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Goosehead Insurance, Inc. Announces Second Quarter 2022 Results

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Goosehead Insurance, Inc.
Goosehead Insurance, Inc.

   Total and Core Revenue Each Increased 39% over the Prior-Year Period –
– Total Written Premium Increased 42% to $566 Million –
– Net Income Decreased 24% to $2.4 Million or 5% of Total Revenue –
– Adjusted EBITDA of $12.5 Million was up 85% over the Prior-Year Period –
– Adjusted EBITDA Margin Increased 6 Points to 24% in the Second Quarter –
– Operating Franchises and Corporate Sales Headcount Increased 25% and 11%, Respectively –

WESTLAKE, Texas, July 27, 2022 (GLOBE NEWSWIRE) -- Goosehead Insurance, Inc. (“Goosehead” or the “Company”) (NASDAQ: GSHD), a rapidly growing independent personal lines insurance agency, today announced results for the second quarter ended June 30, 2022.

Second Quarter 2022 Highlights

  • Total Revenues grew organically 39% over the prior-year period to $53.0 million in the second quarter of 2022

  • Second quarter Core Revenues* of $48.1 million increased 39% over the prior-year period

  • Second quarter net income of $2.4 million, decreased 24%, EPS of $0.02 per share decreased 79% and adjusted EPS* of $0.16 per share rose 20%, each over the prior-year period

  • Adjusted EBITDA grew 85% over the prior-year period to $12.5 million

  • Adjusted EBITDA Margin increased 6 points over the prior-year period to 24%.

  • Total written premiums placed for the second quarter increased 42% over the prior-year period to $566 million

  • Policies in force grew 35% from the prior-year period to approximately 1,181,000

  • Corporate sales headcount of 503 was up 11% year-over-year

  • Total franchises increased 30% compared to the prior-year period to 2,341; operating franchises grew 25% compared to the prior-year period to 1,344

*Core Revenue, Adjusted EPS, Adjusted EBITDA, and Adjusted EBITDA Margin are non-GAAP measures. Reconciliations of Core Revenue to total revenues, Adjusted EBITDA to net income and Adjusted EPS to basic earnings per share, the most directly comparable financial measures presented in accordance with GAAP, are set forth in the reconciliation table accompanying this release.

“We delivered very strong growth in revenue and earnings for the second quarter, demonstrating the incredible power and consistency of our platform and our increasing competitive advantage in the marketplace despite ongoing macro headwinds,” stated Mark E. Jones, Chairman and CEO. “In the second quarter premium increased 42% while Total and Core Revenue each grew 39%. Following substantial and higher than normal investments over the last couple of years to position for longer term growth, we believe the second quarter of 2022 showed our significant and sustainable underlying earnings power with Adjusted EBITDA up 85% and Adjusted EBITDA Margin increasing 6 points. We also added significant talent in the quarter while at the same time meaningfully improving the overall quality of our producer force. While we expect continued strong revenue growth, we believe we are also in a position to see gradual operating leverage emerge beyond 2022 as we recalibrate our investment in the corporate distribution to rebalance the business with more focus on the faster growing and more profitable franchise distribution. Our runway in the marketplace remains enormous and we believe we are poised for substantial top and bottom-line growth for many years to come as we deliver consistently for our clients, agents, partners, and shareholders.”

Second Quarter 2022 Results
For the second quarter of 2022, revenues were $53.0 million, an increase of 39% compared to the corresponding period in 2021. Core Revenues, a non-GAAP measure which excludes contingent commissions, initial franchise fees, interest income, and other income, were $48.1 million, also a 39% increase from $34.7 million in the prior-year period. Core Revenues are the most reliable revenue stream for the Company, consisting of New Business Commissions, Agency Fees, New Business Royalty Fees, Renewal Commissions, and Renewal Royalty Fees. Core Revenue growth was driven by growth in the number of corporate agents and operating franchises, higher productivity as these agents mature in our system, and strong client retention of 89%. The Company grew total written premiums, which we consider to be the leading indicator of future revenue growth, by 42% in the second quarter.

Total operating expenses, excluding equity-based compensation and depreciation and amortization, for the second quarter of 2022 were $40.5 million, up 29% from $31.4 million in the prior-year period. The increase from the prior-year period was due to larger, though scaling, employee compensation and benefits expenses related to ongoing investments in our corporate agents, franchise recruiters, service agents, and information systems developers. Equity-based compensation increased to $5.2 million for the period, compared to $1.9 million a year ago. The change in this non-cash item relates to the Black-Scholes valuation of newly issued options, which takes into account stock price on the grant date and historical volatility, among other inputs. General and Administrative expenses are also higher versus a year ago due to increased real estate costs related to 2021 office openings, software expenses, and increased travel, meals, and entertainment costs.

Net income in the second quarter of 2022 was $2.4 million, with the decrease due to higher non-cash equity-based compensation expense and income tax expense. Net income attributable to Goosehead Insurance, Inc. for the second quarter of 2022 was $0.3 million, or $0.02 per basic diluted share. Adjusted EPS for the second quarter of 2022, which excludes equity-based compensation, was $0.16 per share, up 20% from the year ago period. Total Adjusted EBITDA was $12.5 million for the second quarter of 2022 compared to $6.8 million in the prior-year period. Adjusted EBITDA Margin of 24% was up 6 points in the quarter.

Liquidity and Capital Resources
As of June 30, 2022, the Company had cash and cash equivalents of $31.1 million. We had an unused line of credit of $24.8 million as of June 30, 2022. Total outstanding term note payable balance was $96.9 million as of June 30, 2022.

2022 Outlook
The Company’s outlook for full year 2022 is as follows:

  • Total written premiums placed for 2022 are expected to be between $2.152 billion and $2.215 billion, representing organic growth of 38% on the low end of the range to 42% on the high end of the range.

  • Total revenues for 2022 are expected to be between $194 million and $205 million, representing organic growth of 28% on the low end of the range to 35% on the high end of the range, driven by high levels of Core Revenue growth partly offset by lower than historical average contingent commissions of $8-10 million for the full year 2022 as our carriers continue to struggle with their underwriting profitability.

  • After a year of historical investments in people, technology, and real estate, Adjusted EBITDA Margin is expected to expand for the full year 2022.

Conference Call Information
Goosehead will host a conference call and webcast today at 4:30 PM ET to discuss these results.

The dial-in number for the conference call is (855) 327-6837 (toll-free) or (631) 891-4304 (international). Please dial the number 10 minutes prior to the scheduled start time.

In addition, a live webcast of the conference call will also be available on Goosehead’s investor relations website at http://ir.gooseheadinsurance.com.

A webcast replay of the call will be available at http://ir.gooseheadinsurance.com for one year following the call.

About Goosehead

Goosehead (NASDAQ: GSHD) is a rapidly growing and innovative independent personal lines insurance agency that distributes its products and services throughout the United States. Goosehead was founded on the premise that the consumer should be at the center of our universe and that everything we do should be directed at providing extraordinary value by offering broad product choice and a world-class service experience. Goosehead represents over 150 insurance companies that underwrite personal lines and small commercial lines risks, and its operations include a network of 15 corporate sales offices and over 2,341 operating and contracted franchise locations. For more information, please visit gooseheadinsurance.com.

Forward-Looking Statements

This press release may contain various “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which represent Goosehead’s expectations or beliefs concerning future events. Forward-looking statements are statements other than historical facts and may include statements that address future operating, financial or business performance or Goosehead’s strategies or expectations. In some cases, you can identify these statements by forward-looking words such as “may”, “might”, “will”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “projects”, “potential”, “outlook” or “continue”, or the negative of these terms or other comparable terminology. Forward-looking statements are based on management’s current expectations and beliefs and involve significant risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those contemplated by these statements.

Factors that could cause actual results or performance to differ from the expectations expressed or implied in such forward-looking statements include, but are not limited to, conditions impacting insurance carriers or other parties with which Goosehead does business, the economic effects of the COVID-19 pandemic, the loss of one or more key executives or an inability to attract and retain qualified personnel and the failure to attract and retain highly qualified franchisees. These risks and uncertainties also include, but are not limited to, those described under the captions “1A. Risk Factors” in Goosehead’s Annual Report on Form 10-K for the year ended December 31, 2021 and in Goosehead’s other filings with the SEC, which are available free of charge on the Securities Exchange Commission's website at: www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated. All forward-looking statements and all subsequent written and oral forward-looking statements attributable to Goosehead or to persons acting on behalf of Goosehead are expressly qualified in their entirety by reference to these risks and uncertainties. You should not place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made, and Goosehead does not undertake any obligation to update them in light of new information, future developments or otherwise, except as may be required under applicable law.

Contacts
Investor Contact:
Dan Farrell
Goosehead Insurance - VP Capital Markets
Phone: (214) 838-5290
Email: dan.farrell@goosehead.com; IR@goosehead.com

PR Contact:
Mission North for Goosehead Insurance
Email: goosehead@missionnorth.com; PR@goosehead.com

Goosehead Insurance, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Revenues:

 

 

 

 

 

 

 

 

Commissions and agency fees

 

$

26,265

 

 

$

21,053

 

 

$

46,274

 

 

$

38,587

 

Franchise revenues

 

 

26,427

 

 

 

16,841

 

 

 

47,377

 

 

 

30,274

 

Interest income

 

 

330

 

 

 

279

 

 

 

649

 

 

 

540

 

Total revenues

 

 

53,022

 

 

 

38,173

 

 

 

94,300

 

 

 

69,401

 

Operating Expenses:

 

 

 

 

 

 

 

 

Employee compensation and benefits

 

 

31,659

 

 

 

22,475

 

 

 

63,143

 

 

 

43,784

 

General and administrative expenses

 

 

12,378

 

 

 

10,134

 

 

 

25,902

 

 

 

19,408

 

Bad debts

 

 

1,660

 

 

 

646

 

 

 

2,456

 

 

 

1,093

 

Depreciation and amortization

 

 

1,658

 

 

 

1,132

 

 

 

3,234

 

 

 

2,132

 

Total operating expenses

 

 

47,355

 

 

 

34,387

 

 

 

94,735

 

 

 

66,417

 

Income (loss) from operations

 

 

5,667

 

 

 

3,786

 

 

 

(435

)

 

 

2,984

 

Other Income (Expense):

 

 

 

 

 

 

 

 

Other income

 

 

 

 

 

119

 

 

 

 

 

 

139

 

Interest expense

 

 

(1,114

)

 

 

(546

)

 

 

(1,997

)

 

 

(1,147

)

Income (loss) before taxes

 

 

4,553

 

 

 

3,359

 

 

 

(2,432

)

 

 

1,976

 

Tax expense (benefit)

 

 

2,164

 

 

 

223

 

 

 

562

 

 

 

(71

)

Net income (loss)

 

 

2,389

 

 

 

3,136

 

 

 

(2,994

)

 

 

2,047

 

Less: net income (loss) attributable to non-controlling interests

 

 

2,047

 

 

 

1,649

 

 

 

(1,050

)

 

 

956

 

Net income (loss) attributable to Goosehead Insurance, Inc.

 

$

342

 

 

$

1,487

 

 

$

(1,944

)

 

$

1,091

 

Earnings per share:

 

 

 

 

 

 

 

 

Basic

 

$

0.02

 

 

$

0.08

 

 

$

(0.10

)

 

$

0.06

 

Diluted

 

$

0.02

 

 

$

0.07

 

 

$

(0.10

)

 

$

0.05

 

Weighted average shares of Class A common stock outstanding

 

 

 

 

 

 

 

 

Basic

 

 

20,454

 

 

 

18,774

 

 

 

20,348

 

 

 

18,574

 

Diluted

 

 

21,245

 

 

 

20,367

 

 

 

20,348

 

 

 

20,251

 

Goosehead Insurance, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Revenues:

 

 

 

 

 

 

 

 

Core Revenue:

 

 

 

 

 

 

 

 

Renewal Commissions(1)

 

14,541

 

 

10,310

 

 

24,748

 

 

18,067

 

Renewal Royalty Fees(2)

 

18,870

 

 

11,670

 

 

32,872

 

 

20,416

 

New Business Commissions(1)

 

6,730

 

 

5,944

 

 

12,097

 

 

10,560

 

New Business Royalty Fees(2)

 

4,821

 

 

3,680

 

 

9,113

 

 

6,837

 

Agency Fees(1)

 

3,114

 

 

3,105

 

 

5,751

 

 

5,529

 

Total Core Revenue

 

48,076

 

 

34,709

 

 

84,581

 

 

61,409

 

Cost Recovery Revenue:

 

 

 

 

 

 

 

 

Initial Franchise Fees(2)

 

2,591

 

 

1,458

 

 

4,887

 

 

2,890

 

Interest Income

 

330

 

 

279

 

 

649

 

 

540

 

Total Cost Recovery Revenue

 

2,921

 

 

1,737

 

 

5,536

 

 

3,430

 

Ancillary Revenue:

 

 

 

 

 

 

 

 

Contingent Commissions(1)

 

1,880

 

 

1,694

 

 

3,678

 

 

4,431

 

Other Franchise Revenues(2)

 

145

 

 

33

 

 

505

 

 

131

 

Total Ancillary Revenue

 

2,025

 

 

1,727

 

 

4,183

 

 

4,562

 

Total Revenues

 

53,022

 

 

38,173

 

 

94,300

 

 

69,401

 

Operating Expenses:

 

 

 

 

 

 

 

 

Employee compensation and benefits, excluding equity-based compensatoin

 

26,486

 

 

20,623

 

 

52,182

 

 

39,991

 

General and administrative expenses

 

12,378

 

 

10,134

 

 

25,902

 

 

19,408

 

Bad debts

 

1,660

 

 

646

 

 

2,456

 

 

1,093

 

Total

 

40,524

 

 

31,403

 

 

80,540

 

 

60,492

 

Adjusted EBITDA

 

12,498

 

 

6,770

 

 

13,760

 

 

8,909

 

Adjusted EBITDA Margin

 

24

%

 

18

%

 

15

%

 

13

%

 

 

 

 

 

 

 

 

 

Interest expense

 

(1,114

)

 

(546

)

 

(1,997

)

 

(1,147

)

Depreciation and amortization

 

(1,658

)

 

(1,132

)

 

(3,234

)

 

(2,132

)

Tax (expense) benefit

 

(2,164

)

 

(223

)

 

(562

)

 

71

 

Equity-based compensation

 

(5,173

)

 

(1,852

)

 

(10,961

)

 

(3,793

)

Other Income

 

 

 

119

 

 

 

 

139

 

Net Income (loss)

 

2,389

 

 

3,136

 

 

(2,994

)

 

2,047

 

(1) Renewal Commissions, New Business Commissions, Agency Fees, and Contingent Commissions are included in "Commissions and agency fees" as shown on the Condensed Consolidated statements of operations within Goosehead’s Form 10-Q for the three and six months ended June 30, 2022 and 2021.
(2) Renewal Royalty Fees, New Business Royalty Fees, Initial Franchise Fees, and Other Franchise Revenues are included in "Franchise revenues" as shown on the Condensed Consolidated statements of operations within Goosehead’s Form 10-Q for the three and six months ended June 30, 2022 and 2021.

Goosehead Insurance, Inc.
Condensed Consolidated Balance Sheets
(Unaudited) 
(In thousands, except per share amounts)

 

 

June 30,

 

December 31,

 

 

 

2022

 

 

 

2021

 

Assets

 

 

 

 

Current Assets:

 

 

 

 

Cash and cash equivalents

 

$

31,121

 

 

$

28,526

 

Restricted cash

 

 

2,427

 

 

 

1,953

 

Commissions and agency fees receivable, net

 

 

9,161

 

 

 

12,056

 

Receivable from franchisees, net

 

 

1,206

 

 

 

493

 

Prepaid expenses

 

 

7,195

 

 

 

4,785

 

Total current assets

 

 

51,110

 

 

 

47,813

 

Receivable from franchisees, net of current portion

 

 

30,689

 

 

 

29,180

 

Property and equipment, net of accumulated depreciation

 

 

27,571

 

 

 

24,933

 

Right-of-use asset

 

 

41,418

 

 

 

32,656

 

Intangible assets, net of accumulated amortization

 

 

3,749

 

 

 

2,798

 

Deferred income taxes, net

 

 

131,164

 

 

 

125,676

 

Other assets

 

 

5,585

 

 

 

4,742

 

Total assets

 

$

291,286

 

 

$

267,798

 

Liabilities and Stockholders’ Equity

 

 

 

 

Current Liabilities:

 

 

 

 

Accounts payable and accrued expenses

 

$

5,753

 

 

$

10,502

 

Premiums payable

 

 

2,427

 

 

 

1,953

 

Lease liability

 

 

6,026

 

 

 

4,893

 

Contract liabilities

 

 

6,363

 

 

 

6,054

 

Note payable

 

 

5,625

 

 

 

4,375

 

Total current liabilities

 

 

26,194

 

 

 

27,777

 

Lease liability, net of current portion

 

 

57,169

 

 

 

47,335

 

Note payable, net of current portion

 

 

115,349

 

 

 

118,361

 

Contract liabilities, net of current portion

 

 

46,009

 

 

 

42,554

 

Liabilities under tax receivable agreement

 

 

105,312

 

 

 

100,959

 

Total liabilities

 

 

350,033

 

 

 

336,986

 

Class A common stock, $0.01 par value per share - 300,000 shares authorized, 20,534 shares issued and outstanding as of June 30, 2022, 20,198 shares issued and outstanding as of December 31, 2021

 

 

203

 

 

 

200

 

Class B common stock, $0.01 par value per share - 50,000 shares authorized, 16,693 issued and outstanding as of June 30, 2022, 16,909 shares issued and outstanding as of December 31, 2021

 

 

168

 

 

 

170

 

Additional paid in capital

 

 

58,942

 

 

 

46,281

 

Accumulated deficit

 

 

(63,290

)

 

 

(60,671

)

Total stockholders' equity

 

 

(3,977

)

 

 

(14,020

)

Non-controlling interests

 

 

(54,770

)

 

 

(55,168

)

Total equity

 

 

(58,747

)

 

 

(69,188

)

Total liabilities and equity

 

$

291,286

 

 

$

267,798

 


Goosehead Insurance, Inc.
Reconciliation Non-GAAP Measures to GAAP

This release includes Core Revenue, Cost Recovery Revenue, Ancillary Revenue, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted EPS that are not required by, nor presented in accordance with, generally accepted accounting principles in the United States (“GAAP”). The Company refers to these measures as “non-GAAP financial measures.” The Company uses these non-GAAP financial measures when planning, monitoring and evaluating its performance and considers these non-GAAP financial measures to be useful metrics for management and investors to facilitate operating performance comparisons from period to period by excluding potential differences caused by variations in capital structures, tax position, depreciation, amortization and certain other items that the Company believes are not representative of its core business. The Company uses Core Revenue, Cost Recovery Revenue, Ancillary Revenue, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted EPS for business planning purposes and in measuring its performance relative to that of its competitors.

These non-GAAP financial measures are defined by the Company as follows:

  • "Core Revenue" is a supplemental measure of our performance and includes Renewal Commissions, Renewal Royalty Fees, New Business Commissions, New Business Royalty Fees, and Agency Fees. We believe that Core Revenue is an appropriate measure of operating performance because it summarizes all of our revenues from sales of individual insurance policies.

  • "Cost Recovery Revenue" is a supplemental measure of our performance and includes Initial Franchise Fees and Interest Income. We believe that Cost Recovery Revenue is an appropriate measure of operating performance because it summarizes revenues that are viewed by management as cost recovery mechanisms.

  • "Ancillary Revenue" is a supplemental measure of our performance and includes Contingent Commissions and Other Income. We believe that Ancillary Revenue is an appropriate measure of operating performance because it summarizes revenues that are ancillary to our core business.

  • "Adjusted EBITDA" is a supplemental measure of the Company's performance. We believe that Adjusted EBITDA is an appropriate measure of operating performance because it eliminates the impact of items that do not relate to business performance. Adjusted EBITDA is defined as net income (the most directly comparable GAAP measure) before interest, income taxes, depreciation and amortization, adjusted to exclude equity-based compensation and other non-operating items, including, among other things, certain non-cash charges and certain non-recurring or non-operating gains or losses.

  • "Adjusted EBITDA Margin" is Adjusted EBITDA as defined above, divided by total revenue excluding other non-operating items. Adjusted EBITDA Margin is helpful in measuring profitability of operations on a consolidated level.

  • "Adjusted EPS" is a supplemental measure of our performance, defined as earnings per share (the most directly comparable GAAP measure) before non-recurring or non-operating income and expenses. Adjusted EPS is a useful measure to management because it eliminates the impact of items that do not relate to business performance and helps measure our profitability on a consolidated level.

While the Company believes that these non-GAAP financial measures are useful in evaluating its business, this information should be considered as supplemental in nature and is not meant as a substitute for revenues, net income, or earnings per share, in each case as recognized in accordance with GAAP. In addition, other companies, including companies in the Company’s industry, may calculate such measures differently, which reduces their usefulness as comparative measures.

The following tables show a reconciliation from total revenues to Core Revenue, Cost Recovery Revenue, and Ancillary Revenue (non-GAAP basis) for the three and six months ended June 30, 2022 and 2021 (in thousands):

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

Total Revenues

$

53,022

 

$

38,173

 

$

94,300

 

$

69,401

 

 

 

 

 

 

 

 

Core Revenue:

 

 

 

 

 

 

 

Renewal Commissions(1)

$

14,541

 

$

10,310

 

$

24,748

 

$

18,067

Renewal Royalty Fees(2)

 

18,870

 

 

11,670

 

 

32,872

 

 

20,416

New Business Commissions(1)

 

6,730

 

 

5,944

 

 

12,097

 

 

10,560

New Business Royalty Fees(2)

 

4,821

 

 

3,680

 

 

9,113

 

 

6,837

Agency Fees(1)

 

3,114

 

 

3,105

 

 

5,751

 

 

5,529

Total Core Revenue

 

48,076

 

 

34,709

 

 

84,581

 

 

61,409

Cost Recovery Revenue:

 

 

 

 

 

 

 

Initial Franchise Fees(2)

 

2,591

 

 

1,458

 

 

4,887

 

 

2,890

Interest Income

 

330

 

 

279

 

 

649

 

 

540

Total Cost Recovery Revenue

 

2,921

 

 

1,737

 

 

5,536

 

 

3,430

Ancillary Revenue:

 

 

 

 

 

 

 

Contingent Commissions(1)

 

1,880

 

 

1,694

 

 

3,678

 

 

4,431

Other Franchise Revenues(2)

 

145

 

 

33

 

 

505

 

 

131

Total Ancillary Revenue

 

2,025

 

 

1,727

 

 

4,183

 

 

4,562

Total Revenues

$

53,022

 

$

38,173

 

$

94,300

 

$

69,401

 

 

 

 

 

 

 

 

(1) Renewal Commissions, New Business Commissions, Agency Fees, and Contingent Commissions are included in "Commissions and agency fees" as shown on the Condensed Consolidated statements of operations.

(2) Renewal Royalty Fees, New Business Royalty Fees, Initial Franchise Fees, and Other Franchise Revenues are included in "Franchise revenues" as shown on the Condensed Consolidated statements of operations.

The following tables show a reconciliation from net income to Adjusted EBITDA and Adjusted EBITDA Margin (non-GAAP basis) for the three and six months ended June 30, 2022 and 2021 (in thousands):

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Net loss

 

$

2,389

 

 

$

3,136

 

 

$

(2,994

)

 

$

2,047

 

Interest expense

 

 

1,114

 

 

 

546

 

 

 

1,997

 

 

 

1,147

 

Depreciation and amortization

 

 

1,658

 

 

 

1,132

 

 

 

3,234

 

 

 

2,132

 

Tax expense (benefit)

 

 

2,164

 

 

 

223

 

 

 

562

 

 

 

(71

)

Equity-based compensation

 

 

5,173

 

 

 

1,852

 

 

 

10,961

 

 

 

3,793

 

Other income

 

 

 

 

 

(119

)

 

 

 

 

 

(139

)

Adjusted EBITDA

 

$

12,498

 

 

$

6,770

 

 

$

13,760

 

 

$

8,909

 

Adjusted EBITDA Margin(1)

 

 

24

%

 

 

18

%

 

 

15

%

 

 

13

%

(1) Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by Total Revenue ($12,498/$53,022), and ($6,770/$38,173) for the three months ended June 30, 2022 and 2021, respectively. Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by Total Revenue ($13,760/$94,300), and ($8,909/$69,401) for the six months ended June 30, 2022 and 2021, respectively.

The following tables show a reconciliation from basic earnings per share to Adjusted EPS (non-GAAP basis) for the three and six months ended June 30, 2022. Note that totals may not sum due to rounding:

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

 

2021

Earnings per share - basic (GAAP)

 

$

0.02

 

$

0.08

 

$

(0.10

)

 

$

0.06

Add: equity-based compensation(1)

 

 

0.14

 

 

0.05

 

 

0.30

 

 

 

0.10

Adjusted EPS (non-GAAP)

 

$

0.16

 

$

0.13

 

$

0.20

 

 

$

0.16

(1) Calculated as equity-based compensation divided by sum of weighted average Class A and Class B shares [$5.2 million/(20.5 million + 16.7 million)] for the three months ended June 30, 2022 and [$1.9 million/ (18.8 million + 18.0 million)] for the three months ended June 30, 2021. Calculated as equity-based compensation divided by sum of weighted average Class A and Class B shares [$11.0 million/(20.3 million + 16.8 million)] for the six months ended June 30, 2022 and [$3.8 million/ (18.6 million + 18.2 million)] for the six months ended June 30, 2021.

Goosehead Insurance, Inc.

Key Performance Indicators

 

 

June 30, 2022

 

December 31, 2021

 

June 30, 2021

Corporate sales agents < 1 year tenured

 

 

312

 

 

 

293

 

 

 

266

 

Corporate sales agents > 1 year tenured

 

 

191

 

 

 

213

 

 

 

186

 

Operating franchises < 1 year tenured (TX)

 

 

67

 

 

 

57

 

 

 

53

 

Operating franchises > 1 year tenured (TX)

 

 

231

 

 

 

214

 

 

 

196

 

Operating franchises < 1 year tenured (Non-TX)

 

 

354

 

 

 

333

 

 

 

353

 

Operating franchises > 1 year tenured (Non-TX)

 

 

692

 

 

 

594

 

 

 

470

 

Policies in Force

 

 

1,181,000

 

 

 

1,011,000

 

 

 

872,000

 

Client Retention

 

 

89

%

 

 

89

%

 

 

89

%

Premium Retention

 

 

95

%

 

 

93

%

 

 

90

%

QTD Written Premium (in thousands)

 

$

565,961

 

 

$

407,291

 

 

$

398,920

 

Net Promoter Score ("NPS")

 

 

90

 

 

 

91

 

 

 

92