CHICAGO, Nov. 10, 2022 /PRNewswire/ -- GoHealth, Inc. (NASDAQ: GOCO), a leading health insurance marketplace and Medicare-focused digital health company, today announced financial results for the three and nine months ended September 30, 2022.

GoHealth, Inc. (PRNewsfoto/GoHealth, Inc.)

  • YTD 2022 positive cash flow from operations of $101.9 million compared to negative cash flow from operations of $72.4 million in the prior year period.
  • Third quarter 2022 Medicare Submitted Policies of 132,831 decreased 34% compared to the prior year period. YTD 2022 Medicare Submitted Policies of 611,385 increased 11% compared to the prior year period.
  • Third quarter 2022 net revenue of $133.1 million decreased 37% compared to the prior year period. YTD 2022 net revenue of $562.3 million decreased 8% compared to the prior year period.
  • Third quarter 2022 net loss of $74.7 million compared to a net loss of $55.5 million in the prior year period.  YTD 2022 net loss of $225.6 million compared to a net loss of $102.0 million in the prior year period. 
  • Third quarter 2022 Adjusted EBITDA1 of negative $14.3 million compared to Adjusted EBITDA1 of negative $14.2 million in the prior year period. YTD 2022 Adjusted EBITDA1 of negative $35.0 million compared to Adjusted EBITDA1 of $32.2 million in the prior year period.

"During the third quarter, GoHealth went back to basics with a clear focus on the fundamentals of the business and an aim to put the beneficiary at the center of everything we do. We are making meaningful progress on our transformation through our strategic initiatives and diversification into Encompass. This has materially changed the dynamics of cash flow for our business and we're confident these positive trends will continue as we lean further into our Encompass solution," said Vijay Kotte, GoHealth's Chief Executive Officer.

"The market is in need of unbiased third parties to help support the Medicare shopping and enrollment process. The challenge has been the misaligned rewards structure and the lack of trust in the industry. GoHealth is leveraging our Encompass solution, our health plan relationships, our proprietary technology, and our experienced, high-quality sales agents to solve these industry challenges and act as a trusted partner to beneficiaries," said Kotte.

Mr. Kotte continued, "I believe our end-to-end Encompass solution will be a game changer for our customers, for health plans, and for the financial profile of our business. So far this Annual Enrollment Period, inclusive of a significant adoption of Encompass, we're experiencing a 70% higher conversion rate than we were last year at this time."

"I'm very pleased with the progress we've made in just a few short months. I believe GoHealth is best positioned to seize the opportunities at hand," concluded Mr. Kotte.

Conference Call Details

The Company will host a conference call today, Thursday, November 10, 2022 at 5:00 p.m. (ET) to discuss its financial results.  Participants can pre-register for the conference call at the following link: https://register.vevent.com/register/BIe3f052938613486583fb292fcf47ae56. A live audio webcast of the conference call will be available via GoHealth's Investor Relations website, https://investors.gohealth.com/. A replay of the call will be available via webcast for on-demand listening shortly after the completion of the call.

About GoHealth, Inc.:

As a leading health insurance marketplace and Medicare-focused digital health company, GoHealth's mission is to improve access to healthcare in America. Enrolling in a health insurance plan can be confusing for customers, and the seemingly small differences between plans can lead to significant out-of-pocket costs or lack of access to critical medicines and even providers. GoHealth combines cutting-edge technology, data science and deep industry expertise to match customers with the healthcare policy and carrier that is right for them. GoHealth has enrolled millions of people in Medicare plans and individual and family plans. For more information, visit https://www.gohealth.com. 

Investor Relations:
IR@gohealth.com 

Media Relations:
Pressinquiries@gohealth.com 

(1)

Adjusted EBITDA is a non-GAAP measure. For a definition of Adjusted EBITDA and a reconciliation to the most comparable GAAP measure, please see below.

 

Forward-Looking Statements

This release contains forward-looking statements.  We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  All statements other than statements of historical facts contained in this press release may be forward-looking statements. Statements regarding our future results of operations and financial position, business strategy and plans and objectives of management for future operations, including, among others, statements regarding our expected growth, level of cash flow, future capital expenditures and debt service obligations are forward-looking statements.

In some cases, you can identify forward-looking statements by terms, such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "targets," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these terms or other similar expressions. 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 the 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.

These forward-looking statements speak only as of the date of this release and are subject to a number of important factors that could cause actual results to differ materially from those in the forward-looking statements, including, but are not limited to, the following:  the marketing and sale of Medicare plans are subject to numerous, complex and frequently changing laws, regulations and guidelines; our business may be harmed if we lose our relationships with carriers or if our relationships with carriers change; our failure to grow our customer base or retain our existing customers; carriers may reduce the commissions paid to us and change their underwriting practices in ways that reduce the number of, or impact the renewal or approval rates of, insurance policies sold through our platform; factors that impact our estimate of LTV (as defined below) may be adversely impacted; our management and independent auditors have identified a material weakness in our internal controls over financial reporting, and we may be unable to develop, implement and maintain appropriate controls in future periods, which may lead to errors or omissions in our financial statements; the potential delisting of our common stock from the Nasdaq Global Market; volatility in general economic conditions, including inflation, interest rates, and other commodity prices and exchange rates may impact our financial position and performance; our ability to borrow under the Credit Agreement is subject to ongoing compliance with a number of financial covenants, affirmative covenants, and other restrictions, which may limit our operations and our ability to take certain actions; we currently depend on a small group of carriers for a substantial portion of our revenue; information technology system failures could interrupt our operations; our ability to sell Medicare-related health insurance plans is largely dependent on our licensed health insurance agents; operating and growing our business may require additional capital; whether our Encompass solution will achieve anticipated benefits; our strategic focus on cash flow optimization may lead to decreased revenue or otherwise adversely affect our business; we may lose key employees or fail to attract qualified employees; our operations may be adversely impacted by a reduction in employee headcount or other similar actions; the Founders (as defined in our Annual Report on Form 10-K for the year ended December 31, 2021 (the "2021 Form 10-K")) and Centerbridge (as defined in the 2021 Form 10-K) have significant influence over us, including control over decisions that require the approval of stockholders; and other important factors described in the section titled "Risk Factors" in our 2021 Form 10-K, and the section titled "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2022, and in our other filings with the Securities and Exchange Commission.

The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in this press release, as well as the cautionary statements and other risk factors set forth in the 2021 Form 10-K, Quarterly Report on Form 10-Q for the first quarter ended March 31, 2022, Quarterly Report on Form 10-Q for the second quarter ended June 30, 2022, and other SEC filings. If one or more events related to these or other risks or uncertainties materialize, or our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. Many of the important factors that will determine these results are beyond our ability to control or predict. 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. New factors emerge from time to time, and it is not possible for us to predict which will arise. In addition, we cannot assess the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

Use of Non-GAAP Financial Measures and Key Performance Indicators

In this press release, we use supplemental measures of our performance that are derived from our consolidated financial information, but which are not presented in our Consolidated Financial Statements prepared in accordance with Generally Accepted Accounting Principles ("GAAP"). These non-GAAP financial measures include net income (loss) before interest expense, income tax expense (benefit) and depreciation and amortization expense ("EBITDA"); Adjusted EBITDA and Adjusted EBITDA margin. Adjusted EBITDA is the primary financial performance measure used by management to evaluate its business and monitor its results of operations.

Adjusted EBITDA represents, as applicable for the period, EBITDA as further adjusted for certain items summarized below in this press release.  Adjusted EBITDA margin represents Adjusted EBITDA divided by net revenues.

We use non-GAAP financial measures to supplement financial information presented on a GAAP basis. We believe that excluding certain items from our GAAP results allows management to better understand our consolidated financial performance from period to period and better project our future consolidated financial performance as forecasts are developed at a level of detail different from that used to prepare GAAP-based financial measures. Moreover, we believe these non-GAAP financial measures provide our stakeholders with useful information to help them evaluate our operating results by facilitating an enhanced understanding of our operating performance and enabling them to make more meaningful period to period comparisons. There are limitations to the use of the non-GAAP financial measures presented in this press release. For example, our non-GAAP financial measures may not be comparable to similarly titled measures of other companies. Other companies, including companies in our industry, may calculate non-GAAP financial measures differently than we do, limiting the usefulness of those measures for comparative purposes.

The non-GAAP financial measures are not meant to be considered as indicators of performance in isolation from or as a substitute for net income (loss) prepared in accordance with GAAP, and should be read only in conjunction with financial information presented on a GAAP basis. Reconciliations of each of EBITDA and Adjusted EBITDA to its most directly comparable GAAP financial measure, net income (loss), are presented in the tables below in this press release. We encourage you to review the reconciliations in conjunction with the presentation of the non-GAAP financial measures for each of the periods presented. In future periods, we may exclude similar items, may incur income and expenses similar to these excluded items and include other expenses, costs and non-recurring items.

Glossary

"Adjusted EBITDA" represents, as applicable for the period, EBITDA as further adjusted for certain items summarized below in this press release. 

"Adjusted EBITDA Margin" refers to Adjusted EBITDA divided by net revenues.

"Approved Submissions" refer to Submitted Policies approved by carriers for the identified product during the indicated period.

"LTV Per Approved Submission" refers to the Lifetime Value of Commissions per Approved Submission, which we define as (i) aggregate commissions estimated to be collected over the estimated life of all commissionable Approved Submissions for the relevant period based on multiple factors, including but not limited to, contracted commission rates, carrier mix and expected policy persistency with applied constraints, excluding revenue adjustments recorded in the period, but relating to performance obligations satisfied in prior periods, divided by (ii) the number of commissionable Approved Submissions for such period.

"Submitted Policies" refer to completed applications that, with respect to each such application, the consumer has authorized us to submit to the carrier.

 

The following tables set forth the components of our results of operations for the periods indicated (unaudited):



(in thousands, except percentages and per share amounts)


Three months ended Sep.
30, 2022


Three months ended Sep.
30, 2021






Dollars


% of Net
Revenues


Dollars


% of Net
Revenues


$ Change


% Change

Net revenues:













Commission


$      87,058


65.4 %


$    174,948


82.6 %


$       (87,890)


(50.2) %

Enterprise


45,994


34.6 %


36,786


17.4 %


9,208


25.0 %

Net revenues


133,052


100.0 %


211,734


100.0 %


(78,682)


(37.2) %

Operating expenses:













Cost of revenue


48,044


36.1 %


53,632


25.3 %


(5,588)


(10.4) %

Marketing and advertising


22,661


17.0 %


59,511


28.1 %


(36,850)


(61.9) %

Customer care and enrollment


51,153


38.4 %


86,775


41.0 %


(35,622)


(41.1) %

Technology


11,061


8.3 %


11,651


5.5 %


(590)


(5.1) %

General and administrative


25,611


19.2 %


24,295


11.5 %


1,316


5.4 %

Amortization of intangible assets


23,514


17.7 %


23,514


11.1 %


—


— %

Operating lease impairment charges


350


0.3 %


1,062


0.5 %


(712)


N/M

Restructuring and other related charges


9,797


7.4 %


—


— %


9,797


N/M

Total operating expenses


192,191


144.4 %


260,440


123.0 %


(68,249)


(26.2) %

Income (loss) from operations


(59,139)


(44.4) %


(48,706)


(23.0) %


(10,433)


21.4 %

Interest expense


15,630


11.7 %


6,921


3.3 %


8,709


125.8 %

Other (income) expense


(115)


(0.1) %


(30)


— %


(85)


N/M

Income (loss) before income taxes


(74,654)


(56.1) %


(55,597)


(26.3) %


(19,057)


34.3 %

Income tax expense (benefit)


—


— %


(79)


— %


79


N/M

Net income (loss)


$    (74,654)


(56.1) %


$    (55,518)


(26.2) %


$       (19,136)


34.5 %

Net income (loss) attributable to noncontrolling interests


(44,649)


(33.6) %


(35,278)


(16.7) %


(9,371)


26.6 %

Net income (loss) attributable to GoHealth, Inc.


$    (30,005)


(22.6) %


$    (20,240)


(9.6) %


$         (9,765)


48.2 %

Net income (loss) per share:













Net income (loss) per share of common stock — basic and diluted


$        (0.23)




$        (0.18)







Weighted-average shares of Class A common stock outstanding —
basic and diluted


132,378




113,938







Non-GAAP financial measures:













EBITDA


$    (30,959)




$     (22,606)







Adjusted EBITDA


$     (14,327)




$     (14,155)







Adjusted EBITDA margin


(10.8)

%



(6.7)

%






_________________________













N/M = Not meaningful













 

 

 

(in thousands, except percentages and per share amounts)


Nine months ended Sep.
30, 2022


Nine months ended Sep.
30, 2021






Dollars


% of Net
Revenues


Dollars


% of Net
Revenues


$ Change


% Change

Net revenues:













Commission


$    414,735


73.8 %


$    496,437


81.0 %


$       (81,702)


(16.5) %

Enterprise


147,564


26.2 %


116,378


19.0 %


31,186


26.8 %

Net revenues


562,299


100.0 %


612,815


100.0 %


(50,516)


(8.2) %

Operating expenses:













Cost of revenue


167,041


29.7 %


139,449


22.8 %


27,592


19.8 %

Marketing and advertising


151,408


26.9 %


169,730


27.7 %


(18,322)


(10.8) %

Customer care and enrollment


196,150


34.9 %


195,796


32.0 %


354


0.2 %

Technology


34,569


6.1 %


33,251


5.4 %


1,318


4.0 %

General and administrative


90,859


16.2 %


69,277


11.3 %


21,582


31.2 %

Amortization of intangible assets


70,543


12.5 %


70,543


11.5 %


—


— %

Operating lease impairment charges


25,345


4.5 %


1,062


0.2 %


24,283


NM

Restructuring and other related charges


11,872


2.1 %


—


— %


11,872


NM

Total operating expenses


747,787


133.0 %


679,108


110.8 %


68,679


10.1 %

Income (loss) from operations


(185,488)


(33.0) %


(66,293)


(10.8) %


(119,195)


179.8 %

Interest expense


39,752


7.1 %


23,886


3.9 %


15,866


66.4 %

Loss on extinguishment of debt


—


— %


11,935


1.9 %


(11,935)


N/M

Other (income) expense


(65)


— %


27


— %


(92)


(340.7) %

Income (loss) before income taxes


(225,175)


(40.0) %


(102,141)


(16.7) %


(123,034)


120.5 %

Income tax expense (benefit)


472


0.1 %


(142)


— %


614


N/M

Net income (loss)


$   (225,647)


(40.1) %


$   (101,999)


(16.6) %


$     (123,648)


121.2 %

Net loss attributable to noncontrolling interests


(138,340)


(24.6) %


(67,668)


(11.0) %


$        (70,672)


104.4 %

Net loss attributable to GoHealth, Inc.


$    (87,307)


(15.5) %


$    (34,331)


(5.6) %


$       (52,976)


154.3 %

Net income (loss) per share:













Net income (loss) per share of common stock — basic and diluted


$        (0.70)




$        (0.33)







Weighted-average shares of Class A common stock outstanding —
basic and diluted


124,401




102,939







Non-GAAP financial measures:













EBITDA


$   (104,999)




$       (1,080)







Adjusted EBITDA


$     (34,995)




$      32,197







Adjusted EBITDA margin


(6.2)

%



5.3

%






_________________________













NM = Not meaningful













 

 

The following tables set forth the reconciliations of GAAP net income (loss) to EBITDA and Adjusted EBITDA for the periods indicated (unaudited):



Three months ended Sep. 30,

(in thousands)


2022


2021

Net revenues


$    133,052


$    211,734

Net income (loss)


(74,654)


(55,518)

Interest expense


15,630


6,921

Income tax expense (benefit)


—


(79)

Depreciation and amortization expense


28,065


26,070

EBITDA


(30,959)


(22,606)

Restructuring and other related charges (1)


9,797


—

Share-based compensation expense (2)


6,456


7,389

Operating lease impairment charges (3)


350


1,062

Professional services (4)


29


—

Adjusted EBITDA


$     (14,327)


$     (14,155)

Adjusted EBITDA margin


(10.8) %


(6.7) %

















(1)

Represents employee termination benefits and other associated costs related to restructuring activities.

(2)

Represents non-cash share-based compensation expense relating to equity awards, as well share-based compensation expense relating to liability classified awards that will be settled in cash.

(3)

Represents operating lease impairment charges, reducing the carrying value of the associated ROU assets and leasehold improvements to the estimated fair values.

(4)

Represents costs associated with non-recurring consulting fees and other professional services.

 



Nine months ended Sep. 30,

(in thousands)


2022


2021

Net revenues


$    562,299


$    612,815

Net income (loss)


(225,647)


(101,999)

Interest expense


39,752


23,886

Income tax expense (benefit)


472


(142)

Depreciation and amortization expense


80,424


77,175

EBITDA


(104,999)


(1,080)

Share-based compensation expense (1)


25,868


20,100

Operating lease impairment charges (2)


25,345


1,062

Restructuring and other related charges (3)


11,872


—

Professional services (4)


3,979


—

Severance costs (5)


2,940


—

Loss on extinguishment of debt (6)


—


11,935

Legal fees (7)


—


180

Adjusted EBITDA


$     (34,995)


$      32,197

Adjusted EBITDA margin


(6.2) %


5.3 %

















(1)

Represents non-cash share-based compensation expense relating to equity awards, as well share-based compensation expense relating to liability classified awards that will be settled in cash.

(2)

Represents operating lease impairment charges, reducing the carrying value of the associated ROU assets and leasehold improvements to the estimated fair values.

(3)

Represents employee termination benefits and other associated costs related to restructuring activities.

(4)

Represents costs associated with non-recurring consulting fees and other professional services.

(5)

Represents costs associated with the termination of employment and associated fees unrelated to restructuring activities.

(6)

Represents the loss on debt extinguishment related to the Initial Term Loan Facility.

(7)

Represents non-recurring legal fees unrelated to our core operations.

 

The following table summarizes share-based compensation expense by operating function for the periods indicated (unaudited):




Three months ended Sep. 30,


Nine months ended Sep. 30,

(in thousands)


2022


2021


2022


2021

Marketing and advertising


$             556


$             698


$          1,212


$          1,462

Customer care and enrollment


738


957


1,993


2,796

Technology


884


910


2,493


2,791

General and administrative


4,277


4,824


20,170


13,051

Total share-based compensation expense


$          6,456


$          7,389


$         25,868


$         20,100

 

The following table sets forth our balance sheets for the periods indicated (unaudited):


(in thousands, except per share amounts)


Sep. 30, 2022


Dec. 31, 2021

Assets





Current assets:





Cash and cash equivalents


$           215,403


$             84,361

Accounts receivable, net of allowance for doubtful accounts of $271 in 2022 and $558 in 2021


4,835


17,276

Commissions receivable - current


217,937


268,663

Prepaid expense and other current assets


29,972


58,695

Total current assets


468,147


428,995

Commissions receivable - non-current


959,105


993,844

Operating lease ROU asset


21,436


23,462

Other long-term assets


1,932


3,608

Property, equipment, and capitalized software, net


26,930


24,273

Intangible assets, net


524,126


594,669

Total assets


$         2,001,676


$         2,068,851

Liabilities and Stockholders' Equity





Current liabilities:





Accounts payable


$               9,370


$             39,843

Accrued liabilities


32,316


52,788

Commissions payable - current


69,501


104,160

Short-term operating lease liability


9,381


6,126

Deferred revenue


114,181


536

Current portion of long-term debt


5,270


5,270

Other current liabilities


15,402


8,344

Total current liabilities


255,421


217,067

Non-current liabilities:





Commissions payable - non-current


305,909


274,403

Long-term operating lease liability


38,671


19,776

Long-term debt, net of current portion


660,387


665,115

Other non-current liabilities


3,624


—

Total non-current liabilities


1,008,591


959,294

Commitments and Contingencies (Note 11)





Series A redeemable convertible preferred stock — $0.0001 par value; 50 shares authorized; 50 shares issued and
outstanding at September 30, 2022.  No shares issued and outstanding as of December 31, 2021. Liquidation preference
of $1,001 per share at September 30, 2022.


48,426


—

Series A-1 redeemable convertible preferred stock— $0.0001 par value; 200 shares authorized; no shares issued and
outstanding at September 30, 2022 and December 31, 2021.


—


—

Stockholders' equity:





Class A common stock – $0.0001 par value; 1,100,000 shares authorized; 133,462 and 115,487 shares issued;
133,271 and 115,487 shares outstanding at September 30, 2022 and December 31, 2021, respectively.


13


11

Class B common stock – $0.0001 par value; 578,192 and 587,360 shares authorized; 196,184 and 205,352 shares
issued and outstanding at September 30, 2022 and December 31, 2021, respectively.


20


21

Preferred stock – $0.0001 par value; 20,000 shares authorized (including 50 shares of Series A redeemable
convertible preferred stock authorized  and 200 shares of Series A-1 redeemable convertible preferred stock
authorized); 50 shares issued and outstanding at September 30, 2022 and no shares issued and outstanding at
December 31, 2021.


—


—

Treasury stock – at cost; 191 shares of Class A common stock at September 30, 2022


(345)


—

Additional paid-in capital


621,118


561,447

Accumulated other comprehensive income (loss)


(171)


(59)

Accumulated deficit


(295,691)


(208,317)

Total stockholders' equity attributable to GoHealth, Inc.


324,944


353,103

Non-controlling interests


364,294


539,387

Total stockholders' equity


689,238


892,490

Total liabilities, redeemable convertible preferred stock and stockholders' equity


$        2,001,676


$        2,068,851

 

The following table sets forth our statements of cash flows for the periods indicated (unaudited):




Nine months ended Sep.
30,

(in thousands)


2022


2021

Operating Activities





Net loss


$     (225,647)


$     (101,999)

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:





Share-based compensation


22,776


20,100

Depreciation and amortization


9,881


6,632

Amortization of intangible assets


70,543


70,543

Amortization of debt discount and issuance costs


2,163


1,696

Loss on extinguishment of debt


—


11,935

Operating lease impairment charges


25,345


1,062

Non-cash restructuring charges


976


—

Non-cash lease expense


4,064


3,765

Other non-cash items


(517)


(607)

Changes in assets and liabilities:





Accounts receivable


12,852


6,173

Commissions receivable


85,522


(160,982)

Prepaid expenses and other assets


29,608


10,471

Accounts payable


(30,573)


18,298

Accrued liabilities


(20,818)


5,693

Deferred revenue


113,645


(175)

Commissions payable


(3,153)


36,233

Operating lease liabilities


(5,885)


(3,678)

Other liabilities


11,121


2,421

Net cash provided by (used in) operating activities


101,903


(72,419)

Investing Activities





Purchases of property, equipment and software


(12,096)


(19,269)

Net cash used in investing activities


(12,096)


(19,269)

Financing Activities





Proceeds from sale of Series A redeemable convertible preferred stock


50,000


—

Issuance cost payments from issuance of Series A redeemable convertible preferred stock


(1,641)


—

Proceeds from borrowings


—


335,000

Repayment of borrowings


(3,953)


(297,903)

Call premium paid for debt extinguishment


—


(5,910)

Debt issuance cost payments


(2,763)


(1,608)

Principal payments under finance lease obligations


(103)


(231)

Cash received on advancement to NVX Holdings, Inc.


—


3,395

Net cash (used in) provided by financing activities


41,540


32,743

Effect of exchange rate changes on cash and cash equivalents


(305)


(68)

Increase (decrease) in cash and cash equivalents


131,042


(59,013)

Cash and cash equivalents at beginning of period


84,361


144,234

Cash and cash equivalents at end of period


$      215,403


$        85,221

Supplemental Disclosure of Cash Flow Information





Non-cash investing and financing activities:





Purchases of property, equipment and software included in accounts payable


$             100


$          2,734

 

The following tables set forth operating segment results for the periods indicated (unaudited):


(in thousands, except percentages)


Three months ended Sep.
30, 2022


Three months ended Sep.
30, 2021






Dollars


% of Net
Revenues


Dollars


% of Net
Revenues


$ Change


% Change

Net revenues:













Medicare - Internal


$         79,266


59.6 %


$       158,605


75.0 %


$       (79,339)


(50.0) %

Medicare - External


49,793


37.4 %


46,237


21.8 %


3,556


7.7 %

IFP and Other - Internal


3,459


2.6 %


5,742


2.7 %


(2,283)


(39.8) %

IFP and Other - External


534


0.4 %


1,150


0.5 %


(616)


(53.6) %

Net revenues


133,052


100.0 %


211,734


100.0 %


(78,682)


(37.2) %

Segment profit (loss):













Medicare - Internal


2,609


2.0 %


(4,126)


(1.9) %


6,735


(163.2) %

Medicare - External


(2,201)


(1.7) %


1,866


0.9 %


(4,067)


(218.0) %

IFP and Other - Internal


496


0.4 %


2,186


1.0 %


(1,690)


(77.3) %

IFP and Other - External


(576)


(0.4) %


(330)


(0.2) %


(246)


74.5 %

Segment profit (loss)


328


0.2 %


(404)


(0.2) %


732


(181.2) %

Corporate expense


25,806


19.4 %


23,726


11.2 %


2,080


8.8 %

Amortization of intangible assets


23,514


17.7 %


23,514


11.1 %


—


— %

Operating lease impairment charges


350


0.3 %


1,062


0.5 %


(712)


N/M

Restructuring and other related charges


9,797


7.4 %


—


— %


9,797


N/M

Interest expense


15,630


11.7 %


6,921


3.3 %


8,709


125.8 %

Other (income) expense


(115)


(0.1) %


(30)


— %


(85)


283.3 %

Income (loss) before income taxes


$        (74,654)


(56.1) %


$        (55,597)


(26.3) %


$        (19,057)


34.3 %

_________________________

N/M = Not meaningful

 



Nine months ended Sep.
30, 2022


Nine months ended Sep.
30, 2021





(in thousands, except percentages)


Dollars


% of Net
Revenues


Dollars


% of Net
Revenues


$ Change


% Change

Net revenues:













Medicare - Internal


$       386,796


68.8 %


$       476,391


77.7 %


$       (89,595)


(18.8) %

Medicare - External


161,382


28.7 %


117,116


19.1 %


44,266


37.8 %

IFP and Other - Internal


11,904


2.1 %


13,505


2.2 %


(1,601)


(11.9) %

IFP and Other - External


2,217


0.4 %


5,803


0.9 %


(3,586)


(61.8) %

Net revenues


562,299


100.0 %


612,815


100.0 %


(50,516)


(8.2) %

Segment profit (loss):













Medicare - Internal


26,408


4.7 %


73,574


12.0 %


(47,166)


(64.1) %

Medicare - External


(15,629)


(2.8) %


(453)


(0.1) %


(15,176)


3350.1 %

IFP and Other - Internal


2,668


0.5 %


657


0.1 %


2,011


306.1 %

IFP and Other - External


(1,245)


(0.2) %


(227)


— %


(1,018)


448.5 %

Segment profit (loss)


12,202


2.2 %


73,551


12.0 %


(61,349)


(83.4) %

Corporate expense


89,930


16.0 %


68,239


11.1 %


21,691


31.8 %

Amortization of intangible assets


70,543


12.5 %


70,543


11.5 %


—


— %

Operating lease impairment charges


25,345


4.5 %


1,062


0.2 %


24,283


N/M

Restructuring and other related charges


11,872


2.1 %


—


— %


11,872


N/M

Loss on extinguishment of debt


—


— %


11,935


1.9 %


(11,935)


N/M

Interest expense


39,752


7.1 %


23,886


3.9 %


15,866


66.4 %

Other (income) expense


(65)


— %


27


— %


(92)


(340.7) %

Income (loss) before income taxes


$      (225,175)


(40.0) %


$      (102,141)


(16.7) %


$      (123,034)


120.5 %

_________________________

N/M = Not meaningful

 

The following table presents the number of Submitted Policies by product for the Medicare segments for the three and nine months ended September 30, 2022 and 2021, for those submissions that are commissionable (compensated through commissions received from carriers):





Three months ended Sep. 30,


Nine months ended Sep. 30,

Medicare - Total Commissionable Submitted Policies


2022


2021


2022


2021

Medicare Advantage


123,523


195,414


577,139


521,451

Medicare Supplement


113


751


809


2,877

Prescription Drug Plans


4,025


2,740


15,485


7,707

Total Medicare


127,661


198,905


593,433


532,035

 

The following tables present the number of Approved Submissions by product relating to commissionable policies for the Medicare segments for three and nine months ended September 30, 2022 and 2021. Only commissionable policies are used to calculate LTV.





Three months ended Sep. 30,


Nine months ended Sep. 30,

Medicare - Internal Commissionable Approved Submissions


2022


2021


2022


2021

Medicare Advantage


51,848


145,619


334,361


395,804

Medicare Supplement


31


183


249


702

Prescription Drug Plans


1,223


2,208


6,096


6,525

Total Medicare


53,102


148,010


340,706


403,031

 





Three months ended Sep. 30,


Nine months ended Sep. 30,

Medicare - External Commissionable Approved Submissions


2022


2021


2022


2021

Medicare Advantage


62,928


47,488


218,371


121,179

Medicare Supplement


14


427


279


1,823

Prescription Drug Plans


2,761


191


8,874


716

Total Medicare


65,703


48,106


227,524


123,718

 

The following table presents the LTV per Approved Submission by product for the Medicare segments for the three and nine months ended September 30, 2022 and 2021:





Three months ended Sep. 30,


Nine months ended Sep. 30,

LTV per Approved Submission


2022


2021


2022


2021

Medicare Advantage


$           771


$           917


$           754


$           874

Medicare Supplement


$           733


$           874


$           826


$           834

Prescription Drug Plans


$           200


$           215


$           202


$           215

 

The following table presents the number of Submitted Policies by product for the Medicare segments for the three and nine months ended September 30, 2022 and 2021, for those submissions that are non-commissionable (compensated via hourly fees and enrollment fees) and do not result in commission revenue:





Three months ended Sep. 30,


Nine months ended Sep. 30,

Medicare - Total Non-Commissionable Submitted Policies


2022


2021


2022


2021

Medicare Advantage


2,631


1,532


9,868


10,703

Medicare Supplement


1,805


1,327


5,790


5,019

Prescription Drug Plans


734


542


2,294


2,218

Total Medicare


5,170


3,401


17,952


17,940

 

 

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/gohealth-reports-third-quarter-2022-results-301675048.html

SOURCE GoHealth, Inc.

Copyright 2022 PR Newswire

GoHealth (NASDAQ:GOCO)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more GoHealth Charts.
GoHealth (NASDAQ:GOCO)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more GoHealth Charts.