Third Quarter of Fiscal Year 2023 – Consolidated Earnings
Highlights
- Revenue of $299.4 million
- Net income of $9.3 million
- Adjusted EBITDA* of $44.0 million
Updating Fiscal Year 2023 Guidance Ranges:
- Revenue now expected in a range of $950 million to $970
million
- Net loss now expected in a range of $73 million to $55
million
- Adjusted EBITDA* now expected in a range of $40 million to $50
million
Third Quarter of Fiscal Year 2023 – Segment
Highlights
Senior
- Revenue of $185.2 million
- Adjusted EBITDA* of $59.2 million
- Approved Medicare Advantage policies of 165,530
Healthcare Services
- Revenue of $70.7 million
- Adjusted EBITDA* of $(3.4) million
- Approximately 45,000 SelectRx members
Life
- Revenue of $37.0 million
- Adjusted EBITDA* of $5.3 million
Auto & Home
- Revenue of $8.2 million
- Adjusted EBITDA* of $2.6 million
This release, dated May 10, 2023, has been updated to correct
the Fiscal Year 2023 Net loss guidance range and related
reconciliation table.
The updated release reads:
SELECTQUOTE, INC. REPORTS THIRD QUARTER OF FISCAL YEAR 2023
RESULTS
Third Quarter of Fiscal Year 2023 – Consolidated Earnings
Highlights
- Revenue of $299.4 million
- Net income of $9.3 million
- Adjusted EBITDA* of $44.0 million
Updating Fiscal Year 2023 Guidance Ranges:
- Revenue now expected in a range of $950 million to $970
million
- Net loss now expected in a range of $73 million to $55
million
- Adjusted EBITDA* now expected in a range of $40 million to $50
million
Third Quarter of Fiscal Year 2023 – Segment
Highlights
Senior
- Revenue of $185.2 million
- Adjusted EBITDA* of $59.2 million
- Approved Medicare Advantage policies of 165,530
Healthcare Services
- Revenue of $70.7 million
- Adjusted EBITDA* of $(3.4) million
- Approximately 45,000 SelectRx members
Life
- Revenue of $37.0 million
- Adjusted EBITDA* of $5.3 million
Auto & Home
- Revenue of $8.2 million
- Adjusted EBITDA* of $2.6 million
SelectQuote, Inc. (NYSE: SLQT) reported consolidated revenue for
the third quarter of fiscal year 2023 of $299.4 million compared to
consolidated revenue for the third quarter of fiscal year 2022 of
$274.3 million. Consolidated net income for the third quarter of
fiscal year 2023 was $9.3 million compared to consolidated net loss
for the third quarter of fiscal year 2022 of $7.0 million. Finally,
consolidated Adjusted EBITDA* for the third quarter of fiscal year
2023 was $44.0 million compared to consolidated Adjusted EBITDA*
for the third quarter of fiscal year 2022 of $12.2 million.
SelectQuote Chief Executive Officer, Tim Danker, added, “Our
strong results for the third quarter are an ongoing function of our
strategic redesign and the continued scale of our Healthcare
Services segment. None of this would be possible without the hard
work of our operational teams and importantly, SelectQuote’s
talented workforce. We are proud of our achievements over the past
five quarters and firmly believe our results validate our strategy
to drive more predictable profit and cash flow. Specifically, in
Senior, our continued gains in agent productivity, costs per policy
and policyholder persistency drove margin and cash flow that were
inline with previous peak results, despite increased conservatism
in booked lifetime values per policy. More importantly, we believe
the demonstrated unit economics in Senior were achieved with
substantially enhanced forecast visibility, which drove our out
performance as we were able to scale volume in both AEP and
OEP.”
“Our Healthcare Services business, headlined by SelectRx, also
made meaningful progress toward scaled profitability, which we
expect to accelerate as membership continues to onboard and season.
SelectRx’s value continues to resonate with consumers, and SelectRx
will increasingly benefit SelectQuote’s financial profile given its
accelerated cash flow dynamics compared to Senior.”
Mr. Danker concluded, “Based on SelectQuote’s overall out
performance year-to-date, we increased our guidance for fiscal year
2023 and have positioned the business very well as we plan for
fiscal 2024.”
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 and Adjusted EBITDA.* 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. Adjusted EBITDA Margin is
calculated as Adjusted EBITDA divided by revenue.
Senior
Financial Results
The following table provides the financial results for the
Senior segment for the periods presented:
Three Months Ended March
31,
Nine Months Ended March
31,
(in thousands)
2023
2022
% Change
2023
2022
% Change
Revenue
$
185,200
$
210,973
(12
)%
$
486,541
$
459,272
6
%
Adjusted EBITDA*
59,166
39,950
48
%
138,933
(129,311
)
207
%
Adjusted EBITDA Margin*
32
%
19
%
29
%
(28
)%
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 March
31,
Nine Months Ended March
31,
2023
2022
% Change
2023
2022
% Change
Medicare Advantage
196,372
242,721
(19
)%
538,247
678,827
(21
)%
Medicare Supplement
675
1,389
(51
)%
2,905
6,318
(54
)%
Dental, Vision and Hearing
21,175
40,178
(47
)%
59,513
122,214
(51
)%
Prescription Drug Plan
416
1,079
(61
)%
2,082
6,193
(66
)%
Other
1,864
4,907
(62
)%
5,402
11,436
(53
)%
Total
220,502
290,274
(24
)%
608,149
824,988
(26
)%
*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 March
31,
Nine Months Ended March
31,
2023
2022
% Change
2023
2022
% Change
Medicare Advantage
165,530
196,377
(16
)%
467,540
546,031
(14
)%
Medicare Supplement
557
1,159
(52
)%
2,184
4,654
(53
)%
Dental, Vision and Hearing
16,968
34,486
(51
)%
47,940
101,251
(53
)%
Prescription Drug Plan
521
1,095
(52
)%
1,794
5,315
(66
)%
Other
1,029
3,836
(73
)%
3,932
9,199
(57
)%
Total
184,605
236,953
(22
)%
523,390
666,450
(21
)%
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 March
31,
Nine Months Ended March
31,
(dollars per policy):
2023
2022
% Change
2023
2022
% Change
Medicare Advantage
$
965
$
933
3
%
$
888
$
935
(5
)%
Medicare Supplement
871
949
(8
)%
994
1,275
(22
)%
Dental, Vision and Hearing
91
120
(24
)%
95
123
(23
)%
Prescription Drug Plan
194
229
(15
)%
211
235
(10
)%
Other
123
95
29
%
100
77
30
%
Healthcare Services
Financial Results
The following table provides the financial results for the
Healthcare Services segment for the periods presented:
Three Months Ended March
31,
Nine Months Ended March
31,
(in thousands)
2023
2022
% Change
2023
2022
% Change
Revenue
$
70,725
$
23,123
206
%
$
169,270
$
40,183
321
%
Adjusted EBITDA*
(3,366
)
(7,768
)
57
%
(24,456
)
(20,113
)
(22
)%
Adjusted EBITDA Margin*
(5
)%
(34
)%
(14
)%
(50
)%
*See “Non-GAAP Financial Measures” below.
Operating Metrics
Members
The total number of SelectRx members represents the amount of
active 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
as of the periods presented:
March 31, 2023
March 31, 2022
Total SelectRx Members
44,993
16,991
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 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 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 March
31,
(dollars per approved policy):
2023
2022
Medicare Advantage and Medicare Supplement
approved policies
586,238
636,195
Medicare Advantage and Medicare Supplement
commission per MA/MS policy
$
886
$
963
Other commission per MA/MS policy
15
29
Pharmacy revenue per MA/MS policy
320
52
Other revenue per MA/MS policy
66
(64
)
Total revenue per MA/MS policy
1,287
980
Total operating expenses per MA/MS
policy
(1,167
)
(1,176
)
Adjusted EBITDA per MA/MS policy *
$
120
$
(196
)
Adjusted EBITDA Margin per MA/MS policy
*
9
%
(20
)%
Revenue/CAC multiple
3.5
X
1.8
X
Total revenue per MA/MS policy increased 31% for the twelve
months ended March 31, 2023 compared to the twelve months ended
March 31, 2022, primarily due to the increase in pharmacy revenue.
Total operating expenses per MA/MS policy were nearly flat for the
twelve months ended March 31, 2023 compared to the twelve months
ended March 31, 2022, driven by a decrease in our marketing and
advertising costs, which was offset by an increase in cost of goods
sold-pharmacy revenue for Healthcare Services due to the growth of
the business.
Life
Financial Results
The following table provides the financial results for the Life
segment for the periods presented:
Three Months Ended March
31,
Nine Months Ended March
31,
(in thousands)
2023
2022
% Change
2023
2022
% Change
Revenue
$
36,950
$
38,625
(4
)%
$
107,780
$
116,645
(8
)%
Adjusted EBITDA*
5,303
(2,662
)
299
%
16,371
(701
)
2435
%
Adjusted EBITDA Margin*
14
%
(7
)%
15
%
(1
)%
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 March
31,
Nine Months Ended March
31,
(in thousands)
2023
2022
% Change
2023
2022
% Change
Term Premiums
$
17,528
$
14,933
17
%
$
48,450
$
45,990
5
%
Final Expense Premiums
19,308
28,532
(32
)%
58,766
83,718
(30
)%
Total
$
36,836
$
43,465
(15
)%
107,216
129,708
(17
)%
Auto & Home
Financial Results
The following table provides the financial results for the Auto
& Home segment for the periods presented:
Three Months Ended March
31,
Nine Months Ended March
31,
(in thousands)
2023
2022
% Change
2023
2022
% Change
Revenue
$
8,238
$
7,152
15
%
$
23,128
$
20,755
11
%
Adjusted EBITDA*
2,591
1,150
125
%
7,315
3,957
85
%
Adjusted EBITDA Margin*
31
%
16
%
32
%
19
%
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 March
31,
Nine Months Ended March
31,
(in thousands):
2023
2022
% Change
2023
2022
% Change
Premiums
$
12,828
$
12,516
2
%
$
36,456
$
36,358
—
%
*See “Non-GAAP Financial Measures” below.
Earnings Conference Call
SelectQuote, Inc. will host a conference call with the
investment community tomorrow, Thursday, May 11, 2023, beginning at
8:30 a.m. ET. To register for this conference call, please use this
link:
https://www.netroadshow.com/events/login?show=830b3ad4&confId=49510A.
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 net
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 that
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 net income (loss) to Adjusted EBITDA are
presented 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 ultimate duration and impact of the ongoing 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; 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”) 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 specialized
medication management pharmacy, and Population Health which
proactively connects its members with best-in-class healthcare
services that fit each member's unique healthcare needs. The
platform improves health outcomes and lowers healthcare costs
through proactive engagement and access to high-value healthcare
solutions.
SELECTQUOTE, INC. AND
SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (In thousands)
March 31, 2023
June 30, 2022
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
92,048
$
140,997
Accounts receivable, net of allowances of
$2.2 million and $0.6 million, respectively
211,686
129,748
Commissions receivable-current
68,531
116,277
Other current assets
11,504
15,751
Total current assets
383,769
402,773
COMMISSIONS RECEIVABLE—Net
753,003
722,349
PROPERTY AND EQUIPMENT—Net
31,601
41,804
SOFTWARE—Net
16,127
16,301
OPERATING LEASE RIGHT-OF-USE ASSETS
26,312
28,016
INTANGIBLE ASSETS—Net
27,019
31,255
GOODWILL
29,136
29,136
OTHER ASSETS
20,989
18,418
TOTAL ASSETS
$
1,287,956
$
1,290,052
LIABILITIES AND SHAREHOLDERS’
EQUITY
CURRENT LIABILITIES:
Accounts payable
$
31,608
$
24,766
Accrued expenses
23,162
26,002
Accrued compensation and benefits
49,087
42,150
Operating lease liabilities—current
5,958
5,261
Current portion of long-term debt
25,412
7,169
Contract liabilities
9,717
3,404
Other current liabilities
1,580
4,761
Total current liabilities
146,524
113,513
LONG-TERM DEBT, NET—less current
portion
667,306
698,423
DEFERRED INCOME TAXES
49,134
50,080
OPERATING LEASE LIABILITIES
30,329
33,946
OTHER LIABILITIES
3,244
2,985
Total liabilities
896,537
898,947
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS’ EQUITY:
Common stock, par value
1,667
1,644
Additional paid-in capital
564,484
554,845
Accumulated deficit
(187,806
)
(177,100
)
Accumulated other comprehensive income
13,074
11,716
Total shareholders’ equity
391,419
391,105
TOTAL LIABILITIES AND SHAREHOLDERS’
EQUITY
$
1,287,956
$
1,290,052
SELECTQUOTE, INC. AND
SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME (LOSS) (Unaudited) (In
thousands)
Three Months Ended March
31,
Nine Months Ended March
31,
2023
2022
2023
2022
REVENUE:
Commission
$
197,258
$
221,764
$
533,627
$
492,528
Pharmacy
66,948
18,478
159,641
31,715
Other
35,192
34,097
87,802
100,412
Total revenue
299,398
274,339
781,070
624,655
OPERATING COSTS AND EXPENSES:
Cost of revenue
79,186
96,491
235,827
319,469
Cost of goods sold—pharmacy revenue
62,302
19,294
154,753
34,338
Marketing and advertising
90,205
125,082
237,724
409,005
Selling, general, and administrative
27,544
24,705
86,662
70,495
Technical development
6,434
6,436
18,860
18,675
Total operating costs and expenses
265,671
272,008
733,826
851,982
INCOME (LOSS) FROM OPERATIONS
33,727
2,331
47,244
(227,327
)
INTEREST EXPENSE, NET
(21,105
)
(12,179
)
(58,885
)
(31,300
)
OTHER INCOME (EXPENSE), NET
(206
)
(23
)
(118
)
(177
)
INCOME (LOSS) BEFORE INCOME TAX EXPENSE
(BENEFIT)
12,416
(9,871
)
(11,759
)
(258,804
)
INCOME TAX EXPENSE (BENEFIT)
3,152
(2,846
)
(1,053
)
(65,984
)
NET INCOME (LOSS)
$
9,264
$
(7,025
)
$
(10,706
)
$
(192,820
)
NET INCOME (LOSS) PER SHARE:
Basic
$
0.06
$
(0.04
)
$
(0.06
)
$
(1.17
)
Diluted
$
0.06
$
(0.04
)
$
(0.06
)
$
(1.17
)
WEIGHTED-AVERAGE COMMON STOCK OUTSTANDING
USED IN PER SHARE AMOUNTS:
Basic
166,543
164,083
165,951
163,914
Diluted
167,905
164,083
165,951
163,914
OTHER COMPREHENSIVE INCOME (LOSS) NET OF
TAX:
Gain (loss) on cash flow hedge
(2,661
)
7,589
1,358
9,358
OTHER COMPREHENSIVE INCOME (LOSS)
(2,661
)
7,589
1,358
9,358
COMPREHENSIVE INCOME (LOSS)
$
6,603
$
564
$
(9,348
)
$
(183,462
)
SELECTQUOTE, INC. AND
SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS (Unaudited) (In thousands)
Nine Months Ended March
31,
2023
2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss
$
(10,706
)
$
(192,820
)
Adjustments to reconcile net loss to net
cash and cash equivalents used in operating activities:
Depreciation and amortization
21,087
17,957
Loss on disposal of property, equipment,
and software
390
741
Share-based compensation expense
8,525
6,252
Deferred income taxes
(1,416
)
(66,378
)
Amortization of debt issuance costs and
debt discount
6,250
4,217
Write-off of debt issuance costs
710
—
Accrued interest payable in kind
8,450
—
Non-cash lease expense
3,115
3,065
Changes in operating assets and
liabilities:
Accounts receivable, net
(62,738
)
(59,837
)
Commissions receivable
17,092
7,601
Other assets
3,166
(8,275
)
Accounts payable and accrued expenses
6,440
8,096
Operating lease liabilities
(4,331
)
(3,868
)
Other liabilities
(8,869
)
(1,113
)
Net cash used in operating activities
(12,835
)
(284,362
)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment
(1,056
)
(24,515
)
Purchases of software and capitalized
software development costs
(5,804
)
(7,570
)
Acquisition of business
—
(6,927
)
Investment in equity securities
—
(1,000
)
Net cash used in investing activities
(6,860
)
(40,012
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Revolving Credit
Facility
—
50,000
Payments on Revolving Credit Facility
—
(50,000
)
Proceeds from Term Loans
—
242,000
Payments on Term Loans
(17,833
)
(1,793
)
Payments on other debt
(123
)
(130
)
Proceeds from common stock options
exercised and employee stock purchase plan
1,187
3,179
Payments of tax withholdings related to
net share settlement of equity awards
(40
)
(148
)
Payments of debt issuance costs
(10,110
)
(328
)
Payment of acquisition holdback
(2,335
)
(5,501
)
Net cash (used in) provided by financing
activities
(29,254
)
237,279
NET DECREASE IN CASH AND CASH
EQUIVALENTS
(48,949
)
(87,095
)
CASH AND CASH EQUIVALENTS—Beginning of
period
140,997
286,454
CASH AND CASH EQUIVALENTS—End of
period
$
92,048
$
199,359
SELECTQUOTE, INC. AND
SUBSIDIARIES Net Income (Loss) to Adjusted EBITDA
Reconciliation (Unaudited)
Three Months Ended March 31,
2023
(in thousands)
Senior
Healthcare Services
Life
Auto & Home
Corp & Elims
Consolidated
Revenue
$
185,200
$
70,725
$
36,950
$
8,238
$
(1,715
)
$
299,398
Operating expenses
(126,034
)
(74,091
)
(31,446
)
(5,648
)
(17,947
)
(255,166
)
Other income (expense), net
—
—
(201
)
1
(6
)
(206
)
Adjusted EBITDA
59,166
(3,366
)
5,303
2,591
(19,668
)
44,026
Share-based compensation expense
(2,959
)
Non-recurring expenses
(433
)
Depreciation and amortization
(7,098
)
Loss on disposal of property, equipment,
and software
(15
)
Interest expense, net
(21,105
)
Income tax expense
(3,152
)
Net income
$
9,264
Three Months Ended March 31,
2022
(in thousands)
Senior
Healthcare Services
Life
Auto & Home
Corp & Elims
Consolidated
Revenue
$
210,973
$
23,123
$
38,625
$
7,152
$
(5,534
)
$
274,339
Operating expenses
(171,023
)
(30,891
)
(41,287
)
(6,002
)
(12,896
)
(262,099
)
Other expenses, net
—
—
—
—
(23
)
(23
)
Adjusted EBITDA
39,950
(7,768
)
(2,662
)
1,150
(18,453
)
12,217
Share-based compensation expense
(2,143
)
Non-recurring expenses
(703
)
Depreciation and amortization
(6,679
)
Loss on disposal of property, equipment,
and software
(384
)
Interest expense, net
(12,179
)
Income tax benefit
2,846
Net loss
$
(7,025
)
Nine Months Ended March 31,
2023
(in thousands)
Senior
Healthcare Services
Life
Auto & Home
Corp & Elims
Consolidated
Revenue
$
486,541
$
169,270
$
107,780
$
23,128
$
(5,649
)
$
781,070
Operating expenses
(347,608
)
(193,726
)
(91,409
)
(15,812
)
(52,270
)
(700,825
)
Other expenses, net
—
—
—
(1
)
(117
)
(118
)
Adjusted EBITDA
138,933
(24,456
)
16,371
7,315
(58,036
)
80,127
Share-based compensation expense
(8,525
)
Transaction costs
(3,003
)
Depreciation and amortization
(21,087
)
Loss on disposal of property, equipment,
and software
(386
)
Interest expense, net
(58,885
)
Income tax benefit
1,053
Net loss
$
(10,706
)
Nine Months Ended March 31,
2022
(in thousands)
Senior
Healthcare Services
Life
Auto & Home
Corp & Elims
Consolidated
Revenue
$
459,272
$
40,183
$
116,645
$
20,755
$
(12,200
)
$
624,655
Operating expenses
(588,583
)
(60,296
)
(117,346
)
(16,798
)
(41,154
)
(824,177
)
Other expenses, net
—
—
—
—
(177
)
(177
)
Adjusted EBITDA
(129,311
)
(20,113
)
(701
)
3,957
(53,531
)
(199,699
)
Share-based compensation expense
(6,252
)
Non-recurring expenses
(2,857
)
Depreciation and amortization
(17,957
)
Loss on disposal of property, equipment,
and software
(739
)
Interest expense, net
(31,300
)
Income tax benefit
65,984
Net loss
$
(192,820
)
SELECTQUOTE, INC. AND
SUBSIDIARIES Net Loss to Adjusted EBITDA Reconciliation
(Unaudited)
Guidance net loss to Adjusted EBITDA
reconciliation, year ending June 30, 2023:
(in thousands)
Range
Net loss
$
(73,000
)
$
(55,000
)
Income tax benefit
(25,000
)
(19,000
)
Interest expense, net
80,000
80,000
Depreciation and amortization
28,000
28,000
Share-based compensation expense
12,000
12,000
Transaction costs
18,000
4,000
Adjusted EBITDA
$
40,000
$
50,000
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230510005967/en/
Investor Relations: Sloan Bohlen 877-678-4083
investorrelations@selectquote.com
Media: Matt Gunter 913-286-4931 matt.gunter@selectquote.com
Grafico Azioni SelectQuote (NYSE:SLQT)
Storico
Da Nov 2024 a Dic 2024
Grafico Azioni SelectQuote (NYSE:SLQT)
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Da Dic 2023 a Dic 2024
