Selectquote, Inc. · NYSE:SLQT
Selectquote — Q1 2021 Earnings Presentation
20 slides from Selectquote's earnings presentation, Nov 5, 2020
Slide 1: 1st Quarter Fiscal Year 2021 Earnings Conference Call Presentation
Exhibit 99.2 1st Quarter Fiscal Year 2021 Earnings Conference Call Presentation November 5, 2020
Slide 2: Disclaimer: Forward-Looking Statements
Disclaimer Forward-Looking Statements This presentation contains forward-looking statements. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use o
Slide 3: 1st Quarter Earnings Summary
1st Quarter Earnings Summary SelectQuote drove top line and profit results for 1st quarter 2021 that were ahead of internal expectations. Results were primarily driven by continued strength in the Senior and Life divisions Consolidated revenue totaled $124 million, up 91% year-over-year Consolidated
Slide 4: Why SelectQuote is Different
Why SelectQuote is Different Market 10% 27M +20% Dynamics Estimated Annual MA Estimated 2021 Average Beneficiary Enrollment Growth MA Enrollees Plan Choices Marketing People Technology Pillars of Growth +30% >2,000 $25M+ YoY Increase in Associates Hired FY2020 Technology Per Unit AEP Rep Investment
Slide 5: CCA is a Competitive Differentiator
CCA is a Competitive Differentiator Policyholder SelectQuote Favorable Decision Factors Strategy Outcomes CCA 25% agents Recapture Rate Changing Medications 300+ up 2x over 2020 200+ Cross-sell opportunities / day Changing Locations Policyholder contacts per month Incremental 150,000+ revenue Changi
Slide 6: Final Expense Life
Final Expense Life Final Expense Premiums ($MM) • Growing total addressable market ◦ Up to $10Bn in annual revenue ◦ Similar growth tailwinds to Senior 50 • Strong unit economics ◦ ~1-year payback period ◦ Attractive margins • Cross-Sell opportunities ◦ Over 50% of enrollees are over age 65 ◦ Increa
Slide 7: We have a High Growth, Scalable Business Model
We have a High Growth, Scalable Business Model LTM 1Q Revenue(1)(2) LTM 1Q Adj. EBITDA(1)(2)(3) ($MM) ($MM) Adj. EBITDA 21% 29% 28% Margin(3) 591 41 165 10 CAGR: 56% 145 32 CAGR: 78% 347 101 38 9 244 25 111 32 52 157 407 9 102 26 86 199 110 37 (19) (19) LTM 1Q FY19 LTM 1Q FY20 LTM 1Q FY21 (34) Senio
Slide 8: SelectQuote – Consolidated Financial Summary
SelectQuote – Consolidated Financial Summary Revenue Adj. EBITDA* ($MM) ($MM) 124 91% 12 65 1 1Q FY 20 1Q FY 21 1Q FY20 1Q FY21 Adj. EBITDA Margin 1% 10% *See reconciliations from non-GAAP measure, Adjusted EBITDA, to net income on slides 16-20. 8
Slide 9: SelectQuote Senior – Financial Summary
SelectQuote Senior – Financial Summary Revenue Adj. EBITDA* ($MM) ($MM) Adj. EBITDA Margin (7)% 12% 73 165% 9 28 1Q 2020 1Q 2021 (2) 1Q 2020 1Q 2021 *See reconciliations from non-GAAP measure, Adjusted EBITDA, to net income on slides 16-20. 9
Slide 10: SelectQuote Senior – Policies
SelectQuote Senior – Policies Total Policies Submitted Total Policies Approved CAGR 79,617 CAGR 118% 129% 101% 125% 24,350 108% 141% 69,493 130% 130% 7,276 20,695 36,473 6,325 12,121 30,319 47,991 3,501 9,214 42,473 2,626 20,851 18,479 1Q 2020 1Q 2021 1Q 2020 1Q 2021 MA MS Other MA MS Other 10
Slide 11: SelectQuote Life – Financial Summary
SelectQuote Life – Financial Summary Life Premium Revenue ($MM) ($MM) 55% 43 CAGR 28 70% 31% Q1 FY2020 Q1 FY2021 397% 39 Adj. EBITDA* 1% 1 ($MM) 19 23 1 4 80% 10 18 19 6 Q1 FY2020 Q1 FY2021 Q1 FY2020 Q1 FY2021 Core Premium Final Expense Adj. Ancillary Premium EBITDA 21% 24% Margin *See reconciliatio
Slide 12: SelectQuote Auto & Home – Financial Summary
SelectQuote Auto & Home – Financial Summary Net New Effective Premium(1) Revenue(1) ($MM) ($MM) (5)% (2)% 10 10 17 17 1Q 2020 1Q 2021 Adj. EBITDA* ($MM) 45% 4 2 1Q 2020 1Q 2021 1Q 2020 1Q 2021 Adj. EBITDA 25% 38% Margin 1. The percentage change may not correspond to the figures presented due to roun
Slide 13: Capitalization Summary
Capitalization Summary • Ample liquidity for growth and business model investment • Net cash position of $22 million ◦ $347 million of cash, cash equivalents, and restricted cash ◦ $325 million of term debt • Available borrowing capacity of $75 million on undrawn revolver • Accounts receivable, shor
Slide 14: SelectQuote – FY2021 Consolidated Guidance
SelectQuote – FY2021 Consolidated Guidance ($'s in millions) Range Implied YoY Growth Revenue $840 - $880 58% - 65% Net Income $130 - $141 60% - 74% Adjusted EBITDA* $220 - $235 43% - 53% *See reconciliations from non-GAAP measure, Adjusted EBITDA, to net income on slides 16-20. 14
Slide 15: Strategic Focus and Competitive Differentiators
Strategic Focus and Competitive Differentiators ◦ Our strategy is to maximize absolute profitability at attractive returns on invested capital divisions ◦ Our choice model paired with highly trained, in- house agents and dedicated customer care teams was purpose-built to ensure customers buy the rig
Slide 16: Supplemental information
Supplemental information 16
Slide 17: FY20-FY21 Adjusted EBITDA to Net Income Reconciliation
FY20-FY21 Adjusted EBITDA to Net Income Reconciliation 1Q FY 2021 (in thousands) Senior Life Auto & Home Corp & Elims Consolidated Revenue $ 73,199 $ 42,823 $ 9,538 $ (1,391) $ 124,169 Operating expenses (64,297) (32,346) (5,922) (9,518) (112,083) Other expenses, net — — — (21) (21) Adjusted EBITDA
Slide 18: LTM Adjusted EBITDA to Net Income Reconciliation
LTM Adjusted EBITDA to Net Income Reconciliation LTM 1Q FY 2021 (in thousands) Senior Life Auto & Home Corp & Elims Consolidated Revenue $ 407,288 $ 145,183 $ 40,674 $ (2,628) $ 590,517 Operating expenses (250,708) (112,712) (30,850) (30,986) (425,256) Other expenses, net — — — (38) (38) Adjusted EB
Slide 19: LTM Adjusted EBITDA to Net Income Reconciliation (Cont.)
LTM Adjusted EBITDA to Net Income Reconciliation (Cont.) LTM 1Q FY 2019 (in thousands) Senior Life Auto & Home Corp & Elims Consolidated Revenue $ 109,928 $ 101,864 $ 32,208 $ (272) $ 243,728 Operating expenses (73,048) (76,288) (23,180) (19,193) (191,709) Other expenses, net — — — (10) (10) Adjuste
Slide 20: FY21 Guidance Adjusted EBITDA to Net Income Reconciliation
FY21 Guidance Adjusted EBITDA to Net Income Reconciliation (in thousands) Range Net Income $ 130,000 $ 141,000 Income tax expense 44,000 48,000 Interest expense 26,000 26,000 Depreciation and amortization 11,000 11,000 Fair value adjustments to contingent earnout obligations 2,000 2,000 Non-recurrin