Le Lézard
Classified in: Health, Business
Subjects: ERN, ERP

GoHealth Reports Second Quarter 2022 Results


CHICAGO, Aug. 15, 2022 /PRNewswire/ -- GoHealth, Inc. (NASDAQ: GOCO), a leading health insurance marketplace and Medicare-focused digital health company, today announced financial results for the three and six months ended June 30, 2022.

"GoHealth has established itself as the volume leader in the Medicare Advantage e-broker space with a strong technology backbone, differentiated carrier relationships, and an innovative product portfolio. Our industry is facing a natural inflection point as competitive dynamics amongst our carrier partners and the needs of Medicare beneficiaries evolve. With that as our backdrop, we have embarked on a meaningful transformation for the organization with a renewed focus on high-quality customer experience, efficiency, and cash flow," said Vijay Kotte, GoHealth's Chief Executive Officer.

"I am confident in our team as we reposition the Company for success, and do not believe this quarter's results represent the financial performance we are capable of achieving," said Kotte."We are happy to report that the initial positive interest we received in our new Encompass Connect and Engage modules has resulted in contracts with each of our major carrier partners. We're ramping up these programs and expect to be fully deployed for this upcoming AEP. The expanded Encompass platform provides better carrier alignment, predictability, transparency, and unit economics, while also driving more cash into the business," said Kotte.

Mr. Kotte continued, "We expect our strategic moves, including the cost actions recently taken and the future ramp-up of our Encompass programs, to materially strengthen our ability to achieve cash flow breakeven on a trailing twelve-month basis by the middle of next year.  While I believe we are now well positioned to execute on our goals, we have made the prudent decision to suspend the Company's previously issued quantitative guidance for the remainder of 2022. We expect to provide more color regarding full year 2022 on our third quarter earnings later this fall."

"We have a great deal of opportunity ahead of us as we transform our unique services and our differentiated Encompass platform with an eye toward quality and customer experience. We are eager to dig in and look forward to sharing updates on our progress over the coming quarters," concluded Mr. Kotte.

Additional Second Quarter 2022 Items of Note

Conference Call Details

The Company will host a conference call today, Monday, August 15, 2022 at 5:00 p.m. (ET) to discuss its financial results. Participants can pre-register for the conference call at the following link: https://register.vevent.com/register/BI000b356a45c24452aea2f52ec20378bd. A live audio webcast of the conference call will be available via GoHealth's Investor Relations website, https://investors.gohealth.com/. A replay of the call will be available via webcast for on-demand listening shortly after the completion of the call.

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. GoHealth has enrolled millions of people in Medicare plans and individual and family plans. For more information, visit https://www.gohealth.com.

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 see below.

Forward-Looking Statements

This release contains forward-looking statements.  We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  All statements other than statements of historical facts contained in this press release may be forward-looking statements. Statements regarding our future results of operations and financial position, business strategy and plans and objectives of management for future operations, including, among others, statements regarding our expected growth, level of cash flow, future capital expenditures and debt service obligations 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 we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements.

These forward-looking statements speak only as of the date of this release and are subject to a number of important factors that could cause actual results to differ materially from those in the forward-looking statements, including, but are not limited to, the following:  the marketing and sale of Medicare plans are subject to numerous, complex and frequently changing laws, regulations and guidelines; our business may be harmed if we lose our relationships with carriers or if our relationships with carriers change; our failure to grow our customer base or retain our existing customers; carriers may reduce the commissions paid to us and change their underwriting practices in ways that reduce the number of, or impact the renewal or approval rates of, insurance policies sold through our platform; factors that impact our estimate of LTV (as defined below) may be adversely impacted; our management and independent auditors have identified a material weakness in our internal controls over financial reporting, and we may be unable to develop, implement and maintain appropriate controls in future periods, which may lead to errors or omissions in our financial statements; the potential delisting of our common stock from the Nasdaq Global Market; volatility in general economic conditions, including inflation, interest rates, and other commodity prices and exchange rates may impact our financial position and performance; our ability to borrow under the Credit Agreement is subject to ongoing compliance with a number of financial covenants, affirmative covenants, and other restrictions, which may limit our operations and our ability to take certain actions; we currently depend on a small group of carriers for a substantial portion of our revenue; information technology system failures could interrupt our operations; our ability to sell Medicare-related health insurance plans is largely dependent on our licensed health insurance agents; operating and growing our business may require additional capital; our strategic focus on cash flow optimization may lead to decreased revenue or otherwise adversely affect our business; we may lose key employees or fail to attract qualified employees; our operations may be adversely impacted by a reduction in employee headcount or other similar actions; the Founders (as defined in our Annual Report on Form 10-K for the year ended December 31, 2021 (the "2021 Form 10-K")) and Centerbridge (as defined in the 2021 Form 10-K) have significant influence over us, including control over decisions that require the approval of stockholders; and other important factors described in the section titled "Risk Factors" in our 2021 Form 10-K, and the section titled "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2022, and in our other filings with the Securities and Exchange Commission.

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 2021 Form 10-K, Quarterly Report on Form 10-Q for the first quarter ended March 31, 2022 and other SEC filings. If one or more events related to these or other risks or uncertainties materialize, or our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. Many of the important factors that will determine these results are beyond our 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, we do not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. 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 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, as applicable for the period, EBITDA as further adjusted for certain items summarized below in this press release.  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.

Glossary

"Adjusted EBITDA" represents, as applicable for the period, EBITDA as further adjusted for certain items summarized below in this press release. 

"Adjusted EBITDA Margin" refers to Adjusted EBITDA divided by net revenues.

"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, 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.

"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
Jun. 30, 2022


Three months ended
Jun. 30, 2021






Dollars


% of Net
Revenues


Dollars


% of Net
Revenues


$ Change


% Change

Net revenues:













Commission


$    118,038


74.4 %


$    147,508


74.9 %


$        (29,470)


(20.0) %

Enterprise


40,616


25.6 %


49,394


25.1 %


(8,778)


(17.8) %

Net revenues


158,654


100.0 %


196,902


100.0 %


(38,248)


(19.4) %

Operating expenses:













Cost of revenue


51,074


32.2 %


37,442


19.0 %


13,632


36.4 %

Marketing and advertising


44,714


28.2 %


55,735


28.3 %


(11,021)


(19.8) %

Customer care and enrollment


66,542


41.9 %


61,927


31.5 %


4,615


7.5 %

Technology


10,749


6.8 %


11,983


6.1 %


(1,234)


(10.3) %

General and administrative


38,106


24.0 %


25,297


12.8 %


12,809


50.6 %

Amortization of intangible assets


23,515


14.8 %


23,515


11.9 %


?


? %

Operating lease impairment charges


24,995


15.8 %


?


? %


24,995


NM

Total operating expenses


259,695


163.7 %


215,899


109.6 %


43,796


20.3 %

Income (loss) from operations


(101,041)


(63.7) %


(18,997)


(9.6) %


(82,044)


431.9 %

Interest expense


12,724


8.0 %


8,277


4.2 %


4,447


53.7 %

Loss on extinguishment of debt


?


? %


11,935


6.1 %


(11,935)


N/M

Other (income) expense


(13)


? %


44


? %


(57)


N/M

Income (loss) before income taxes


(113,752)


(71.7) %


(39,253)


(19.9) %


(74,499)


189.8 %

Income tax expense (benefit)


?


? %


(32)


? %


32


N/M

Net income (loss)


$   (113,752)


(71.7) %


$     (39,221)


(19.9) %


$        (74,531)


190.0 %

Net income (loss) attributable to noncontrolling interests


(69,933)


(44.1) %


(27,217)


(13.8) %


(42,716)


156.9 %

Net income (loss) attributable to GoHealth, Inc.


$     (43,819)


(27.6) %


$     (12,004)


(6.1) %


$        (31,815)


265.0 %

Net income (loss) per share:













Net income (loss) per share of common stock ? basic and diluted


$        (0.35)




$        (0.12)







Weighted-average shares of Class A common stock outstanding ? basic and diluted


124,440




102,300







Non-GAAP financial measures:













EBITDA


$     (74,617)




$       (5,238)







Adjusted EBITDA


$     (31,741)




$      14,296







Adjusted EBITDA margin


(20.0) %




7.3 %







_________________________

N/M = Not meaningful

 

(in thousands, except percentages and per share amounts)


Six months ended
Jun. 30, 2022


Six months ended
Jun. 30, 2021






Dollars


% of Net
Revenues


Dollars


% of Net
Revenues


$ Change


% Change

Net revenues:













Commission


$    327,677


76.3 %


$    321,489


80.2 %


$          6,188


1.9 %

Enterprise


101,570


23.7 %


79,592


19.8 %


21,978


27.6 %

Net revenues


429,247


100.0 %


401,081


100.0 %


28,166


7.0 %

Operating expenses:













Cost of revenue


118,997


27.7 %


85,817


21.4 %


33,180


38.7 %

Marketing and advertising


128,747


30.0 %


110,219


27.5 %


18,528


16.8 %

Customer care and enrollment


144,997


33.8 %


109,021


27.2 %


35,976


33.0 %

Technology


23,508


5.5 %


21,600


5.4 %


1,908


8.8 %

General and administrative


67,323


15.7 %


44,982


11.2 %


22,341


49.7 %

Amortization of intangible assets


47,029


11.0 %


47,029


11.7 %


?


? %

Operating lease impairment charges


24,995


5.8 %


?


? %


24,995


NM

Total operating expenses


555,596


129.4 %


418,668


104.4 %


136,928


32.7 %

Income (loss) from operations


(126,349)


(29.4) %


(17,587)


(4.4) %


(108,762)


618.4 %

Interest expense


24,122


5.6 %


16,965


4.2 %


7,157


42.2 %

Loss on extinguishment of debt


?


? %


11,935


3.0 %


(11,935)


N/M

Other (income) expense


50


? %


57


? %


(7)


(12.3) %

Income (loss) before income taxes


(150,521)


(35.1) %


(46,544)


(11.6) %


(103,977)


223.4 %

Income tax expense (benefit)


472


0.1 %


(63)


? %


535


N/M

Net income (loss)


$   (150,993)


(35.2) %


$     (46,481)


(11.6) %


$      (104,512)


224.8 %

Net loss attributable to noncontrolling interests


(93,691)


(21.8) %


(32,390)


(8.1) %


$        (61,301)


189.3 %

Net loss attributable to GoHealth, Inc.


$     (57,302)


(13.3) %


$     (14,091)


(3.5) %


$        (43,211)


306.7 %

Net income (loss) per share:













Net income (loss) per share of common stock ? basic and diluted


$        (0.48)




$        (0.14)







Weighted-average shares of Class A common stock outstanding ? basic and diluted


120,346




97,349







Non-GAAP financial measures:













EBITDA


$     (74,040)




$      21,526







Adjusted EBITDA


$     (20,668)




$      46,352







Adjusted EBITDA margin


(4.8) %




11.6 %







_________________________

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)


Three months
ended Jun. 30, 2022


Three months
ended Jun. 30, 2021

Net revenues


$    158,654


$    196,902

Net income (loss)


(113,752)


(39,221)

Interest expense


12,724


8,277

Income tax expense (benefit)


?


(32)

Depreciation and amortization expense


26,411


25,738

EBITDA


(74,617)


(5,238)

Operating lease impairment charges (1)


24,995


?

Share-based compensation expense (2)


14,257


7,599

Severance costs (3)


3,624


?

Loss on extinguishment of debt (4)


?


11,935

Adjusted EBITDA


$     (31,741)


$      14,296

Adjusted EBITDA margin


(20.0) %


7.3 %

_________________________

(1)

Represents the operating lease impairment charge for the three and six months ended June 30, 2022, reducing the carrying value of the associated ROU assets and leasehold improvements to the estimated fair values.

(2)

Represents non-cash share-based compensation expense relating to equity awards, as well share-based compensation expense relating to liability classified awards that will be settled in cash.

(3)

Represents costs associated with the termination of employment and associated fees.

(4)

Represents the loss on debt extinguishment related to the Initial Term Loan Facility.

 

(in thousands)


Six months ended
Jun. 30, 2022


Six months ended
Jun. 30, 2021

Net revenues


$    429,247


$    401,081

Net income (loss)


(150,993)


(46,481)

Interest expense


24,122


16,965

Income tax expense (benefit)


472


(63)

Depreciation and amortization expense


52,359


51,105

EBITDA


(74,040)


21,526

Operating lease impairment charges (1)


24,995


?

Share-based compensation expense (2)


19,412


12,711

Severance costs (3)


5,015


?

Loss on extinguishment of debt (4)


?


11,935

Professional services (5)


3,950


?

Legal fees (6)


?


180

Adjusted EBITDA


$     (20,668)


$      46,352

Adjusted EBITDA margin


(4.8) %


11.6 %

_________________________

(1)

Represents the operating lease impairment charge for the three and six months ended June 30, 2022, reducing the carrying value of the associated ROU assets and leasehold improvements to the estimated fair values.

(2)

Represents non-cash share-based compensation expense relating to equity awards, as well share-based compensation expense relating to liability classified awards that will be settled in cash.

(3)

Represents costs associated with the termination of employment and associated fees.

(4)

Represents the loss on debt extinguishment related to the Initial Term Loan Facility.

(5)

Represents costs associated with non-recurring consulting fees.

(6)

Represents non-recurring legal fees unrelated to our core operations.

 

The following table summarizes share-based compensation expense by operating function for the periods indicated (unaudited):

(in thousands)


Three months ended
Jun. 30, 2022


Three months ended
Jun. 30, 2021


Six months ended
Jun. 30, 2022


Six months ended
Jun. 30, 2021

Marketing and advertising


$             215


$             426


$             656


$             764

Customer care and enrollment


624


1,043


1,255


1,839

Technology


627


1,133


1,609


1,880

General and administrative


12,791


4,997


15,892


8,228

Total share-based compensation expense


$         14,257


$          7,599


$         19,412


$         12,711

 

The following table sets forth our balance sheets for the periods indicated (unaudited):

(in thousands, except per share amounts)


Jun. 30, 2022


Dec. 31, 2021

Assets





Current assets:





Cash and cash equivalents


$             76,156


$             84,361

Accounts receivable, net of allowance for doubtful accounts of $972 in 2022 and $558 in 2021


38,250


17,276

Commissions receivable - current


198,647


268,663

Prepaid expense and other current assets


19,955


58,695

Total current assets


333,008


428,995

Commissions receivable - non-current


961,999


993,844

Operating lease ROU asset


22,987


23,462

Other long-term assets


2,437


3,608

Property, equipment, and capitalized software, net


29,986


24,273

Intangible assets, net


547,640


594,669

Total assets


$         1,898,057


$         2,068,851

Liabilities and Stockholders' Equity





Current liabilities:





Accounts payable


$             14,641


$             39,843

Accrued liabilities


33,234


52,788

Commissions payable - current


60,294


104,160

Short-term operating lease liability


9,998


6,126

Deferred revenue


2,691


536

Current portion of long-term debt


5,270


5,270

Other current liabilities


15,764


8,344

Total current liabilities


141,892


217,067

Non-current liabilities:





Commissions payable - non-current


291,990


274,403

Long-term operating lease liability


40,947


19,776

Long-term debt, net of current portion


662,018


665,115

Other non-current liabilities


2,889


?

Total non-current liabilities


997,844


959,294

Stockholders' equity:





Class A common stock ? $0.0001 par value; 1,100,000 shares authorized; 131,965 and 115,487 shares issued;
131,776 and 115,487 shares outstanding at June 30, 2022 and December 31, 2021, respectively.


13


11

Class B common stock ? $0.0001 par value; 579,555 and 587,360 shares authorized; 197,547 and 205,352 shares
issued and outstanding at June 30, 2022 and December 31, 2021, respectively.


20


21

Preferred stock ? $0.0001 par value; 20,000 shares authorized; no shares issued and outstanding at June 30, 2022
and December 31, 2021.


?


?

Treasury stock ? at cost; 189 shares of Class A common stock at June 30, 2022


(344)


?

Additional paid-in capital


612,627


561,447

Accumulated other comprehensive income (loss)


(234)


(59)

Accumulated deficit


(265,619)


(208,317)

Total stockholders' equity attributable to GoHealth, Inc.


346,463


353,103

Non-controlling interests


411,858


539,387

Total stockholders' equity


758,321


892,490

Total liabilities and stockholders' equity


$         1,898,057


$         2,068,851

 

The following table sets forth our statements of cash flows for the periods indicated (unaudited):



Six months ended

Jun. 30,

(in thousands)


2022


2021

Operating Activities





Net income (loss)


$      (150,993)


$        (46,481)

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





Share-based compensation


17,293


12,711

Depreciation and amortization


5,330


4,076

Amortization of intangible assets


47,029


47,029

Amortization of debt discount and issuance costs


1,381


1,262

Operating lease impairment charges


24,995


?

Loss on extinguishment of debt


?


11,935

Non-cash lease expense


2,862


2,451

Other non-cash items


29


(846)

Changes in assets and liabilities, net of acquisition:





Accounts receivable


(21,119)


(2,702)

Commissions receivable


101,928


(63,675)

Prepaid expenses and other assets


39,795


(11,778)

Accounts payable


(25,885)


6,114

Accrued liabilities


(19,898)


3,993

Deferred revenue


2,155


(36)

Commissions payable


(26,279)


4,742

Operating lease liabilities


(2,993)


(2,406)

Other liabilities


10,747


1,361

Net cash provided by (used in) operating activities


6,377


(32,250)

Investing Activities





Purchases of property, equipment and software


(9,658)


(7,909)

Net cash used in investing activities


(9,658)


(7,909)

Financing Activities





Borrowings under term loans


?


310,000

Repayment of borrowings


(2,635)


(296,835)

Call premium paid for debt extinguishment


?


(5,910)

Debt issuance cost payments


(1,725)


(1,608)

Principal payments under finance lease obligations


(103)


(154)

Cash received on advancement to NVX Holdings, Inc.


?


3,395

Net cash (used in) provided by financing activities


(4,463)


8,888

Effect of exchange rate changes on cash and cash equivalents


(461)


(100)

Increase in cash and cash equivalents


(8,205)


(31,371)

Cash and cash equivalents at beginning of period


84,361


144,234

Cash and cash equivalents at end of period


$         76,156


$       112,863

Supplemental Disclosure of Cash Flow Information





Non-cash investing and financing activities:





Purchases of property, equipment and software included in accounts payable


$             683


$          2,233

 

The following tables set forth operating segment results for the periods indicated (unaudited):

(in thousands, except percentages)


Three months ended
Jun. 30, 2022


Three months ended
Jun. 30, 2021






Dollars


% of Net
Revenues


Dollars


% of Net
Revenues


$ Change


% Change

Net revenues:













Medicare - Internal


$       103,685


65.4 %


$       160,433


81.6 %


$        (56,748)


(35.4) %

Medicare - External


50,103


31.6 %


31,379


15.9 %


18,724


59.7 %

IFP and Other - Internal


4,245


2.7 %


3,788


1.9 %


457


12.1 %

IFP and Other - External


621


0.4 %


1,302


0.7 %


(681)


(52.3) %

Net revenues


158,654


100.0 %


196,902


100.0 %


(38,248)


(19.4) %

Segment profit (loss):













Medicare - Internal


(11,040)


(7.0) %


31,257


15.9 %


(42,297)


(135.3) %

Medicare - External


(5,635)


(3.6) %


(1,688)


(0.9) %


(3,947)


233.8 %

IFP and Other - Internal


1,582


1.0 %


(800)


(0.4) %


2,382


(297.8) %

IFP and Other - External


(411)


(0.3) %


(57)


? %


(354)


621.1 %

Segment profit (loss)


(15,504)


(9.8) %


28,712


14.6 %


(44,216)


(154.0) %

Corporate expense


37,027


23.3 %


24,194


12.3 %


12,833


53.0 %

Amortization of intangible assets


23,515


14.8 %


23,515


11.9 %


?


? %

Operating lease impairment charges


24,995


15.8 %


?


? %


24,995


N/M

Loss on extinguishment of debt


?


? %


11,935


6.1 %


(11,935)


N/M

Interest expense


12,724


8.0 %


8,277


4.2 %


4,447


53.7 %

Other (income) expense


(13)


? %


44


? %


(57)


N/M

Income (loss) before income taxes


$      (113,752)


(71.7) %


$        (39,253)


(19.9) %


$        (74,499)


189.8 %

_________________________

N/M = Not meaningful

 



Six months ended
Jun. 30, 2022


Six months ended
Jun. 30, 2021





(in thousands, except percentages)


Dollars


% of Net
Revenues


Dollars


% of Net
Revenues


$ Change


% Change

Net revenues:













Medicare - Internal


$       307,530


71.6 %


$       317,786


79.2 %


$        (10,256)


(3.2) %

Medicare - External


111,589


26.0 %


70,879


17.7 %


40,710


57.4 %

IFP and Other - Internal


8,445


2.0 %


7,763


1.9 %


682


8.8 %

IFP and Other - External


1,683


0.4 %


4,653


1.2 %


(2,970)


(63.8) %

Net revenues


429,247


100.0 %


401,081


100.0 %


28,166


7.0 %

Segment profit (loss):













Medicare - Internal


23,799


5.5 %


77,700


19.4 %


(53,901)


(69.4) %

Medicare - External


(13,428)


(3.1) %


(2,319)


(0.6) %


(11,109)


479.0 %

IFP and Other - Internal


2,172


0.5 %


(1,529)


(0.4) %


3,701


(242.1) %

IFP and Other - External


(669)


(0.2) %


103


? %


(772)


(749.5) %

Segment profit (loss)


11,874


2.8 %


73,955


18.4 %


(62,081)


(83.9) %

Corporate expense


66,199


15.4 %


44,513


11.1 %


21,686


48.7 %

Amortization of intangible assets


47,029


11.0 %


47,029


11.7 %


?


? %

Operating lease impairment charges


24,995


5.8 %


?


? %


24,995


N/M

Loss on extinguishment of debt


?


? %


11,935


3.0 %


(11,935)


N/M

Interest expense


24,122


5.6 %


16,965


4.2 %


7,157


42.2 %

Other (income) expense


50


? %


57


? %


(7)


(12.3) %

Income (loss) before income taxes


$      (150,521)


(35.1) %


$        (46,544)


(11.6) %


$      (103,977)


223.4 %

_________________________

N/M = 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, 2022 and 2021, for those submissions that are commissionable (compensated through commissions received from carriers):

Medicare - Total Commissionable Submitted Policies


Three months ended
Jun. 30, 2022


Three months ended
Jun. 30, 2021


Six months ended
Jun. 30, 2022


Six months ended
Jun. 30, 2021

Medicare Advantage


167,507


153,163


453,616


326,037

Medicare Supplement


194


1,022


696


2,126

Prescription Drug Plans


4,935


2,374


11,460


4,967

Total Medicare


172,636


156,559


465,772


333,130

The following tables present the number of Approved Submissions by product relating to commissionable policies for the Medicare segments for three and six months ended June 30, 2022 and 2021. Only commissionable policies are used to calculate LTV.

Medicare - Internal Commissionable Approved Submissions


Three months ended
Jun. 30, 2022


Three months ended
Jun. 30, 2021


Six months ended
Jun. 30, 2022


Six months ended
Jun. 30, 2021

Medicare Advantage


93,585


121,299


282,513


250,185

Medicare Supplement


64


268


218


519

Prescription Drug Plans


1,874


2,033


4,873


4,317

Total Medicare


95,523


123,600


287,604


255,021

 

Medicare - External Commissionable Approved Submissions


Three months ended
Jun. 30, 2022


Three months ended
Jun. 30, 2021


Six months ended
Jun. 30, 2022


Six months ended
Jun. 30, 2021

Medicare Advantage


67,495


31,450


155,443


73,691

Medicare Supplement


49


665


265


1,396

Prescription Drug Plans


2,939


236


6,113


525

Total Medicare


70,483


32,351


161,821


75,612

The following table presents the LTV per Approved Submission by product for the Medicare segments for the three and six months ended June 30, 2022 and 2021:

LTV per Approved Submission


Three months ended
Jun. 30, 2022


Three months ended
Jun. 30, 2021


Six months ended
Jun. 30, 2022


Six months ended
Jun. 30, 2021

Medicare Advantage


$           739


$           850


$           750


$           853

Medicare Supplement


$           805


$           846


$           834


$           821

Prescription Drug Plans


$           203


$           215


$           203


$           215

The following table presents the number of Submitted Policies by product for the Medicare segments for the three and six months ended June 30, 2022 and 2021, 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
Jun. 30, 2022


Three months ended
Jun. 30, 2021


Six months ended
Jun. 30, 2022


Six months ended
Jun. 30, 2021

Medicare Advantage


2,750


3,232


7,237


9,171

Medicare Supplement


1,794


2,042


3,985


3,692

Prescription Drug Plans


731


791


1,560


1,676

Total Medicare


5,275


6,065


12,782


14,539

 

SOURCE GoHealth, Inc.


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