Second Quarter of Fiscal Year 2024 – Consolidated Earnings
Highlights
- Revenue of $405.4 million
- Net income of $19.4 million
- Adjusted EBITDA* of $67.4 million
Raising Fiscal Year 2024 Guidance Ranges:
- Revenue expected in a range of $1.23 billion to $1.3 billion vs
prior range of $1.05 billion to $1.2 billion
- Net loss expected in a range of $45 million to $22 million vs
prior range of $50 million to $22 million
- Adjusted EBITDA* expected in a range of $90 million to $105
million vs prior range of $80 million to $105 million
Second Quarter of Fiscal Year 2024 – Segment
Highlights
Senior
- Revenue of $247.5 million
- Adjusted EBITDA* of $78.7 million
- Approved Medicare Advantage policies of 234,576
Healthcare Services
- Revenue of $111.7 million
- Adjusted EBITDA* of $3.0 million
- Over 62,000 SelectRx members
Life
- Revenue of $37.4 million
- Adjusted EBITDA* of $4.6 million
Auto & Home
- Revenue of $10.5 million
- Adjusted EBITDA* of $4.7 million
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=59966.
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
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240207634209/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)
Storico
Da Dic 2023 a Dic 2024
