CHICAGO, March 8, 2021 /PRNewswire/ -- GoHealth, Inc.
(NASDAQ: GOCO), a leading health insurance marketplace and
Medicare-focused digital health company, announced financial
results for the three and twelve months ended December 31, 2020.
- Fourth quarter 2020 net revenue of $445.9 million increased 55% compared to the
prior year period, and fiscal year 2020 net revenue of $877.4 million increased 63% compared to the
prior year period
- Fourth quarter 2020 Medicare Advantage (MA) Submitted Policies
of 330,604 increased 58% compared to the prior year period, and
fiscal year 2020 MA Submitted Policies of 644,669 increased 81%
compared to the prior year period
- Fourth quarter 2020 LTV per carrier Approved MA Submission of
$1,073 increased 5% compared to the
prior year period, and fiscal year 2020 LTV per carrier Approved MA
Submission of $995 increased 3%
compared to the prior year period
- Fourth quarter 2020 net income of $133.1
million and fiscal year 2020 net loss of $97.2 million (including $209.3 million of accelerated vesting of certain
equity awards in connection with the IPO1)
- Fourth quarter 2020 adjusted EBITDA2 of $169.9 million increased 31% compared to the
prior year period, and fiscal year 2020 adjusted EBITDA of
$271.0 million increased 59% compared
to the prior year period
- The Company provided its full year 2021 outlook, and expects
total net revenue of $1,150 -
$1,300 million (+31% to +48%) powered
by commission revenue of $950 -
$1,100 million (+42% to +64%).
The company also expects adjusted EBITDA of $345 - $385 million
(+27% to +42%)
Clint Jones, co-founder and CEO said, "GoHealth's fourth quarter
revenue growth of 55% was driven by 75% revenue growth in our
Internal Medicare segment, including LTV expansion of 5%.
These excellent top-line results reflect the great work of our
agent force and a continuation of the strong full year trends where
we grew revenue 63%, powered by a doubling of Internal Medicare
revenue and leading to top-tier adjusted EBITDA margins of
31%. We continue to see strong consumer demand for our
services, particularly around education, transparency and choice
when evaluating their Medicare options."
Jones continued, "We
are the largest and most profitable DTC Medicare enroller with
730,000 submissions in 2020, and with 75 million potential
customers, we have a long runway for growth. Our tech-enabled
telesales agents are able to help consumers shop for the right plan
to fit their unique needs, and do so from the safety and comfort of
their homes. Given the abundant opportunities in a
fast-growing Medicare market, we are accelerating investments in
our leadership position in 2021, including hiring more agents
earlier in the year, and providing them with enhanced training and
technology tools to deliver high-quality submissions with greater
efficiency. We believe that these investments in our platform
will help drive over 50% commissionable revenue growth in 2021, and
position us for sustained growth in 2022 and beyond."
|
2020 Highlights
(1)
|
Total company revenue
grew 63% to $877.4 million
|
|
a.
|
Total Medicare
Submitted Policies3 grew 71% during 2020 to
729,912
|
(2)
|
Medicare—Internal
revenue increased 110% to $667.3 million
|
|
a.
|
Medicare—Internal
segment profit increased 79% to $296.9 million, with a 44%
margin
|
(3)
|
Adjusted EBITDA grew
59% to $271.0 million, resulting in full-year adjusted EBITDA
margins of 31%
|
(4)
|
LTV per carrier
Approved MA Submission increased 3% to $995 during 2020
|
(5)
|
Grew commissions
receivable balance by $427.5 million (+112%) in 2020 to
$810.4 million
|
Fourth Quarter AEP Highlights
(1)
|
Total company revenue
grew 55% to $445.9 million
|
|
a.
|
Total Medicare
Submitted Policies grew 48% during the fourth quarter to
374,359
|
(2)
|
Medicare—Internal
revenue increased 75% to $351.1 million
|
|
a.
|
Medicare—Internal
segment profit increased 40% to $172.9 million, with a 49%
margin
|
(3)
|
Adjusted EBITDA grew
31% to $169.9 million, resulting in adjusted EBITDA margins of 38%
as the company invested in internal lead generation and agent
initiatives to drive persistency improvements
|
|
a.
|
LTV per carrier
Approved MA Submission increased 5% to $1,073 during the fourth
quarter
|
2021 Financial Outlook
The trajectory of the US economy remains challenging to predict,
particularly given the continued uncertainty associated with the
pace of recovery from the COVID-19 pandemic. During this time,
demand for healthcare has demonstrated great resilience, and we
believe that the COVID-19 pandemic has created favorable, long-term
industry dynamics for technology-driven, direct-to-consumer models
such as GoHealth's insurance marketplace.
The Company has provided its financial outlook for the fiscal
year ending December 31, 2021 based
on current market conditions and expectations:
(1)
|
Full-year 2021
net revenue of $1,150 - $1,300 million, representing year-over-year
growth of 31% - 48%
|
|
a.
|
Full-year 2021
commission revenue of $950 - $1,100 million, representing
year-over-year growth of 42% - 64%, fueled by the Company's
continued investment in its Medicare business
|
(2)
|
Full-year 2021
adjusted EBITDA of $345 - $385 million, representing year-over-year
growth of 27% - 42%
|
Conference Call Details
The Company will host a conference call today, Monday, March 8, 2021 at 5:00 p.m. (ET) to discuss its financial results.
A live audio webcast and a supplemental presentation will be
available online at https://investors.gohealth.com. The conference
call can also be accessed by dialing 1-833-519-1310 for U.S.
participants, or 1-914-800-3876 for international participants, and
referencing participant code 6590925. A replay of the call will be
available for 30 days via webcast for on-demand listening shortly
after the completion of the call, at the same web link.
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. Since its inception, GoHealth has enrolled
millions of people in Medicare and individual and family plans. For
more information, visit https://www.gohealth.com.
Investor Relations:
Jay
Koval, VP of Investor Relations
IR@gohealth.com
Media Relations:
Pressinquiries@gohealth.com
(1)
|
Represents
non-cash, share-based compensation expense relating to the
accelerated vesting of performance-vesting units in connection with
the IPO for the twelve months ended December 31,
2020.
|
(2)
|
Adjusted EBITDA is
a non-GAAP measure. For a definition of Adjusted EBITDA and a
reconciliation to the most comparable GAAP measure, please refer to
the appendix.
|
(3)
|
Total Medicare
Advantage Submitted Policies includes Commissionable and
non-Commissionable Policies.
|
Forward-Looking Statements
This release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
All statements other than statements of historical facts contained
in this press release may be forward-looking statements. Statements
regarding the Company's future results of operations and financial
position, business strategy and plans and objectives of management
for future operations, including, among others, statements
regarding expected financial performance and operational
performance for the fiscal year 2021 and first quarter of 2021,
including with respect to revenue and Adjusted EBITDA 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 Company
believes 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 the Company's actual results to
differ materially from those indicated in these forward-looking
statements, including, but are not limited to, the following: the
Company's ability to comply with the numerous, complex and
frequently changing laws regulating the marketing and sale of
Medicare plans; the potential for an adverse change in the
Company's relationships with carriers, including a loss of a
carrier relationships; failure to grow the Company's customer base
or retain its existing customers; carriers' ability to reduce
commissions paid to the Company and adversely change their
underwriting practices; significant consolidation in the healthcare
industry which could adversely alter the Company's relationships
with carriers; information technology systems failures or capacity
constraints interrupting the Company's operations; factors that
adversely impact the Company's estimate of LTV; the Company's
dependence on agents to sell insurance plans; changes in the health
insurance system and laws and regulation governing health insurance
markets; the inability to effectively advertise the Company's
products; and our ability to successfully implement our business
plan during a global economic downturn caused by the COVID-19
pandemic.
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 Company's
Quarterly Report on Form 10-Q for the third quarter ended
September 30, 2020 and other SEC
filings. If one or more events related to these or other risks or
uncertainties materialize, or if the Company's underlying
assumptions prove to be incorrect, actual results may differ
materially from what the Company anticipates. Many of the important
factors that will determine these results are beyond the Company's
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, the Company does
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, the Company cannot assess the impact of each
factor on its 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, or
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 EBITDA as further adjusted for
share-based compensation, expense related to the accelerated
vesting of certain equity awards, change in fair value of
contingent consideration liability, Centerbridge Acquisition costs,
severance costs and one time indirect costs in connection with our
IPO. 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.
Management has provided its outlook regarding adjusted EBITDA,
which is a non-GAAP financial measure and excludes certain charges.
Management has not reconciled these non-GAAP financial measures to
the corresponding GAAP financial measures because guidance for the
various reconciling items are not provided. Management is unable to
provide guidance for these reconciling items because we cannot
determine their probable significance, as certain items are outside
of our control and cannot be reasonably predicted since these items
could vary significantly from period to period. Accordingly,
reconciliations to the corresponding GAAP financial measures are
not available without unreasonable effort.
"LTV/CAC" refers to the Lifetime Value of Commissions per
Consumer Acquisition Cost, 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, or LTV, divided by (ii) the cost to convert a
prospect into a customer less other non-commission carrier revenue
for such period, or CAC. CAC is comprised of cost of revenue,
marketing and advertising expenses and customer care and enrollment
expenses less other revenue and is presented on a per
commissionable Approved Submission basis. "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, divided by (ii) the number of commissionable Approved
Submissions for such period.
Combined Results
On September 13, 2019,
Centerbridge Capital Partners III, L.P., indirectly through a
subsidiary of GoHealth Holdings, LLC, (formerly known as Blizzard
Parent, LLC), an entity formed in contemplation of the acquisition,
acquired a 100% interest in Norvax, LLC. We refer to this
transaction as the "Centerbridge Acquisition." As a result of the
Centerbridge Acquisition, the Company's financial results for the
year ended December 31, 2019 are
presented for two periods, the Predecessor 2019 Period and
Successor 2019 Period, which relate to the period preceding the
acquisition on September 13, 2019 and
the period succeeding the acquisition, respectively. The Company's
financial results for the period from January 1, 2019 through September 12, 2019 are referred to as those of
the "Predecessor 2019 Period". The Company's financial results for
the period from September 13, 2019
through December 31, 2019 are
referred to as those of the "Successor 2019 Period". The Company's
results of operations as reported in our Consolidated Financial
Statements for these periods are prepared in accordance with GAAP.
Although GAAP requires that we report on the Company's results for
the period from January 1, 2019
through September 12, 2019 and the
period from September 13, 2019
through December 31, 2019 separately,
management views the Company's operating results for the year ended
December 31, 2019 by combining the
results of the applicable Predecessor 2019 Period and Successor
2019 Period because such presentation provides the most meaningful
comparison to its results for the year ended December 31, 2020.
The Company cannot adequately benchmark the operating results of
the period from September 13, 2019
through December 31, 2019 against any
of the current periods reported in its Consolidated Financial
Statements without combining it with the period from January 1, 2019 through September 12, 2019 and does not believe that
reviewing the results of this period in isolation would be useful
in identifying trends in or reaching conclusions regarding the
Company's overall operating performance. Management believes that
the key performance metrics such as revenue, net (loss) income and
Adjusted EBITDA for the Successor period when combined with the
Predecessor period provides more meaningful comparisons to other
periods and are useful in identifying current business trends.
Accordingly, in addition to presenting the Company's results of
operations as reported in our Consolidated Financial Statements in
accordance with GAAP, the tables and discussion throughout this
press release also present the combined results for the year ended
December 31, 2019.
The combined results for the year ended December 31, 2019, which we refer to herein as
the results for the "year ended December 31,
2019" represent the sum of the reported amounts for the
Predecessor 2019 Period from January 1,
2019 through September 12,
2019 and the Successor 2019 Period from September 13, 2019 through December 31, 2019. The combined results do not
reflect the actual results the Company would have achieved had the
Centerbridge Acquisition occurred on January
1, 2019 and may not be indicative of future results. These
combined results are not considered to be prepared in accordance
with GAAP and have not been prepared on a pro forma basis, which
would reflect pro forma adjustments including, but not limited to:
amortization expense for intangible assets, share-based
compensation expense related to the Centerbridge Acquisition and
the IPO, and transaction-related costs related to the Centerbridge
Acquisition and the IPO.
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)
|
Successor
|
|
|
|
|
Three months ended
Dec.
31,
2020
|
|
Three months ended
Dec.
31,
2019
|
|
|
|
|
Dollars
|
|
% of
Net
Revenues
|
|
Dollars
|
|
% of
Net
Revenues
|
|
$
Change
|
|
%
Change
|
Net
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Commission
|
$
|
360,634
|
|
|
80.9
|
%
|
|
$
|
229,624
|
|
|
79.5
|
%
|
|
$
|
131,010
|
|
|
57.1
|
%
|
Enterprise
|
85,289
|
|
|
19.1
|
%
|
|
59,077
|
|
|
20.5
|
%
|
|
26,212
|
|
|
44.4
|
%
|
Net
revenues
|
445,923
|
|
|
100.0
|
%
|
|
288,701
|
|
|
100.0
|
%
|
|
157,222
|
|
|
54.5
|
%
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
94,682
|
|
|
21.2
|
%
|
|
85,648
|
|
|
29.7
|
%
|
|
9,034
|
|
|
10.5
|
%
|
Marketing and
advertising
|
96,309
|
|
|
21.6
|
%
|
|
17,671
|
|
|
6.1
|
%
|
|
78,638
|
|
|
445.0
|
%
|
Customer care and
enrollment
|
60,229
|
|
|
13.5
|
%
|
|
39,731
|
|
|
13.8
|
%
|
|
20,498
|
|
|
51.6
|
%
|
Technology
|
9,530
|
|
|
2.1
|
%
|
|
5,488
|
|
|
1.9
|
%
|
|
4,042
|
|
|
73.7
|
%
|
General and
administrative
|
19,828
|
|
|
4.4
|
%
|
|
11,388
|
|
|
3.9
|
%
|
|
8,440
|
|
|
74.1
|
%
|
Change in fair value
of contingent consideration liability
|
—
|
|
|
—
|
%
|
|
70,700
|
|
|
24.5
|
%
|
|
(70,700)
|
|
|
(100.0)
|
%
|
Amortization of
intangible assets
|
23,514
|
|
|
5.3
|
%
|
|
23,514
|
|
|
8.1
|
%
|
|
—
|
|
|
—
|
%
|
Total operating
expenses
|
304,092
|
|
|
68.2
|
%
|
|
254,140
|
|
|
88.0
|
%
|
|
49,952
|
|
|
19.7
|
%
|
Income from
operations
|
141,831
|
|
|
31.8
|
%
|
|
34,561
|
|
|
12.0
|
%
|
|
107,270
|
|
|
310.4
|
%
|
Interest
expense
|
8,591
|
|
|
1.9
|
%
|
|
6,787
|
|
|
2.4
|
%
|
|
1,804
|
|
|
26.6
|
%
|
Other (income)
expense
|
135
|
|
|
—
|
%
|
|
(8)
|
|
|
—
|
%
|
|
143
|
|
|
N/M
|
Income (loss) before
income taxes
|
133,105
|
|
|
29.8
|
%
|
|
27,782
|
|
|
9.6
|
%
|
|
105,323
|
|
|
379.1
|
%
|
Income tax expense
(benefit)
|
5
|
|
|
—
|
%
|
|
82
|
|
|
—
|
%
|
|
(77)
|
|
|
(93.9)
|
%
|
Net income
(loss)
|
$
|
133,100
|
|
|
29.8
|
%
|
|
$
|
27,700
|
|
|
9.6
|
%
|
|
$
|
105,400
|
|
|
380.5
|
%
|
Net income (loss)
attributable to noncontrolling interests
|
97,143
|
|
|
21.8
|
%
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to GoHealth, Inc.
|
$
|
35,957
|
|
|
8.1
|
%
|
|
|
|
|
|
|
|
|
Net income (loss)
per share:
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share of common stock — basic
|
$
|
0.43
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share of common stock — diluted (1)
|
$
|
0.41
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares of common stock outstanding — basic
|
84,194
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares of common stock outstanding — diluted
|
321,191
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP financial
measures:
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
$
|
166,806
|
|
|
|
|
$
|
58,512
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
169,889
|
|
|
|
|
$
|
129,782
|
|
|
|
|
|
|
|
Adjusted EBITDA
margin
|
38.1
|
%
|
|
|
|
45.0
|
%
|
|
|
|
|
|
|
_________________________
|
NM = Not
meaningful
|
(1)
|
Net income per
share of common stock - diluted of $0.41 is calculated by dividing
net income of $133.1 million, which considers the reallocation of
earnings after the assumed conversion of Class B Common Stock for
Class A Common Stock, by the weighted-average shares of common
stock outstanding - diluted of 321,191.
|
(in thousands, except
percentages
and per share amounts)
|
Successor
|
|
Predecessor
|
|
Non-GAAP
Combined
|
|
|
|
|
Twelve months
ended Dec.
31,
2020
|
|
Period
from
Sep. 13,
2019
through
Dec.
31,
2019
|
|
Period
from
Jan. 1,
2019
through
Sep.
12,
2019
|
|
Twelve months
ended Dec.
31,
2019
|
|
|
|
|
Dollars
|
|
% of
Net
Revenues
|
|
Dollars
|
|
Dollars
|
|
Dollars
|
|
% of
Net
Revenues
|
|
$
Change
|
|
%
Change
|
Net
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commission
|
$
|
671,140
|
|
|
76.5
|
%
|
|
$
|
243,347
|
|
|
$
|
175,834
|
|
|
$
|
419,181
|
|
|
77.7
|
%
|
|
$
|
251,959
|
|
|
60.1
|
%
|
Enterprise
|
206,210
|
|
|
23.5
|
%
|
|
65,144
|
|
55,176
|
|
|
120,320
|
|
|
22.3
|
%
|
|
85,890
|
|
|
71.4
|
%
|
Net
revenues
|
877,350
|
|
|
100.0
|
%
|
|
308,491
|
|
231,010
|
|
|
539,501
|
|
|
100.0
|
%
|
|
337,849
|
|
|
62.6
|
%
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
199,202
|
|
|
22.7
|
%
|
|
90,384
|
|
79,169
|
|
|
169,553
|
|
|
31.4
|
%
|
|
29,649
|
|
|
17.5
|
%
|
Marketing and
advertising
|
206,864
|
|
|
23.6
|
%
|
|
24,811
|
|
37,769
|
|
|
62,580
|
|
|
11.6
|
%
|
|
144,284
|
|
|
230.6
|
%
|
Customer care and
enrollment
|
165,497
|
|
|
18.9
|
%
|
|
44,356
|
|
49,149
|
|
|
93,505
|
|
|
17.3
|
%
|
|
71,992
|
|
|
77.0
|
%
|
Technology
|
59,348
|
|
|
6.8
|
%
|
|
6,006
|
|
40,312
|
|
|
46,318
|
|
|
8.6
|
%
|
|
13,030
|
|
|
28.1
|
%
|
General and
administrative
|
197,229
|
|
|
22.5
|
%
|
|
13,674
|
|
79,219
|
|
|
92,893
|
|
|
17.2
|
%
|
|
104,336
|
|
|
112.3
|
%
|
Change in fair value
of
contingent consideration
liability
|
19,700
|
|
|
2.2
|
%
|
|
70,700
|
|
—
|
|
|
70,700
|
|
|
13.1
|
%
|
|
(51,000)
|
|
|
(72.1)
|
%
|
Amortization of
intangible
assets
|
94,056
|
|
|
10.7
|
%
|
|
28,217
|
|
—
|
|
|
28,217
|
|
|
5.2
|
%
|
|
65,839
|
|
|
233.3
|
%
|
Acquisition related
transaction
costs
|
—
|
|
|
—
|
%
|
|
6,245
|
|
2,267
|
|
|
8,512
|
|
|
1.6
|
%
|
|
(8,512)
|
|
|
(100.0)
|
%
|
Total operating
expenses
|
941,896
|
|
|
107.4
|
%
|
|
284,393
|
|
287,885
|
|
|
572,278
|
|
|
106.1
|
%
|
|
369,618
|
|
|
64.6
|
%
|
Income (loss) from
operations
|
(64,546)
|
|
|
(7.4)
|
%
|
|
24,098
|
|
(56,875)
|
|
|
(32,777)
|
|
|
(6.1)
|
%
|
|
(31,769)
|
|
|
96.9
|
%
|
Interest
expense
|
32,969
|
|
|
3.8
|
%
|
|
8,076
|
|
140
|
|
|
8,216
|
|
|
1.5
|
%
|
|
24,753
|
|
|
301.3
|
%
|
Other (income)
expense
|
(358)
|
|
|
—
|
%
|
|
(17)
|
|
114
|
|
|
97
|
|
|
—
|
%
|
|
(455)
|
|
|
N/M
|
Income (loss) before
income taxes
|
(97,157)
|
|
|
(11.1)
|
%
|
|
16,039
|
|
(57,129)
|
|
|
(41,090)
|
|
|
(7.6)
|
%
|
|
(56,067)
|
|
|
136.4
|
%
|
Income tax expense
(benefit)
|
43
|
|
|
—
|
%
|
|
44
|
|
(66)
|
|
|
(22)
|
|
|
—
|
%
|
|
65
|
|
|
(295.5)
|
%
|
Net income
(loss)
|
$
|
(97,200)
|
|
|
(11.1)
|
%
|
|
$
|
15,995
|
|
$
|
(57,063)
|
|
|
$
|
(41,068)
|
|
|
(7.6)
|
%
|
|
$
|
(56,132)
|
|
|
136.7
|
%
|
Net loss attributable
to
noncontrolling interests
|
(52,933)
|
|
|
(6.0)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
attributable to
GoHealth, Inc.
|
$
|
(44,267)
|
|
|
(5.0)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share of
common stock — basic and diluted
|
$
|
(0.22)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares of
common stock outstanding —
basic and diluted
|
84,189
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP financial
measures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
$
|
34,364
|
|
|
|
|
$
|
52,853
|
|
|
$
|
(52,742)
|
|
|
$
|
111
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
271,029
|
|
|
|
|
$
|
130,465
|
|
|
$
|
39,973
|
|
|
$
|
170,438
|
|
|
|
|
|
|
|
Adjusted EBITDA
margin
|
30.9
|
%
|
|
|
|
42.3
|
%
|
|
17.3
|
%
|
|
31.6
|
%
|
|
|
|
|
|
|
_________________________
|
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):
(in
thousands)
|
|
Successor
|
|
Three
months
ended
Dec.
31,
2020
|
|
Three
months
ended
Dec.
31,
2019
|
Net
revenues
|
|
$
|
445,923
|
|
|
$
|
288,701
|
|
Net income
|
|
133,100
|
|
|
27,700
|
|
Interest
expense
|
|
8,591
|
|
|
6,787
|
|
Income tax
expense
|
|
5
|
|
|
82
|
|
Depreciation and
amortization expense
|
|
25,110
|
|
|
23,943
|
|
EBITDA
|
|
166,806
|
|
|
58,512
|
|
Share-based
compensation expense (1)
|
|
3,083
|
|
|
448
|
|
Change in fair value
of contingent consideration liability (2)
|
|
—
|
|
|
70,700
|
|
Severance costs
(3)
|
|
—
|
|
|
122
|
|
Adjusted
EBITDA
|
|
$
|
169,889
|
|
|
$
|
129,782
|
|
Adjusted EBITDA
margin
|
|
38.1
|
%
|
|
45.0
|
%
|
_________________________
|
(1)
|
Represents
non-cash, share-based compensation expense relating to stock
options, restricted stock units and time-vesting
units.
|
(2)
|
Represents the
change in fair value of the contingent consideration liability due
to the predecessor owners of the Company arising from the
Centerbridge Acquisition.
|
(3)
|
Represents costs
associated with the termination of employment.
|
(in
thousands)
|
Successor
|
|
Predecessor
|
|
Non-GAAP
Combined
|
Twelve
months
ended
Dec.
31,
2020
|
|
Period
from
Sep. 13,
2019
through
Dec.
31,
2019
|
|
Period
from
Jan. 1,
2019
through
Sep.
12,
2019
|
|
Twelve
months
ended
Dec.
31,
2019
|
Net
revenues
|
$
|
877,350
|
|
|
$
|
308,491
|
|
|
$
|
231,010
|
|
|
$
|
539,501
|
|
Net income
(loss)
|
(97,200)
|
|
|
15,995
|
|
|
(57,063)
|
|
|
(41,068)
|
|
Interest
expense
|
32,969
|
|
|
8,076
|
|
|
140
|
|
|
8,216
|
|
Income tax expense
(benefit)
|
43
|
|
|
44
|
|
|
(66)
|
|
|
(22)
|
|
Depreciation and
amortization expense
|
98,552
|
|
|
28,738
|
|
|
4,247
|
|
|
32,985
|
|
EBITDA
|
34,364
|
|
|
52,853
|
|
|
(52,742)
|
|
|
111
|
|
Share-based
compensation expense (1)
|
6,929
|
|
|
448
|
|
|
—
|
|
|
448
|
|
Accelerated vesting of
certain equity awards (2)
|
209,300
|
|
|
—
|
|
|
87,060
|
|
|
87,060
|
|
Change in fair value
of contingent consideration liability (3)
|
19,700
|
|
|
70,700
|
|
|
—
|
|
|
70,700
|
|
Centerbridge
Acquisition costs (4)
|
—
|
|
|
6,245
|
|
|
4,908
|
|
|
11,153
|
|
IPO transactions costs
(5)
|
659
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Severance costs
(6)
|
77
|
|
|
219
|
|
|
747
|
|
|
966
|
|
Adjusted
EBITDA
|
$
|
271,029
|
|
|
$
|
130,465
|
|
|
$
|
39,973
|
|
|
$
|
170,438
|
|
Adjusted EBITDA
margin
|
30.9
|
%
|
|
42.3
|
%
|
|
17.3
|
%
|
|
31.6
|
%
|
_________________________
|
(1)
|
Represents
non-cash share-based compensation expense relating to stock
options, restricted stock units and time-vesting
units.
|
(2)
|
Represents
non-cash share-based compensation expense relating to the
accelerated vesting of performance-vesting units in connection with
the IPO for the twelve months ended December 31, 2020 and the
accelerated vesting of profit interests and incentive share units
in connection with the Centerbridge Acquisition for the period from
January 1, 2019 through September 12, 2019.
|
(3)
|
Represents the
change in fair value of the contingent consideration liability due
to the predecessor owners of the Company arising from the
Centerbridge Acquisition.
|
(4)
|
Represents legal,
accounting, consulting, and other costs related to the Centerbridge
Acquisition.
|
(5)
|
Represents legal,
accounting, consulting, and other indirect costs associated with
the Company's IPO.
|
(6)
|
Represents costs
associated with the termination of employment.
|
The following table summarizes share-based compensation expense
by operating function for the periods indicated (unaudited):
(in
thousands)
|
|
Successor
|
|
Predecessor
|
|
Twelve
months
ended
Dec.
31,
2020
|
|
Period
from
Sep. 13,
2019
through
Dec.
31,
2019
|
|
Period
from
Jan. 1,
2019
through
Sep.
12,
2019
|
Marketing and
advertising
|
|
$
|
24,890
|
|
|
$
|
53
|
|
|
$
|
1,674
|
|
Customer care and
enrollment
|
|
12,599
|
|
|
20
|
|
|
—
|
|
Technology
|
|
33,085
|
|
|
66
|
|
|
27,059
|
|
General and
administrative
|
|
145,655
|
|
|
309
|
|
|
58,327
|
|
Total share-based
compensation expense
|
|
$
|
216,229
|
|
|
$
|
448
|
|
|
$
|
87,060
|
|
The following table sets forth our balance sheets for the
periods indicated (unaudited):
(in thousands, except
per share amounts)
|
Successor
|
Dec. 31,
2020
|
|
Dec. 31,
2019
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
144,234
|
|
|
$
|
12,276
|
|
Accounts receivable,
net of allowance for doubtful accounts of $1,045 in 2020 and $904
in 2019
|
26,871
|
|
|
24,461
|
|
Receivable from NVX
Holdings, Inc.
|
3,395
|
|
|
—
|
|
Commissions receivable
- current
|
188,128
|
|
|
101,078
|
|
Prepaid expense and
other current assets
|
29,194
|
|
|
5,954
|
|
Total current
assets
|
391,822
|
|
|
143,769
|
|
Commissions
receivable - non-current
|
622,270
|
|
|
281,853
|
|
Other long-term
assets
|
2,072
|
|
|
998
|
|
Property, equipment,
and capitalized software, net
|
17,353
|
|
|
6,339
|
|
Intangible assets,
net
|
688,726
|
|
|
782,783
|
|
Goodwill
|
386,553
|
|
|
386,553
|
|
Total
assets
|
$
|
2,108,796
|
|
|
$
|
1,602,295
|
|
Liabilities and
Stockholders' / Members' Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
8,733
|
|
|
$
|
13,582
|
|
Accrued
liabilities
|
26,926
|
|
|
22,568
|
|
Commissions payable -
current
|
78,478
|
|
|
56,003
|
|
Deferred
revenue
|
736
|
|
|
15,218
|
|
Current portion of
long-term debt
|
4,170
|
|
|
3,000
|
|
Other current
liabilities
|
8,328
|
|
|
2,694
|
|
Total current
liabilities
|
127,371
|
|
|
113,065
|
|
Non-current
liabilities:
|
|
|
|
Commissions payable -
non-current
|
182,596
|
|
|
97,489
|
|
Capital lease
obligations, less current portion
|
396,400
|
|
|
288,233
|
|
Contingent
consideration
|
—
|
|
|
242,700
|
|
Other non-current
liabilities
|
3,274
|
|
|
664
|
|
Total non-current
liabilities
|
582,270
|
|
|
629,086
|
|
Stockholders' /
members' equity:
|
|
|
|
Members'
interest
|
—
|
|
|
860,161
|
|
Class A common stock –
$0.0001 par value; 1,100,000 shares authorized; 84,196 shares
issued and outstanding at
December 31, 2020
|
8
|
|
|
—
|
|
Class B common stock –
$0.0001 par value; 619,004 shares authorized; 236,997 shares issued
and outstanding at
December 31, 2020
|
24
|
|
|
—
|
|
Preferred stock –
$0.0001 par value; 20,000 shares authorized; no shares issued and
outstanding at December 31, 2020
|
—
|
|
|
—
|
|
Additional paid-in
capital
|
397,504
|
|
|
—
|
|
Accumulated other
comprehensive income (loss)
|
17
|
|
|
(17)
|
|
Accumulated
deficit
|
(18,802)
|
|
|
—
|
|
Total stockholders'
equity attributable to GoHealth, Inc. / members' equity
|
378,751
|
|
|
860,144
|
|
Non-controlling
interests
|
1,020,404
|
|
|
—
|
|
Total stockholders' /
members' equity
|
1,399,155
|
|
|
860,144
|
|
Total liabilities
and stockholders' / members' equity
|
$
|
2,108,796
|
|
|
$
|
1,602,295
|
|
The following table sets forth our statements of cash flows for
the periods indicated (unaudited):
(in
thousands)
|
Successor
|
|
Predecessor
|
Twelve
months
ended
Dec.
31,
2020
|
|
Period
from
Sep. 13,
2019
through
Dec.
31,
2019
|
|
Period
from
Jan. 1,
2019
through
Sep.
12,
2019
|
Operating
Activities
|
|
|
|
|
|
Net income
(loss)
|
$
|
(97,200)
|
|
|
$
|
15,995
|
|
|
$
|
(57,063)
|
|
Adjustments to
reconcile net income (loss) to net cash provided by (used in)
operating activities:
|
|
|
|
|
|
Share-based
compensation
|
216,229
|
|
|
448
|
|
|
87,060
|
|
Depreciation and
amortization
|
4,496
|
|
|
521
|
|
|
4,247
|
|
Amortization of
intangible assets
|
94,056
|
|
|
28,217
|
|
|
—
|
|
Amortization of debt
discount and issuance costs
|
2,430
|
|
|
472
|
|
|
—
|
|
Change in fair value
of contingent consideration
|
19,700
|
|
|
70,700
|
|
|
—
|
|
Other non-cash
items
|
(1,691)
|
|
|
417
|
|
|
150
|
|
Changes in assets
and liabilities, net of acquisition:
|
|
|
|
|
|
Accounts
receivable
|
(1,647)
|
|
|
(15,113)
|
|
|
(108)
|
|
Commissions
receivable
|
(427,467)
|
|
|
(203,956)
|
|
|
(63,448)
|
|
Prepaid expenses and
other assets
|
(24,021)
|
|
|
(2,316)
|
|
|
1,325
|
|
Accounts
payable
|
(5,340)
|
|
|
5,031
|
|
|
(1,981)
|
|
Accrued
liabilities
|
4,358
|
|
|
31
|
|
|
17,860
|
|
Deferred
revenue
|
(14,482)
|
|
|
11,935
|
|
|
1,926
|
|
Commissions
payable
|
107,583
|
|
|
80,828
|
|
|
19,228
|
|
Other
liabilities
|
8,779
|
|
|
(2,494)
|
|
|
85
|
|
Net cash provided by
(used in) operating activities
|
(114,217)
|
|
|
(9,284)
|
|
|
9,281
|
|
Investing
Activities
|
|
|
|
|
|
Acquisition of
business, net of cash
|
—
|
|
|
(807,591)
|
|
|
—
|
|
Purchases of
property, equipment and software
|
(14,523)
|
|
|
(2,419)
|
|
|
(5,597)
|
|
Net cash used in
investing activities
|
(14,523)
|
|
|
(810,010)
|
|
|
(5,597)
|
|
Financing
Activities
|
|
|
|
|
|
Proceeds from
issuance of Class A common stock sold in initial public offering,
net of offering costs
|
852,407
|
|
|
—
|
|
|
—
|
|
Payment of partial
consideration of the Blocker Merger
|
(96,165)
|
|
|
—
|
|
|
—
|
|
Purchase of LLC
Interests
|
(508,320)
|
|
|
—
|
|
|
—
|
|
Settlement of Senior
Preferred Earnout Units
|
(100,000)
|
|
|
—
|
|
|
—
|
|
Issuance of preferred
units
|
—
|
|
|
541,263
|
|
|
—
|
|
Proceeds received
upon issuance of common units
|
10,000
|
|
|
—
|
|
|
—
|
|
Partner
distributions
|
(400)
|
|
|
—
|
|
|
—
|
|
Borrowings under term
loans
|
117,000
|
|
|
300,000
|
|
|
—
|
|
Principal payments
under term loans
|
(3,878)
|
|
|
(750)
|
|
|
—
|
|
Borrowings under
revolving credit facilities
|
—
|
|
|
—
|
|
|
56,534
|
|
Payments under
revolving credit facilities
|
—
|
|
|
—
|
|
|
(59,915)
|
|
Debt issuance cost
payments
|
(6,293)
|
|
|
(9,283)
|
|
|
—
|
|
Principal payments
under capital lease obligations
|
(293)
|
|
|
(351)
|
|
|
(68)
|
|
Advancement to NVX
Holdings, Inc.
|
(3,395)
|
|
|
—
|
|
|
—
|
|
Net cash provided by
(used in) financing activities
|
260,663
|
|
|
830,879
|
|
|
(3,449)
|
|
Effect of exchange
rate changes on cash
|
35
|
|
|
(17)
|
|
|
(32)
|
|
Increase in cash and
cash equivalents
|
131,958
|
|
|
11,568
|
|
|
203
|
|
Cash and cash
equivalents at beginning of period
|
12,276
|
|
|
708
|
|
|
505
|
|
Cash and cash
equivalents at end of period
|
$
|
144,234
|
|
|
$
|
12,276
|
|
|
$
|
708
|
|
The following tables set forth operating segment results for the
periods indicated (unaudited):
(in thousands, except
percentages)
|
Successor
|
|
|
|
|
Three months ended
Dec.
31,
2020
|
|
Three months ended
Dec.
31,
2019
|
|
|
|
|
Dollars
|
|
% of
Net
Revenues
|
|
Dollars
|
|
% of
Net
Revenues
|
|
$
Change
|
|
%
Change
|
Net
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Medicare -
Internal
|
$
|
351,082
|
|
|
78.7
|
%
|
|
$
|
201,115
|
|
|
69.7
|
%
|
|
$
|
149,967
|
|
|
74.6
|
%
|
Medicare -
External
|
78,355
|
|
|
17.6
|
%
|
|
55,286
|
|
|
19.1
|
%
|
|
23,069
|
|
|
41.7
|
%
|
IFP and Other -
Internal
|
10,473
|
|
|
2.3
|
%
|
|
20,086
|
|
|
7.0
|
%
|
|
(9,613)
|
|
|
(47.9)
|
%
|
IFP and Other -
External
|
6,013
|
|
|
1.3
|
%
|
|
12,214
|
|
|
4.2
|
%
|
|
(6,201)
|
|
|
(50.8)
|
%
|
Net
revenues
|
445,923
|
|
|
100.0
|
%
|
|
288,701
|
|
|
100.0
|
%
|
|
157,222
|
|
|
54.5
|
%
|
Segment
profit:
|
|
|
|
|
|
|
|
|
|
|
|
Medicare -
Internal
|
172,920
|
|
|
38.8
|
%
|
|
123,711
|
|
|
42.9
|
%
|
|
49,209
|
|
|
39.8
|
%
|
Medicare -
External
|
5,051
|
|
|
1.1
|
%
|
|
9,849
|
|
|
3.4
|
%
|
|
(4,798)
|
|
|
(48.7)
|
%
|
IFP and Other -
Internal
|
4,087
|
|
|
0.9
|
%
|
|
4,095
|
|
|
1.4
|
%
|
|
(8)
|
|
|
(0.2)
|
%
|
IFP and Other -
External
|
1,121
|
|
|
0.3
|
%
|
|
89
|
|
|
—
|
%
|
|
1,032
|
|
|
N/M
|
Segment
profit
|
183,179
|
|
|
41.1
|
%
|
|
137,744
|
|
|
47.7
|
%
|
|
45,435
|
|
|
33.0
|
%
|
Corporate
expense
|
17,834
|
|
|
4.0
|
%
|
|
8,969
|
|
|
3.1
|
%
|
|
8,865
|
|
|
98.8
|
%
|
Change in fair value
of contingent consideration liability
|
—
|
|
|
—
|
%
|
|
70,700
|
|
|
24.5
|
%
|
|
(70,700)
|
|
|
(100.0)
|
%
|
Amortization of
intangible assets
|
23,514
|
|
|
5.3
|
%
|
|
23,514
|
|
|
8.1
|
%
|
|
—
|
|
|
—
|
%
|
Interest
expense
|
8,591
|
|
|
1.9
|
%
|
|
6,787
|
|
|
2.4
|
%
|
|
1,804
|
|
|
26.6
|
%
|
Other (income)
expense
|
135
|
|
|
—
|
%
|
|
(8)
|
|
|
—
|
%
|
|
143
|
|
|
N/M
|
Income before
income taxes
|
$
|
133,105
|
|
|
29.8
|
%
|
|
$
|
27,782
|
|
|
9.6
|
%
|
|
$
|
105,323
|
|
|
379.1
|
%
|
_________________________
|
NM = Not
meaningful
|
(in thousands, except
percentages)
|
Successor
|
|
Predecessor
|
|
Non-GAAP
Combined
|
|
|
|
|
Twelve months
ended
Dec. 31,
2020
|
|
Period
from
Sep. 13,
2019
through
Dec.
31,
2019
|
|
Period
from
Jan. 1,
2019
through
Sep.
12,
2019
|
|
Twelve months
ended Dec.
31,
2019
|
|
|
|
|
Dollars
|
|
% of
Net
Revenues
|
|
Dollars
|
|
Dollars
|
|
Dollars
|
|
% of
Net
Revenues
|
|
$
Change
|
|
%
Change
|
Net
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Medicare -
Internal
|
$
|
667,293
|
|
|
76.1
|
%
|
|
$
|
215,322
|
|
|
$
|
102,196
|
|
|
$
|
317,518
|
|
|
58.9
|
%
|
|
$
|
349,775
|
|
|
110.2
|
%
|
Medicare -
External
|
155,660
|
|
|
17.7
|
%
|
|
59,152
|
|
55,981
|
|
|
115,133
|
|
|
21.3
|
%
|
|
40,527
|
|
|
35.2
|
%
|
IFP and Other -
Internal
|
32,271
|
|
|
3.7
|
%
|
|
20,850
|
|
37,909
|
|
|
58,759
|
|
|
10.9
|
%
|
|
(26,488)
|
|
|
(45.1)
|
%
|
IFP and Other -
External
|
22,126
|
|
|
2.5
|
%
|
|
13,167
|
|
34,924
|
|
|
48,091
|
|
|
8.9
|
%
|
|
(25,965)
|
|
|
(54.0)
|
%
|
Net
revenues
|
877,350
|
|
|
100.0
|
%
|
|
308,491
|
|
231,010
|
|
|
539,501
|
|
|
100.0
|
%
|
|
337,849
|
|
|
62.6
|
%
|
Segment
profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Medicare -
Internal
|
296,865
|
|
|
33.8
|
%
|
|
126,210
|
|
40,024
|
|
|
166,234
|
|
|
30.8
|
%
|
|
130,631
|
|
|
78.6
|
%
|
Medicare -
External
|
5,944
|
|
|
0.7
|
%
|
|
10,584
|
|
4,893
|
|
|
15,477
|
|
|
2.9
|
%
|
|
(9,533)
|
|
|
(61.6)
|
%
|
IFP and Other -
Internal
|
4,269
|
|
|
0.5
|
%
|
|
1,650
|
|
2,195
|
|
|
3,845
|
|
|
0.7
|
%
|
|
424
|
|
|
11.0
|
%
|
IFP and Other -
External
|
1,910
|
|
|
0.2
|
%
|
|
584
|
|
1,748
|
|
|
2,332
|
|
|
0.4
|
%
|
|
(422)
|
|
|
(18.1)
|
%
|
Segment
profit
|
308,988
|
|
|
35.2
|
%
|
|
139,027
|
|
48,860
|
|
|
187,887
|
|
|
34.8
|
%
|
|
121,101
|
|
|
64.5
|
%
|
Corporate
expense
|
259,778
|
|
|
29.6
|
%
|
|
9,767
|
|
103,469
|
|
|
113,236
|
|
|
21.0
|
%
|
|
146,542
|
|
|
129.4
|
%
|
Change in fair value
of
contingent consideration
liability
|
19,700
|
|
|
2.2
|
%
|
|
70,700
|
|
—
|
|
|
70,700
|
|
|
13.1
|
%
|
|
(51,000)
|
|
|
(72.1)
|
%
|
Amortization of
intangible
assets
|
94,056
|
|
|
10.7
|
%
|
|
28,217
|
|
—
|
|
|
28,217
|
|
|
5.2
|
%
|
|
65,839
|
|
|
233.3
|
%
|
Transaction
costs
|
—
|
|
|
—
|
%
|
|
6,245
|
|
2,267
|
|
|
8,512
|
|
|
1.6
|
%
|
|
(8,512)
|
|
|
(100.0)
|
%
|
Interest
expense
|
32,969
|
|
|
3.8
|
%
|
|
8,076
|
|
140
|
|
|
8,216
|
|
|
1.5
|
%
|
|
24,753
|
|
|
301.3
|
%
|
Other (income)
expense
|
(358)
|
|
|
—
|
%
|
|
(17)
|
|
114
|
|
|
97
|
|
|
—
|
%
|
|
(455)
|
|
|
N/M
|
Income (loss)
before income
taxes
|
$
|
(97,157)
|
|
|
(11.1)
|
%
|
|
$
|
16,039
|
|
|
$
|
(57,129)
|
|
|
$
|
(41,090)
|
|
|
(7.6)
|
%
|
|
$
|
(56,067)
|
|
|
136.4
|
%
|
_________________________
|
NM = Not
meaningful
|
The following table presents the number of Submitted Policies by
product for the Medicare segments for the three and twelve months
ended December 31, 2020 and 2019, for
those submissions that are commissionable (compensated through
commissions received from carriers):
|
Successor
|
|
Successor
|
|
Predecessor
|
|
Combined
|
|
Three
months
ended
Dec.
31,
2020
|
|
Three
months
ended
Dec.
31,
2019
|
|
Twelve
months
ended
Dec.
31,
2020
|
|
Period
from
Sep. 13,
2019
through
Dec.
31,
2019
|
|
Period
from
Jan. 1,
2019
through
Sep.
12,
2019
|
|
Twelve
months
ended
Dec.
31,
2019
|
Medicare
Advantage
|
330,604
|
|
208,991
|
|
644,669
|
|
222,599
|
|
134,173
|
|
356,772
|
Medicare
Supplement
|
2,955
|
|
6,681
|
|
9,119
|
|
7,444
|
|
11,205
|
|
18,649
|
Prescription Drug
Plans
|
10,293
|
|
13,386
|
|
16,762
|
|
13,838
|
|
7,675
|
|
21,513
|
Total Medicare -
Commissionable Submitted Policies
|
343,852
|
|
229,058
|
|
670,550
|
|
243,881
|
|
153,053
|
|
396,934
|
The following tables present the number of Approved Submissions
by product relating to commissionable policies for the Medicare
segments for the three and twelve months ended December 31, 2020 and 2019. Only commissionable
policies are used to calculate our LTV.
Medicare - Internal
|
Successor
|
|
Successor
|
|
Predecessor
|
|
Combined
|
|
Three
months
ended
Dec.
31,
2020
|
|
Three
months
ended
Dec.
31,
2019
|
|
Twelve
months
ended
Dec.
31,
2020
|
|
Period
from
Sep. 13,
2019
through
Dec.
31,
2019
|
|
Period
from
Jan. 1,
2019
through
Sep.
12,
2019
|
|
Twelve
months
ended
Dec.
31,
2019
|
Medicare
Advantage
|
250,251
|
|
151,029
|
|
478,863
|
|
159,969
|
|
86,544
|
|
246,513
|
Medicare
Supplement
|
1,514
|
|
1,653
|
|
3,116
|
|
1,852
|
|
3,198
|
|
5,050
|
Prescription Drug
Plans
|
8,263
|
|
8,630
|
|
13,582
|
|
8,943
|
|
5,078
|
|
14,021
|
Total Medicare -
Internal Commissionable Approved
Submissions
|
260,028
|
|
161,312
|
|
495,561
|
|
170,764
|
|
94,820
|
|
265,584
|
Medicare - External
|
Successor
|
|
Successor
|
|
Predecessor
|
|
Combined
|
|
Three
months
ended
Dec.
31,
2020
|
|
Three
months
ended
Dec.
31,
2019
|
|
Twelve
months
ended
Dec.
31,
2020
|
|
Period
from
Sep. 13,
2019
through
Dec.
31,
2019
|
|
Period
from
Jan. 1,
2019
through
Sep.
12,
2019
|
|
Twelve
months
ended
Dec.
31,
2019
|
Medicare
Advantage
|
77,669
|
|
50,411
|
|
158,325
|
|
53,852
|
|
48,341
|
|
102,193
|
Medicare
Supplement
|
1,219
|
|
3,460
|
|
5,254
|
|
3,926
|
|
7,065
|
|
10,991
|
Prescription Drug
Plans
|
1,798
|
|
4,756
|
|
3,036
|
|
4,895
|
|
2,597
|
|
7,492
|
Total Medicare -
External Commissionable Approved
Submissions
|
80,686
|
|
58,627
|
|
166,615
|
|
62,673
|
|
58,003
|
|
120,676
|
The following table presents the LTV per Approved Submission by
product for the Medicare segments for the three and twelve months
ended December 31, 2020 and 2019:
|
Successor
|
|
Successor
|
|
Predecessor
|
|
Non-GAAP
Combined
|
|
Three
months
ended
Dec.
31,
2020
|
|
Three
months
ended
Dec.
31,
2019
|
|
Twelve
months
ended
Dec.
31,
2020
|
|
Period
from
Sep. 13,
2019
through
Dec.
31,
2019
|
|
Period
from
Jan. 1,
2019
through
Sep.
12,
2019
|
|
Twelve
months
ended
Dec.
31,
2019
|
Medicare
Advantage
|
$
|
1,073
|
|
$
|
1,019
|
|
$
|
995
|
|
$
|
1,018
|
|
$
|
888
|
|
$
|
968
|
Medicare
Supplement
|
$
|
683
|
|
$
|
934
|
|
$
|
849
|
|
$
|
936
|
|
$
|
911
|
|
$
|
920
|
Prescription Drug
Plans
|
$
|
215
|
|
$
|
213
|
|
$
|
215
|
|
$
|
213
|
|
$
|
194
|
|
$
|
206
|
The following table presents the number of Submitted Policies by
product for the Medicare segments for the three and twelve months
ended December 31, 2020 and 2019, for
those submissions that are non-commissionable (compensated via
hourly fees and enrollment fees) and do not result in commission
revenue:
|
Successor
|
|
Successor
|
|
Predecessor
|
|
Combined
|
|
Three
months
ended
Dec.
31,
2020
|
|
Three
months
ended
Dec.
31,
2019
|
|
Twelve
months
ended
Dec.
31,
2020
|
|
Period
from
Sep. 13,
2019
through
Dec.
31,
2019
|
|
Period
from
Jan. 1,
2019
through
Sep.
12,
2019
|
|
Twelve
months
ended
Dec.
31,
2019
|
Medicare
Advantage
|
23,993
|
|
16,770
|
|
44,799
|
|
17,775
|
|
4,240
|
|
22,015
|
Medicare
Supplement
|
3,520
|
|
3,951
|
|
8,782
|
|
4,185
|
|
1,051
|
|
5,236
|
Prescription Drug
Plans
|
2,994
|
|
2,886
|
|
5,781
|
|
3,041
|
|
471
|
|
3,512
|
Total Medicare -
Non-commissionable Submitted
Policies
|
30,507
|
|
23,607
|
|
59,362
|
|
25,001
|
|
5,762
|
|
30,763
|
The following table sets forth the components of our results of
operations for each quarter of 2020 (unaudited):
(in
thousands)
|
Successor
|
Three
months
ended
Mar.
31,
2020
|
|
Three
months
ended
Jun.
30,
2020
|
|
Three
months
ended
Sep.
30,
2020
|
|
Three
months
ended
Dec.
31,
2020
|
|
Twelve
months
ended
Dec.
31,
2020
|
Net
revenues:
|
|
|
|
|
|
|
|
|
|
Commission
|
$
|
112,510
|
|
|
$
|
96,606
|
|
|
$
|
101,390
|
|
|
$
|
360,634
|
|
|
$
|
671,140
|
|
Enterprise
|
28,500
|
|
|
30,451
|
|
|
61,970
|
|
|
85,289
|
|
|
206,210
|
|
Net
revenues
|
141,010
|
|
|
127,057
|
|
|
163,360
|
|
|
445,923
|
|
|
877,350
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
42,134
|
|
|
36,559
|
|
|
25,827
|
|
|
94,682
|
|
|
199,202
|
|
Marketing and
advertising
|
26,073
|
|
|
21,634
|
|
|
62,848
|
|
|
96,309
|
|
|
206,864
|
|
Customer care and
enrollment
|
23,978
|
|
|
28,394
|
|
|
52,896
|
|
|
60,229
|
|
|
165,497
|
|
Technology
|
4,593
|
|
|
5,705
|
|
|
39,520
|
|
|
9,530
|
|
|
59,348
|
|
General and
administrative
|
10,491
|
|
|
10,359
|
|
|
156,551
|
|
|
19,828
|
|
|
197,229
|
|
Change in fair value
of contingent consideration liability
|
4,400
|
|
|
15,300
|
|
|
—
|
|
|
—
|
|
|
19,700
|
|
Amortization of
intangible assets
|
23,514
|
|
|
23,514
|
|
|
23,514
|
|
|
23,514
|
|
|
94,056
|
|
Total operating
expenses
|
135,183
|
|
|
141,465
|
|
|
361,156
|
|
|
304,092
|
|
|
941,896
|
|
Income (loss) from
operations
|
5,827
|
|
|
(14,408)
|
|
|
(197,796)
|
|
|
141,831
|
|
|
(64,546)
|
|
Interest
expense
|
6,756
|
|
|
8,986
|
|
|
8,636
|
|
|
8,591
|
|
|
32,969
|
|
Other (income)
expense
|
10
|
|
|
(505)
|
|
|
2
|
|
|
135
|
|
|
(358)
|
|
Income (loss) before
income taxes
|
(939)
|
|
|
(22,889)
|
|
|
(206,434)
|
|
|
133,105
|
|
|
(97,157)
|
|
Income tax expense
(benefit)
|
(2)
|
|
|
(22)
|
|
|
62
|
|
|
5
|
|
|
43
|
|
Net income
(loss)
|
$
|
(937)
|
|
|
$
|
(22,867)
|
|
|
$
|
(206,496)
|
|
|
$
|
133,100
|
|
|
$
|
(97,200)
|
|
Net income (loss)
attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
(150,076)
|
|
|
97,143
|
|
|
(52,933)
|
|
Net income (loss)
attributable to GoHealth, Inc.
|
$
|
(937)
|
|
|
$
|
(22,867)
|
|
|
$
|
(56,420)
|
|
|
$
|
35,957
|
|
|
$
|
(44,267)
|
|
The following table sets forth the share-based compensation
expense embedded in the operating expense line items for each
quarter of 2020 (unaudited):
(in
thousands)
|
Successor
|
Three
months
ended
Mar.
31,
2020
|
|
Three
months
ended
Jun.
30,
2020
|
|
Three
months
ended
Sep.
30,
2020
|
|
Three
months
ended
Dec.
31,
2020
|
|
Twelve
months
ended
Dec.
31,
2020
|
Marketing and
advertising
|
$
|
57
|
|
$
|
61
|
|
$
|
24,709
|
|
$
|
63
|
|
$
|
24,890
|
|
Customer care and
enrollment
|
24
|
|
|
32
|
|
|
11,993
|
|
|
550
|
|
|
12,599
|
|
Technology
|
73
|
|
|
83
|
|
|
32,748
|
|
|
181
|
|
|
33,085
|
|
General and
administrative
|
325
|
|
|
421
|
|
|
142,620
|
|
|
2,289
|
|
|
145,655
|
|
Total share-based
compensation
|
$
|
479
|
|
$
|
597
|
|
$
|
212,070
|
|
$
|
3,083
|
|
$
|
216,229
|
|
The following table sets forth operating segment results for
each quarter of 2020 (unaudited):
(in
thousands)
|
Successor
|
Three
months
ended
Mar.
31,
2020
|
|
Three
months
ended
Jun.
30,
2020
|
|
Three
months
ended
Sep.
30,
2020
|
|
Three
months
ended
Dec.
31,
2020
|
|
Twelve
months
ended
Dec.
31,
2020
|
Net
revenues:
|
|
|
|
|
|
|
|
|
|
Medicare -
Internal
|
$
|
95,287
|
|
|
$
|
87,201
|
|
|
$
|
133,723
|
|
|
$
|
351,082
|
|
|
$
|
667,293
|
|
Medicare -
External
|
28,945
|
|
|
28,108
|
|
|
20,252
|
|
|
78,355
|
|
|
155,660
|
|
IFP and Other -
Internal
|
8,632
|
|
|
7,019
|
|
|
6,147
|
|
|
10,473
|
|
|
32,271
|
|
IFP and Other -
External
|
8,146
|
|
|
4,729
|
|
|
3,238
|
|
|
6,013
|
|
|
22,126
|
|
Net
revenues
|
$
|
141,010
|
|
|
$
|
127,057
|
|
|
$
|
163,360
|
|
|
$
|
445,923
|
|
|
$
|
877,350
|
|
Segment
profit:
|
|
|
|
|
|
|
|
|
|
Medicare -
Internal
|
$
|
41,735
|
|
|
32,746
|
|
|
49,464
|
|
|
172,920
|
|
|
296,865
|
|
Medicare -
External
|
(322)
|
|
|
495
|
|
|
720
|
|
|
5,051
|
|
|
5,944
|
|
IFP and Other -
Internal
|
481
|
|
|
(54)
|
|
|
(245)
|
|
|
4,087
|
|
|
4,269
|
|
IFP and Other -
External
|
512
|
|
|
130
|
|
|
147
|
|
|
1,121
|
|
|
1,910
|
|
Segment
profit
|
$
|
42,406
|
|
|
$
|
33,317
|
|
|
$
|
50,086
|
|
|
$
|
183,179
|
|
|
$
|
308,988
|
|
The following tables set forth the reconciliations of GAAP net
income (loss) to EBITDA and Adjusted EBITDA for each quarter of
2020 (unaudited):
(in
thousands)
|
Successor
|
Three
months
ended
Mar.
31,
2020
|
|
Three
months
ended
Jun.
30,
2020
|
|
Three
months
ended
Sep.
30,
2020
|
|
Three
months
ended
Dec.
31,
2020
|
|
Twelve
months
ended
Dec.
31,
2020
|
Net
revenues
|
$
|
141,010
|
|
|
$
|
127,057
|
|
|
$
|
163,360
|
|
|
$
|
445,923
|
|
|
$
|
877,350
|
|
Net income
(loss)
|
(937)
|
|
|
(22,867)
|
|
|
(206,496)
|
|
|
133,100
|
|
|
(97,200)
|
|
Interest
expense
|
6,756
|
|
|
8,986
|
|
|
8,636
|
|
|
8,591
|
|
|
32,969
|
|
Income tax expense
(benefit)
|
(2)
|
|
|
(22)
|
|
|
62
|
|
|
5
|
|
|
43
|
|
Depreciation and
amortization expense
|
24,147
|
|
|
24,518
|
|
|
24,777
|
|
|
25,110
|
|
|
98,552
|
|
EBITDA
|
29,964
|
|
|
10,615
|
|
|
(173,021)
|
|
|
166,806
|
|
|
34,364
|
|
Share-based
compensation expense (1)
|
479
|
|
|
597
|
|
|
2,770
|
|
|
3,083
|
|
|
6,929
|
|
Accelerated vesting of
certain equity awards (2)
|
—
|
|
|
—
|
|
|
209,300
|
|
|
—
|
|
|
209,300
|
|
Change in fair value
of contingent consideration liability (3)
|
4,400
|
|
|
15,300
|
|
|
—
|
|
|
—
|
|
|
19,700
|
|
Other adjustments
(4)
|
77
|
|
|
424
|
|
|
235
|
|
|
—
|
|
|
736
|
|
Adjusted
EBITDA
|
$
|
34,920
|
|
|
$
|
26,936
|
|
|
$
|
39,284
|
|
|
$
|
169,889
|
|
|
$
|
271,029
|
|
Adjusted EBITDA
margin
|
24.8
|
%
|
|
21.2
|
%
|
|
24.0
|
%
|
|
38.1
|
%
|
|
30.9
|
%
|
_________________________
|
(1)
|
Represents
non-cash share-based compensation expense relating to stock
options, restricted stock units and time-vesting
units.
|
(2)
|
Represents
non-cash share-based compensation expense relating to the
accelerated vesting of performance-vesting units in connection with
the IPO.
|
(3)
|
Represents the
change in fair value of the contingent consideration liability due
to the predecessor owners of the Company arising from the
Centerbridge Acquisition.
|
(4)
|
Represents legal,
accounting, consulting, and other indirect costs associated with
the Company's IPO and costs associated with the termination of
employment.
|
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SOURCE GoHealth, Inc.