CHICAGO, May 12, 2021
/PRNewswire/ -- GoHealth, Inc. (NASDAQ: GOCO), a leading health
insurance marketplace and Medicare-focused digital health company,
announced financial results for the three months ended March 31, 2021.
- First quarter 2021 net revenue of $204.2
million increased 45% compared to the prior year period
- First quarter 2021 Medicare—Internal revenue of $157.4 million increased 65% compared to the
prior year period
- First quarter 2021 Medicare Advantage ("MA") Approved
Submissions of 171,127 increased 48% compared to the prior year
period
- First quarter 2021 MA LTV Per Approved Submission of
$995 increased 17% compared to the
prior year period
- First quarter 2021 net loss of $7.3
million compared to a net loss of $0.9 million in prior year period; Adjusted
EBITDA1 of $32.0 million
decreased 8% compared to the prior year period due to the 2021
strategic investments in agent capacity, marketplace technology,
branding and Encompass Platform
- The Company reaffirmed its full year 2021 outlook, and expects
total net revenue of $1,150 -
$1,300 million (+31% to +48%) powered
by commission net 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 first quarter revenue growth
of 45% was driven by a 65% gain in our Medicare-Internal segment as
LTVs expanded 17%. TeleCare initiatives continued to drive
persistency gains and our ramped up investments in our Encompass
Platform led to $9 million in revenue contribution from the
platform's additional services beyond enrollment for carriers.
Given our first quarter results were consistent with our
expectations, as well as the excellent progress we achieved toward
our 2021 hiring and efficiency goals, we are reaffirming our full
year 2021 growth outlook."
Jones continued,
"Seniors continue to demonstrate a high degree of interest in our
model, and increasingly want to explore their Medicare plan choices
from the safety and comfort of their own home through our Choice
platform. GoHealth's telesales agents are equipped with the
decision support tools and experience to help consumers select the
best plan for their unique needs, and in the process, achieve a
superior health outcome with lower costs. We are in the early days
of realizing this enormous market opportunity by building
GoHealth's position as the trusted advisor for consumers, helping
these consumers navigate their healthcare journey through our
Encompass offerings, and in the process, create value for our
partners."
|
First Quarter 2021 Highlights2
- Total company revenue grew 45% to $204.2
million
-
- Total Medicare Submitted Policies3 grew 40% to
185,045
- Medicare—Internal net revenue increased 65% to $157.4 million
-
- Medicare—Internal segment profit increased 11% to $46.4 million, with a 30% margin
- LTV Per carrier Approved MA Submission increased 17% to
$995, powered by the combination of
persistency gains and Encompass revenue
- Adjusted EBITDA decreased 8% to $32.0
million
-
- Aggregate investment in customer care and enrollment and
technology grew $28.1 million, an
increase of 99%, as the Company prepares for the upcoming Annual
Enrollment Period, including enhanced tools and training to
continue powering conversion gains and improved effectuation, as
well as investments in Encompass
- Total cost of revenue, marketing and advertising expense grew
51%, roughly in line with sales growth
- Newly expanded credit facility, combined with prior facilities,
provides $200 million of incremental
borrowing capacity, in addition to $174
million of cash and cash equivalents on hand
2021 Financial Outlook
The trajectory of the U.S. 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 is reaffirming its financial outlook for the fiscal
year ending December 31, 2021 based
on current market conditions and expectations:
- Full-year 2021 net revenue of $1,150 - $1,300
million, representing year-over-year growth of 31% -
48%
-
- 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, including GoHealth's Encompass Platform
- 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, Wednesday,
May 12, 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 9944456. 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) 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.
(2) First quarter 2021 results
compared to the comparable prior year
period.
(3) Total Medicare 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, 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 relationship; 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 Annual
Report on Form 10-K for the year ended December 31, 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
("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, non-recurring legal fees, change in fair
value of contingent consideration liability, and severance costs.
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.
Reconciliations of Adjusted EBITDA to its most directly comparable
GAAP financial measure, net income (loss), is presented in the
table below in this press release.
Glossary
"Approved Submissions" refer to Submitted Policies
approved by carriers for the identified product during the
indicated period.
"Adjusted EBITDA" represents, as applicable for the
period, EBITDA as further adjusted for share-based compensation
expense, non-recurring legal fees, change in fair value of
contingent consideration liability, and severance costs.
"Adjusted EBITDA margin" refers to Adjusted EBITDA
divided by net revenues.
"LTV Per Approved Submission" refers to the Lifetime
Value of Commissions per Approved Submission, which we define as
(i) aggregate commissions estimated to be collected over the
estimated life of all commissionable Approved Submissions for the
relevant period based on multiple factors, including but not
limited to, contracted commission rates, carrier mix and expected
policy persistency with applied constraints, excluding revenue
adjustments recorded in the period, but relating to performance
obligations satisfied in prior periods, divided by (ii) the number
of commissionable Approved Submissions for such period.
"Revenue Per Submission" refers to the total net
revenues per Submitted Policy, which we define as (i) total net
revenue, excluding revenue adjustments recorded in the period, but
relating to performance obligations satisfied in prior periods,
divided by (ii) the number of Submitted Policies for such
period.
"Submitted Policies" refer to completed applications
that, with respect to each such application, the consumer has
authorized us to submit to the carrier.
The following tables set forth the components of our results of
operations for the periods indicated (unaudited):
(in thousands, except
percentages and per share amounts)
|
|
Three months ended
Mar.
31, 2021
|
|
Three months ended
Mar.
31, 2020
|
|
|
|
|
|
Dollars
|
|
% of Net
Revenues
|
|
Dollars
|
|
% of Net
Revenues
|
|
$
Change
|
|
%
Change
|
Net
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Commission
|
|
$
|
173,981
|
|
|
85.2
|
%
|
|
$
|
112,510
|
|
|
79.8
|
%
|
|
$
|
61,471
|
|
|
54.6
|
%
|
Enterprise
|
|
30,198
|
|
|
14.8
|
%
|
|
28,500
|
|
|
20.2
|
%
|
|
1,698
|
|
|
6.0
|
%
|
Net
revenues
|
|
204,179
|
|
|
100.0
|
%
|
|
141,010
|
|
|
100.0
|
%
|
|
63,169
|
|
|
44.8
|
%
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
48,375
|
|
|
23.7
|
%
|
|
42,134
|
|
|
29.9
|
%
|
|
6,241
|
|
|
14.8
|
%
|
Marketing and
advertising
|
|
54,484
|
|
|
26.7
|
%
|
|
26,073
|
|
|
18.5
|
%
|
|
28,411
|
|
|
109.0
|
%
|
Customer care and
enrollment
|
|
47,094
|
|
|
23.1
|
%
|
|
23,978
|
|
|
17.0
|
%
|
|
23,116
|
|
|
96.4
|
%
|
Technology
|
|
9,617
|
|
|
4.7
|
%
|
|
4,593
|
|
|
3.3
|
%
|
|
5,024
|
|
|
109.4
|
%
|
General and
administrative
|
|
19,693
|
|
|
9.6
|
%
|
|
10,491
|
|
|
7.4
|
%
|
|
9,202
|
|
|
87.7
|
%
|
Change in fair value
of contingent consideration liability
|
|
—
|
|
|
—
|
%
|
|
4,400
|
|
|
3.1
|
%
|
|
(4,400)
|
|
|
N/M
|
Amortization of
intangible assets
|
|
23,514
|
|
|
11.5
|
%
|
|
23,514
|
|
|
16.7
|
%
|
|
—
|
|
|
—
|
%
|
Total operating
expenses
|
|
202,777
|
|
|
99.3
|
%
|
|
135,183
|
|
|
95.9
|
%
|
|
67,594
|
|
|
50.0
|
%
|
Income from
operations
|
|
1,402
|
|
|
0.7
|
%
|
|
5,827
|
|
|
4.1
|
%
|
|
(4,425)
|
|
|
(75.9)
|
%
|
Interest
expense
|
|
8,688
|
|
|
4.3
|
%
|
|
6,756
|
|
|
4.8
|
%
|
|
1,932
|
|
|
28.6
|
%
|
Other (income)
expense
|
|
13
|
|
|
—
|
%
|
|
10
|
|
|
—
|
%
|
|
3
|
|
|
30.0
|
%
|
Income (loss) before
income taxes
|
|
(7,299)
|
|
|
(3.6)
|
%
|
|
(939)
|
|
|
(0.7)
|
%
|
|
(6,360)
|
|
|
N/M
|
Income tax expense
(benefit)
|
|
(31)
|
|
|
—
|
%
|
|
(2)
|
|
|
—
|
%
|
|
(29)
|
|
|
N/M
|
Net income
(loss)
|
|
$
|
(7,268)
|
|
|
(3.6)
|
%
|
|
$
|
(937)
|
|
|
(0.7)
|
%
|
|
$
|
(6,331)
|
|
|
N/M
|
Net income (loss)
attributable to noncontrolling interests
|
|
(5,178)
|
|
|
(2.5)
|
%
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to GoHealth, Inc.
|
|
$
|
(2,090)
|
|
|
(1.0)
|
%
|
|
|
|
|
|
|
|
|
Net income (loss)
per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share of common stock — basic and diluted
|
|
$
|
(0.02)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares of common stock outstanding — basic and
diluted
|
|
92,343
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP financial
measures:
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
|
26,756
|
|
|
|
|
$
|
29,964
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
|
32,048
|
|
|
|
|
$
|
34,920
|
|
|
|
|
|
|
|
Adjusted EBITDA
margin
|
|
15.7
|
%
|
|
|
|
24.8
|
%
|
|
|
|
|
|
|
|
_________________________
|
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)
|
|
Three months
ended Mar.
31, 2021
|
|
Three months
ended Mar.
31, 2020
|
Net
revenues
|
|
$
|
204,179
|
|
|
$
|
141,010
|
|
Net income
(loss)
|
|
(7,268)
|
|
|
(937)
|
|
Interest
expense
|
|
8,688
|
|
|
6,756
|
|
Income tax expense
(benefit)
|
|
(31)
|
|
|
(2)
|
|
Depreciation and
amortization expense
|
|
25,367
|
|
|
24,147
|
|
EBITDA
|
|
26,756
|
|
|
29,964
|
|
Share-based
compensation expense (1)
|
|
5,112
|
|
|
479
|
|
Legal fees
(2)
|
|
180
|
|
|
—
|
|
Change in fair value
of contingent consideration liability (3)
|
|
—
|
|
|
4,400
|
|
Severance costs
(4)
|
|
—
|
|
|
77
|
|
Adjusted
EBITDA
|
|
$
|
32,048
|
|
|
$
|
34,920
|
|
Adjusted EBITDA
margin
|
|
15.7
|
%
|
|
24.8
|
%
|
_________________________
|
(1)
|
Represents
non-cash share-based compensation expense relating to equity
awards.
|
(2)
|
Represents
non-recurring legal fees unrelated to our core
operations.
|
(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 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)
|
|
Three months
ended Mar.
31, 2021
|
|
Three months
ended Mar.
31, 2020
|
Marketing and
advertising
|
|
$
|
337
|
|
|
$
|
57
|
|
Customer care and
enrollment
|
|
796
|
|
|
24
|
|
Technology
|
|
747
|
|
|
73
|
|
General and
administrative
|
|
3,232
|
|
|
325
|
|
Total share-based
compensation expense
|
|
$
|
5,112
|
|
|
$
|
479
|
|
The following table sets forth our balance sheets for the
periods indicated (unaudited):
(in thousands, except
per share amounts)
|
|
Mar. 31,
2021
|
|
Dec. 31,
2020
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
173,979
|
|
|
$
|
144,234
|
|
Accounts receivable,
net of allowance for doubtful accounts of $730 in 2021 and $787 in
2020
|
|
22,092
|
|
|
14,211
|
|
Receivable from NVX
Holdings, Inc.
|
|
—
|
|
|
3,395
|
|
Commissions receivable
- current
|
|
98,222
|
|
|
188,128
|
|
Prepaid expense and
other current assets
|
|
26,496
|
|
|
41,854
|
|
Total current
assets
|
|
320,789
|
|
|
391,822
|
|
Commissions
receivable - non-current
|
|
702,668
|
|
|
622,270
|
|
Other long-term
assets
|
|
2,170
|
|
|
2,072
|
|
Property, equipment,
and capitalized software, net
|
|
20,984
|
|
|
17,353
|
|
Intangible assets,
net
|
|
665,211
|
|
|
688,726
|
|
Goodwill
|
|
386,553
|
|
|
386,553
|
|
Total
assets
|
|
$
|
2,098,375
|
|
|
$
|
2,108,796
|
|
Liabilities and
Stockholders' / Members' Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
|
11,993
|
|
|
$
|
8,733
|
|
Accrued
liabilities
|
|
26,143
|
|
|
26,926
|
|
Commissions payable -
current
|
|
47,554
|
|
|
78,478
|
|
Deferred
revenue
|
|
750
|
|
|
736
|
|
Current portion of
long-term debt
|
|
4,170
|
|
|
4,170
|
|
Other current
liabilities
|
|
9,037
|
|
|
8,328
|
|
Total current
liabilities
|
|
99,647
|
|
|
127,371
|
|
Non-current
liabilities:
|
|
|
|
|
Commissions payable -
non-current
|
|
202,703
|
|
|
182,596
|
|
Long-term debt, net of
current portion
|
|
395,982
|
|
|
396,400
|
|
Other non-current
liabilities
|
|
3,037
|
|
|
3,274
|
|
Total non-current
liabilities
|
|
601,722
|
|
|
582,270
|
|
Stockholders'
equity:
|
|
|
|
|
Class A common stock –
$0.0001 par value; 1,100,000 shares authorized; 98,518 and 84,196
shares issued and
outstanding at March 31, 2021 and December 31, 2020,
respectively.
|
|
10
|
|
|
8
|
|
Class B common stock –
$0.0001 par value; 604,613 and 619,004 shares authorized; 222,606
and 236,997
shares issued and outstanding at March 31, 2021 and December 31,
2020, respectively.
|
|
22
|
|
|
24
|
|
Preferred stock –
$0.0001 par value; 20,000 shares authorized; no shares issued and
outstanding at March 31,
2021 and December 31, 2020.
|
|
—
|
|
|
—
|
|
Additional paid-in
capital
|
|
465,936
|
|
|
399,169
|
|
Accumulated other
comprehensive income (loss)
|
|
19
|
|
|
17
|
|
Accumulated
deficit
|
|
(20,892)
|
|
|
(18,802)
|
|
Total stockholders'
equity attributable to GoHealth, Inc.
|
|
445,095
|
|
|
380,416
|
|
Non-controlling
interests
|
|
951,911
|
|
|
1,018,739
|
|
Total stockholders' /
members' equity
|
|
1,397,006
|
|
|
1,399,155
|
|
Total liabilities
and stockholders' / members' equity
|
|
$
|
2,098,375
|
|
|
$
|
2,108,796
|
|
The following table sets forth our statements of cash flows for
the periods indicated (unaudited):
(in
thousands)
|
|
Three months
ended Mar.
31, 2021
|
|
Three months
ended Mar.
31, 2020
|
Operating
Activities
|
|
|
|
|
Net income
(loss)
|
|
$
|
(7,268)
|
|
|
$
|
(937)
|
|
Adjustments to
reconcile net income (loss) to net cash provided by (used in)
operating activities:
|
|
|
|
|
Share-based
compensation
|
|
5,112
|
|
|
479
|
|
Depreciation and
amortization
|
|
1,853
|
|
|
633
|
|
Amortization of
intangible assets
|
|
23,514
|
|
|
23,514
|
|
Amortization of debt
discount and issuance costs
|
|
684
|
|
|
394
|
|
Change in fair value
of contingent consideration
|
|
—
|
|
|
4,400
|
|
Other non-cash
items
|
|
(472)
|
|
|
(341)
|
|
Changes in assets
and liabilities, net of acquisition:
|
|
|
|
|
Accounts
receivable
|
|
(1,661)
|
|
|
9,302
|
|
Commissions
receivable
|
|
9,508
|
|
|
(5,859)
|
|
Prepaid expenses and
other assets
|
|
9,227
|
|
|
9,007
|
|
Accounts
payable
|
|
1,570
|
|
|
(864)
|
|
Accrued
liabilities
|
|
(783)
|
|
|
(10,828)
|
|
Deferred
revenue
|
|
13
|
|
|
(351)
|
|
Commissions
payable
|
|
(10,818)
|
|
|
(5,441)
|
|
Other
liabilities
|
|
723
|
|
|
479
|
|
Net cash provided by
(used in) operating activities
|
|
31,202
|
|
|
23,587
|
|
Investing
Activities
|
|
|
|
|
Purchases of
property, equipment and software
|
|
(3,740)
|
|
|
(3,522)
|
|
Net cash provided by
(used in) investing activities
|
|
(3,740)
|
|
|
(3,522)
|
|
Financing
Activities
|
|
|
|
|
Proceeds received
upon issuance of common units
|
|
—
|
|
|
10,000
|
|
Borrowings under term
loans
|
|
—
|
|
|
117,000
|
|
Principal payments
under term loans
|
|
(1,043)
|
|
|
(750)
|
|
Debt issuance cost
payments
|
|
—
|
|
|
(6,011)
|
|
Principal payments
under capital lease obligations
|
|
(76)
|
|
|
(72)
|
|
Cash received on
advancement to NVX Holdings, Inc.
|
|
3,395
|
|
|
—
|
|
Net cash provided by
(used in) financing activities
|
|
2,276
|
|
|
120,167
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
7
|
|
|
(85)
|
|
Increase in cash and
cash equivalents
|
|
29,745
|
|
|
140,147
|
|
Cash and cash
equivalents at beginning of period
|
|
144,234
|
|
|
12,276
|
|
Cash and cash
equivalents at end of period
|
|
$
|
173,979
|
|
|
$
|
152,423
|
|
The following tables set forth operating segment results for the
periods indicated (unaudited):
(in thousands, except
percentages)
|
|
Three months ended
Mar.
31, 2021
|
|
Three months ended
Mar.
31, 2020
|
|
|
|
|
|
Dollars
|
|
% of Net
Revenues
|
|
Dollars
|
|
% of Net
Revenues
|
|
$
Change
|
|
%
Change
|
Net
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Medicare -
Internal
|
|
$
|
157,353
|
|
|
77.2
|
%
|
|
$
|
95,287
|
|
|
67.6
|
%
|
|
$
|
62,066
|
|
|
65.1
|
%
|
Medicare -
External
|
|
39,500
|
|
|
19.3
|
%
|
|
28,945
|
|
|
20.5
|
%
|
|
10,555
|
|
|
36.5
|
%
|
IFP and Other -
Internal
|
|
3,975
|
|
|
1.9
|
%
|
|
8,632
|
|
|
6.1
|
%
|
|
(4,657)
|
|
|
(54.0)
|
%
|
IFP and Other -
External
|
|
3,351
|
|
|
1.6
|
%
|
|
8,146
|
|
|
5.8
|
%
|
|
(4,795)
|
|
|
(58.9)
|
%
|
Net
revenues
|
|
204,179
|
|
|
100.0
|
%
|
|
141,010
|
|
|
100.0
|
%
|
|
63,169
|
|
|
44.8
|
%
|
Segment profit
(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
Medicare -
Internal
|
|
46,443
|
|
|
22.8
|
%
|
|
41,735
|
|
|
29.6
|
%
|
|
4,708
|
|
|
11.3
|
%
|
Medicare -
External
|
|
(631)
|
|
|
(0.3)
|
%
|
|
(322)
|
|
|
(0.2)
|
%
|
|
(309)
|
|
|
96.0
|
%
|
IFP and Other -
Internal
|
|
(729)
|
|
|
(0.4)
|
%
|
|
481
|
|
|
0.3
|
%
|
|
(1,210)
|
|
|
N/M
|
IFP and Other -
External
|
|
160
|
|
|
0.1
|
%
|
|
512
|
|
|
0.4
|
%
|
|
(352)
|
|
|
(68.8)
|
%
|
Segment
profit
|
|
45,243
|
|
|
22.2
|
%
|
|
42,406
|
|
|
30.1
|
%
|
|
2,837
|
|
|
6.7
|
%
|
Corporate
expense
|
|
20,327
|
|
|
10.0
|
%
|
|
8,665
|
|
|
6.1
|
%
|
|
11,662
|
|
|
134.6
|
%
|
Change in fair value
of contingent consideration liability
|
|
—
|
|
|
—
|
%
|
|
4,400
|
|
|
3.1
|
%
|
|
(4,400)
|
|
|
(100.0)
|
%
|
Amortization of
intangible assets
|
|
23,514
|
|
|
11.5
|
%
|
|
23,514
|
|
|
16.7
|
%
|
|
—
|
|
|
—
|
%
|
Interest
expense
|
|
8,688
|
|
|
4.3
|
%
|
|
6,756
|
|
|
4.8
|
%
|
|
1,932
|
|
|
28.6
|
%
|
Other (income)
expense
|
|
13
|
|
|
—
|
%
|
|
10
|
|
|
—
|
%
|
|
3
|
|
|
30.0
|
%
|
Income (loss)
before income taxes
|
|
$
|
(7,299)
|
|
|
(3.6)
|
%
|
|
$
|
(939)
|
|
|
(0.7)
|
%
|
|
$
|
(6,360)
|
|
|
677.3
|
%
|
|
_________________________
|
NM = Not
meaningful
|
The following table presents the number of Submitted Policies by
product for the Medicare segments for the three months ended
March 31, 2021 and 2020, for those
submissions that are commissionable (compensated through
commissions received from carriers):
Medicare -
Total Commissionable Submitted Policies
|
|
Three months
ended Mar.
31, 2021
|
|
Three months
ended Mar.
31, 2020
|
Medicare
Advantage
|
|
172,874
|
|
117,312
|
Medicare
Supplement
|
|
1,104
|
|
2,671
|
Prescription Drug
Plans
|
|
2,593
|
|
2,494
|
Total
Medicare
|
|
176,571
|
|
122,477
|
The following tables present the number of Approved Submissions
by product relating to commissionable policies for the Medicare
segments for three months ended March 31,
2021 and 2020. Only commissionable policies are used to
calculate LTV.
Medicare -
Internal Commissionable Approved Submissions
|
|
Three months
ended Mar.
31, 2021
|
|
Three months
ended Mar.
31, 2020
|
Medicare
Advantage
|
|
128,886
|
|
83,608
|
Medicare
Supplement
|
|
251
|
|
822
|
Prescription Drug
Plans
|
|
2,284
|
|
2,174
|
Total
Medicare
|
|
131,421
|
|
86,604
|
|
|
|
|
|
Medicare -
External Commissionable Approved Submissions
|
|
Three months
ended Mar.
31, 2021
|
|
Three months
ended Mar.
31, 2020
|
Medicare
Advantage
|
|
42,241
|
|
32,287
|
Medicare
Supplement
|
|
731
|
|
1,558
|
Prescription Drug
Plans
|
|
289
|
|
481
|
Total
Medicare
|
|
43,261
|
|
34,326
|
The following table presents the LTV per Approved Submission by
product for the Medicare segments for the three months ended
March 31, 2021 and 2020:
LTV per
Approved Submission
|
|
Three months
ended Mar.
31, 2021
|
|
Three months
ended Mar.
31, 2020
|
Medicare
Advantage
|
|
$
|
995
|
|
$
|
854
|
Medicare
Supplement
|
|
$
|
798
|
|
$
|
920
|
Prescription Drug
Plans
|
|
$
|
215
|
|
$
|
215
|
The following table presents the number of Submitted Policies by
product for the Medicare segments for the three months ended
March 31, 2021 and 2020, for those
submissions that are non-commissionable (compensated via hourly
fees and enrollment fees) and do not result in commission
revenue:
Medicare -
Total Non-Commissionable Submitted Policies
|
|
Three months
ended Mar.
31, 2021
|
|
Three months
ended Mar.
31, 2020
|
Medicare
Advantage
|
|
5,939
|
|
6,927
|
Medicare
Supplement
|
|
1,650
|
|
1,812
|
Prescription Drug
Plans
|
|
885
|
|
798
|
Total
Medicare
|
|
8,474
|
|
9,537
|
The following table presents a reconciliation from net income to
non-GAAP Adjusted EBITDA guidance for the twelve months ended
December 31, 2021:
|
|
Twelve months
ended
Dec. 31,
2021
|
|
|
Guidance
Range
|
(in
thousands)
|
|
Low
|
|
High
|
Net
revenues
|
|
$
|
1,150,000
|
|
|
$
|
1,300,000
|
|
Net income
|
|
179,600
|
|
|
219,600
|
|
Interest
expense
|
|
35,000
|
|
|
35,000
|
|
Income tax
expense
|
|
220
|
|
|
220
|
|
Depreciation and
amortization expense
|
|
102,000
|
|
|
102,000
|
|
EBITDA
|
|
316,820
|
|
|
356,820
|
|
Share-based
compensation expense (1)
|
|
28,000
|
|
|
28,000
|
|
Legal fees
(2)
|
|
180
|
|
|
180
|
|
Adjusted
EBITDA
|
|
$
|
345,000
|
|
|
$
|
385,000
|
|
Adjusted EBITDA
margin
|
|
30
|
%
|
|
30
|
%
|
_________________________
|
(1)
|
Represents
non-cash share-based compensation expense relating to equity
awards.
|
(2)
|
Represents
non-recurring legal fees unrelated to our core
operations.
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/gohealth-reports-first-quarter-2021-results-301290241.html
SOURCE GoHealth, Inc.