First Quarter of Fiscal Year 2024 – Consolidated Earnings
Highlights
- Revenue of $232.7 million
- Net loss of $31.1 million
- Adjusted EBITDA* of $(11.4) million
Reaffirming Fiscal Year 2024 Guidance Ranges:
- Revenue expected in a range of $1.05 billion to $1.2
billion
- Net loss expected in a range of $50 million to $22 million
- Adjusted EBITDA* expected in a range of $80 million to $105
million
First Quarter of Fiscal Year 2024 – Segment
Highlights
Senior
- Revenue of $89.9 million
- Adjusted EBITDA* of $(1.3) million
- Approved Medicare Advantage policies of 97,681
Healthcare Services
- Revenue of $97.4 million
- Adjusted EBITDA* of $2.3 million
- Over 52,000 SelectRx members
Life
- Revenue of $37.8 million
- Adjusted EBITDA* of $5.2 million
Auto & Home
- Revenue of $9.0 million
- Adjusted EBITDA* of $3.3 million
SelectQuote, Inc. (NYSE: SLQT) reported consolidated revenue for
the first quarter of fiscal year 2024 of $232.7 million compared to
consolidated revenue for the first quarter of fiscal year 2023 of
$162.5 million. Consolidated net loss for the first quarter of
fiscal year 2024 was $31.1 million compared to consolidated net
loss for the first quarter of fiscal year 2023 of $42.5 million.
Finally, consolidated Adjusted EBITDA* for the first quarter of
fiscal year 2024 was $(11.4) million compared to consolidated
Adjusted EBITDA* for the first quarter of fiscal year 2023 of
$(27.5) million.
Chief Executive Officer Tim Danker commented, “SelectQuote
generated strong results across each segment of the company.
Financial results were ahead of our expectations for the seventh
straight quarter, and our platform is exceptionally well prepared
for this year’s Medicare Advantage selling season. Agent onboarding
was ahead of plan, and similar to fiscal 2023, our sales force has
a higher mix of tenured agents, which drove significant efficiency
gains compared to flex agents in past seasons. In the early days of
the annual enrollment period for Medicare Advantage, plan features
are similar to last year, and our engagement with customers has
been inline with expectations.”
“Our growing SelectRx and Healthcare Services platform continues
to increasingly contribute to our financial results and out
performance. SelectRx generated record revenue approaching $100
million in the quarter, which was higher than revenue from our
Senior segment for the first time in company history. We see the
rapid success of Healthcare Services as a definitive proof point of
the value that SelectQuote’s agent and information-enabled model
can create for our customers, carrier partners and healthcare
service providers.”
Mr. Danker continued, “With a strong beginning to our fiscal
year, we reaffirm our full-year 2024 financial guidance.”
Segment Results
We currently report on four segments: 1) Senior, 2) Healthcare
Services, 3) Life, and 4) Auto & Home. The performance measures
of the segments include total revenue and Adjusted EBITDA*. Costs
of revenue, cost of goods sold-pharmacy revenue, marketing and
advertising, selling, general, and administrative, and technical
development operating expenses that are directly attributable to a
segment are reported within the applicable segment. Indirect costs
of revenue, marketing and advertising, selling, general, and
administrative, and technical development operating expenses are
allocated to each segment based on varying metrics such as
headcount. Adjusted EBITDA is calculated as total revenue for the
applicable segment less direct and allocated costs of revenue, cost
of goods sold, marketing and advertising, technical development,
and selling, general, and administrative operating costs and
expenses, excluding depreciation and amortization expense; gain or
loss on disposal of property, equipment, and software; share-based
compensation expense; and non-recurring expenses such as severance
payments and transaction costs.
Senior
Financial Results
The following table provides the financial results for the
Senior segment for the periods presented:
Three Months Ended September
30,
(in thousands)
2023
2022
% Change
Revenue
$
89,918
$
77,513
16
%
Adjusted EBITDA*
(1,335
)
(3,853
)
65
%
Adjusted EBITDA Margin*
(1
)%
(5
)%
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 September
30,
2023
2022
% Change
Medicare Advantage
104,532
90,028
16 %
Medicare Supplement
481
665
(28) %
Dental, Vision and Hearing
12,496
16,334
(24) %
Prescription Drug Plan
311
364
(15) %
Other
1,632
2,026
(19) %
Total
119,452
109,417
9 %
*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 September
30,
2023
2022
% Change
Medicare Advantage
97,681
83,173
17 %
Medicare Supplement
360
500
(28) %
Dental, Vision and Hearing
10,529
12,275
(14) %
Prescription Drug Plan
254
390
(35) %
Other
1,052
1,662
(37) %
Total
109,876
98,000
12 %
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 September
30,
(dollars per policy):
2023
2022
% Change
Medicare Advantage
$
761
$
780
(2) %
Medicare Supplement
1,041
1,132
(8) %
Dental, Vision and Hearing
147
68
116 %
Prescription Drug Plan
278
233
19 %
Other
11
74
(85) %
Healthcare Services
Financial Results
The following table provides the financial results for the
Healthcare Services segment for the periods presented:
Three Months Ended September
30,
(in thousands)
2023
2022
% Change
Revenue
$
97,368
$
43,067
126 %
Adjusted EBITDA*
2,322
(11,787)
NM
Adjusted EBITDA Margin*
2 %
(27) %
*See “Non-GAAP Financial Measures” below.
Operating Metrics
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 periods presented:
Three Months Ended September
30,
2023
2022
Total SelectRx Members
52,750
32,596
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.
*See “Non-GAAP Financial Measures” below.
Twelve Months Ended September
30,
(dollars per approved policy):
2023
2022
Medicare Advantage and Medicare Supplement
approved policies
594,554
665,358
Medicare Advantage and Medicare Supplement
commission per MA/MS policy
$
872
$
902
Other commission per MA/MS policy
13
22
Pharmacy revenue per MA/MS policy
493
144
Other revenue per MA/MS policy
151
(148)
Total revenue per MA/MS policy
1,529
920
Total operating expenses per MA/MS
policy
(1,278)
(1,185)
Adjusted EBITDA per MA/MS policy (1)
251
(265)
Adjusted EBITDA Margin per MA/MS policy
(1)
16 %
(29) %
Revenue/CAC multiple
4.3X
1.8X
(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 66% for the twelve
months ended September 30, 2023, compared to the twelve months
ended September 30, 2022, primarily due to the increase in pharmacy
revenue. Total operating expenses per MA/MS policy increased 8% for
the twelve months ended September 30, 2023, compared to the twelve
months ended September 30, 2022, driven by an increase in cost of
goods sold-pharmacy revenue for SelectRx due to the growth of the
business, offset by a decrease in our marketing and advertising
costs.
Life
Financial Results
The following table provides the financial results for the Life
segment for the periods presented:
Three Months Ended September
30,
(in thousands)
2023
2022
% Change
Revenue
$
37,803
$
36,835
3
%
Adjusted EBITDA*
5,240
5,225
—
%
Adjusted EBITDA Margin*
14
%
14
%
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 September
30,
(in thousands)
2023
2022
% Change
Term Premiums
$
18,190
$
15,098
20
%
Final Expense Premiums
19,699
22,364
(12
)%
Total
$
37,889
$
37,462
1
%
Auto & Home
Financial Results
The following table provides the financial results for the Auto
& Home segment for the periods presented:
Three Months Ended September
30,
(in thousands)
2023
2022
% Change
Revenue
$
9,027
$
7,082
27
%
Adjusted EBITDA*
3,319
2,441
36
%
Adjusted EBITDA Margin*
37
%
34
%
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 September
30,
(in thousands):
2023
2022
% Change
Premiums
$
13,877
$
11,549
20
%
*See “Non-GAAP Financial Measures” below.
Earnings Conference Call
SelectQuote, Inc. will host a conference call with the
investment community today, Thursday, November 2, 2023, beginning
at 4:30 p.m. ET. To register for this conference call, please use
this link:
https://www.netroadshow.com/events/login?show=98c46003&confId=56957.
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 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 these non-GAAP financial measures help identify
underlying trends in our business that could otherwise be masked by
the effect of the expenses that we exclude in the calculations of
these non-GAAP financial measures. Accordingly, we believe that
these financial measures provide useful information to investors
and others in understanding and evaluating our operating results,
enhancing the overall understanding of our past performance and
future prospects. Reconciliations of 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; 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; 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 (the “Annual Report”) and
subsequent periodic reports filed by us with the Securities and
Exchange Commission. Accordingly, you should not place undue
reliance on any such forward-looking statements. Any
forward-looking statement speaks only as of the date on which it is
made, and, except as otherwise required by law, we do not undertake
any obligation to publicly update or review any forward-looking
statement, whether as a result of new information, future
developments or otherwise.
About SelectQuote:
Founded in 1985, SelectQuote (NYSE: SLQT) provides solutions
that help consumers protect their most valuable assets: their
families, health, and property. The company pioneered the model of
providing unbiased comparisons from multiple, highly-rated
insurance companies allowing consumers to choose the policy and
terms that best meet their unique needs. Two foundational pillars
underpin SelectQuote’s success: a strong force of highly-trained
and skilled agents who provide a consultative needs analysis for
every consumer, and proprietary technology that sources and routes
high-quality leads.
With an ecosystem offering high touchpoints for consumers across
insurance, medicare, pharmacy, and value-based care, the company
now has four core business lines: SelectQuote Senior, SelectQuote
Healthcare Services, SelectQuote Life, and SelectQuote Auto and
Home. SelectQuote Senior serves the needs of a demographic that
sees around 10,000 people turn 65 each day with a range of Medicare
Advantage and Medicare Supplement plans. SelectQuote Healthcare
Services is comprised of the SelectRx Pharmacy, a 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)
September 30, 2023
June 30, 2023
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
48,486
$
83,156
Accounts receivable, net of allowances of
$3.9 million and $2.7 million, respectively
115,872
154,565
Commissions receivable-current
160,370
111,148
Other current assets
16,361
14,355
Total current assets
341,089
363,224
COMMISSIONS RECEIVABLE—Net
709,277
729,350
PROPERTY AND EQUIPMENT—Net
24,840
27,452
SOFTWARE—Net
14,677
14,740
OPERATING LEASE RIGHT-OF-USE ASSETS
22,779
23,563
INTANGIBLE ASSETS—Net
9,442
10,200
GOODWILL
29,136
29,136
OTHER ASSETS
18,904
21,586
TOTAL ASSETS
$
1,170,144
$
1,219,251
LIABILITIES AND SHAREHOLDERS’
EQUITY
CURRENT LIABILITIES:
Accounts payable
$
31,964
$
27,577
Accrued expenses
18,284
16,993
Accrued compensation and benefits
37,953
49,966
Operating lease liabilities—current
4,980
5,175
Current portion of long-term debt
33,883
33,883
Contract liabilities
5,757
1,691
Other current liabilities
3,925
1,972
Total current liabilities
136,746
137,257
LONG-TERM DEBT, NET—less current
portion
661,185
664,625
DEFERRED INCOME TAXES
26,041
39,581
OPERATING LEASE LIABILITIES
26,590
27,892
OTHER LIABILITIES
2,844
2,926
Total liabilities
853,406
872,281
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS’ EQUITY:
Common stock, $0.01 par value
1,677
1,669
Additional paid-in capital
570,087
567,266
Accumulated deficit
(266,695
)
(235,644
)
Accumulated other comprehensive income
11,669
13,679
Total shareholders’ equity
316,738
346,970
TOTAL LIABILITIES AND SHAREHOLDERS’
EQUITY
$
1,170,144
$
1,219,251
SELECTQUOTE, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF COMPREHENSIVE LOSS
(Unaudited)
(In thousands)
Three Months Ended September
30,
2023
2022
REVENUE:
Commission
$
117,756
$
106,335
Pharmacy
94,788
41,093
Other
20,186
15,056
Total revenue
232,730
162,484
OPERATING COSTS AND EXPENSES:
Cost of revenue
72,511
65,164
Cost of goods sold—pharmacy revenue
84,008
42,354
Marketing and advertising
62,323
57,594
Selling, general, and administrative
28,666
30,706
Technical development
7,637
6,182
Total operating costs and expenses
255,145
202,000
LOSS FROM OPERATIONS
(22,415)
(39,516)
INTEREST EXPENSE, NET
(21,397)
(16,736)
OTHER INCOME (EXPENSE), NET
(38)
158
LOSS BEFORE INCOME TAX BENEFIT
(43,850)
(56,094)
INCOME TAX BENEFIT
(12,799)
(13,610)
NET LOSS
$
(31,051)
$
(42,484)
NET LOSS PER SHARE:
Basic
$
(0.19)
$
(0.26)
Diluted
$
(0.19)
$
(0.26)
WEIGHTED-AVERAGE COMMON STOCK OUTSTANDING
USED IN PER SHARE AMOUNTS:
Basic
167,453
164,824
Diluted
167,453
164,824
OTHER COMPREHENSIVE INCOME (LOSS) NET OF
TAX:
Gain (loss) on cash flow hedge
(2,010)
4,400
OTHER COMPREHENSIVE INCOME (LOSS)
(2,010)
4,400
COMPREHENSIVE LOSS
$
(33,061)
$
(38,084)
SELECTQUOTE, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
Three Months Ended September
30,
2023
2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss
$
(31,051)
$
(42,484)
Adjustments to reconcile net loss to net
cash and cash equivalents used in operating activities:
Depreciation and amortization
5,989
6,802
Loss on disposal of property, equipment,
and software
9
325
Share-based compensation expense
3,175
2,630
Deferred income taxes
(13,049)
(13,931)
Amortization of debt issuance costs and
debt discount
1,612
1,612
Write-off of debt issuance costs
—
710
Accrued interest payable in kind
3,622
1,307
Non-cash lease expense
784
1,103
Changes in operating assets and
liabilities:
Accounts receivable, net
38,693
34,770
Commissions receivable
(29,148)
(36,012)
Other assets
(2,027)
1,271
Accounts payable and accrued expenses
5,257
(10,496)
Operating lease liabilities
(1,498)
(1,256)
Other liabilities
(6,039)
6,479
Net cash used in operating activities
(23,671)
(47,170)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment
(616)
(298)
Proceeds from sales of property and
equipment
253
—
Purchases of software and capitalized
software development costs
(1,782)
(2,087)
Net cash used in investing activities
(2,145)
(2,385)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on Term Loans
(8,471)
(8,917)
Payments on other debt
(37)
(44)
Proceeds from common stock options
exercised and employee stock purchase plan
—
1,079
Payments of tax withholdings related to
net share settlement of equity awards
(346)
(32)
Payments of debt issuance costs
—
(10,110)
Payment of acquisition holdback
—
(2,335)
Net cash used in financing activities
(8,854)
(20,359)
NET DECREASE IN CASH AND CASH
EQUIVALENTS
(34,670)
(69,914)
CASH AND CASH EQUIVALENTS—Beginning of
period
83,156
140,997
CASH AND CASH EQUIVALENTS—End of
period
$
48,486
$
71,083
SELECTQUOTE, INC. AND
SUBSIDIARIES
Net Loss to Adjusted EBITDA
Reconciliation
(Unaudited)
Three Months Ended September
30, 2023
(in thousands)
Senior
Healthcare Services
Life
Auto & Home
Corp & Elims
Consolidated
Revenue
$
89,918
$
97,368
$
37,803
$
9,027
$
(1,386)
$
232,730
Operating expenses
(91,253)
(95,046)
(32,563)
(5,708)
(19,498)
(244,068)
Other income (expense), net
—
—
—
—
(38)
(38)
Adjusted EBITDA
(1,335)
2,322
5,240
3,319
(20,922)
(11,376)
Share-based compensation expense
(3,175)
Transaction costs
(1,904)
Depreciation and amortization
(5,989)
Loss on disposal of property, equipment,
and software
(9)
Interest expense, net
(21,397)
Income tax benefit
12,799
Net loss
$
(31,051)
Three Months Ended September
30, 2022
(in thousands)
Senior
Healthcare Services
Life
Auto & Home
Corp & Elims
Consolidated
Revenue
$
77,513
$
43,067
$
36,835
$
7,082
$
(2,013)
$
162,484
Operating expenses
(81,366)
(54,854)
(31,811)
(4,640)
(17,446)
(190,117)
Other income (expense), net
—
—
201
(1)
(42)
158
Adjusted EBITDA
(3,853)
(11,787)
5,225
2,441
(19,501)
(27,475)
Share-based compensation expense
(2,630)
Transaction costs
(2,126)
Depreciation and amortization
(6,802)
Loss on disposal of property, equipment,
and software
(325)
Interest expense, net
(16,736)
Income tax benefit
13,610
Net loss
$
(42,484)
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
$
(50,000)
$
(22,000)
Income tax benefit
(18,000)
(8,000)
Interest expense, net
102,000
97,000
Depreciation and amortization
24,000
22,000
Share-based compensation expense
14,000
12,000
Non-recurring expenses
8,000
4,000
Adjusted EBITDA
$
80,000
$
105,000
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231102747717/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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