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     117  0 Kommentare SelectQuote, Inc. Reports Second Quarter 2024 Results

    SelectQuote, Inc. (NYSE: SLQT) reported consolidated revenue for the second quarter of fiscal year 2024 of $405.4 million, compared to consolidated revenue for the second quarter of fiscal year 2023 of $319.2 million. Consolidated net income for the second quarter of fiscal year 2024 was $19.4 million, compared to consolidated net income for the second quarter of fiscal year 2023 of $22.5 million. Finally, consolidated Adjusted EBITDA* for the second quarter of fiscal year 2024 was $67.4 million, compared to consolidated Adjusted EBITDA* for the second quarter of fiscal year 2023 of $63.6 million.

    Chief Executive Officer Tim Danker stated, “The second quarter marked SelectQuote’s eighth consecutive quarter of performance ahead of expectations, and we remain confident that our strategy to prioritize predictable and cash efficient growth will continue to generate value for both our customers and shareholders. We are also pleased with our progress on operating cash flow and now anticipate that SelectQuote will approach positive free cash flow in fiscal 2024.”

    “SelectQuote drove strong results throughout the annual enrollment period for Medicare Advantage where our Senior business grew revenues by double digits, and our second quarter Adjusted EBITDA margin of 32% remains attractive. These strong Senior operating results were a function of higher tenured agent productivity and solid policyholder persistency, which we expect to benefit SelectQuote in the open enrollment period as well.”

    “Additionally, Healthcare Services, and our SelectRx business specifically, drove substantial growth in excess of our original forecast. As of the end of the second quarter, SelectRx members have surpassed 62,000, which is in excess of our original expectation for the full year. More importantly, the business was again Adjusted EBITDA profitable.”

    Mr. Danker continued, “We are pleased to increase our fiscal year 2024 outlook based on the strength of both businesses year-to-date.”

    Segment Results

    We currently report on four segments: 1) Senior, 2) Healthcare Services, 3) Life, and 4) Auto & Home. The performance measures of the segments include total revenue, Adjusted EBITDA,* and Adjusted EBITDA Margin.* Costs of revenue, cost of goods sold-pharmacy revenue, marketing and advertising, selling, general, and administrative, and technical development operating expenses that are directly attributable to a segment are reported within the applicable segment. Indirect costs of revenue, marketing and advertising, selling, general, and administrative, and technical development operating 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, cost of goods sold, marketing and advertising, technical development, and selling, 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; and non-recurring expenses such as severance payments and transaction costs.

    Senior

    Financial Results

    The following table provides the financial results for the Senior segment for the periods presented:

     

    Three Months Ended December 31,

     

     

     

    Six Months Ended December 31,

     

     

    (in thousands)

     

    2023

     

     

     

    2022

     

     

    % Change

     

     

    2023

     

     

     

    2022

     

     

    % Change

    Revenue

    $

    247,529

     

     

    $

    223,826

     

     

    11

    %

     

    $

    337,445

     

     

    $

    301,340

     

     

    12

    %

    Adjusted EBITDA*

     

    78,713

     

     

     

    83,617

     

     

    (6

    )%

     

     

    77,376

     

     

     

    79,766

     

     

    (3

    )%

    Adjusted EBITDA Margin*

     

    32

    %

     

     

    37

    %

     

     

     

     

    23

    %

     

     

    26

    %

     

     

    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 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 December 31,

     

     

     

    Six Months Ended December 31,

     

     

     

    2023

     

    2022

     

    % Change

     

    2023

     

    2022

     

    % Change

    Medicare Advantage

    271,712

     

    251,847

     

    8

    %

     

    376,244

     

    341,875

     

    10

    %

    Medicare Supplement

    1,203

     

    1,565

     

    (23

    )%

     

    1,684

     

    2,230

     

    (24

    )%

    Dental, Vision and Hearing

    19,808

     

    22,004

     

    (10

    )%

     

    32,304

     

    38,338

     

    (16

    )%

    Prescription Drug Plan

    1,720

     

    1,302

     

    32

    %

     

    2,031

     

    1,666

     

    22

    %

    Other

    1,318

     

    1,512

     

    (13

    )%

     

    2,950

     

    3,538

     

    (17

    )%

    Total

    295,761

     

    278,230

     

    6

    %

     

    415,213

     

    387,647

     

    7

    %

    *See “Non-GAAP Financial Measures” below.

    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 December 31,

     

     

     

    Six Months Ended December 31,

     

     

     

    2023

     

    2022

     

    % Change

     

    2023

     

    2022

     

    % Change

    Medicare Advantage

    234,576

     

    218,837

     

    7

    %

     

    332,257

     

    302,010

     

    10

    %

    Medicare Supplement

    773

     

    1,127

     

    (31

    )%

     

    1,133

     

    1,627

     

    (30

    )%

    Dental, Vision and Hearing

    16,903

     

    18,697

     

    (10

    )%

     

    27,432

     

    30,972

     

    (11

    )%

    Prescription Drug Plan

    1,316

     

    883

     

    49

    %

     

    1,570

     

    1,273

     

    23

    %

    Other

    993

     

    1,241

     

    (20

    )%

     

    2,045

     

    2,903

     

    (30

    )%

    Total

    254,561

     

    240,785

     

    6

    %

     

    364,437

     

    338,785

     

    8

    %

    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 December 31,

     

     

     

    Six Months Ended December 31,

     

     

    (dollars per policy):

     

    2023

     

     

     

    2022

     

    % Change

     

     

    2023

     

     

     

    2022

     

    % Change

    Medicare Advantage

    $

    934

     

     

    $

    870

     

    7

    %

     

    $

    883

     

     

    $

    845

     

    4

    %

    Medicare Supplement

     

    1,045

     

     

     

    994

     

    5

    %

     

     

    1,044

     

     

     

    1,037

     

    1

    %

    Dental, Vision and Hearing

     

    69

     

     

     

    116

     

    (41

    )%

     

     

    99

     

     

     

    97

     

    2

    %

    Prescription Drug Plan

     

    230

     

     

     

    212

     

    8

    %

     

     

    237

     

     

     

    219

     

    8

    %

    Other

     

    (50

    )

     

     

    115

     

    (143

    )%

     

     

    (18

    )

     

     

    91

     

    (120

    )%

    Healthcare Services

    Financial Results

    The following table provides the financial results for the Healthcare Services segment for the periods presented:

     

    Three Months Ended December 31,

     

     

     

    Six Months Ended December 31,

     

     

    (in thousands)

     

    2023

     

     

     

    2022

     

     

    % Change

     

     

    2023

     

     

     

    2022

     

     

    % Change

    Revenue

    $

    111,710

     

     

    $

    55,480

     

     

    101

    %

     

    $

    209,078

     

     

    $

    98,546

     

     

    112

    %

    Adjusted EBITDA*

     

    2,981

     

     

     

    (9,301

    )

     

    132

    %

     

     

    5,304

     

     

     

    (21,089

    )

     

    125

    %

    Adjusted EBITDA Margin*

     

    3

    %

     

     

    (17

    )%

     

     

     

     

    3

    %

     

     

    (21

    )%

     

     

    *See “Non-GAAP Financial Measures” below.

    Operating Metrics

    Total Members

    The total number of SelectRx members represents the amount of customers to which an order has been shipped, as this is the primary key driver of revenue for Healthcare Services.

    The following table shows the total number of SelectRx members for the date presented:

     

     

    December 31, 2023

     

    December 31, 2022

    Total SelectRx Members

     

    62,623

     

    39,308

    Prescriptions Per Day

    Prescriptions per day represents the total prescriptions shipped per business day, as this is a primary key driver of revenue for Healthcare Services.

    The following table shows the prescriptions shipped per day for the periods presented:

     

     

    Three Months Ended December 31,

     

    Six Months Ended December 31,

     

     

    2023

     

    2022

     

    2023

     

    2022

    Prescriptions Per Day

     

    17,010

     

    9,652

     

    16,244

     

    8,754

    Combined Senior and Healthcare Services - Consumer Per Unit Economics

    The opportunity to leverage our existing database and distribution model to improve access to healthcare services for our consumers has created a need for us to review our key metrics related to our per unit economics. As we think about the revenue and expenses for Healthcare Services, we note that they are derived from the marketing acquisition costs associated with the sale of an MA or MS policy, some of which costs are allocated directly to Healthcare Services, and therefore determined that our per unit economics measure should include components from both Senior and Healthcare Services. See details of revenue and expense items included in the calculation below.

    Combined Senior and Healthcare Services consumer per unit economics represents total MA and MS commissions; other product commissions; other revenues, including revenues from Healthcare Services; and operating expenses associated with Senior and Healthcare Services, each shown per number of approved MA and MS policies over a given time period. Management assesses the business on a per-unit basis to help ensure that 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 MA and MS commission per MA/MS policy represents the LTV for policies sold in the period. Other commission per MA/MS policy represents the LTV for other products sold in the period, including DVH prescription drug plan, and other products, which management views as additional commission revenue on our agents’ core function of MA/MS policy sales. Pharmacy revenue per MA/MS policy represents revenue from SelectRx, and other revenue per MA/MS policy represents revenue from Population Health, production bonuses, marketing development funds, lead generation revenue, and adjustments from the Company’s reassessment of its cohorts’ transaction prices. Total operating expenses per MA/MS policy represents all of the operating expenses within Senior and Healthcare Services. The revenue to customer acquisition cost (“CAC”) multiple represents total revenue as a multiple of total marketing acquisition costs, 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 combined Senior and Healthcare Services consumer per unit economics for the periods presented. Based on the seasonality of Senior 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.

     

    Twelve Months Ended December 31,

    (dollars per approved policy):

     

     

    2023

     

     

     

    2022

     

    Medicare Advantage and Medicare Supplement approved policies

     

    609,939

     

     

     

    617,687

     

    Medicare Advantage and Medicare Supplement commission per MA/MS policy

    $

    896

     

     

    $

    880

     

    Other commission per MA/MS policy

     

    11

     

     

     

    19

     

    Pharmacy revenue per MA/MS policy

     

    575

     

     

     

    225

     

    Other revenue per MA/MS policy

     

    140

     

     

     

    62

     

    Total revenue per MA/MS policy

     

    1,622

     

     

     

    1,186

     

    Total operating expenses per MA/MS policy

     

    (1,365

    )

     

     

    (1,111

    )

    Adjusted EBITDA per MA/MS policy (1)

     

    257

     

     

     

    75

     

    Adjusted EBITDA Margin per MA/MS policy (1)

     

    16

    %

     

     

    6

    %

    Revenue/CAC multiple

    4.2X

     

    3.0X

     

    (1) These financial measures are not calculated in accordance with GAAP. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Financial Measures” for information regarding our use of these non-GAAP financial measures and a reconciliation of such measures to their nearest comparable financial measures calculated and presented in accordance with GAAP.

    Total revenue per MA/MS policy increased 37% for the twelve months ended December 31, 2023, compared to the twelve months ended December 31, 2022, primarily due to the increase in pharmacy revenue. Total operating expenses per MA/MS policy increased 23% for the twelve months ended December 31, 2023, compared to the twelve months ended December 31, 2022, driven by a 100% increase in operating expenses related to SelectRx due to the growth of the business, offset by a 3% decrease in other operating expenses driven by a decrease in marketing and advertising costs for the second half of fiscal year 2023 compared to the second half of fiscal year 2022.

    Life

    Financial Results

    The following table provides the financial results for the Life segment for the periods presented:

     

    Three Months Ended December 31,

     

     

     

    Six Months Ended December 31,

     

     

    (in thousands)

     

    2023

     

     

     

    2022

     

     

    % Change

     

     

    2023

     

     

     

    2022

     

     

    % Change

    Revenue

    $

    37,367

     

     

    $

    33,995

     

     

    10

    %

     

    $

    75,170

     

     

    $

    70,830

     

     

    6

    %

    Adjusted EBITDA*

     

    4,569

     

     

     

    5,843

     

     

    (22

    )%

     

     

    9,808

     

     

     

    11,068

     

     

    (11

    )%

    Adjusted EBITDA Margin*

     

    12

    %

     

     

    17

    %

     

     

     

     

    13

    %

     

     

    16

    %

     

     

    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 “Non-GAAP Financial Measures” below.

    The following table shows term and final expense premiums for the periods presented:

     

    Three Months Ended December 31,

     

     

     

    Six Months Ended December 31,

     

     

    (in thousands)

     

    2023

     

     

    2022

     

    % Change

     

     

    2023

     

     

    2022

     

    % Change

    Term Premiums

    $

    17,398

     

    $

    15,824

     

    10

    %

     

    $

    35,588

     

    $

    30,922

     

    15

    %

    Final Expense Premiums

     

    19,388

     

     

    17,093

     

    13

    %

     

     

    39,087

     

     

    39,457

     

    (1

    )%

    Total

    $

    36,786

     

    $

    32,917

     

    12

    %

     

     

    74,675

     

     

    70,379

     

    6

    %

    Auto & Home

    Financial Results

    The following table provides the financial results for the Auto & Home segment for the periods presented:

     

    Three Months Ended December 31,

     

     

     

    Six Months Ended December 31,

     

     

    (in thousands)

     

    2023

     

     

     

    2022

     

     

    % Change

     

     

    2023

     

     

     

    2022

     

     

    % Change

    Revenue

    $

    10,487

     

     

    $

    7,808

     

     

    34

    %

     

    $

    19,515

     

     

    $

    14,890

     

     

    31

    %

    Adjusted EBITDA*

     

    4,725

     

     

     

    2,284

     

     

    107

    %

     

     

    8,045

     

     

     

    4,725

     

     

    70

    %

    Adjusted EBITDA Margin*

     

    45

    %

     

     

    29

    %

     

     

     

     

    41

    %

     

     

    32

    %

     

     

    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 December 31,

     

     

     

    Six Months Ended December 31,

     

     

    (in thousands):

     

    2023

     

     

    2022

     

    % Change

     

     

    2023

     

     

    2022

     

    % Change

    Premiums

    $

    14,689

     

    $

    12,080

     

    22

    %

     

    $

    28,566

     

    $

    23,628

     

    21

    %

    *See “Non-GAAP Financial Measures” below.

    Earnings Conference Call

    SelectQuote, Inc. will host a conference call with the investment community today, Wednesday, February 7, 2024, beginning at 8:30 a.m. ET. To register for this conference call, please use this link: https://www.netroadshow.com/events/login?show=3bad4d79&confId=5996 .... 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 at least 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 define Adjusted EBITDA Margin as Adjusted EBITDA divided by revenue. The most directly comparable GAAP measure is net income margin. We monitor and have presented in this release Adjusted EBITDA and Adjusted EBITDA Margin because they are key measures 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 these non-GAAP financial measures help identify underlying trends in our business that could otherwise be masked by the effect of the expenses that we exclude in the calculations of these non-GAAP financial measures. Accordingly, we believe these financial measures provide useful information to investors and others in understanding and evaluating our operating results, enhancing the overall understanding of our past performance and future prospects. Reconciliations of the differences between the non-GAAP financial measures included herein and their most directly comparable GAAP financial measures are set forth below beginning on page 12.

    Forward Looking Statements

    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 impacts of the COVID-19 pandemic and any other public health events, 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, including 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, including inflation; 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 other legal proceedings or inquiries; our existing and future indebtedness; our ability to maintain compliance with our debt covenants and meet our scheduled repayment obligations under out debt arrangement; our ability to access to additional capital on acceptable terms; 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; failure to market and sell Medicare plans effectively or in compliance with laws; and other factors related to our pharmacy business, including manufacturing or supply chain disruptions, access to and demand for prescription drugs, and regulatory changes or other industry developments that may affect our pharmacy operations. 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 and subsequent periodic reports 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. The company 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 SelectQuote’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.

    With an ecosystem offering high touchpoints for consumers across insurance, medicare, pharmacy, and value-based care, the company now has four core business lines: SelectQuote Senior, SelectQuote Healthcare Services, SelectQuote Life, and SelectQuote Auto and Home. SelectQuote Senior serves the needs of a demographic that sees around 10,000 people turn 65 each day with a range of Medicare Advantage and Medicare Supplement plans. SelectQuote Healthcare Services is comprised of the SelectRx Pharmacy, a Patient-Centered Pharmacy Home (PCPH) accredited pharmacy, and Population Health which proactively connects consumers with a wide breadth of healthcare services supporting their needs.

    Source: SelectQuote, Inc.

    SELECTQUOTE, INC. AND SUBSIDIARIES

    CONDENSED CONSOLIDATED BALANCE SHEETS

    (Unaudited)

    (In thousands)

     

     

    December 31, 2023

     

    June 30, 2023

    ASSETS

     

     

     

    CURRENT ASSETS:

     

     

     

    Cash and cash equivalents

    $

    10,849

     

     

    $

    83,156

     

    Accounts receivable, net of allowances of $4.7 million and $2.7 million, respectively

     

    142,590

     

     

     

    154,565

     

    Commissions receivable-current

     

    207,279

     

     

     

    111,148

     

    Other current assets

     

    27,100

     

     

     

    14,355

     

    Total current assets

     

    387,818

     

     

     

    363,224

     

    COMMISSIONS RECEIVABLE—Net

     

    747,079

     

     

     

    729,350

     

    PROPERTY AND EQUIPMENT—Net

     

    23,389

     

     

     

    27,452

     

    SOFTWARE—Net

     

    14,428

     

     

     

    14,740

     

    OPERATING LEASE RIGHT-OF-USE ASSETS

     

    22,035

     

     

     

    23,563

     

    INTANGIBLE ASSETS—Net

     

    8,684

     

     

     

    10,200

     

    GOODWILL

     

    29,136

     

     

     

    29,136

     

    OTHER ASSETS

     

    3,350

     

     

     

    21,586

     

    TOTAL ASSETS

    $

    1,235,919

     

     

    $

    1,219,251

     

     

     

     

     

    LIABILITIES AND SHAREHOLDERS’ EQUITY

     

     

     

    CURRENT LIABILITIES:

     

     

     

    Accounts payable

    $

    57,392

     

     

    $

    27,577

     

    Accrued expenses

     

    16,698

     

     

     

    16,993

     

    Accrued compensation and benefits

     

    48,680

     

     

     

    49,966

     

    Operating lease liabilities—current

     

    5,133

     

     

     

    5,175

     

    Current portion of long-term debt

     

    42,766

     

     

     

    33,883

     

    Contract liabilities

     

    9,092

     

     

     

    1,691

     

    Other current liabilities

     

    4,211

     

     

     

    1,972

     

    Total current liabilities

     

    183,972

     

     

     

    137,257

     

    LONG-TERM DEBT, NET—less current portion

     

    650,772

     

     

     

    664,625

     

    DEFERRED INCOME TAXES

     

    36,668

     

     

     

    39,581

     

    OPERATING LEASE LIABILITIES

     

    25,245

     

     

     

    27,892

     

    OTHER LIABILITIES

     

    2,745

     

     

     

    2,926

     

    Total liabilities

     

    899,402

     

     

     

    872,281

     

     

     

     

     

    COMMITMENTS AND CONTINGENCIES

     

     

     

     

     

     

     

    SHAREHOLDERS’ EQUITY:

     

     

     

    Common stock, $0.01 par value

     

    1,690

     

     

     

    1,669

     

    Additional paid-in capital

     

    573,883

     

     

     

    567,266

     

    Accumulated deficit

     

    (247,303

    )

     

     

    (235,644

    )

    Accumulated other comprehensive income

     

    8,247

     

     

     

    13,679

     

    Total shareholders’ equity

     

    336,517

     

     

     

    346,970

     

    TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

    $

    1,235,919

     

     

    $

    1,219,251

     

     

    SELECTQUOTE, INC. AND SUBSIDIARIES

    CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

    (Unaudited)

    (In thousands)

     

     

    Three Months Ended December 31,

     

    Six Months Ended December 31,

     

     

    2023

     

     

     

    2022

     

     

     

    2023

     

     

     

    2022

     

    REVENUE:

     

     

     

     

     

     

     

    Commission

    $

    263,225

     

     

    $

    230,033

     

     

    $

    380,981

     

     

     

    336,368

     

    Pharmacy

     

    108,795

     

     

     

    51,601

     

     

     

    203,583

     

     

     

    92,694

     

    Other

     

    33,418

     

     

     

    37,554

     

     

     

    53,603

     

     

     

    52,610

     

    Total revenue

     

    405,438

     

     

     

    319,188

     

     

     

    638,167

     

     

     

    481,672

     

     

     

     

     

     

     

     

     

    OPERATING COSTS AND EXPENSES:

     

     

     

     

     

     

     

    Cost of revenue

     

    97,424

     

     

     

    91,477

     

     

     

    169,935

     

     

     

    156,641

     

    Cost of goods sold—pharmacy revenue

     

    94,180

     

     

     

    50,096

     

     

     

    178,188

     

     

     

    92,450

     

    Marketing and advertising

     

    117,078

     

     

     

    89,925

     

     

     

    179,400

     

     

     

    147,519

     

    Selling, general, and administrative

     

    33,412

     

     

     

    28,412

     

     

     

    62,078

     

     

     

    59,118

     

    Technical development

     

    8,050

     

     

     

    6,245

     

     

     

    15,687

     

     

     

    12,427

     

    Total operating costs and expenses

     

    350,144

     

     

     

    266,155

     

     

     

    605,288

     

     

     

    468,155

     

     

     

     

     

     

     

     

     

    INCOME FROM OPERATIONS

     

    55,294

     

     

     

    53,033

     

     

     

    32,879

     

     

     

    13,517

     

     

     

     

     

     

     

     

     

    INTEREST EXPENSE, NET

     

    (24,415

    )

     

     

    (21,044

    )

     

     

    (45,811

    )

     

     

    (37,780

    )

    OTHER INCOME (EXPENSE), NET

     

     

     

     

    (70

    )

     

     

    (39

    )

     

     

    88

     

    INCOME (LOSS) BEFORE INCOME TAX EXPENSE (BENEFIT)

     

    30,879

     

     

     

    31,919

     

     

     

    (12,971

    )

     

     

    (24,175

    )

    INCOME TAX EXPENSE (BENEFIT)

     

    11,487

     

     

     

    9,405

     

     

     

    (1,312

    )

     

     

    (4,205

    )

     

     

     

     

     

     

     

     

    NET INCOME (LOSS)

    $

    19,392

     

     

    $

    22,514

     

     

    $

    (11,659

    )

     

     

    (19,970

    )

     

     

     

     

     

     

     

     

    NET INCOME (LOSS) PER SHARE:

     

     

     

     

     

     

     

    Basic

    $

    0.12

     

     

    $

    0.14

     

     

    $

    (0.07

    )

     

    $

    (0.12

    )

    Diluted

    $

    0.11

     

     

    $

    0.14

     

     

    $

    (0.07

    )

     

    $

    (0.12

    )

     

     

     

     

     

     

     

     

    WEIGHTED-AVERAGE COMMON STOCK OUTSTANDING USED IN PER SHARE AMOUNTS:

     

     

     

     

     

     

     

    Basic

     

    168,349

     

     

     

    166,486

     

     

     

    167,901

     

     

     

    165,655

     

    Diluted

     

    169,737

     

     

     

    166,548

     

     

     

    167,901

     

     

     

    165,655

     

     

     

     

     

     

     

     

     

    OTHER COMPREHENSIVE INCOME (LOSS) NET OF TAX:

     

     

     

     

     

     

     

    Gain (loss) on cash flow hedge

     

    (3,422

    )

     

     

    (381

    )

     

     

    (5,432

    )

     

     

    4,019

     

    OTHER COMPREHENSIVE INCOME (LOSS)

     

    (3,422

    )

     

     

    (381

    )

     

     

    (5,432

    )

     

     

    4,019

     

    COMPREHENSIVE INCOME (LOSS)

    $

    15,970

     

     

    $

    22,133

     

     

    $

    (17,091

    )

     

    $

    (15,951

    )

     

    SELECTQUOTE, INC. AND SUBSIDIARIES

    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

    (Unaudited)

    (In thousands)

     

     

    Six Months Ended December 31,

     

     

    2023

     

     

     

    2022

     

    CASH FLOWS FROM OPERATING ACTIVITIES:

     

     

     

    Net loss

    $

    (11,659

    )

     

    $

    (19,970

    )

    Adjustments to reconcile net loss to net cash and cash equivalents used in operating activities:

     

     

     

    Depreciation and amortization

     

    11,887

     

     

     

    13,990

     

    Loss on disposal of property, equipment, and software

     

    9

     

     

     

    376

     

    Share-based compensation expense

     

    6,997

     

     

     

    5,566

     

    Deferred income taxes

     

    (1,182

    )

     

     

    (4,572

    )

    Amortization of debt issuance costs and debt discount

     

    3,356

     

     

     

    3,919

     

    Write-off of debt issuance costs

     

     

     

     

    710

     

    Accrued interest payable in kind

     

    9,020

     

     

     

    4,920

     

    Non-cash lease expense

     

    1,528

     

     

     

    2,082

     

    Changes in operating assets and liabilities:

     

     

     

    Accounts receivable, net

     

    11,975

     

     

     

    14,036

     

    Commissions receivable

     

    (113,860

    )

     

     

    (114,701

    )

    Other assets

     

    (2,075

    )

     

     

    1,578

     

    Accounts payable and accrued expenses

     

    29,206

     

     

     

    950

     

    Operating lease liabilities

     

    (2,689

    )

     

     

    (2,460

    )

    Other liabilities

     

    8,248

     

     

     

    18,002

     

    Net cash used in operating activities

     

    (49,239

    )

     

     

    (75,574

    )

    CASH FLOWS FROM INVESTING ACTIVITIES:

     

     

     

    Purchases of property and equipment

     

    (2,062

    )

     

     

    (598

    )

    Proceeds from sales of property and equipment

     

    253

     

     

     

     

    Purchases of software and capitalized software development costs

     

    (3,883

    )

     

     

    (3,870

    )

    Net cash used in investing activities

     

    (5,692

    )

     

     

    (4,468

    )

    CASH FLOWS FROM FINANCING ACTIVITIES:

     

     

     

    Payments on Term Loans

     

    (16,942

    )

     

     

    (13,375

    )

    Payments on other debt

     

    (75

    )

     

     

    (83

    )

    Proceeds from common stock options exercised and employee stock purchase plan

     

     

     

     

    1,078

     

    Payments of tax withholdings related to net share settlement of equity awards

     

    (359

    )

     

     

    (33

    )

    Payments of debt issuance costs

     

     

     

     

    (10,110

    )

    Payment of acquisition holdback

     

     

     

     

    (2,335

    )

    Net cash used in financing activities

     

    (17,376

    )

     

     

    (24,858

    )

    NET DECREASE IN CASH AND CASH EQUIVALENTS

     

    (72,307

    )

     

     

    (104,900

    )

    CASH AND CASH EQUIVALENTS—Beginning of period

     

    83,156

     

     

     

    140,997

     

    CASH AND CASH EQUIVALENTS—End of period

    $

    10,849

     

     

    $

    36,097

     

     

    SELECTQUOTE, INC. AND SUBSIDIARIES

    Net Income (Loss) to Adjusted EBITDA Reconciliation

    (Unaudited)

     

     

    Three Months Ended December 31, 2023

    (in thousands)

    Senior

     

    Healthcare Services

     

    Life

     

    Auto & Home

     

    Corp & Elims

     

    Consolidated

    Revenue

    $

    247,529

     

     

    $

    111,710

     

     

    $

    37,367

     

     

    $

    10,487

     

     

    $

    (1,655

    )

     

    $

    405,438

     

    Operating expenses

     

    (168,816

    )

     

     

    (108,729

    )

     

     

    (32,798

    )

     

     

    (5,762

    )

     

     

    (21,919

    )

     

     

    (338,024

    )

    Other income (expense), net

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Adjusted EBITDA

    $

    78,713

     

     

    $

    2,981

     

     

    $

    4,569

     

     

    $

    4,725

     

     

    $

    (23,574

    )

     

    $

    67,414

     

    Share-based compensation expense

     

     

     

     

     

     

     

     

     

     

     

    (3,822

    )

    Transaction costs

     

     

     

     

     

     

     

     

     

     

     

    (2,400

    )

    Depreciation and amortization

     

     

     

     

     

     

     

     

     

     

     

    (5,898

    )

    Interest expense, net

     

     

     

     

     

     

     

     

     

     

     

    (24,415

    )

    Income tax expense

     

     

     

     

     

     

     

     

     

     

     

    (11,487

    )

    Net income

     

     

     

     

     

     

     

     

     

     

    $

    19,392

     

     

    Three Months Ended December 31, 2022

    (in thousands)

    Senior

     

    Healthcare Services

     

    Life

     

    Auto & Home

     

    Corp & Elims

     

    Consolidated

    Revenue

    $

    223,826

     

     

    $

    55,480

     

     

    $

    33,995

     

     

    $

    7,808

     

     

    $

    (1,921

    )

     

    $

    319,188

     

    Operating expenses

     

    (140,209

    )

     

     

    (64,781

    )

     

     

    (28,152

    )

     

     

    (5,524

    )

     

     

    (16,877

    )

     

     

    (255,543

    )

    Other income (expense), net

     

     

     

     

     

     

     

     

     

     

     

     

     

    (70

    )

     

     

    (70

    )

    Adjusted EBITDA

    $

    83,617

     

     

    $

    (9,301

    )

     

    $

    5,843

     

     

    $

    2,284

     

     

    $

    (18,868

    )

     

    $

    63,575

     

    Share-based compensation expense

     

     

     

     

     

     

     

     

     

     

     

    (2,936

    )

    Transaction costs

     

     

     

     

     

     

     

     

     

     

     

    (442

    )

    Depreciation and amortization

     

     

     

     

     

     

     

     

     

     

     

    (7,188

    )

    Loss on disposal of property, equipment, and software

     

     

     

     

     

     

     

     

     

     

     

    (46

    )

    Interest expense, net

     

     

     

     

     

     

     

     

     

     

     

    (21,044

    )

    Income tax expense

     

     

     

     

     

     

     

     

     

     

     

    (9,405

    )

    Net income

     

     

     

     

     

     

     

     

     

     

    $

    22,514

     

     

    Six Months Ended December 31, 2023

    (in thousands)

    Senior

     

    Healthcare Services

     

    Life

     

    Auto & Home

     

    Corp & Elims

     

    Consolidated

    Revenue

    $

    337,445

     

     

    $

    209,078

     

     

    $

    75,170

     

     

    $

    19,515

     

     

    $

    (3,041

    )

     

    $

    638,167

     

    Operating expenses

     

    (260,069

    )

     

     

    (203,774

    )

     

     

    (65,362

    )

     

     

    (11,470

    )

     

     

    (41,415

    )

     

     

    (582,090

    )

    Other income (expense), net

     

     

     

     

     

     

     

     

     

     

     

     

     

    (39

    )

     

     

    (39

    )

    Adjusted EBITDA

    $

    77,376

     

     

    $

    5,304

     

     

    $

    9,808

     

     

    $

    8,045

     

     

    $

    (44,495

    )

     

    $

    56,038

     

    Share-based compensation expense

     

     

     

     

     

     

     

     

     

     

     

    (6,997

    )

    Transaction costs

     

     

     

     

     

     

     

     

     

     

     

    (4,305

    )

    Depreciation and amortization

     

     

     

     

     

     

     

     

     

     

     

    (11,887

    )

    Loss on disposal of property, equipment, and software

     

     

     

     

     

     

     

     

     

     

     

    (9

    )

    Interest expense, net

     

     

     

     

     

     

     

     

     

     

     

    (45,811

    )

    Income tax benefit

     

     

     

     

     

     

     

     

     

     

     

    1,312

     

    Net loss

     

     

     

     

     

     

     

     

     

     

    $

    (11,659

    )

     

    Six Months Ended December 31, 2022

    (in thousands)

    Senior

     

    Healthcare Services

     

    Life

     

    Auto & Home

     

    Corp & Elims

     

    Consolidated

    Revenue

    $

    301,340

     

     

    $

    98,546

     

     

    $

    70,830

     

     

    $

    14,890

     

     

    $

    (3,934

    )

     

    $

    481,672

     

    Operating expenses

     

    (221,574

    )

     

     

    (119,635

    )

     

     

    (59,963

    )

     

     

    (10,164

    )

     

     

    (34,322

    )

     

     

    (445,658

    )

    Other income (expense), net

     

     

     

     

     

     

     

    201

     

     

     

    (1

    )

     

     

    (112

    )

     

     

    88

     

    Adjusted EBITDA

    $

    79,766

     

     

    $

    (21,089

    )

     

    $

    11,068

     

     

    $

    4,725

     

     

    $

    (38,368

    )

     

    $

    36,102

     

    Share-based compensation expense

     

     

     

     

     

     

     

     

     

     

     

    (5,566

    )

    Transaction costs

     

     

     

     

     

     

     

     

     

     

     

    (2,570

    )

    Depreciation and amortization

     

     

     

     

     

     

     

     

     

     

     

    (13,990

    )

    Loss on disposal of property, equipment, and software

     

     

     

     

     

     

     

     

     

     

     

    (371

    )

    Interest expense, net

     

     

     

     

     

     

     

     

     

     

     

    (37,780

    )

    Income tax benefit

     

     

     

     

     

     

     

     

     

     

     

    4,205

     

    Net loss

     

     

     

     

     

     

     

     

     

     

    $

    (19,970

    )

     

    SELECTQUOTE, INC. AND SUBSIDIARIES

    Net Loss to Adjusted EBITDA Reconciliation

    (Unaudited)

     

    Guidance net loss to Adjusted EBITDA reconciliation, year ending June 30, 2024:

     

    (in thousands)

    Range

    Net loss

    $

    (45,000

    )

     

    $

    (22,000

    )

    Income tax benefit

     

    (8,000

    )

     

     

    (4,000

    )

    Interest expense, net

     

    97,000

     

     

     

    92,000

     

    Depreciation and amortization

     

    24,000

     

     

     

    22,000

     

    Share-based compensation expense

     

    15,000

     

     

     

    12,000

     

    Non-recurring expenses

     

    7,000

     

     

     

    5,000

     

    Adjusted EBITDA

    $

    90,000

     

     

    $

    105,000

     

     


    The SelectQuote Stock at the time of publication of the news with a raise of +4,95 % to 1,060EUR on Tradegate stock exchange (06. Februar 2024, 22:26 Uhr).


    Business Wire (engl.)
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    SelectQuote, Inc. Reports Second Quarter 2024 Results SelectQuote, Inc. (NYSE: SLQT) reported consolidated revenue for the second quarter of fiscal year 2024 of $405.4 million, compared to consolidated revenue for the second quarter of fiscal year 2023 of $319.2 million. Consolidated net income for the …