrics below are based on the sum of approved MA/MS policies, as both products have similar commission profiles. These metrics are the basis on which management assesses the business:
|
Twelve Months Ended
|
|
|
||||||||
(dollars per approved policy): |
2022 |
|
2021 |
|
% Change |
||||||
Medicare Advantage and Medicare Supplement approved policies |
|
636,195 |
|
|
|
464,653 |
|
|
37 |
% |
|
Medicare Advantage and Medicare Supplement commission per MA/MS policy |
$ |
963 |
|
|
$ |
1,286 |
|
|
(25 |
)% |
|
Other commission per MA/MS policy |
|
29 |
|
|
|
38 |
|
|
(24 |
)% |
|
Other per MA/MS policy |
|
(14 |
) |
|
|
166 |
|
|
(108 |
)% |
|
Total revenue per MA/MS policy |
|
978 |
|
|
|
1,490 |
|
|
(34 |
)% |
|
Total operating expenses per MA/MS policy |
|
(1,173 |
) |
|
|
(947 |
) |
|
24 |
% |
|
Adjusted EBITDA per MA/MS policy* |
$ |
(195 |
) |
|
$ |
543 |
|
|
(136 |
)% |
|
Adjusted EBITDA Margin per MA/MS policy* |
|
(20 |
)% |
|
|
36 |
% |
|
(155 |
)% |
|
Revenue/CAC multiple |
1.8 |
X |
|
3.1 |
X |
|
|
Financial Results
The following table provides the financial results for the Life segment for the periods presented:
|
Three Months Ended
|
|
|
|
Nine Months Ended
|
|
|
|||||||||||||||
(in thousands) |
2022 |
|
2021 |
|
% Change |
|
2022 |
|
2021 |
|
% Change |
|||||||||||
Revenue |
$ |
39,400 |
|
|
$ |
44,823 |
|
|
(12 |
)% |
|
$ |
119,612 |
|
|
$ |
121,917 |
|
|
(2 |
)% |
|
Adjusted EBITDA* |
|
(1,888 |
) |
|
|
1,598 |
|
|
(218 |
)% |
|
|
2,265 |
|
|
|
16,385 |
|
|
(86 |
)% |
|
Adjusted EBITDA Margin* |
|
(5 |
)% |
|
|
4 |
% |
|
|
|
|
2 |
% |
|
|
13 |
% |
|
|
Operating Metrics
Life premium represents the total premium value for all policies that were approved by the relevant insurance carrier partner and for which the policy document was sent to the policyholder and payment information was received by the relevant insurance carrier partner during the indicated period. Because our commissions are earned based on a percentage of total premium, total premium volume for a given period is the key driver of revenue for our Life segment.
*See reconciliation from GAAP to non-GAAP measures starting on page 11. |
The following table shows term and final expense premiums for the periods presented:
|
Three Months Ended
|
|
|
|
Nine Months Ended
|
|
|
|||||||||||||||
(in thousands) |
2022 |
|
2021 |
|
% Change |
|
2022 |
|
2021 |
|
% Change |
|||||||||||
Term Premiums |
$ |
14,933 |
|
$ |
19,043 |
|
(22 |
)% |
|
$ |
45,990 |
|
$ |
56,784 |
|
(19 |
)% |
|||||
Final Expense Premiums |
|
28,532 |
|
|
|
24,817 |
|
|
15 |
% |
|
|
83,718 |
|
|
|
56,269 |
|
|
49 |
% |
|
Total |
$ |
43,465 |
|
|
$ |
43,860 |
|
|
(1 |
)% |
|
|
129,708 |
|
|
|
113,053 |
|
|
15 |
% |
Financial Results
The following table provides the financial results for the Auto & Home segment for the periods presented:
|
Three Months Ended
|
|
|
|
Nine Months Ended
|
|
|
|||||||||||||||
(in thousands) |
2022 |
|
2021 |
|
% Change |
|
2022 |
|
2021 |
|
% Change |
|||||||||||
Revenue |
$ |
7,152 |
|
|
$ |
6,973 |
|
|
3 |
% |
|
$ |
20,755 |
|
|
$ |
23,752 |
|
|
(13 |
)% |
|
Adjusted EBITDA* |
|
1,150 |
|
|
|
1,096 |
|
|
5 |
% |
|
|
3,957 |
|
|
|
6,863 |
|
|
(42 |
)% |
|
Adjusted EBITDA Margin* |
|
16 |
% |
|
|
16 |
% |
|
|
|
|
19 |
% |
|
|
29 |
% |
|
|
Operating Metrics
Auto & Home premium represents the total premium value of all new policies that were approved by our insurance carrier partners during the indicated period. Because our commissions are earned based on a percentage of total premium, total premium volume for a given period is the key driver of revenue for our Auto & Home segment.
The following table shows premiums for the periods presented:
|
Three Months Ended
|
|
|
|
Nine Months Ended
|
|
|
|||||||||||||||
(in thousands): |
2022 |
|
2021 |
|
% Change |
|
2022 |
|
2021 |
|
% Change |
|||||||||||
Premiums |
$ |
12,516 |
|
$ |
12,010 |
|
4 |
% |
|
$ |
36,358 |
|
$ |
42,165 |
|
(14 |
)% |
*See reconciliation from GAAP to non-GAAP measures starting on page 11. |
Earnings Conference Call
SelectQuote, Inc. will host a conference call with the investment community today, Thursday, May 5, 2022, beginning at 8:30 a.m. ET. To register for this conference call, please use this link: http://www.directeventreg.com/registration/event/1378747. After registering, a confirmation will be sent via email, including dial-in details and unique conference call codes for entry. Registration is open through the live call, but to ensure you are connected for the full call we suggest registering a day in advance or at minimum 10 minutes before the start of the call. The event will also be webcasted live via our investor relations website https://ir.selectquote.com/investor-home/default.aspx.
Non-GAAP Financial Measures
This release includes certain non-GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. To supplement our financial statements presented in accordance with GAAP and to provide investors with additional information regarding our GAAP financial results, we have presented in this release Adjusted EBITDA and Adjusted EBITDA Margin, which are non-GAAP financial measures. These non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similarly titled measures presented by other companies. We define Adjusted EBITDA as income (loss) before interest expense, income tax expense (benefit), depreciation and amortization, and certain add-backs for non-cash or non-recurring expenses, including restructuring and share-based compensation expenses. The most directly comparable GAAP measure is net income (loss). We monitor and have presented in this release Adjusted EBITDA because it is a key measure used by our management and Board of Directors to understand and evaluate our operating performance, to establish budgets and to develop operational goals for managing our business. In particular, we believe that excluding the impact of these expenses in calculating Adjusted EBITDA can provide a useful measure for period-to-period comparisons of our core operating performance.
We believe that this non-GAAP financial measure helps identify underlying trends in our business that could otherwise be masked by the effect of the expenses that we exclude in the calculations of this non-GAAP financial measure. Accordingly, we believe that this financial measure provides useful information to investors and others in understanding and evaluating our operating results, enhancing the overall understanding of our past performance and future prospects.
Forward Looking Statement
This release contains forward-looking statements. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “would” and “outlook,” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements.
There are or will be important factors that could cause our actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following: the ultimate duration and impact of the ongoing COVID-19 pandemic, our reliance on a limited number of insurance carrier partners and any potential termination of those relationships or failure to develop new relationships; existing and future laws and regulations affecting the health insurance market; changes in health insurance products offered by our insurance carrier partners and the health insurance market generally; insurance carriers offering products and services directly to consumers; changes to commissions paid by insurance carriers and underwriting practices; competition with brokers, exclusively online brokers and carriers who opt to sell policies directly to consumers; competition from government-run health insurance exchanges; developments in the U.S. health insurance system; our dependence on revenue from carriers in our senior segment and downturns in the senior health as well as life, automotive and home insurance industries; our ability to develop new offerings and penetrate new vertical markets; risks from third-party products; failure to enroll individuals during the Medicare annual enrollment period; our ability to attract, integrate and retain qualified personnel; our dependence on lead providers and ability to compete for leads; failure to obtain and/or convert sales leads to actual sales of insurance policies; access to data from consumers and insurance carriers; accuracy of information provided from and to consumers during the insurance shopping process; cost-effective advertisement through internet search engines; ability to contact consumers and market products by telephone; global economic conditions; disruption to operations as a result of future acquisitions; significant estimates and assumptions in the preparation of our financial statements; impairment of goodwill; potential litigation and claims, including IP litigation; our existing and future indebtedness; our ability to maintain compliance with or renegotiate or obtain waivers of our debt covenants; developments with respect to LIBOR; access to additional capital; failure to protect our intellectual property and our brand; fluctuations in our financial results caused by seasonality; accuracy and timeliness of commissions reports from insurance carriers; timing of insurance carriers’ approval and payment practices; factors that impact our estimate of the constrained lifetime value of commissions per policyholder; changes in accounting rules, tax legislation and other legislation; disruptions or failures of our technological infrastructure and platform; failure to maintain relationships with third-party service providers; cybersecurity breaches or other attacks involving our systems or those of our insurance carrier partners or third-party service providers; our ability to protect consumer information and other data; and failure to market and sell Medicare plans effectively or in compliance with laws. For a further discussion of these and other risk factors that could impact our future results and performance, see the section entitled “Risk Factors” in the most recent Annual Report on Form 10-K (the “Annual Report”) filed by us with the Securities and Exchange Commission. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and, except as otherwise required by law, we do not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.
About SelectQuote:
Founded in 1985, SelectQuote (NYSE: SLQT) provides solutions that help consumers protect their most valuable assets: their families, health and property. SelectQuote pioneered the model of providing unbiased comparisons from multiple, highly-rated insurance companies allowing consumers to choose the policy and terms that best meet their unique needs. Two foundational pillars underpin the company’s success: a strong force of highly-trained and skilled agents who provide a consultative needs analysis for every consumer, and proprietary technology that sources and routes high-quality leads. SelectQuote has three core business lines: SelectQuote Senior, SelectQuote Life and SelectQuote Auto and Home. SelectQuote Senior, the largest and fastest-growing business, serves the needs of a demographic that sees 10,000 people turn 65 each day with a range of Medicare Advantage and Medicare Supplement plans. In 2021, SelectQuote expanded its business with the addition of Population Health, a healthcare services company, and SelectRx, a specialty medication management pharmacy.
SELECTQUOTE, INC. AND SUBSIDIARIES |
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
(Unaudited) |
||||||||
(In thousands) |
||||||||
|
March 31, 2022 |
June 30, 2021 |
||||||
ASSETS |
|
|
||||||
CURRENT ASSETS: |
|
|
||||||
Cash and cash equivalents |
$ |
199,359 |
|
$ |
286,454 |
|||
Accounts receivable |
|
168,735 |
|
|
105,298 |
|
||
Commissions receivable-current |
|
77,158 |
|
|
89,120 |
|
||
Other current assets |
|
13,246 |
|
|
4,486 |
|
||
Total current assets |
|
458,498 |
|
|
485,358 |
|
||
COMMISSIONS RECEIVABLE |
|
761,138 |
|
|
756,777 |
|
||
PROPERTY AND EQUIPMENT—Net |
|
45,558 |
|
|
29,510 |
|
||
SOFTWARE—Net |
|
15,558 |
|
|
12,611 |
|
||
OPERATING LEASE RIGHT-OF-USE ASSETS |
|
29,018 |
|
|
31,414 |
|
||
INTANGIBLE ASSETS—Net |
|
36,022 |
|
|
40,670 |
|
||
GOODWILL |
|
73,732 |
|
|
68,019 |
|
||
OTHER ASSETS |
|
15,790 |
|
|
1,436 |
|
||
TOTAL ASSETS |
$ |
1,435,314 |
|
$ |
1,425,795 |
|
||
|
|
|
||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
||||||
CURRENT LIABILITIES: |
|
|
||||||
Accounts payable |
$ |
27,445 |
|
$ |
34,079 |
|
||
Accrued expenses |
|
35,593 |
|
|
20,676 |
|
||
Accrued compensation and benefits |
|
46,229 |
|
|
40,909 |
|
||
Operating lease liabilities—current |
|
5,181 |
|
|
5,289 |
|
||
Current portion of long-term debt |
|
7,169 |
|
|
2,360 |
|
||
Other current liabilities |
|
2,079 |
|
|
5,504 |
|
||
Total current liabilities |
|
123,696 |
|
|
108,817 |
|
||
LONG-TERM DEBT, NET—less current portion |
|
699,386 |
|
|
459,043 |
|
||
DEFERRED INCOME TAXES |
|
76,806 |
|
|
139,240 |
|
||
OPERATING LEASE LIABILITIES |
|
35,301 |
|
|
38,392 |
|
||
OTHER LIABILITIES |
|
3,533 |
|
|
11,743 |
|
||
Total liabilities |
|
938,722 |
|
|
757,235 |
|
||
|
|
|
||||||
COMMITMENTS AND CONTINGENCIES |
|
|
||||||
|
|
|
||||||
SHAREHOLDERS’ EQUITY: |
|
|
||||||
Common stock, $0.01 par value |
|
1,644 |
|
|
1,635 |
|
||
Additional paid-in capital |
|
554,045 |
|
|
544,771 |
|
||
Retained earnings (accumulated deficit) |
|
(68,684 |
) |
|
121,925 |
|
||
Accumulated other comprehensive income |
|
9,587 |
|
|
229 |
|
||
Total shareholders’ equity |
|
496,592 |
|
|
668,560 |
|
||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
$ |
1,435,314 |
|
$ |
1,425,795 |
|
SELECTQUOTE, INC. AND SUBSIDIARIES |
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
(In thousands) |
||||||||||||||||
|
Three Months Ended
|
Nine Months Ended
|
||||||||||||||
|
2022 |
2021 |
2022 |
2021 |
||||||||||||
REVENUE: |
|
|
|
|
||||||||||||
Commission |
$ |
222,538 |
|
$ |
235,216 |
|
$ |
495,494 |
|
$ |
660,631 |
|
||||
Production bonus and other |
|
52,575 |
|
|
30,130 |
|
|
132,127 |
|
|
85,054 |
|
||||
Total revenue |
|
275,113 |
|
|
265,346 |
|
|
627,621 |
|
|
745,685 |
|
||||
|
|
|
|
|
||||||||||||
OPERATING COSTS AND EXPENSES: |
|
|
|
|
||||||||||||
Cost of revenue |
|
119,459 |
|
|
71,439 |
|
|
359,732 |
|
|
206,605 |
|
||||
Marketing and advertising |
|
125,082 |
|
|
116,690 |
|
|
409,005 |
|
|
298,696 |
|
||||
General and administrative |
|
21,031 |
|
|
19,251 |
|
|
64,570 |
|
|
44,496 |
|
||||
Technical development |
|
6,436 |
|
|
4,860 |
|
|
18,675 |
|
|
13,458 |
|
||||
Total operating costs and expenses |
|
272,008 |
|
|
212,240 |
|
|
851,982 |
|
|
563,255 |
|
||||
|
|
|
|
|
||||||||||||
INCOME (LOSS) FROM OPERATIONS |
|
3,105 |
|
|
53,106 |
|
|
(224,361 |
) |
|
182,430 |
|
||||
|
|
|
|
|
||||||||||||
INTEREST EXPENSE, NET |
|
(12,179 |
) |
|
(7,355 |
) |
|
(31,300 |
) |
|
(20,898 |
) |
||||
LOSS ON EXTINGUISHMENT OF DEBT |
|
— |
|
|
(3,315 |
) |
|
— |
|
|
(3,315 |
) |
||||
OTHER EXPENSE, NET |
|
(23 |
) |
|
(349 |
) |
|
(177 |
) |
|
(1,545 |
) |
||||
INCOME (LOSS) BEFORE INCOME TAX EXPENSE (BENEFIT) |
|
(9,097 |
) |
|
42,087 |
|
|
(255,838 |
) |
|
156,672 |
|
||||
INCOME TAX EXPENSE (BENEFIT) |
|
(2,649 |
) |
|
6,852 |
|
|
(65,229 |
) |
|
31,846 |
|
||||
|
|
|
|
|
||||||||||||
NET INCOME (LOSS) |
$ |
(6,448 |
) |
$ |
35,235 |
|
$ |
(190,609 |
) |
$ |
124,826 |
|
||||
|
|
|
|
|
||||||||||||
NET INCOME (LOSS) PER SHARE: |
|
|
|
|
||||||||||||
Basic |
$ |
(0.04 |
) |
$ |
0.21 |
|
$ |
(1.16 |
) |
$ |
0.77 |
|
||||
Diluted |
$ |
(0.04 |
) |
$ |
0.21 |
|
$ |
(1.16 |
) |
$ |
0.75 |
|
||||
|
|
|
|
|
||||||||||||
WEIGHTED-AVERAGE COMMON STOCK OUTSTANDING USED IN PER SHARE AMOUNTS: |
|
|
|
|
||||||||||||
Basic |
|
164,083 |
|
|
163,023 |
|
|
163,914 |
|
|
162,705 |
|
||||
Diluted |
|
164,083 |
|
|
165,731 |
|
|
163,914 |
|
|
165,495 |
|
||||
|
|
|
|
|
||||||||||||
OTHER COMPREHENSIVE INCOME, NET OF TAX: |
|
|
|
|
||||||||||||
Gain on cash flow hedge |
|
7,589 |
|
|
1,810 |
|
|
9,358 |
|
|
1,669 |
|
||||
OTHER COMPREHENSIVE INCOME |
|
7,589 |
|
|
1,810 |
|
|
9,358 |
|
|
1,669 |
|
||||
COMPREHENSIVE INCOME (LOSS) |
$ |
1,141 |
|
$ |
37,045 |
|
$ |
(181,251 |
) |
$ |
126,495 |
|
SELECTQUOTE, INC. AND SUBSIDIARIES |
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(Unaudited) |
||||||||
(In thousands) |
||||||||
|
Nine Months Ended March 31, |
|||||||
|
2022 |
2021 |
||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
||||||
Net income (loss) |
$ |
(190,609 |
) |
$ |
124,826 |
|
||
Adjustments to reconcile net income (loss) to net cash and cash equivalents used in operating activities: |
|
|
||||||
Depreciation and amortization |
|
17,957 |
|
|
11,260 |
|
||
Loss on disposal of property, equipment, and software |
|
741 |
|
|
261 |
|
||
Share-based compensation expense |
|
6,252 |
|
|
3,689 |
|
||
Deferred income taxes |
|
(65,623 |
) |
|
31,702 |
|
||
Amortization of debt issuance costs and debt discount |
|
4,217 |
|
|
2,482 |
|
||
Write-off of debt issuance costs |
|
— |
|
|
2,570 |
|
||
Fair value adjustments to contingent earnout obligations |
|
— |
|
|
1,487 |
|
||
Non-cash lease expense |
|
3,065 |
|
|
2,869 |
|
||
Changes in operating assets and liabilities: |
|
|
||||||
Accounts receivable |
|
(62,803 |
) |
|
(49,224 |
) |
||
Commissions receivable |
|
7,601 |
|
|
(251,188 |
) |
||
Other assets |
|
(8,275 |
) |
|
4,349 |
|
||
Accounts payable and accrued expenses |
|
8,096 |
|
|
26,223 |
|
||
Operating lease liabilities |
|
(3,868 |
) |
|
(2,631 |
) |
||
Other liabilities |
|
(1,113 |
) |
|
30,378 |
|
||
Net cash used in operating activities |
|
(284,362 |
) |
|
(60,947 |
) |
||
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
||||||
Purchases of property and equipment |
|
(24,515 |
) |
|
(6,520 |
) |
||
Purchases of software and capitalized software development costs |
|
(7,570 |
) |
|
(5,807 |
) |
||
Acquisition of business |
|
(6,927 |
) |
|
(23,879 |
) |
||
Investment in equity securities |
|
(1,000 |
) |
|
— |
|
||
Net cash used in investing activities |
|
(40,012 |
) |
|
(36,206 |
) |
||
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
||||||
Proceeds from Revolving Credit Facility |
|
50,000 |
|
|
— |
|
||
Payments on Revolving Credit Facility |
|
(50,000 |
) |
|
— |
|
||
Proceeds from DDTL Facility |
|
242,000 |
|
|
— |
|
||
Payments on DDTL Facility |
|
(613 |
) |
|
— |
|
||
Net proceeds from Term Loans |
|
— |
|
|
228,753 |
|
||
Payments on Term Loans |
|
(1,180 |
) |
|
(84,118 |
) |
||
Payments on other debt |
|
(130 |
) |
|
(189 |
) |
||
Proceeds from common stock options exercised and employee stock purchase plan |
|
3,179 |
|
|
1,778 |
|
||
Payments of tax withholdings related to net share settlement of equity awards |
|
(148 |
) |
|
(10,026 |
) |
||
Payments of debt issuance costs |
|
(328 |
) |
|
(885 |
) |
||
Payments of costs incurred in connection with private placement |
|
— |
|
|
(1,771 |
) |
||
Payments of costs incurred in connection with initial public offering |
|
— |
|
|
(3,911 |
) |
||
Payment of contingent earnout liability |
|
— |
|
|
(32,300 |
) |
||
Payment of acquisition holdback |
|
(5,501 |
) |
|
— |
|
||
Net cash provided by financing activities |
|
237,279 |
|
|
97,331 |
|
||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
|
(87,095 |
) |
|
178 |
|
||
CASH AND CASH EQUIVALENTS—Beginning of period |
|
286,454 |
|
|
368,870 |
|
||
CASH AND CASH EQUIVALENTS—End of period |
$ |
199,359 |
|
$ |
369,048 |
|
SELECTQUOTE, INC. AND SUBSIDIARIES |
||||||||||||||||||||
Adjusted EBITDA to Net Income (Loss) Reconciliation |
||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||
|
Three Months Ended March 31, 2022 |
|||||||||||||||||||
(in thousands) |
Senior |
|
Life |
|
Auto &
|
|
Corp &
|
|
Consolidated |
|||||||||||
Revenue |
$ |
233,172 |
|
$ |
39,400 |
|
$ |
7,152 |
|
$ |
(4,611 |
) |
$ |
275,113 |
|
|||||
Operating expenses |
|
(200,990 |
) |
|
(41,288 |
) |
|
(6,002 |
) |
|
(13,819 |
) |
|
(262,099 |
) |
|||||
Other expenses, net |
|
— |
|
|
— |
|
|
— |
|
|
(23 |
) |
|
(23 |
) |
|||||
Adjusted EBITDA |
|
32,182 |
|
|
(1,888 |
) |
|
1,150 |
|
|
(18,453 |
) |
|
12,991 |
|
|||||
Share-based compensation expense |
|
|
|
|
|
(2,143 |
) |
|||||||||||||
Non-recurring expenses |
|
|
|
|
|
(703 |
) |
|||||||||||||
Depreciation and amortization |
|
|
|
|
|
(6,679 |
) |
|||||||||||||
Loss on disposal of property, equipment, and software, net |
|
|
|
|
|
(384 |
) |
|||||||||||||
Interest expense, net |
|
|
|
|
|
(12,179 |
) |
|||||||||||||
Income tax benefit |
|
|
|
|
|
2,649 |
|
|||||||||||||
Net loss |
|
|
|
|
$ |
(6,448 |
) |
|||||||||||||
|
Three Months Ended March 31, 2021 |
|||||||||||||||||||
(in thousands) |
Senior |
Life |
Auto &
|
Corp &
|
Consolidated |
|||||||||||||||
Revenue |
$ |
215,600 |
|
$ |
44,823 |
|
$ |
6,973 |
|
$ |
(2,050 |
) |
$ |
265,346 |
|
|||||
Operating expenses |
|
(140,111 |
) |
|
(43,225 |
) |
|
(5,877 |
) |
|
(12,507 |
) |
|
(201,720 |
) |
|||||
Other expenses, net |
|
— |
|
|
— |
|
|
— |
|
|
(15 |
) |
|
(15 |
) |
|||||
Adjusted EBITDA |
|
75,489 |
|
|
1,598 |
|
|
1,096 |
|
|
(14,572 |
) |
|
63,611 |
|
|||||
Share-based compensation expense |
|
|
|
|
|
(1,429 |
) |
|||||||||||||
Non-recurring expenses |
|
|
|
|
|
(4,667 |
) |
|||||||||||||
Fair value adjustments to contingent earnout obligations |
|
|
|
|
|
(334 |
) |
|||||||||||||
Depreciation and amortization |
|
|
|
|
|
(4,323 |
) |
|||||||||||||
Loss on disposal of property, equipment, and software |
|
|
|
|
|
(101 |
) |
|||||||||||||
Interest expense, net |
|
|
|
|
|
(7,355 |
) |
|||||||||||||
Loss on extinguishment of debt |
|
|
|
|
|
(3,315 |
) |
|||||||||||||
Income tax expense |
|
|
|
|
|
(6,852 |
) |
|||||||||||||
Net income |
|
|
|
|
$ |
35,235 |
|
SELECTQUOTE, INC. AND SUBSIDIARIES |
||||||||||||||||||||
Adjusted EBITDA to Net Income (Loss) Reconciliation |
||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||
|
Nine Months Ended March 31, 2022 |
|||||||||||||||||||
(in thousands) |
Senior |
|
Life |
|
Auto &
|
|
Corp &
|
|
Consolidated |
|||||||||||
Revenue |
$ |
497,459 |
|
$ |
119,612 |
|
$ |
20,755 |
|
$ |
(10,205 |
) |
$ |
627,621 |
|
|||||
Operating expenses |
|
(646,883 |
) |
|
(117,347 |
) |
|
(16,798 |
) |
|
(43,149 |
) |
|
(824,177 |
) |
|||||
Other expenses, net |
|
— |
|
|
— |
|
|
— |
|
|
(177 |
) |
|
(177 |
) |
|||||
Adjusted EBITDA |
|
(149,424 |
) |
|
2,265 |
|
|
3,957 |
|
|
(53,531 |
) |
|
(196,733 |
) |
|||||
Share-based compensation expense |
|
|
|
|
|
(6,252 |
) |
|||||||||||||
Non-recurring expenses |
|
|
|
|
|
(2,857 |
) |
|||||||||||||
Depreciation and amortization |
|
|
|
|
|
(17,957 |
) |
|||||||||||||
Loss on disposal of property, equipment, and software, net |
|
|
|
|
|
(739 |
) |
|||||||||||||
Interest expense, net |
|
|
|
|
|
(31,300 |
) |
|||||||||||||
Income tax benefit |
|
|
|
|
|
65,229 |
|
|||||||||||||
Net loss |
|
|
|
|
$ |
(190,609 |
) |
|||||||||||||
|
Nine Months Ended March 31, 2021 |
|||||||||||||||||||
(in thousands) |
Senior |
|
Life |
|
Auto &
|
|
Corp &
|
|
Consolidated |
|||||||||||
Revenue |
$ |
604,309 |
|
$ |
121,917 |
|
$ |
23,752 |
|
$ |
(4,293 |
) |
$ |
745,685 |
|
|||||
Operating expenses |
|
(385,363 |
) |
|
(105,532 |
) |
|
(16,889 |
) |
|
(34,771 |
) |
|
(542,555 |
) |
|||||
Other expenses, net |
|
— |
|
|
— |
|
|
— |
|
|
(58 |
) |
|
(58 |
) |
|||||
Adjusted EBITDA |
|
218,946 |
|
|
16,385 |
|
|
6,863 |
|
|
(39,122 |
) |
|
203,072 |
|
|||||
Share-based compensation expense |
|
|
|
|
|
(3,689 |
) |
|||||||||||||
Non-recurring expenses |
|
|
|
|
|
(5,490 |
) |
|||||||||||||
Fair value adjustments to contingent earnout obligations |
|
|
|
|
|
(1,487 |
) |
|||||||||||||
Depreciation and amortization |
|
|
|
|
|
(11,260 |
) |
|||||||||||||
Loss on disposal of property, equipment, and software |
|
|
|
|
|
(261 |
) |
|||||||||||||
Interest expense, net |
|
|
|
|
|
(20,898 |
) |
|||||||||||||
Loss on extinguishment of debt |
|
|
|
|
|
(3,315 |
) |
|||||||||||||
Income tax expense |
|
|
|
|
|
(31,846 |
) |
|||||||||||||
Net income |
|
|
|
|
$ |
124,826 |
|
SELECTQUOTE, INC. AND SUBSIDIARIES |
||||||||
Net Loss to Adjusted EBITDA Reconciliation |
||||||||
(Unaudited) |
||||||||
Guidance net loss to Adjusted EBITDA reconciliation, year ending June 30, 2022: |
||||||||
(in thousands) |
Range |
|||||||
Net Loss |
$ |
(255,000 |
) |
$ |
(236,000 |
) |
||
Income tax benefit |
|
(86,000 |
) |
|
(80,000 |
) |
||
Interest expense, net |
|
43,000 |
|
|
43,000 |
|
||
Depreciation and amortization |
|
22,000 |
|
|
22,000 |
|
||
Share-based compensation expense |
|
11,000 |
|
|
11,000 |
|
||
Non-recurring expenses |
|
5,000 |
|
|
5,000 |
|
||
Adjusted EBITDA |
$ |
(260,000 |
) |
$ |
(235,000 |
) |
Третий квартал 2022 финансового года – Основные показатели консолидированной прибыли
Выручка составила 275,1 миллиона долларов
Чистый убыток в размере 6,4 миллиона долларов
Скорректированная EBITDA* в размере 13,0 млн долл.
Прогноз по выручке, чистому убытку и скорректированной EBITDA за 2022 финансовый год не обновлен.: Ожидаемый доход составит от 810 до 850 миллионов долларов Чистый убыток ожидается в диапазоне от 255 до 236 миллионов долларов Скорректированная EBITDA* ожидается в диапазоне от $(260) млн до $(235) млн
Третий квартал 2022 финансового года – Основные моменты сегмента
Старший
Выручка составила 233,2 миллиона долларов
Скорректированная EBITDA* в размере 32,2 млн долл.
Утвержденные полисы Medicare Advantage выросли на 48% в годовом исчислении
Жизнь
Выручка составила 39,4 миллиона долларов
Премии за конечные расходы выросли на 15% в годовом исчислении
Авто и Дом
Выручка в размере 7,2 миллиона долларов
Общий объем премий за Авто и Жилье вырос на 4% в годовом исчислении
OVERLAND PARK, Кан.--(BUSINESS WIRE)--SelectQuote, Inc. (NYSE: SLQT) сообщила о консолидированной выручке за третий квартал 2022 финансового года в размере 275,1 млн долларов по сравнению с консолидированной выручкой за третий квартал 2021 финансового года в размере 265,3 млн долларов. Консолидированный чистый убыток за третий квартал 2022 финансового года составил 6,4 миллиона долларов по сравнению с консолидированной чистой прибылью за третий квартал 2021 финансового года в размере 35,2 миллиона долларов. Наконец, консолидированная скорректированная EBITDA* за третий квартал 2022 финансового года составила 13,0 млн долларов США по сравнению с консолидированной скорректированной EBITDA* за третий квартал 2021 финансового года в размере 63,6 млн долларов США.
Главный исполнительный директор Тим Данкер прокомментировал: “Мы были довольны нашими результатами за третий квартал, которые превзошли наши внутренние ожидания. В течение квартала мы наблюдали улучшение показателей конверсии продаж и снижение маркетинговых затрат на одну продажу, что, хотя и рано, дает нам еще больше уверенности в шагах, которые мы предпринимаем для улучшения наших операционных и финансовых результатов. Выполняя запланированное сокращение продаж полисов Medicare в ближайшей перспективе, мы сейчас больше, чем когда-либо, сосредоточены на предоставлении нашим партнерам-перевозчикам выгодного бизнеса и повышении эффективности нашего бизнеса с точки зрения денежных средств. Мы также в восторге от продолжающейся динамики бизнеса в области здравоохранения населения, особенно нашего аптечного бизнеса SelectRx, который по итогам апреля насчитывал более 23 000 членов, что почти в 10 раз больше, чем за год ”.
Рафф Садун, финансовый директор, также прокомментировал: “Как обсуждалось во время нашего звонка во втором квартале, ключевым аспектом нашей долгосрочной стратегии является снижение общего операционного левереджа нашего бизнеса для обеспечения привлекательной доходности в широком диапазоне потенциальных рыночных сценариев. В течение квартала мы добились значительного прогресса в этом направлении, выявив возможности сокращения расходов на сумму более 200 миллионов долларов, исключая наши запланированные инвестиции в развитие нашего бизнеса SelectRx с высокой эффективностью использования денежных средств. Примерно 20% из этих выявленных сбережений - это действия с фиксированными затратами, которые мы уже выполнили в течение 3-го квартала. Хотя мы не обновляем наши прогнозы на 2022 год, пока мы видим аналогичные тенденции в четвертом квартале и больше ориентируемся на весь 2023 год”.
*See reconciliation from GAAP to non-GAAP measures starting on page 11. |
Результаты сегмента
В настоящее время мы отчитываемся по трем сегментам: 1) Старший, 2) Жизнь и 3) Авто и Дом. Показатели эффективности сегментов включают общую выручку и скорректированную EBITDA.* Затраты на выручку, маркетинг и рекламу, а также на техническое развитие, операционные расходы и расходы, непосредственно относящиеся к сегменту, отражаются в соответствующем сегменте. Косвенные затраты на выручку, маркетинг и рекламу, а также эксплуатационные расходы и расходы на техническое развитие распределяются по каждому сегменту на основе различных показателей, таких как численность персонала. Скорректированный показатель EBITDA* рассчитывается как общая выручка для соответствующего сегмента за вычетом: прямых и распределенных затрат на выручку, маркетинг и рекламу, техническое развитие, а также общих и административных операционных расходов и расходов, за исключением расходов на износ и амортизацию; прибыль или убыток от выбытия основных средств, оборудования и программного обеспечения; компенсация на основе акций расходы; расходы на реструктуризацию; и единовременные расходы, такие как выходные пособия и операционные издержки.
Финансовые результаты
В следующей таблице представлены финансовые результаты для Старшего сегмента за представленные периоды:
|
Three Months Ended
|
|
|
|
Nine Months Ended
|
|
|
|||||||||||||||
(in thousands) |
2022 |
|
2021 |
|
% Change |
|
2022 |
|
2021 |
|
% Change |
|||||||||||
Revenue |
$ |
233,172 |
|
|
$ |
215,600 |
|
|
8 |
% |
|
$ |
497,459 |
|
|
$ |
604,309 |
|
|
(18 |
)% |
|
Adjusted EBITDA* |
|
32,182 |
|
|
|
75,489 |
|
|
(57 |
)% |
|
|
(149,424 |
) |
|
|
218,946 |
|
|
(168 |
)% |
|
Adjusted EBITDA Margin* |
|
14 |
% |
|
|
35 |
% |
|
|
|
|
(30 |
)% |
|
|
36 |
% |
|
|
Операционные показатели
Представленные Политики
Представленные полисы учитываются, когда физическое лицо заполняет заявку у нашего лицензированного агента и предоставляет агенту разрешение на подачу заявки партнеру страховой компании. Заявителю может потребоваться предпринять дополнительные действия, такие как предоставление дополнительной информации, прежде чем заявка будет рассмотрена страховой компанией.
В следующей таблице показано количество представленных политик за представленные периоды:
|
Three Months Ended
|
|
|
|
Nine Months Ended
|
|
|
|||||||||||
|
2022 |
|
2021 |
|
% Change |
|
2022 |
|
2021 |
|
% Change |
|||||||
Medicare Advantage |
242,721 |
|
160,233 |
|
51 |
% |
|
678,827 |
|
454,772 |
|
49 |
% |
|||||
Medicare Supplement |
1,389 |
|
|
3,738 |
|
|
(63 |
)% |
|
6,318 |
|
|
24,287 |
|
|
(74 |
)% |
|
Dental, Vision and Hearing |
40,178 |
|
|
38,757 |
|
|
4 |
% |
|
122,214 |
|
|
101,819 |
|
|
20 |
% |
|
Prescription Drug Plan |
1,079 |
|
|
1,568 |
|
|
(31 |
)% |
|
6,193 |
|
|
10,243 |
|
|
(40 |
)% |
|
Other |
4,907 |
|
|
6,781 |
|
|
(28 |
)% |
|
11,436 |
|
|
12,603 |
|
|
(9 |
)% |
|
Total |
290,274 |
|
|
211,077 |
|
|
38 |
% |
|
824,988 |
|
|
603,724 |
|
|
37 |
% |
*See reconciliation from GAAP to non-GAAP measures starting on page 11. |
Утвержденная Политика
Утвержденные полисы представляют собой количество представленных полисов, которые были одобрены нашими партнерами-страховыми компаниями для определенного продукта в течение указанного периода. Не все утвержденные политики вступят в силу.
В следующей таблице показано количество утвержденных политик за представленные периоды:
|
Three Months Ended
|
|
|
|
Nine Months Ended
|
|
|
|||||||||||
|
2022 |
|
2021 |
|
% Change |
|
2022 |
|
2021 |
|
% Change |
|||||||
Medicare Advantage |
196,377 |
|
132,950 |
|
48 |
% |
|
546,031 |
|
384,137 |
|
42 |
% |
|||||
Medicare Supplement |
1,159 |
|
|
3,073 |
|
|
(62 |
)% |
|
4,654 |
|
|
19,849 |
|
|
(77 |
)% |
|
Dental, Vision and Hearing |
34,486 |
|
|
34,517 |
|
|
— |
% |
|
101,251 |
|
|
84,370 |
|
|
20 |
% |
|
Prescription Drug Plan |
1,095 |
|
|
2,109 |
|
|
(48 |
)% |
|
5,315 |
|
|
9,556 |
|
|
(44 |
)% |
|
Other |
3,836 |
|
|
5,129 |
|
|
(25 |
)% |
|
9,199 |
|
|
10,209 |
|
|
(10 |
)% |
|
Total |
236,953 |
|
|
177,778 |
|
|
33 |
% |
|
666,450 |
|
|
508,121 |
|
|
31 |
% |
Пожизненная стоимость Комиссионных за Утвержденную Политику
Пожизненная величина комиссионных за утвержденный полис представляет собой комиссионные, которые, по оценкам, будут взиматься в течение предполагаемого срока действия утвержденного полиса, исходя из множества факторов, включая, но не ограничиваясь, ставки комиссионных по контракту, состав перевозчиков и ожидаемую устойчивость политики с применяемыми ограничениями. Пожизненная стоимость комиссионных за утвержденный полис равна сумме комиссионных доходов, причитающихся при первоначальной продаже полиса, и, если применимо, оценке будущих комиссий за продление.
В следующей таблице показана пожизненная стоимость комиссий по утвержденной политике за представленные периоды:
|
Three Months Ended
|
|
|
|
Nine Months Ended
|
|
|
|||||||||||||||
(dollars per policy): |
2022 |
|
2021 |
|
% Change |
|
2022 |
|
2021 |
|
% Change |
|||||||||||
Medicare Advantage |
$ |
933 |
|
$ |
1,362 |
|
(31 |
)% |
|
$ |
935 |
|
$ |
1,290 |
|
(28 |
)% |
|||||
Medicare Supplement |
|
949 |
|
|
|
1,345 |
|
|
(29 |
)% |
|
|
1,275 |
|
|
|
1,263 |
|
|
1 |
% |
|
Dental, Vision and Hearing |
|
120 |
|
|
|
129 |
|
|
(7 |
)% |
|
|
123 |
|
|
|
140 |
|
|
(12 |
)% |
|
Prescription Drug Plan |
|
229 |
|
|
|
213 |
|
|
8 |
% |
|
|
235 |
|
|
|
230 |
|
|
2 |
% |
|
Other |
|
95 |
|
|
|
60 |
|
|
58 |
% |
|
|
77 |
|
|
|
95 |
|
|
(19 |
)% |
На Единицу Экономики
Экономика на единицу представляет собой общие комиссионные за услуги Medicare Advantage и дополнительные услуги Medicare, комиссионные за другие продукты, прочие доходы и расходы, связанные с сегментом пожилых людей, каждая из которых указана в соответствии с количеством утвержденных полисов Medicare Advantage и дополнительных услуг Medicare за определенный период времени. Руководство оценивает бизнес на индивидуальной основе, чтобы помочь гарантировать, что возможность получения дохода, связанная с успешной продажей полиса, является привлекательной по сравнению с затратами на маркетинговое приобретение. Поскольку не все приобретенные потенциальные клиенты приводят к успешной продаже полисов, все показатели для каждой политики основаны на утвержденных политиках, что является показателем, который запускает признание выручки.
Комиссия Medicare Advantage и Medicare Supplement за полис MA /MS представляет собой пожизненную стоимость комиссий за полисы, проданные за период. Прочие комиссионные за полис MA / MS представляют собой пожизненную стоимость комиссионных за другие продукты, проданные за период, включая стоматологию, зрение и слух, план отпускаемых по рецепту лекарств и другие продукты, которые руководство рассматривает как дополнительный комиссионный доход от основной функции наших агентов по продаже полисов MA / MS. Прочая политика в расчете на МА/МС представляет собой производственные бонусы, выручку от продаж за лидирующие позиции от InsideResponse и обновленные оценки переменного вознаграждения за предыдущий период, основанные на фактических продлениях политики в текущем периоде. Общие операционные расходы по полису MA/MS представляют собой все операционные расходы в рамках старшего сегмента. Коэффициент отношения выручки к затратам на привлечение клиентов (“CAC”) представляет собой общий доход по политике MA /MS, кратный общей стоимости приобретения маркетинговых услуг, которая представляет собой прямые затраты на привлечение потенциальных клиентов. Эти расходы включены в расходы на маркетинг и рекламу в рамках общих операционных расходов в соответствии с политикой MA /MS.
В следующей таблице показана удельная экономическая эффективность за представленные периоды. Основываясь на сезонности старшего сегмента и колебаниях между кварталами, мы считаем, что наиболее релевантный взгляд на экономику в расчете на единицу - скользящий 12-месячный период. Все приведенные ниже показатели политики для каждого MA / MS основаны на сумме утвержденных политик MA / MS, поскольку оба продукта имеют схожие профили комиссионных. Эти показатели являются основой, на основе которой руководство оценивает бизнес:
|
Twelve Months Ended
|
|
|
||||||||
(dollars per approved policy): |
2022 |
|
2021 |
|
% Change |
||||||
Medicare Advantage and Medicare Supplement approved policies |
|
636,195 |
|
|
|
464,653 |
|
|
37 |
% |
|
Medicare Advantage and Medicare Supplement commission per MA/MS policy |
$ |
963 |
|
|
$ |
1,286 |
|
|
(25 |
)% |
|
Other commission per MA/MS policy |
|
29 |
|
|
|
38 |
|
|
(24 |
)% |
|
Other per MA/MS policy |
|
(14 |
) |
|
|
166 |
|
|
(108 |
)% |
|
Total revenue per MA/MS policy |
|
978 |
|
|
|
1,490 |
|
|
(34 |
)% |
|
Total operating expenses per MA/MS policy |
|
(1,173 |
) |
|
|
(947 |
) |
|
24 |
% |
|
Adjusted EBITDA per MA/MS policy* |
$ |
(195 |
) |
|
$ |
543 |
|
|
(136 |
)% |
|
Adjusted EBITDA Margin per MA/MS policy* |
|
(20 |
)% |
|
|
36 |
% |
|
(155 |
)% |
|
Revenue/CAC multiple |
1.8 |
X |
|
3.1 |
X |
|
|
Финансовые результаты
В следующей таблице представлены финансовые результаты сегмента Life за представленные периоды:
|
Three Months Ended
|
|
|
|
Nine Months Ended
|
|
|
|||||||||||||||
(in thousands) |
2022 |
|
2021 |
|
% Change |
|
2022 |
|
2021 |
|
% Change |
|||||||||||
Revenue |
$ |
39,400 |
|
|
$ |
44,823 |
|
|
(12 |
)% |
|
$ |
119,612 |
|
|
$ |
121,917 |
|
|
(2 |
)% |
|
Adjusted EBITDA* |
|
(1,888 |
) |
|
|
1,598 |
|
|
(218 |
)% |
|
|
2,265 |
|
|
|
16,385 |
|
|
(86 |
)% |
|
Adjusted EBITDA Margin* |
|
(5 |
)% |
|
|
4 |
% |
|
|
|
|
2 |
% |
|
|
13 |
% |
|
|
Операционные показатели
Премия за жизнь представляет собой общую сумму премии за все полисы, которые были одобрены соответствующим партнером страховой компании и для которых документ о полисе был отправлен страхователю, а информация об оплате была получена соответствующим партнером страховой компании в течение указанного периода. Поскольку наши комиссионные начисляются на основе процента от общей премии, общий объем премии за данный период является ключевым фактором дохода для нашего сегмента Life.
*See reconciliation from GAAP to non-GAAP measures starting on page 11. |
В следующей таблице показаны премии за срочные и окончательные расходы за представленные периоды:
|
Three Months Ended
|
|
|
|
Nine Months Ended
|
|
|
|||||||||||||||
(in thousands) |
2022 |
|
2021 |
|
% Change |
|
2022 |
|
2021 |
|
% Change |
|||||||||||
Term Premiums |
$ |
14,933 |
|
$ |
19,043 |
|
(22 |
)% |
|
$ |
45,990 |
|
$ |
56,784 |
|
(19 |
)% |
|||||
Final Expense Premiums |
|
28,532 |
|
|
|
24,817 |
|
|
15 |
% |
|
|
83,718 |
|
|
|
56,269 |
|
|
49 |
% |
|
Total |
$ |
43,465 |
|
|
$ |
43,860 |
|
|
(1 |
)% |
|
|
129,708 |
|
|
|
113,053 |
|
|
15 |
% |
Финансовые результаты
В следующей таблице представлены финансовые результаты сегмента "Авто и дом" за представленные периоды:
|
Three Months Ended
|
|
|
|
Nine Months Ended
|
|
|
|||||||||||||||
(in thousands) |
2022 |
|
2021 |
|
% Change |
|
2022 |
|
2021 |
|
% Change |
|||||||||||
Revenue |
$ |
7,152 |
|
|
$ |
6,973 |
|
|
3 |
% |
|
$ |
20,755 |
|
|
$ |
23,752 |
|
|
(13 |
)% |
|
Adjusted EBITDA* |
|
1,150 |
|
|
|
1,096 |
|
|
5 |
% |
|
|
3,957 |
|
|
|
6,863 |
|
|
(42 |
)% |
|
Adjusted EBITDA Margin* |
|
16 |
% |
|
|
16 |
% |
|
|
|
|
19 |
% |
|
|
29 |
% |
|
|
Операционные показатели
Премия Auto & Home представляет собой общую сумму премий по всем новым полисам, которые были одобрены нашими партнерами-страховыми компаниями в течение указанного периода. Поскольку наши комиссионные начисляются на основе процента от общей премии, общий объем премии за определенный период является ключевым фактором дохода для нашего сегмента автомобилей и дома.
В следующей таблице показаны премии за представленные периоды:
|
Three Months Ended
|
|
|
|
Nine Months Ended
|
|
|
|||||||||||||||
(in thousands): |
2022 |
|
2021 |
|
% Change |
|
2022 |
|
2021 |
|
% Change |
|||||||||||
Premiums |
$ |
12,516 |
|
$ |
12,010 |
|
4 |
% |
|
$ |
36,358 |
|
$ |
42,165 |
|
(14 |
)% |
*See reconciliation from GAAP to non-GAAP measures starting on page 11. |
Конференц-связь по доходам
SelectQuote, Inc. проведет телефонную конференцию с инвестиционным сообществом сегодня, в четверг, 5 мая 2022 года, начало в 8:30 утра по восточному времени. Чтобы зарегистрироваться на эту конференцию, пожалуйста, воспользуйтесь этой ссылкой: http://www.directeventreg.com/registration/event/1378747 . После регистрации по электронной почте будет отправлено подтверждение, включая данные для набора номера и уникальные коды конференц-связи для входа. Регистрация открыта через прямой звонок, но чтобы убедиться, что вы подключены для полного звонка, мы рекомендуем зарегистрироваться за день или минимум за 10 минут до начала звонка. Мероприятие также будет транслироваться в прямом эфире через наш веб-сайт по связям с инвесторами https://ir .SelectQuote.com/investor-home/default.aspx .
Финансовые показатели, Не относящиеся к ОПБУ
Этот выпуск включает в себя некоторые финансовые показатели, не относящиеся к GAAP, предназначенные для дополнения, а не замены сопоставимых показателей GAAP. Чтобы дополнить нашу финансовую отчетность, представленную в соответствии с GAAP, и предоставить инвесторам дополнительную информацию о наших финансовых результатах по GAAP, мы представили в этом выпуске Скорректированную EBITDA и Скорректированную рентабельность по EBITDA, которые являются финансовыми показателями, не относящимися к GAAP. Эти финансовые показатели, не относящиеся к GAAP, не основаны на какой-либо стандартизированной методологии, предписанной GAAP, и не обязательно сопоставимы с аналогичными показателями, представленными другими компаниями. Мы определяем скорректированный показатель EBITDA как доход (убыток) до вычета процентных расходов, расходов (льгот) по налогу на прибыль, износа и амортизации, а также определенных надбавок к неденежным или единовременным расходам, включая расходы на реструктуризацию и компенсацию на основе акций. Наиболее непосредственно сопоставимым показателем GAAP является чистая прибыль (убыток). Мы отслеживаем и представили в этом выпуске скорректированный показатель EBITDA, поскольку он является ключевым показателем, используемым нашим руководством и Советом директоров для понимания и оценки наших операционных показателей, определения бюджетов и разработки операционных целей для управления нашим бизнесом. В частности, мы считаем, что исключение влияния этих расходов при расчете скорректированной EBITDA может обеспечить полезную меру для сравнения наших основных операционных показателей от периода к периоду.
Мы считаем, что этот финансовый показатель, не относящийся к GAAP, помогает выявить основные тенденции в нашем бизнесе, которые в противном случае могли бы быть замаскированы влиянием расходов, которые мы исключаем при расчетах этого финансового показателя, не относящегося к GAAP. Соответственно, мы считаем, что этот финансовый показатель предоставляет инвесторам и другим лицам полезную информацию для понимания и оценки наших операционных результатов, улучшая общее понимание наших прошлых результатов и будущих перспектив.
Прогнозное заявление
Этот релиз содержит заявления прогнозного характера. Эти прогнозные заявления отражают наши текущие взгляды в отношении, среди прочего, будущих событий и наших финансовых показателей. Эти заявления часто, но не всегда, делаются с использованием таких слов или фраз, как “может”, “должен”, “мог бы”, “предсказать”, “потенциал”, “полагаю”, “вероятно, приведет”, “ожидать”, “продолжать”, “будет,””предвидеть“, ”искать“, ”оценивать“, ”намереваться“, ”планировать“, ”прогнозировать“, "хотел бы” и “прогноз” или негативная версия этих слов или других сопоставимых слов или фраз будущего или перспективного характера. Эти прогнозные заявления не являются историческими фактами и основаны на текущих ожиданиях, оценках и прогнозах относительно нашей отрасли, убеждениях руководства и определенных допущениях, сделанных руководством, многие из которых по своей природе являются неопределенными и находятся вне нашего контроля. Соответственно, мы предупреждаем вас, что любые такие прогнозные заявления не являются гарантией будущих результатов и подвержены рискам, допущениям и неопределенностям, которые трудно предсказать. Хотя мы считаем, что ожидания, отраженные в этих прогнозных заявлениях, являются обоснованными на указанную дату, фактические результаты могут существенно отличаться от результатов, выраженных или подразумеваемых в прогнозных заявлениях.
Там находятся или будут находиться в важных факторов, которые могут вызвать фактические результаты будут существенно отличаться от тех, которые указаны в прогнозных заявлениях, включая, но не ограничиваясь, следующим: конечной продолжительности и последствий продолжающегося COVID-19 пандемией, наша зависимость от ограниченного числа страховщиков-партнеров и потенциальных прекращения этих отношений или отказа осваивать новые отношения, существующие и будущие законы и нормативные документы, влияющие на здоровье страхового рынка; изменения в медицинском страховании продукция, предлагаемая нашей страховой компании партнеров и медицинского страхования, рынка в целом; страховые компании, предлагающие товары и услуги непосредственно потребителям; изменения комиссий, уплаченных страховым компаниям и проведение практики; конкурс с брокерами, исключительно онлайн брокеров и перевозчиков, которые предпочитают продавать полисы напрямую потребителям; конкуренции с государственными медицинского страхования бирж; события в американской системы медицинского страхования; зависимость от доходов от перевозчиков на наш старший сегмент и спадов в старших здоровья, а также жизни, автомобильной и бытовой страховых компаний; наши возможности для разработки новых предложений и проникновения на новые вертикальные рынки; риск от сторонних производителей; отказ в регистрации физических лиц в медицинской годового периода подписки; нашу способность привлекать, интегрировать и сохранить квалифицированные кадры; зависимость от поставщиков свинца и способность конкурировать на провода; неполучение и/или конвертации потенциальных клиентов в реальные продажи страховых полисов; доступ к данным со стороны потребителей и страховых компаний; точность предоставляемой информации от потребителей в течение страхового торгового процесса; рентабельная реклама через интернет-поисковых систем; умение обращаться потребителей и сбыта продукции по телефону; состояние мировой экономики; разрушение в результате будущие приобретения; существенные оценки и допущения в составлении финансовой отчетности; обесценение деловой репутации; потенциальные судебные разбирательства, в том числе в сфере интеллектуальной собственности; наши существующие и будущие задолженности; нашу способность обеспечивать соблюдение или пересмотреть или получить отказы долгового обязательства; событий в отношении ЛИБОР; доступу к дополнительному капиталу; неспособность защитить нашу интеллектуальную собственность, и наш бренд, и колебания на наши финансовые результаты, связанные с сезонностью; точность и своевременность комиссий, отчеты от страховых компаний; сроки страхования перевозчиков утверждения и оплаты практики; факторы, которые влияют на нашу оценку ограниченного срока службы стоимость комиссий за страхователя; изменения правил бухгалтерского учета, налогового законодательства и другого законодательства; нарушений или сбоев в нашу технологическую инфраструктуру и платформы; неспособность поддерживать взаимоотношения с сторонними поставщиками услуг; нарушения кибербезопасности или другие атаки на наши системы или у наших страховых партнеров перевозчика или сторонними поставщиками услуг; нашей способности защитить потребителя информация и прочие сведения; и провал на рынке и продавать планы Medicare эффективно или в соответствии с законодательством. Для дальнейшего обсуждения этих и других факторов риска, которые могут повлиять на наши будущие результаты и результаты деятельности, см. раздел, озаглавленный “Факторы риска” в последнем Годовом отчете по форме 10-K (“Годовой отчет”), поданном нами в Комиссию по ценным бумагам и биржам. Соответственно, вы не должны чрезмерно полагаться на любые такие прогнозные заявления. Любое прогнозное заявление относится только к дате, на которую оно сделано, и, если иное не требуется законом, мы не берем на себя никаких обязательств по публичному обновлению или пересмотру любого прогнозного заявления, будь то в результате новой информации, будущих событий или иным образом.
Об SelectQuote:
Основанная в 1985 году, SelectQuote (NYSE: SLQT) предлагает решения, которые помогают потребителям защитить свои самые ценные активы: свои семьи, здоровье и собственность. SelectQuote впервые внедрил модель непредвзятых сравнений от нескольких высокорейтинговых страховых компаний, позволяющую потребителям выбирать полис и условия, которые наилучшим образом соответствуют их уникальным потребностям. Два основополагающих столпа лежат в основе успеха компании: сильная команда высококвалифицированных и квалифицированных агентов, которые проводят консультативный анализ потребностей каждого потребителя, и запатентованная технология, которая обеспечивает поиск и направление высококачественных потенциальных клиентов. SelectQuote имеет три основных направления бизнеса: SelectQuote Senior, SelectQuote Life и SelectQuote Auto и Home. SelectQuote Senior, крупнейший и быстрорастущий бизнес, обслуживает потребности демографической группы, в которой 10 000 человек ежедневно исполняется 65 лет, благодаря целому ряду планов Medicare Advantage и дополнительных программ Medicare. В 2021 году SelectQuote расширила свой бизнес, добавив компанию Population Health, оказывающую медицинские услуги, и SelectRx, специализированную аптеку по управлению лекарственными средствами.
SelectQuote, INC. AND SUBSIDIARIES |
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
(Unaudited) |
||||||||
(In thousands) |
||||||||
|
March 31, 2022 |
June 30, 2021 |
||||||
ASSETS |
|
|
||||||
CURRENT ASSETS: |
|
|
||||||
Cash and cash equivalents |
$ |
199,359 |
|
$ |
286,454 |
|||
Accounts receivable |
|
168,735 |
|
|
105,298 |
|
||
Commissions receivable-current |
|
77,158 |
|
|
89,120 |
|
||
Other current assets |
|
13,246 |
|
|
4,486 |
|
||
Total current assets |
|
458,498 |
|
|
485,358 |
|
||
COMMISSIONS RECEIVABLE |
|
761,138 |
|
|
756,777 |
|
||
PROPERTY AND EQUIPMENT—Net |
|
45,558 |
|
|
29,510 |
|
||
SOFTWARE—Net |
|
15,558 |
|
|
12,611 |
|
||
OPERATING LEASE RIGHT-OF-USE ASSETS |
|
29,018 |
|
|
31,414 |
|
||
INTANGIBLE ASSETS—Net |
|
36,022 |
|
|
40,670 |
|
||
GOODWILL |
|
73,732 |
|
|
68,019 |
|
||
OTHER ASSETS |
|
15,790 |
|
|
1,436 |
|
||
TOTAL ASSETS |
$ |
1,435,314 |
|
$ |
1,425,795 |
|
||
|
|
|
||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
||||||
CURRENT LIABILITIES: |
|
|
||||||
Accounts payable |
$ |
27,445 |
|
$ |
34,079 |
|
||
Accrued expenses |
|
35,593 |
|
|
20,676 |
|
||
Accrued compensation and benefits |
|
46,229 |
|
|
40,909 |
|
||
Operating lease liabilities—current |
|
5,181 |
|
|
5,289 |
|
||
Current portion of long-term debt |
|
7,169 |
|
|
2,360 |
|
||
Other current liabilities |
|
2,079 |
|
|
5,504 |
|
||
Total current liabilities |
|
123,696 |
|
|
108,817 |
|
||
LONG-TERM DEBT, NET—less current portion |
|
699,386 |
|
|
459,043 |
|
||
DEFERRED INCOME TAXES |
|
76,806 |
|
|
139,240 |
|
||
OPERATING LEASE LIABILITIES |
|
35,301 |
|
|
38,392 |
|
||
OTHER LIABILITIES |
|
3,533 |
|
|
11,743 |
|
||
Total liabilities |
|
938,722 |
|
|
757,235 |
|
||
|
|
|
||||||
COMMITMENTS AND CONTINGENCIES |
|
|
||||||
|
|
|
||||||
SHAREHOLDERS’ EQUITY: |
|
|
||||||
Common stock, $0.01 par value |
|
1,644 |
|
|
1,635 |
|
||
Additional paid-in capital |
|
554,045 |
|
|
544,771 |
|
||
Retained earnings (accumulated deficit) |
|
(68,684 |
) |
|
121,925 |
|
||
Accumulated other comprehensive income |
|
9,587 |
|
|
229 |
|
||
Total shareholders’ equity |
|
496,592 |
|
|
668,560 |
|
||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
$ |
1,435,314 |
|
$ |
1,425,795 |
|
SelectQuote, INC. AND SUBSIDIARIES |
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
(In thousands) |
||||||||||||||||
|
Three Months Ended
|
Nine Months Ended
|
||||||||||||||
|
2022 |
2021 |
2022 |
2021 |
||||||||||||
REVENUE: |
|
|
|
|
||||||||||||
Commission |
$ |
222,538 |
|
$ |
235,216 |
|
$ |
495,494 |
|
$ |
660,631 |
|
||||
Production bonus and other |
|
52,575 |
|
|
30,130 |
|
|
132,127 |
|
|
85,054 |
|
||||
Total revenue |
|
275,113 |
|
|
265,346 |
|
|
627,621 |
|
|
745,685 |
|
||||
|
|
|
|
|
||||||||||||
OPERATING COSTS AND EXPENSES: |
|
|
|
|
||||||||||||
Cost of revenue |
|
119,459 |
|
|
71,439 |
|
|
359,732 |
|
|
206,605 |
|
||||
Marketing and advertising |
|
125,082 |
|
|
116,690 |
|
|
409,005 |
|
|
298,696 |
|
||||
General and administrative |
|
21,031 |
|
|
19,251 |
|
|
64,570 |
|
|
44,496 |
|
||||
Technical development |
|
6,436 |
|
|
4,860 |
|
|
18,675 |
|
|
13,458 |
|
||||
Total operating costs and expenses |
|
272,008 |
|
|
212,240 |
|
|
851,982 |
|
|
563,255 |
|
||||
|
|
|
|
|
||||||||||||
INCOME (LOSS) FROM OPERATIONS |
|
3,105 |
|
|
53,106 |
|
|
(224,361 |
) |
|
182,430 |
|
||||
|
|
|
|
|
||||||||||||
INTEREST EXPENSE, NET |
|
(12,179 |
) |
|
(7,355 |
) |
|
(31,300 |
) |
|
(20,898 |
) |
||||
LOSS ON EXTINGUISHMENT OF DEBT |
|
— |
|
|
(3,315 |
) |
|
— |
|
|
(3,315 |
) |
||||
OTHER EXPENSE, NET |
|
(23 |
) |
|
(349 |
) |
|
(177 |
) |
|
(1,545 |
) |
||||
INCOME (LOSS) BEFORE INCOME TAX EXPENSE (BENEFIT) |
|
(9,097 |
) |
|
42,087 |
|
|
(255,838 |
) |
|
156,672 |
|
||||
INCOME TAX EXPENSE (BENEFIT) |
|
(2,649 |
) |
|
6,852 |
|
|
(65,229 |
) |
|
31,846 |
|
||||
|
|
|
|
|
||||||||||||
NET INCOME (LOSS) |
$ |
(6,448 |
) |
$ |
35,235 |
|
$ |
(190,609 |
) |
$ |
124,826 |
|
||||
|
|
|
|
|
||||||||||||
NET INCOME (LOSS) PER SHARE: |
|
|
|
|
||||||||||||
Basic |
$ |
(0.04 |
) |
$ |
0.21 |
|
$ |
(1.16 |
) |
$ |
0.77 |
|
||||
Diluted |
$ |
(0.04 |
) |
$ |
0.21 |
|
$ |
(1.16 |
) |
$ |
0.75 |
|
||||
|
|
|
|
|
||||||||||||
WEIGHTED-AVERAGE COMMON STOCK OUTSTANDING USED IN PER SHARE AMOUNTS: |
|
|
|
|
||||||||||||
Basic |
|
164,083 |
|
|
163,023 |
|
|
163,914 |
|
|
162,705 |
|
||||
Diluted |
|
164,083 |
|
|
165,731 |
|
|
163,914 |
|
|
165,495 |
|
||||
|
|
|
|
|
||||||||||||
OTHER COMPREHENSIVE INCOME, NET OF TAX: |
|
|
|
|
||||||||||||
Gain on cash flow hedge |
|
7,589 |
|
|
1,810 |
|
|
9,358 |
|
|
1,669 |
|
||||
OTHER COMPREHENSIVE INCOME |
|
7,589 |
|
|
1,810 |
|
|
9,358 |
|
|
1,669 |
|
||||
COMPREHENSIVE INCOME (LOSS) |
$ |
1,141 |
|
$ |
37,045 |
|
$ |
(181,251 |
) |
$ |
126,495 |
|
SelectQuote, INC. AND SUBSIDIARIES |
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(Unaudited) |
||||||||
(In thousands) |
||||||||
|
Nine Months Ended March 31, |
|||||||
|
2022 |
2021 |
||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
||||||
Net income (loss) |
$ |
(190,609 |
) |
$ |
124,826 |
|
||
Adjustments to reconcile net income (loss) to net cash and cash equivalents used in operating activities: |
|
|
||||||
Depreciation and amortization |
|
17,957 |
|
|
11,260 |
|
||
Loss on disposal of property, equipment, and software |
|
741 |
|
|
261 |
|
||
Share-based compensation expense |
|
6,252 |
|
|
3,689 |
|
||
Deferred income taxes |
|
(65,623 |
) |
|
31,702 |
|
||
Amortization of debt issuance costs and debt discount |
|
4,217 |
|
|
2,482 |
|
||
Write-off of debt issuance costs |
|
— |
|
|
2,570 |
|
||
Fair value adjustments to contingent earnout obligations |
|
— |
|
|
1,487 |
|
||
Non-cash lease expense |
|
3,065 |
|
|
2,869 |
|
||
Changes in operating assets and liabilities: |
|
|
||||||
Accounts receivable |
|
(62,803 |
) |
|
(49,224 |
) |
||
Commissions receivable |
|
7,601 |
|
|
(251,188 |
) |
||
Other assets |
|
(8,275 |
) |
|
4,349 |
|
||
Accounts payable and accrued expenses |
|
8,096 |
|
|
26,223 |
|
||
Operating lease liabilities |
|
(3,868 |
) |
|
(2,631 |
) |
||
Other liabilities |
|
(1,113 |
) |
|
30,378 |
|
||
Net cash used in operating activities |
|
(284,362 |
) |
|
(60,947 |
) |
||
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
||||||
Purchases of property and equipment |
|
(24,515 |
) |
|
(6,520 |
) |
||
Purchases of software and capitalized software development costs |
|
(7,570 |
) |
|
(5,807 |
) |
||
Acquisition of business |
|
(6,927 |
) |
|
(23,879 |
) |
||
Investment in equity securities |
|
(1,000 |
) |
|
— |
|
||
Net cash used in investing activities |
|
(40,012 |
) |
|
(36,206 |
) |
||
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
||||||
Proceeds from Revolving Credit Facility |
|
50,000 |
|
|
— |
|
||
Payments on Revolving Credit Facility |
|
(50,000 |
) |
|
— |
|
||
Proceeds from DDTL Facility |
|
242,000 |
|
|
— |
|
||
Payments on DDTL Facility |
|
(613 |
) |
|
— |
|
||
Net proceeds from Term Loans |
|
— |
|
|
228,753 |
|
||
Payments on Term Loans |
|
(1,180 |
) |
|
(84,118 |
) |
||
Payments on other debt |
|
(130 |
) |
|
(189 |
) |
||
Proceeds from common stock options exercised and employee stock purchase plan |
|
3,179 |
|
|
1,778 |
|
||
Payments of tax withholdings related to net share settlement of equity awards |
|
(148 |
) |
|
(10,026 |
) |
||
Payments of debt issuance costs |
|
(328 |
) |
|
(885 |
) |
||
Payments of costs incurred in connection with private placement |
|
— |
|
|
(1,771 |
) |
||
Payments of costs incurred in connection with initial public offering |
|
— |
|
|
(3,911 |
) |
||
Payment of contingent earnout liability |
|
— |
|
|
(32,300 |
) |
||
Payment of acquisition holdback |
|
(5,501 |
) |
|
— |
|
||
Net cash provided by financing activities |
|
237,279 |
|
|
97,331 |
|
||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
|
(87,095 |
) |
|
178 |
|
||
CASH AND CASH EQUIVALENTS—Beginning of period |
|
286,454 |
|
|
368,870 |
|
||
CASH AND CASH EQUIVALENTS—End of period |
$ |
199,359 |
|
$ |
369,048 |
|
SelectQuote, INC. AND SUBSIDIARIES |
||||||||||||||||||||
Adjusted EBITDA to Net Income (Loss) Reconciliation |
||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||
|
Three Months Ended March 31, 2022 |
|||||||||||||||||||
(in thousands) |
Senior |
|
Life |
|
Auto &
|
|
Corp &
|
|
Consolidated |
|||||||||||
Revenue |
$ |
233,172 |
|
$ |
39,400 |
|
$ |
7,152 |
|
$ |
(4,611 |
) |
$ |
275,113 |
|
|||||
Operating expenses |
|
(200,990 |
) |
|
(41,288 |
) |
|
(6,002 |
) |
|
(13,819 |
) |
|
(262,099 |
) |
|||||
Other expenses, net |
|
— |
|
|
— |
|
|
— |
|
|
(23 |
) |
|
(23 |
) |
|||||
Adjusted EBITDA |
|
32,182 |
|
|
(1,888 |
) |
|
1,150 |
|
|
(18,453 |
) |
|
12,991 |
|
|||||
Share-based compensation expense |
|
|
|
|
|
(2,143 |
) |
|||||||||||||
Non-recurring expenses |
|
|
|
|
|
(703 |
) |
|||||||||||||
Depreciation and amortization |
|
|
|
|
|
(6,679 |
) |
|||||||||||||
Loss on disposal of property, equipment, and software, net |
|
|
|
|
|
(384 |
) |
|||||||||||||
Interest expense, net |
|
|
|
|
|
(12,179 |
) |
|||||||||||||
Income tax benefit |
|
|
|
|
|
2,649 |
|
|||||||||||||
Net loss |
|
|
|
|
$ |
(6,448 |
) |
|||||||||||||
|
Three Months Ended March 31, 2021 |
|||||||||||||||||||
(in thousands) |
Senior |
Life |
Auto &
|
Corp &
|
Consolidated |
|||||||||||||||
Revenue |
$ |
215,600 |
|
$ |
44,823 |
|
$ |
6,973 |
|
$ |
(2,050 |
) |
$ |
265,346 |
|
|||||
Operating expenses |
|
(140,111 |
) |
|
(43,225 |
) |
|
(5,877 |
) |
|
(12,507 |
) |
|
(201,720 |
) |
|||||
Other expenses, net |
|
— |
|
|
— |
|
|
— |
|
|
(15 |
) |
|
(15 |
) |
|||||
Adjusted EBITDA |
|
75,489 |
|
|
1,598 |
|
|
1,096 |
|
|
(14,572 |
) |
|
63,611 |
|
|||||
Share-based compensation expense |
|
|
|
|
|
(1,429 |
) |
|||||||||||||
Non-recurring expenses |
|
|
|
|
|
(4,667 |
) |
|||||||||||||
Fair value adjustments to contingent earnout obligations |
|
|
|
|
|
(334 |
) |
|||||||||||||
Depreciation and amortization |
|
|
|
|
|
(4,323 |
) |
|||||||||||||
Loss on disposal of property, equipment, and software |
|
|
|
|
|
(101 |
) |
|||||||||||||
Interest expense, net |
|
|
|
|
|
(7,355 |
) |
|||||||||||||
Loss on extinguishment of debt |
|
|
|
|
|
(3,315 |
) |
|||||||||||||
Income tax expense |
|
|
|
|
|
(6,852 |
) |
|||||||||||||
Net income |
|
|
|
|
$ |
35,235 |
|
SelectQuote, INC. AND SUBSIDIARIES |
||||||||||||||||||||
Adjusted EBITDA to Net Income (Loss) Reconciliation |
||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||
|
Nine Months Ended March 31, 2022 |
|||||||||||||||||||
(in thousands) |
Senior |
|
Life |
|
Auto &
|
|
Corp &
|
|
Consolidated |
|||||||||||
Revenue |
$ |
497,459 |
|
$ |
119,612 |
|
$ |
20,755 |
|
$ |
(10,205 |
) |
$ |
627,621 |
|
|||||
Operating expenses |
|
(646,883 |
) |
|
(117,347 |
) |
|
(16,798 |
) |
|
(43,149 |
) |
|
(824,177 |
) |
|||||
Other expenses, net |
|
— |
|
|
— |
|
|
— |
|
|
(177 |
) |
|
(177 |
) |
|||||
Adjusted EBITDA |
|
(149,424 |
) |
|
2,265 |
|
|
3,957 |
|
|
(53,531 |
) |
|
(196,733 |
) |
|||||
Share-based compensation expense |
|
|
|
|
|
(6,252 |
) |
|||||||||||||
Non-recurring expenses |
|
|
|
|
|
(2,857 |
) |
|||||||||||||
Depreciation and amortization |
|
|
|
|
|
(17,957 |
) |
|||||||||||||
Loss on disposal of property, equipment, and software, net |
|
|
|
|
|
(739 |
) |
|||||||||||||
Interest expense, net |
|
|
|
|
|
(31,300 |
) |
|||||||||||||
Income tax benefit |
|
|
|
|
|
65,229 |
|
|||||||||||||
Net loss |
|
|
|
|
$ |
(190,609 |
) |
|||||||||||||
|
Nine Months Ended March 31, 2021 |
|||||||||||||||||||
(in thousands) |
Senior |
|
Life |
|
Auto &
|
|
Corp &
|
|
Consolidated |
|||||||||||
Revenue |
$ |
604,309 |
|
$ |
121,917 |
|
$ |
23,752 |
|
$ |
(4,293 |
) |
$ |
745,685 |
|
|||||
Operating expenses |
|
(385,363 |
) |
|
(105,532 |
) |
|
(16,889 |
) |
|
(34,771 |
) |
|
(542,555 |
) |
|||||
Other expenses, net |
|
— |
|
|
— |
|
|
— |
|
|
(58 |
) |
|
(58 |
) |
|||||
Adjusted EBITDA |
|
218,946 |
|
|
16,385 |
|
|
6,863 |
|
|
(39,122 |
) |
|
203,072 |
|
|||||
Share-based compensation expense |
|
|
|
|
|
(3,689 |
) |
|||||||||||||
Non-recurring expenses |
|
|
|
|
|
(5,490 |
) |
|||||||||||||
Fair value adjustments to contingent earnout obligations |
|
|
|
|
|
(1,487 |
) |
|||||||||||||
Depreciation and amortization |
|
|
|
|
|
(11,260 |
) |
|||||||||||||
Loss on disposal of property, equipment, and software |
|
|
|
|
|
(261 |
) |
|||||||||||||
Interest expense, net |
|
|
|
|
|
(20,898 |
) |
|||||||||||||
Loss on extinguishment of debt |
|
|
|
|
|
(3,315 |
) |
|||||||||||||
Income tax expense |
|
|
|
|
|
(31,846 |
) |
|||||||||||||
Net income |
|
|
|
|
$ |
124,826 |
|
SelectQuote, INC. AND SUBSIDIARIES |
||||||||
Net Loss to Adjusted EBITDA Reconciliation |
||||||||
(Unaudited) |
||||||||
Guidance net loss to Adjusted EBITDA reconciliation, year ending June 30, 2022: |
||||||||
(in thousands) |
Range |
|||||||
Net Loss |
$ |
(255,000 |
) |
$ |
(236,000 |
) |
||
Income tax benefit |
|
(86,000 |
) |
|
(80,000 |
) |
||
Interest expense, net |
|
43,000 |
|
|
43,000 |
|
||
Depreciation and amortization |
|
22,000 |
|
|
22,000 |
|
||
Share-based compensation expense |
|
11,000 |
|
|
11,000 |
|
||
Non-recurring expenses |
|
5,000 |
|
|
5,000 |
|
||
Adjusted EBITDA |
$ |
(260,000 |
) |
$ |
(235,000 |
) |