Third Quarter of Fiscal Year 2022 – Consolidated Earnings
Highlights
- Revenue of $275.1 million
- Net Loss of $6.4 million
- Adjusted EBITDA* of $13.0 million
- No update to Full-Year Fiscal 2022 Revenue, Net Loss and
Adjusted EBITDA Guidance:
- Revenue expected in a range of $810 million to $850
million
- Net Loss expected in a range of $255 million to $236
million
- Adjusted EBITDA* expected in a range of $(260) million to
$(235) million
Third Quarter of Fiscal Year 2022 – Segment
Highlights
Senior
- Revenue of $233.2 million
- Adjusted EBITDA* of $32.2 million
- Approved Medicare Advantage policies grew 48%
Year-Over-Year
Life
- Revenue of $39.4 million
- Final expense premiums grew 15% Year-Over-Year
Auto & Home
- Revenue of $7.2 million
- Total Auto & Home premiums grew 4% Year-Over-Year
SelectQuote, Inc. (NYSE: SLQT) reported consolidated revenue for
the third quarter of fiscal year 2022 of $275.1 million compared to
consolidated revenue for the third quarter of fiscal year 2021 of
$265.3 million. Consolidated net loss for the third quarter of
fiscal year 2022 was $6.4 million compared to consolidated net
income for the third quarter of fiscal year 2021 of $35.2 million.
Finally, consolidated Adjusted EBITDA* for the third quarter of
fiscal year 2022 was $13.0 million, compared to consolidated
Adjusted EBITDA* for the third quarter of fiscal year 2021 of $63.6
million.
Chief Executive Officer Tim Danker commented, “We were pleased
with our third quarter results, which finished ahead of our
internal expectations. During the quarter, we saw improved sales
conversion rates and lower marketing cost per sale, which while
early, gives us even more confidence about the steps we are taking
to improve our operating and financial results. As we execute on
our planned pullback in Medicare policy sales in the near term, we
are focused now more than ever on delivering high-value business to
our carrier partners and to improving the cash efficiency of our
business. We are also thrilled with the continued momentum of the
Population Health business, particularly our SelectRx pharmacy
business, which ended April with over 23,000 members, a nearly
10-fold increase in less than a year.”
Raff Sadun, Chief Financial Officer, also commented, “As
discussed on our second quarter call, a key aspect of our long-term
strategy is to reduce the overall operating leverage of our
business to deliver attractive returns in a wide range of potential
market scenarios. We made major progress on that front during the
quarter, identifying over $200 million in expense reduction
opportunities, excluding our planned investments in the growth of
our cash-efficient SelectRx business. Approximately 20% of those
identified savings are fixed cost actions we already executed
during the 3rd quarter. While we are not updating our 2022
guidance, so far we see similar trends in the fourth quarter and
are more focused on full year 2023.”
*See reconciliation from GAAP to non-GAAP
measures starting on page 11.
Segment Results
We currently report on three segments: 1) Senior, 2) Life and 3)
Auto & Home. The performance measures of the segments include
total revenue and Adjusted EBITDA.* Costs of revenue, marketing and
advertising, and technical development operating costs and expenses
that are directly attributable to a segment are reported within the
applicable segment. Indirect costs of revenue, marketing and
advertising, and technical development operating costs and expenses
are allocated to each segment based on varying metrics such as
headcount. Adjusted EBITDA* is calculated as total revenue for the
applicable segment less: direct and allocated costs of revenue,
marketing and advertising, technical development, and general and
administrative operating costs and expenses, excluding depreciation
and amortization expense; gain or loss on disposal of property,
equipment, and software; share-based compensation expense;
restructuring expenses; and non-recurring expenses such as
severance payments and transaction costs.
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)
2022
2021
% Change
2022
2021
% Change
Revenue
$
233,172
$
215,600
8
%
$
497,459
$
604,309
(18
)%
Adjusted EBITDA*
32,182
75,489
(57
)%
(149,424
)
218,946
(168
)%
Adjusted EBITDA Margin*
14
%
35
%
(30
)%
36
%
Operating Metrics
Submitted Policies
Submitted policies are counted when an individual completes an
application with our licensed agent and provides authorization to
the agent to submit the application to the insurance carrier
partner. The applicant may have additional actions to take, such as
providing additional information, before the application will be
reviewed by the insurance carrier.
The following table shows the number of submitted policies for
the periods presented:
Three Months Ended March
31,
Nine Months Ended March
31,
2022
2021
% Change
2022
2021
% Change
Medicare Advantage
242,721
160,233
51
%
678,827
454,772
49
%
Medicare Supplement
1,389
3,738
(63
)%
6,318
24,287
(74
)%
Dental, Vision and Hearing
40,178
38,757
4
%
122,214
101,819
20
%
Prescription Drug Plan
1,079
1,568
(31
)%
6,193
10,243
(40
)%
Other
4,907
6,781
(28
)%
11,436
12,603
(9
)%
Total
290,274
211,077
38
%
824,988
603,724
37
%
*See reconciliation from GAAP to non-GAAP
measures starting on page 11.
Approved Policies
Approved policies represents the number of submitted policies
that were approved by our insurance carrier partners for the
identified product during the indicated period. Not all approved
policies will go in force.
The following table shows the number of approved policies for
the periods presented:
Three Months Ended March
31,
Nine Months Ended March
31,
2022
2021
% Change
2022
2021
% Change
Medicare Advantage
196,377
132,950
48
%
546,031
384,137
42
%
Medicare Supplement
1,159
3,073
(62
)%
4,654
19,849
(77
)%
Dental, Vision and Hearing
34,486
34,517
—
%
101,251
84,370
20
%
Prescription Drug Plan
1,095
2,109
(48
)%
5,315
9,556
(44
)%
Other
3,836
5,129
(25
)%
9,199
10,209
(10
)%
Total
236,953
177,778
33
%
666,450
508,121
31
%
Lifetime Value of Commissions per Approved Policy
Lifetime value of commissions per approved policy represents
commissions estimated to be collected over the estimated life of an
approved policy based on multiple factors, including but not
limited to, contracted commission rates, carrier mix and expected
policy persistency with applied constraints. The lifetime value of
commissions per approved policy is equal to the sum of the
commission revenue due upon the initial sale of a policy, and when
applicable, an estimate of future renewal commissions.
The following table shows the lifetime value of commissions per
approved policy for the periods presented:
Three Months Ended March
31,
Nine Months Ended March
31,
(dollars per policy):
2022
2021
% Change
2022
2021
% Change
Medicare Advantage
$
933
$
1,362
(31
)%
$
935
$
1,290
(28
)%
Medicare Supplement
949
1,345
(29
)%
1,275
1,263
1
%
Dental, Vision and Hearing
120
129
(7
)%
123
140
(12
)%
Prescription Drug Plan
229
213
8
%
235
230
2
%
Other
95
60
58
%
77
95
(19
)%
Per Unit Economics
Per unit economics represents total Medicare Advantage and
Medicare Supplement commissions, other product commissions, other
revenues, and costs associated with the Senior segment, each shown
per number of approved Medicare Advantage and Medicare Supplement
policies over a given time period. Management assesses the business
on a per-unit basis to help ensure the revenue opportunity
associated with a successful policy sale is attractive relative to
the marketing acquisition cost. Because not all acquired leads
result in a successful policy sale, all per-policy metrics are
based on approved policies, which is the measure that triggers
revenue recognition.
The Medicare Advantage and Medicare Supplement commission per
MA/MS policy represents the lifetime value of commissions for
policies sold in the period. Other commission per MA/MS policy
represents the lifetime value of commissions for other products
sold in the period, including dental, vision and hearing,
prescription drug plan, and other products, which management views
as additional commission revenue on our agents’ core function of
MA/MS policy sales. Other per MA/MS policy represents the
production bonuses, lead sales revenue from InsideResponse, and
updated estimates of prior period variable consideration based on
actual policy renewals in the current period. Total operating
expenses per MA/MS policy represents all of the operating expenses
within the Senior segment. The Revenue to customer acquisition cost
(“CAC”) multiple represents total revenue per MA/MS policy as a
multiple of total marketing acquisition cost, which represents the
direct costs of acquiring leads. These costs are included in
marketing and advertising expense within the total operating
expenses per MA/MS policy.
The following table shows per unit economics for the periods
presented. Based on the seasonality of the Senior segment and the
fluctuations between quarters, we believe that the most relevant
view of per unit economics is on a rolling 12-month basis. All
per-MA/MS policy metrics below are based on the sum of approved
MA/MS policies, as both products have similar commission profiles.
These metrics are the basis on which management assesses the
business:
Twelve Months Ended March
30,
(dollars per approved policy):
2022
2021
% Change
Medicare Advantage and Medicare Supplement
approved policies
636,195
464,653
37
%
Medicare Advantage and Medicare Supplement
commission per MA/MS policy
$
963
$
1,286
(25
)%
Other commission per MA/MS policy
29
38
(24
)%
Other per MA/MS policy
(14
)
166
(108
)%
Total revenue per MA/MS policy
978
1,490
(34
)%
Total operating expenses per MA/MS
policy
(1,173
)
(947
)
24
%
Adjusted EBITDA per MA/MS policy*
$
(195
)
$
543
(136
)%
Adjusted EBITDA Margin per MA/MS
policy*
(20
)%
36
%
(155
)%
Revenue/CAC multiple
1.8
X
3.1
X
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)
2022
2021
% Change
2022
2021
% Change
Revenue
$
39,400
$
44,823
(12
)%
$
119,612
$
121,917
(2
)%
Adjusted EBITDA*
(1,888
)
1,598
(218
)%
2,265
16,385
(86
)%
Adjusted EBITDA Margin*
(5
)%
4
%
2
%
13
%
Operating Metrics
Life premium represents the total premium value for all policies
that were approved by the relevant insurance carrier partner and
for which the policy document was sent to the policyholder and
payment information was received by the relevant insurance carrier
partner during the indicated period. Because our commissions are
earned based on a percentage of total premium, total premium volume
for a given period is the key driver of revenue for our Life
segment.
*See reconciliation from GAAP to non-GAAP
measures starting on page 11.
The following table shows term and final expense premiums for
the periods presented:
Three Months Ended March
31,
Nine Months Ended March
31,
(in thousands)
2022
2021
% Change
2022
2021
% Change
Term Premiums
$
14,933
$
19,043
(22
)%
$
45,990
$
56,784
(19
)%
Final Expense Premiums
28,532
24,817
15
%
83,718
56,269
49
%
Total
$
43,465
$
43,860
(1
)%
129,708
113,053
15
%
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)
2022
2021
% Change
2022
2021
% Change
Revenue
$
7,152
$
6,973
3
%
$
20,755
$
23,752
(13
)%
Adjusted EBITDA*
1,150
1,096
5
%
3,957
6,863
(42
)%
Adjusted EBITDA Margin*
16
%
16
%
19
%
29
%
Operating Metrics
Auto & Home premium represents the total premium value of
all new policies that were approved by our insurance carrier
partners during the indicated period. Because our commissions are
earned based on a percentage of total premium, total premium volume
for a given period is the key driver of revenue for our Auto &
Home segment.
The following table shows premiums for the periods
presented:
Three Months Ended March
31,
Nine Months Ended March
31,
(in thousands):
2022
2021
% Change
2022
2021
% Change
Premiums
$
12,516
$
12,010
4
%
$
36,358
$
42,165
(14
)%
*See reconciliation from GAAP to non-GAAP
measures starting on page 11.
Earnings Conference Call
SelectQuote, Inc. will host a conference call with the
investment community today, Thursday, May 5, 2022, beginning at
8:30 a.m. ET. To register for this conference call, please use this
link: http://www.directeventreg.com/registration/event/1378747.
After registering, a confirmation will be sent via email, including
dial-in details and unique conference call codes for entry.
Registration is open through the live call, but to ensure you are
connected for the full call we suggest registering a day in advance
or at minimum 10 minutes before the start of the call. The event
will also be webcasted live via our investor relations website
https://ir.selectquote.com/investor-home/default.aspx.
Non-GAAP Financial Measures
This release includes certain non-GAAP financial measures
intended to supplement, not substitute for, comparable GAAP
measures. To supplement our financial statements presented in
accordance with GAAP and to provide investors with additional
information regarding our GAAP financial results, we have presented
in this release Adjusted EBITDA and Adjusted EBITDA Margin, which
are non-GAAP financial measures. These non-GAAP financial measures
are not based on any standardized methodology prescribed by GAAP
and are not necessarily comparable to similarly titled measures
presented by other companies. We define Adjusted EBITDA as income
(loss) before interest expense, income tax expense (benefit),
depreciation and amortization, and certain add-backs for non-cash
or non-recurring expenses, including restructuring and share-based
compensation expenses. The most directly comparable GAAP measure is
net income (loss). We monitor and have presented in this release
Adjusted EBITDA because it is a key measure used by our management
and Board of Directors to understand and evaluate our operating
performance, to establish budgets and to develop operational goals
for managing our business. In particular, we believe that excluding
the impact of these expenses in calculating Adjusted EBITDA can
provide a useful measure for period-to-period comparisons of our
core operating performance.
We believe that this non-GAAP financial measure helps identify
underlying trends in our business that could otherwise be masked by
the effect of the expenses that we exclude in the calculations of
this non-GAAP financial measure. Accordingly, we believe that this
financial measure provides useful information to investors and
others in understanding and evaluating our operating results,
enhancing the overall understanding of our past performance and
future prospects.
Forward Looking Statement
This release contains forward-looking statements. These
forward-looking statements reflect our current views with respect
to, among other things, future events and our financial
performance. These statements are often, but not always, made
through the use of words or phrases such as “may,” “should,”
“could,” “predict,” “potential,” “believe,” “will likely result,”
“expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,”
“intend,” “plan,” “projection,” “would” and “outlook,” or the
negative version of those words or other comparable words or
phrases of a future or forward-looking nature. These
forward-looking statements are not historical facts, and are based
on current expectations, estimates and projections about our
industry, management’s beliefs and certain assumptions made by
management, many of which, by their nature, are inherently
uncertain and beyond our control. Accordingly, we caution you that
any such forward-looking statements are not guarantees of future
performance and are subject to risks, assumptions and uncertainties
that are difficult to predict. Although we believe that the
expectations reflected in these forward-looking statements are
reasonable as of the date made, actual results may prove to be
materially different from the results expressed or implied by the
forward-looking statements.
There are or will be important factors that could cause our
actual results to differ materially from those indicated in these
forward-looking statements, including, but not limited to, the
following: the ultimate duration and impact of the ongoing COVID-19
pandemic, our reliance on a limited number of insurance carrier
partners and any potential termination of those relationships or
failure to develop new relationships; existing and future laws and
regulations affecting the health insurance market; changes in
health insurance products offered by our insurance carrier partners
and the health insurance market generally; insurance carriers
offering products and services directly to consumers; changes to
commissions paid by insurance carriers and underwriting practices;
competition with brokers, exclusively online brokers and carriers
who opt to sell policies directly to consumers; competition from
government-run health insurance exchanges; developments in the U.S.
health insurance system; our dependence on revenue from carriers in
our senior segment and downturns in the senior health as well as
life, automotive and home insurance industries; our ability to
develop new offerings and penetrate new vertical markets; risks
from third-party products; failure to enroll individuals during the
Medicare annual enrollment period; our ability to attract,
integrate and retain qualified personnel; our dependence on lead
providers and ability to compete for leads; failure to obtain
and/or convert sales leads to actual sales of insurance policies;
access to data from consumers and insurance carriers; accuracy of
information provided from and to consumers during the insurance
shopping process; cost-effective advertisement through internet
search engines; ability to contact consumers and market products by
telephone; global economic conditions; disruption to operations as
a result of future acquisitions; significant estimates and
assumptions in the preparation of our financial statements;
impairment of goodwill; potential litigation and claims, including
IP litigation; our existing and future indebtedness; our ability to
maintain compliance with or renegotiate or obtain waivers of our
debt covenants; developments with respect to LIBOR; access to
additional capital; failure to protect our intellectual property
and our brand; fluctuations in our financial results caused by
seasonality; accuracy and timeliness of commissions reports from
insurance carriers; timing of insurance carriers’ approval and
payment practices; factors that impact our estimate of the
constrained lifetime value of commissions per policyholder; changes
in accounting rules, tax legislation and other legislation;
disruptions or failures of our technological infrastructure and
platform; failure to maintain relationships with third-party
service providers; cybersecurity breaches or other attacks
involving our systems or those of our insurance carrier partners or
third-party service providers; our ability to protect consumer
information and other data; and failure to market and sell Medicare
plans effectively or in compliance with laws. For a further
discussion of these and other risk factors that could impact our
future results and performance, see the section entitled “Risk
Factors” in the most recent Annual Report on Form 10-K (the “Annual
Report”) filed by us with the Securities and Exchange Commission.
Accordingly, you should not place undue reliance on any such
forward-looking statements. Any forward-looking statement speaks
only as of the date on which it is made, and, except as otherwise
required by law, we do not undertake any obligation to publicly
update or review any forward-looking statement, whether as a result
of new information, future developments or otherwise.
About SelectQuote:
Founded in 1985, SelectQuote (NYSE: SLQT) provides solutions
that help consumers protect their most valuable assets: their
families, health and property. SelectQuote pioneered the model of
providing unbiased comparisons from multiple, highly-rated
insurance companies allowing consumers to choose the policy and
terms that best meet their unique needs. Two foundational pillars
underpin the company’s success: a strong force of highly-trained
and skilled agents who provide a consultative needs analysis for
every consumer, and proprietary technology that sources and routes
high-quality leads. SelectQuote has three core business lines:
SelectQuote Senior, SelectQuote Life and SelectQuote Auto and Home.
SelectQuote Senior, the largest and fastest-growing business,
serves the needs of a demographic that sees 10,000 people turn 65
each day with a range of Medicare Advantage and Medicare Supplement
plans. In 2021, SelectQuote expanded its business with the addition
of Population Health, a healthcare services company, and SelectRx,
a specialty medication management pharmacy.
SELECTQUOTE, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited)
(In thousands)
March 31, 2022
June 30, 2021
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
199,359
$
286,454
Accounts receivable
168,735
105,298
Commissions receivable-current
77,158
89,120
Other current assets
13,246
4,486
Total current assets
458,498
485,358
COMMISSIONS RECEIVABLE
761,138
756,777
PROPERTY AND EQUIPMENT—Net
45,558
29,510
SOFTWARE—Net
15,558
12,611
OPERATING LEASE RIGHT-OF-USE ASSETS
29,018
31,414
INTANGIBLE ASSETS—Net
36,022
40,670
GOODWILL
73,732
68,019
OTHER ASSETS
15,790
1,436
TOTAL ASSETS
$
1,435,314
$
1,425,795
LIABILITIES AND SHAREHOLDERS’
EQUITY
CURRENT LIABILITIES:
Accounts payable
$
27,445
$
34,079
Accrued expenses
35,593
20,676
Accrued compensation and benefits
46,229
40,909
Operating lease liabilities—current
5,181
5,289
Current portion of long-term debt
7,169
2,360
Other current liabilities
2,079
5,504
Total current liabilities
123,696
108,817
LONG-TERM DEBT, NET—less current
portion
699,386
459,043
DEFERRED INCOME TAXES
76,806
139,240
OPERATING LEASE LIABILITIES
35,301
38,392
OTHER LIABILITIES
3,533
11,743
Total liabilities
938,722
757,235
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS’ EQUITY:
Common stock, $0.01 par value
1,644
1,635
Additional paid-in capital
554,045
544,771
Retained earnings (accumulated
deficit)
(68,684
)
121,925
Accumulated other comprehensive income
9,587
229
Total shareholders’ equity
496,592
668,560
TOTAL LIABILITIES AND SHAREHOLDERS’
EQUITY
$
1,435,314
$
1,425,795
SELECTQUOTE, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)
(In thousands)
Three Months Ended March
31,
Nine Months Ended March
31,
2022
2021
2022
2021
REVENUE:
Commission
$
222,538
$
235,216
$
495,494
$
660,631
Production bonus and other
52,575
30,130
132,127
85,054
Total revenue
275,113
265,346
627,621
745,685
OPERATING COSTS AND EXPENSES:
Cost of revenue
119,459
71,439
359,732
206,605
Marketing and advertising
125,082
116,690
409,005
298,696
General and administrative
21,031
19,251
64,570
44,496
Technical development
6,436
4,860
18,675
13,458
Total operating costs and expenses
272,008
212,240
851,982
563,255
INCOME (LOSS) FROM OPERATIONS
3,105
53,106
(224,361
)
182,430
INTEREST EXPENSE, NET
(12,179
)
(7,355
)
(31,300
)
(20,898
)
LOSS ON EXTINGUISHMENT OF DEBT
—
(3,315
)
—
(3,315
)
OTHER EXPENSE, NET
(23
)
(349
)
(177
)
(1,545
)
INCOME (LOSS) BEFORE INCOME TAX EXPENSE
(BENEFIT)
(9,097
)
42,087
(255,838
)
156,672
INCOME TAX EXPENSE (BENEFIT)
(2,649
)
6,852
(65,229
)
31,846
NET INCOME (LOSS)
$
(6,448
)
$
35,235
$
(190,609
)
$
124,826
NET INCOME (LOSS) PER SHARE:
Basic
$
(0.04
)
$
0.21
$
(1.16
)
$
0.77
Diluted
$
(0.04
)
$
0.21
$
(1.16
)
$
0.75
WEIGHTED-AVERAGE COMMON STOCK OUTSTANDING
USED IN PER SHARE AMOUNTS:
Basic
164,083
163,023
163,914
162,705
Diluted
164,083
165,731
163,914
165,495
OTHER COMPREHENSIVE INCOME, NET OF
TAX:
Gain on cash flow hedge
7,589
1,810
9,358
1,669
OTHER COMPREHENSIVE INCOME
7,589
1,810
9,358
1,669
COMPREHENSIVE INCOME (LOSS)
$
1,141
$
37,045
$
(181,251
)
$
126,495
SELECTQUOTE, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
Nine Months Ended March
31,
2022
2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)
$
(190,609
)
$
124,826
Adjustments to reconcile net income (loss)
to net cash and cash equivalents used in operating activities:
Depreciation and amortization
17,957
11,260
Loss on disposal of property, equipment,
and software
741
261
Share-based compensation expense
6,252
3,689
Deferred income taxes
(65,623
)
31,702
Amortization of debt issuance costs and
debt discount
4,217
2,482
Write-off of debt issuance costs
—
2,570
Fair value adjustments to contingent
earnout obligations
—
1,487
Non-cash lease expense
3,065
2,869
Changes in operating assets and
liabilities:
Accounts receivable
(62,803
)
(49,224
)
Commissions receivable
7,601
(251,188
)
Other assets
(8,275
)
4,349
Accounts payable and accrued expenses
8,096
26,223
Operating lease liabilities
(3,868
)
(2,631
)
Other liabilities
(1,113
)
30,378
Net cash used in operating activities
(284,362
)
(60,947
)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment
(24,515
)
(6,520
)
Purchases of software and capitalized
software development costs
(7,570
)
(5,807
)
Acquisition of business
(6,927
)
(23,879
)
Investment in equity securities
(1,000
)
—
Net cash used in investing activities
(40,012
)
(36,206
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Revolving Credit
Facility
50,000
—
Payments on Revolving Credit Facility
(50,000
)
—
Proceeds from DDTL Facility
242,000
—
Payments on DDTL Facility
(613
)
—
Net proceeds from Term Loans
—
228,753
Payments on Term Loans
(1,180
)
(84,118
)
Payments on other debt
(130
)
(189
)
Proceeds from common stock options
exercised and employee stock purchase plan
3,179
1,778
Payments of tax withholdings related to
net share settlement of equity awards
(148
)
(10,026
)
Payments of debt issuance costs
(328
)
(885
)
Payments of costs incurred in connection
with private placement
—
(1,771
)
Payments of costs incurred in connection
with initial public offering
—
(3,911
)
Payment of contingent earnout
liability
—
(32,300
)
Payment of acquisition holdback
(5,501
)
—
Net cash provided by financing
activities
237,279
97,331
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS
(87,095
)
178
CASH AND CASH EQUIVALENTS—Beginning of
period
286,454
368,870
CASH AND CASH EQUIVALENTS—End of
period
$
199,359
$
369,048
SELECTQUOTE, INC. AND
SUBSIDIARIES
Adjusted EBITDA to Net Income
(Loss) Reconciliation
(Unaudited)
Three Months Ended March 31,
2022
(in thousands)
Senior
Life
Auto & Home
Corp & Elims
Consolidated
Revenue
$
233,172
$
39,400
$
7,152
$
(4,611
)
$
275,113
Operating expenses
(200,990
)
(41,288
)
(6,002
)
(13,819
)
(262,099
)
Other expenses, net
—
—
—
(23
)
(23
)
Adjusted EBITDA
32,182
(1,888
)
1,150
(18,453
)
12,991
Share-based compensation expense
(2,143
)
Non-recurring expenses
(703
)
Depreciation and amortization
(6,679
)
Loss on disposal of property, equipment,
and software, net
(384
)
Interest expense, net
(12,179
)
Income tax benefit
2,649
Net loss
$
(6,448
)
Three Months Ended March 31,
2021
(in thousands)
Senior
Life
Auto & Home
Corp & Elims
Consolidated
Revenue
$
215,600
$
44,823
$
6,973
$
(2,050
)
$
265,346
Operating expenses
(140,111
)
(43,225
)
(5,877
)
(12,507
)
(201,720
)
Other expenses, net
—
—
—
(15
)
(15
)
Adjusted EBITDA
75,489
1,598
1,096
(14,572
)
63,611
Share-based compensation expense
(1,429
)
Non-recurring expenses
(4,667
)
Fair value adjustments to contingent
earnout obligations
(334
)
Depreciation and amortization
(4,323
)
Loss on disposal of property, equipment,
and software
(101
)
Interest expense, net
(7,355
)
Loss on extinguishment of debt
(3,315
)
Income tax expense
(6,852
)
Net income
$
35,235
SELECTQUOTE, INC. AND
SUBSIDIARIES
Adjusted EBITDA to Net Income
(Loss) Reconciliation
(Unaudited)
Nine Months Ended March 31,
2022
(in thousands)
Senior
Life
Auto & Home
Corp & Elims
Consolidated
Revenue
$
497,459
$
119,612
$
20,755
$
(10,205
)
$
627,621
Operating expenses
(646,883
)
(117,347
)
(16,798
)
(43,149
)
(824,177
)
Other expenses, net
—
—
—
(177
)
(177
)
Adjusted EBITDA
(149,424
)
2,265
3,957
(53,531
)
(196,733
)
Share-based compensation expense
(6,252
)
Non-recurring expenses
(2,857
)
Depreciation and amortization
(17,957
)
Loss on disposal of property, equipment,
and software, net
(739
)
Interest expense, net
(31,300
)
Income tax benefit
65,229
Net loss
$
(190,609
)
Nine Months Ended March 31,
2021
(in thousands)
Senior
Life
Auto & Home
Corp & Elims
Consolidated
Revenue
$
604,309
$
121,917
$
23,752
$
(4,293
)
$
745,685
Operating expenses
(385,363
)
(105,532
)
(16,889
)
(34,771
)
(542,555
)
Other expenses, net
—
—
—
(58
)
(58
)
Adjusted EBITDA
218,946
16,385
6,863
(39,122
)
203,072
Share-based compensation expense
(3,689
)
Non-recurring expenses
(5,490
)
Fair value adjustments to contingent
earnout obligations
(1,487
)
Depreciation and amortization
(11,260
)
Loss on disposal of property, equipment,
and software
(261
)
Interest expense, net
(20,898
)
Loss on extinguishment of debt
(3,315
)
Income tax expense
(31,846
)
Net income
$
124,826
SELECTQUOTE, INC. AND
SUBSIDIARIES
Net Loss to Adjusted EBITDA
Reconciliation
(Unaudited)
Guidance net loss to Adjusted EBITDA
reconciliation, year ending June 30, 2022:
(in thousands)
Range
Net Loss
$
(255,000
)
$
(236,000
)
Income tax benefit
(86,000
)
(80,000
)
Interest expense, net
43,000
43,000
Depreciation and amortization
22,000
22,000
Share-based compensation expense
11,000
11,000
Non-recurring expenses
5,000
5,000
Adjusted EBITDA
$
(260,000
)
$
(235,000
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220505005306/en/
Investor Relations: Sloan Bohlen 877-678-4083
investorrelations@selectquote.com
Media: Matt Gunter 913-286-4931 matt.gunter@selectquote.com
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