Le Lézard
Classified in: Health, Business, Covid-19 virus
Subjects: ERN, CCA, ERP

GoHealth Reports Second Quarter 2020 Results and Provides 2020 Outlook


CHICAGO, Aug. 19, 2020 /PRNewswire/ -- GoHealth, Inc. (GoHealth) (Nasdaq: GOCO), a leading health insurance marketplace, announced financial results for the three and six months ended June 30, 2020.

The Company also provided a full year 2020 outlook, including net revenues of $840-890 million and adjusted EBITDA1 of $265-290 million.

Clint Jones, co-founder and CEO said, "We delivered 71% revenue growth in the second quarter, powered by strong Medicare Advantage enrollments.  Our strategic focus on LTV/CAC ensures that these high rates of growth convert into industry-leading margins and strong cash returns.  Given the trajectory of our business and the investments we have been making in our direct-to-consumer marketplace, we believe we are on track for another record year of results in fiscal 2020."

Jones continued, "GoHealth is one of the largest enrollers of Medicare Advantage plans in the United States.  Our targeted marketing efforts help spur seniors to evaluate their Medicare plans as we continue to expand our carrier offerings and geographic footprint.  The COVID-19 pandemic has accelerated the shift from traditional field agents to our technology enabled model, as consumers seek the expert advice of our agents from the comfort and safety of their homes.  Importantly, we are rapidly scaling up in a fast growing, 60 million plus person market where our larger scale and leadership position will allow us to better help both consumers and carriers."

Year-to-date highlights

Financial Outlook
The trajectory of the US economy remains challenging to predict, particularly given the heightened uncertainty associated with the COVID-19 pandemic.  During these times, demand for healthcare has demonstrated great resilience, and we believe that the COVID-19 pandemic has created favorable industry dynamics for technology-driven direct-to-consumer models such as GoHealth's insurance marketplace.  The Company is providing an outlook for the fiscal year ending December 31, 2020 based on current market conditions and expectations:

1. Full year 2020 net revenue of $840 - $890 million, representing year-over-year growth of 56% - 65%
2. Full year 2020 adjusted EBITDA of $265 - $290 million, representing year-over-year growth of 55% - 71%

Jones concluded, "Our recent IPO marked an important milestone nearly two decades after Brandon Cruz and I founded the Company, providing us with the necessary capital to deliver our long-term plan.  We believe we have the winning strategy necessary to deliver great results for our shareholders over the coming years by working to improve access to healthcare in America."

Conference Call Details
The Company will host a conference call today, Wednesday, August 19, 2020 at 5:00 pm (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 9537505. A replay of the call will be available via webcast for on-demand listening shortly after the completion of the call, at the same web link.

About GoHealth
As a leading health insurance marketplace, 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 best 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

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 LTV/CAC defined as (i) aggregate commissions estimated to be collected over the estimated life of all 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. 3 Total Medicare Advantage Submitted Policies includes Commissionable and non-Commissionable Policies.

Investor Relations:
Jay Koval, VP of Investor Relations
jkoval@gohealth.com

Media Relations:
pressinquiries@gohealth.com

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 2020, 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 our relationships with carriers, including a loss of a carrier relationships; failure to grow the Company's customer base or retain our 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 second quarter ended June 30, 2020 filed with the SEC. 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, we cannot assess the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

Use of Non-GAAP Financial Measures and Key Performance Indicators
In this press release, we use supplemental measures of our performance that are derived from our consolidated financial information, but which are not presented in our consolidated financial statements prepared in accordance with 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, change in fair value of earnout liability, Centerbridge Acquisition costs, severance costs and incremental organizational costs in connection with the 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 measures and exclude 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 the company's 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 noncommission 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.

The following table sets forth the components of our results of operations for the three months ended June 30, 2020 and 2019 (unaudited):









Successor

Predecessor




Three Months
Ended June 30, 2020

Three Months
Ended June 30, 2019



(in thousands, except percentages)

Dollars

% of Net
Revenues

Dollars

% of Net
Revenues

$ Change

% Change

Net revenues:





Commission

$ 96,606

76.0%

$ 60,077

80.6%

$      36,529

60.8%

Other

30,451

24.0%

14,434

19.4%

16,017

111.0%








Net revenues

127,057

100.0%

74,511

100.0%

52,546

70.5%








Operating expenses:







Cost of revenue

36,559

28.8%

26,561

35.6%

9,998

37.6%

Marketing and advertising

21,634

17.0%

5,026

6.7%

16,608

330.4%

Customer care and enrollment

28,394

22.3%

15,814

21.2%

12,580

79.5%

Technology

5,705

4.5%

4,301

5.8%

1,404

32.6%

General and administrative

10,359

8.2%

7,106

9.5%

3,253

45.8%

Change in fair value of contingent consideration liability

15,300

12.0%

-

-

15,300

            NM

Amortization of intangible assets

23,514

18.5%

-

-

23,514

            NM

Transaction costs

-

-

299

0.4%

(299)

(100.0)%








Total operating expenses

141,465

111.3%

59,107

79.3%

82,358

139.3%








(Loss) income from operations

(14,408)

(11.3)%

15,404

20.7%

(29,812)

(193.5)%

Interest expense

8,986

7.1%

81

0.1%

8,905

            NM

Other (income) expense

(505)

(0.4)%

38

0.1%

(543)

            NM








(Loss) income before income tax expense

(22,889)

(18.0)%

15,285

20.5%

(38,174)

(249.7)%

Income tax expense (benefit)

(22)

0.0%

9

0.0%

(31)

(344.4)%








Net (loss) income

$ (22,867)

(18.0)%

$ 15,276

20.5%

$    (38,143)

(249.7)%















Non-GAAP Financial Measures:







EBITDA

$ 10,615


$ 16,871


$       (6,256)

(37.1)%

Adjusted EBITDA

$ 26,936


$ 17,269


$        9,667

56.0%

Adjusted EBITDA margin

21. 2%


23.2%












*   NM indicates that the percentage is not meaningful.

The reconciliations of GAAP net (loss) income to EBITDA and Adjusted EBITDA for the three months ended June 30, 2020 and 2019 are as follows:

(in thousands)

Three Months Ended
June 30,

Successor

Predecessor

2020

2019

Net revenues

$ 127,057

$   74,511




Net (loss) income

$  (22,867)

$   15,276

Interest expense

8,986

81

Income tax (benefit) expense

(22)

9

Depreciation and amortization expense

24,518

1,505




EBITDA

10,615

16,871

Share-based compensation expense(1)

597

-

Change in fair value of contingent consideration liability(2)

15,300

-

Centerbridge Acquisition costs(3)

-

299

IPO transaction costs(4)

424

-

Severance costs(5)

-

99




Adjusted EBITDA

$   26,936

$    17,269




Adjusted EBITDA margin

21.2%

23.2%




(1)

Represents non-cash share-based compensation expense in connection with profits interests.

(2)

Represents the change in fair value of the earnout liability due to the predecessor owners of the Company arising from the Centerbridge Acquisition.

(3)

Represents legal, accounting, consulting, and other costs related to the Centerbridge Acquisition.

(4)

Represents legal, accounting, consulting, and other indirect costs associated with the Company's IPO.

(5)

Represents costs associated with the termination of employment. 

The following table sets forth the components of our results of operations for the six months ended June 30, 2020 and 2019 (unaudited):









Successor

Predecessor




Six Months

Ended June 30, 2020

Six Months

Ended June 30, 2019



(in thousands, except percentages)

Dollars

% of Net
Revenues

Dollars

% of Net
Revenues

$ Change

% Change

Net revenues:





Commission

$ 209,116

78.0%

$ 111,293

77.5%

$  97,823

87.9%

Other

58,951

22.0%

32,308

22.5%

26,643

82.5%








Net revenues

268,067

100.0%

143,601

100.0%

124,466

86.7%








Operating expenses:







Cost of revenue

78,693

29.4%

54,113

37.7%

24,580

45.4%

Marketing and advertising

47,708

17.8%

16,437

11.4%

31,271

190.2%

Customer care and enrollment

52,371

19.5%

29,753

20.7%

22,618

76.0%

Technology

10,298

3.8%

8,457

5.9%

1,841

21.8%

General and administrative

20,849

7.8%

14,096

9.8%

6,753

47.9%

Change in fair value of contingent consideration liability

19,700

7.3%

-

-

19,700

            NM

Amortization of intangible assets

47,029

17.5%

-

-

47,029

            NM

Transaction costs

-

-

299

0.2%

(299)

(100.0)%








Total operating expenses

276,648

103.2%

123,155

85.8%

153,493

124.6%








(Loss) income from operations

(8,581)

(3.2)%

20,446

14.2%

(29,027)

(142.0)%

Interest expense

15,742

5.9%

109

0.1%

15,633

            NM

Other (income) expense

(495)

(0.2)%

48

0.0%

(543)

            NM








(Loss) income before income tax expense

(23,828)

(8.9)%

20,289

14.1%

(44,117)

(217.4)%

Income tax expense (benefit)

(24)

0.0%

11

0.0%

(35)

(318.2)%








Net (loss) income

$  (23,804)

(8.9)%

$   20,278

14.1%

$ (44,082)

(217.4)%








Non-GAAP Financial Measures:







EBITDA

$     40,579


$   23,441


$ 17,138

73.1%

Adjusted EBITDA

$     61,857


$   24,405


$ 37,452

153.5%

Adjusted EBITDA margin

23.1%


17.0%





*   NM indicates that the percentage is not meaningful.

The reconciliations of GAAP net (loss) income to EBITDA and Adjusted EBITDA for the six months ended June 30, 2020 and 2019 are as follows:

(in thousands)

Six Months Ended
June 30,

Successor

Predecessor

2020

2019

Net revenues

$ 268,067

$ 143,601







Net (loss) income

$  (23,804)

$   20,278

Interest expense

15,742

109

Income tax (benefit) expense

(24)

11

Depreciation and amortization expense

48,665

3,043




EBITDA

40,579

23,441

Share-based compensation expense(1)

1,077

-

Change in fair value of contingent consideration liability(2)

19,700

-

Centerbridge Acquisition costs(3)

-

299

IPO transaction costs(4)

424

-

Severance costs(5)

77

665




Adjusted EBITDA

$   61,857

$    24,405




Adjusted EBITDA margin

23.1%

17.0%





(1)

Represents non-cash share-based compensation expense in connection with profits interests.

(2)

Represents the change in fair value of the earnout liability due to the predecessor owners of the Company arising from the Centerbridge Acquisition.

(3)

Represents legal, accounting, consulting, and other costs related to the Centerbridge Acquisition.

(4)

Represents legal, accounting, consulting, and other indirect costs associated with the Company's IPO.

(5)

Represents costs associated with the termination of employment.  

 

GoHealth Holdings, LLC and Subsidiaries
Condensed Consolidated Balance Sheets
(dollars in thousands, except unit and per unit data)











Successor


Successor


June 30,

2020


December 31,
2019


(Unaudited)



Assets




Current assets:




Cash and cash equivalents

$        118,341


$            12,276

Accounts receivable, net of allowance for doubtful accounts of $729 in 2020 and $904 in 2019

9,444


24,461

Commissions receivable ? current

74,044


101,078

Prepaid expenses and other current assets

15,019


5,954





Total current assets

216,848


143,769

Commissions receivable ? non-current

367,596


281,853

Property, equipment, and capitalized software, net

12,467


6,339

Intangible assets, net

735,754


782,783

Goodwill

386,553


386,553

Other long-term assets

1,193


998





Total assets

$     1,720,411


$       1,602,295





Liabilities and members' equity




Current liabilities:




Accounts payable

$          10,243


$           13,582

Accrued liabilities

21,659


22,568

Commissions payable ? current

46,240


56,003

Deferred revenue

1,047


15,218

Current portion of debt

4,170


3,000

Other current liabilities

3,974


2,694





Total current liabilities

87,333


113,065

Non-current liabilities:




Commissions payable ? non-current

125,387


97,489

Long-term debt, net of current portion

397,235


288,233

Contingent consideration

62,400


242,700

Other non-current liabilities

543


664





Total non-current liabilities

585,565


629,086





Commitments and contingencies (Note 10)




Members' Equity:








Preferred Units ? $1.00 par value; 541,263,042 units authorized, issued and outstanding at June 30, 2020 and December 31, 2019

536,489


547,542

Class A Common Units ? $1.00 par value; 351,345,682 and 237,938,682 units authorized, issued and outstanding at June 30, 2020 and December 31, 2019

282,317


218,911

Class B Common Units ? $1.00 par value; 157,372,734 and 102,061,318 units authorized, issued and outstanding at June 30, 2020 and December 31, 2019, respectively

130,536


93,708

Senior Preferred Earnout Units ? no par value; 100,000,000 and 0 units authorized, issued, and outstanding at June 30, 2020 and December 31, 2019, respectively

98,063


?

Profits Units ? no par value; 97,918,116 units authorized at June 30, 2020 and December 31, 2019; 86,097,861 and 78,398,133 units issued at June 30, 2020 and December 31, 2019, respectively; and none outstanding at June 30, 2020 and December 31, 2019

?


?

Accumulated other comprehensive income (loss)

81


(17 )





Total members' equity

1,047,513


860,144





Total liabilities and members' equity

$     1,720,411


$       1,602,295





 

GoHealth Holdings, LLC and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(dollars in thousands, unaudited)







Successor


Predecessor


Six Months
Ended June 30,
2020


Six Months
Ended June 30,
2019

Operating activities:




Net (loss) income

$       (23,804)


$         20,278

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




Share-based compensation

1,077


?

Depreciation and amortization

1,636


3,043

Amortization of intangible assets

47,029


?

Amortization of debt discount and issuance costs

1,058


?

Change in fair value of contingent consideration

19,700


?

Other non-cash items

(458)


808

Changes in assets and liabilities:




Accounts receivable

15,506


860

Commissions receivable

(58,709)


(33,885)

Prepaid expenses and other assets

(1,329)


1,276

Accounts payable

(3,467)


(3,496)

Accrued liabilities

(7,641)


(1,792)

Deferred revenue

(14,171)


12,210

Commissions payable

18,135


12,377

Other liabilities

1,269


1,300





Net cash (used in) provided by operating activities

(4,169)


12,979

Investing activities:




Purchases of property, equipment and software

(7,764)


(4,783)





Net cash used in investing activities

(7,764)


(4,783)

Financing activities:




Borrowings under term loans

117,000


?

Principal payments under term loans

(1,793)


?

Payment of deferred offering costs

(874)


?

Principal payments under capital lease obligations

(144)


?

Borrowings under revolving credit facilities

?


42,967

Payments under revolving credit facilities

?


(47,823)

Debt issuance cost payments

(6,289)


?

Proceeds received upon issuance of common units

10,000


?





Net cash provided by (used in) financing activities

117,900


(4,856)

Effect of exchange rate changes on cash

98


(53)

Increase in cash and cash equivalents

106,065


3,287

Cash and cash equivalents at beginning of period

12,276


505





Cash and cash equivalents at end of period

$       118,341


$           3,792





Supplemental disclosure of cash flow information:




Non-cash investing and financing activities:




Purchases of property, equipment and software included in accounts payable

$              798


$                26

Purchases of property, equipment and software under capital leases

$                ?


$              654

Issuance of senior preferred earnout units to settle contingent consideration liability

$       100,000


$                ?

Issuance of common A and B units to settle contingent consideration liability

$       100,000


$                ?

Segment Information

The following table sets forth operating segment results for the three months ended June 30, 2020 and 2019









Successor

Predecessor




Three Months Ended
June 30, 2020

Three Months Ended
June 30, 2019



(in thousands, except percentages)

Dollars

% of
Total
Revenues

Dollars

% of
Total
Revenues

$ Change

% Change

Net revenues:







Medicare?Internal

$     87,201

68.6%

$  32,412

43.5%

$   54,789

169.0%

Medicare?External

28,108

22.1%

19,070

25.6%

9,038

47.4%

IFP and Other?Internal

7,019

5.5%

12,340

16.6%

(5,321)

(43.1)%

IFP and Other?External

4,729

3.7%

10,689

14.3%

(5,960)

(55.8)%








Total revenues

127,057

100.0%

74,511

100.0%

52,546

70.5%








Segment profit:







Medicare?Internal

32,746

25.8%

14,941

20.1%

17,805

119.2%

Medicare?External

495

0.4%

5,692

7.6%

(5,197)

(91.3)%

IFP and Other?Internal

(54)

0.0%

(268)

(0.4)%

214

(79.9)%

IFP and Other?External

130

0.1%

107

0.1%

23

21.5%

Total segment profit

33,317

26.2%

20,472

27.5%

12,845

62.7%

Corporate expense

8,911

7.0%

4,769

6.4%

4,142

86.9%

Change in fair value of contingent consideration liability

15,300

12.0%

-

-

15,300

            NM

Amortization of intangible assets

23,514

18.5%

-

-

23,514

            NM

Transaction costs

-

-

299

0.4%

(299)

            NM

Interest expense

8,986

7.1%

81

0.1%

8,905

            NM

Other (income) expense

(505)

(0.4)%

38

0.1%

(543)

            NM








(Loss) income before income taxes

$    (22,889)

(18.0)%

$  15,285

20.5%

$  (38,174)

(249.7)%









*   NM indicates that the percentage is not meaningful.

The following table sets forth operating segment results for the six months ended June 30, 2020 and 2019









Successor

Predecessor




Six Months Ended
June 30, 2020

Six Months Ended
June 30, 2019



(in thousands, except percentages)

Dollars

% of
Total
Revenues

Dollars

% of
Total
Revenues

$ Change

%Change

Net revenues:







Medicare?Internal

$   182,488

68.1%

$   53,324

37.1%

$   129,164

242.2%

Medicare?External

57,053

21.3%

39,404

27.4%

17,649

44.8%

IFP and Other?Internal

15,651

5.8%

26,780

18.6%

(11,129)

(41.6)%

IFP and Other?External

12,875

4.8%

24,093

16.8%

(11,218)

(46.6)%








Total revenues

268,067

100.0%

143,601

100.0%

124,466

86.7%








Segment profit:







Medicare?Internal

74,482

27.8%

19,806

13.8%

54,676

276.1%

Medicare?External

173

0.1%

9,071

6.3%

(8,898)

(98.1)%

IFP and Other?Internal

427

0.2%

612

0.4%

(185)

(30.2)%

IFP and Other?External

642

0.2%

1,370

1.0%

(728)

(53.1)%

Total segment profit

75,724

28.2%

30,859

21.5%

44,865

145.4%

Corporate expense

17,576

6.6%

10,114

7.0%

7,462

73.8%

Change in fair value of contingent consideration liability

19,700

7.3%

-

-

19,700

        NM

Amortization of intangible assets

47,029

17.5%

-

-

47,029

        NM

Transaction Costs

-

-

299

0.2%

(299)

        NM

Interest expense

15,742

5.9%

109

0.1%

15,633

        NM

Other (income) expense

(495)

(0.2)%

48

0.0%

543

        NM








(Loss) income before income taxes

$    (23,828)

(8.9)%

$   20,289

14.1%

$   (44,117)

(217.4)%









*   NM indicates that the percentage is not meaningful.

The following table presents the number of Submitted Policies by product for the Medicare segments for the three and six months ended June 30, 2020 and 2019, split between those submissions that are commissionable (compensated through commissions received from carriers) and those that are non-commissionable (compensated via hourly fees and enrollment fees):







Three Months Ended
June 30,

Six Months Ended
June 30,


Successor

Predecessor

Successor

Predecessor


2020

2019

2020

2019

Medicare Advantage

99,078

47,039

216,413

83,095

Medicare Supplement

2,248

4,260

4,919

8,114

Prescription Drug Plans

1,969

2,766

4,431

5,458






Total Medicare?Commissionable

103,295

54,065

225,763

96,667






Medicare Advantage

7,407

1,404

14,334

1,902

Medicare Supplement

1,734

260

3,546

416

Prescription Drug Plans

955

109

1,753

136






Total Medicare?Non Commissionable

10,096

1,773

19,633

2,454






Total Medicare Submitted Policies

113,391

55,838

245,396

99,121






The following tables present the number of Approved Submissions by product relating to commissionable policies for the Medicare segments for the three and six months ended June 30, 2020 and 2019. Only commissionable policies are used to calculate our LTV.

 

 Medicare?Internal





Three Months Ended

June 30,


Six Months Ended

June 30,


Successor

Predecessor


Successor

Predecessor


2020

2019


2020

2019

Medicare Advantage

67,818

30,814


151,426

50,274

Medicare Supplement

465

1,185


1,287

2,254

Prescription Drug Plans

1,571

1,882


3,745

3,467







Medicare?Internal Commissionable Approved Submissions

69,854

33,881


156,458

55,995













Medicare?External













Three Months Ended

June 30,


Six Months Ended

June 30,


Successor

Predecessor


Successor

Predecessor


2020

2019


2020

2019

Medicare Advantage

28,979

16,176


61,266

32,790

Medicare Supplement

1,633

2,615


3,191

5,213

Prescription Drug Plans

405

884


854

1,991







Medicare?External Commissionable Approved Submissions

31,017

19,675


65,311

39,994









The following table presents the LTV per Approved Submission by product for the Medicare segments for the three and six months ended June 30, 2020 and 2019:







Three Months Ended

June 30,

Six Months Ended

June 30,


Successor

Predecessor

Successor

Predecessor


2020

2019

2020

2019

Medicare Advantage

$    905

$    873

$    879

$    868

Medicare Supplement

$    937

$    946

$    928

$    936

Prescription Drug Plans

$    215

$    192

$    216

$    192

 

SOURCE GoHealth, Inc.


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