Selectquote, Inc. · NYSE:SLQT
Selectquote — Q3 FY2021 Earnings Presentation
19 slides from Selectquote's earnings presentation, May 11, 2021
Slide 1: 3rd Quarter and Fiscal Year to Date 2021 Earnings Conference Call Presentation
3rd Quarter and Fiscal Year to Date 2021 Earnings Conference Call Presentation May 12, 2021 Exhibit 99.2
Slide 2: Forward-Looking Statements
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 of words or
Slide 3: 3rd Quarter Earnings Summary
SelectQuote drove significant top-line and profit results for the 3rd quarter primarily driven by a strong OEP period in our Senior division and growth in Final Expense policies Consolidated revenue totaled $267 million, up 80% year-over-year Consolidated Adjusted EBITDA* totaled $65 million, up 48%
Slide 4: 3rd Quarter Review – OEP Summarized
3rd Quarter Review – OEP Summarized 4 Growth 112% YoY Approved MA Policies 110% YoY Total Approved Policies Efficiency 75% Increase in Productive Agents 17% Increase in Agent Productivity Stability $1,362 MA LTV Customer Focus +63% YoY Adj. EBITDA* *Senior division. See reconciliations from non-GAAP
Slide 5: Population Health's Ecosystem of Leading Providers
5 Home-Based Care Meal Delivery Medical Transportation Behavioral Health Diagnostics Value-Based Care (Primary Care) Medicare Advantage Specialized Medication Management Pharmacy Express Med Pharmaceuticals now Healthcare Literacy & Wellness Population Health’s Ecosystem of Leading Providers Leading
Slide 6: Population Health Delivers Tremendous Value to All Stakeholders
6 Accelerating the alignment of patients with value-based care providers to deliver significant benefits to all parties. SelectQuote New revenue streams and improved retention Patients Better health outcomes and lower cost Service Providers Accelerated customer acquisition Carriers Lower medical los
Slide 7: Key Takeaways from 3rd Quarter and OEP
◦ Population Health not only reinforces our core business but also creates new revenue streams at low incremental CAC and with attractive cash profile ◦ Our market-leading and stable LTVs serve as a strong proof point to the sustainability and strategic advantages of our model ◦ Our differentiated a
Slide 8: SelectQuote – Consolidated Financial Summary
44 65 114 207 Q3 FY20 Q3 FY21 FYTD 20 FYTD 21 149 267 390 749 Q3 FY 20 Q3 FY 21 FYTD 20 FYTD 21 24% Adj. EBITDA Margin 30% 80 % *See reconciliations from non-GAAP measure, Adjusted EBITDA, to net income on slides 17-19. SelectQuote – Consolidated Financial Summary Revenue ($MM) Adj. EBITDA* ($MM) 92
Slide 9: SelectQuote Senior – Financial Summary
46 75 112 219 3Q 2020 3Q 2021 FYTD 20 FYTD 21 107 216 274 604 3Q 2020 3Q 2021 FYTD 20 FYTD 21 35% Adj. EBITDA Margin 43% 10 1% SelectQuote Senior – Financial Summary Revenue ($MM) Adj. EBITDA* ($MM) 12 1% 36%41% 63 % 95 % *See reconciliations from non-GAAP measure, Adjusted EBITDA, to net income on
Slide 10: SelectQuote Senior – Policies
84,516 177,778 234,955 508,121 62,700 132,950 171,099 384,137 2,702 3,073 11,740 19,849 19,114 41,755 52,116 104,135 MA MS Other Q3 2020 Q3 2021 FYTD 20 FYTD 21 101,990 211,077 289,206 603,724 76,196 160,233 205,270 454,772 3,703 3,738 16,383 24,287 22,091 47,106 67,553 124,665 MA MS Other Q3 2020 Q
Slide 11: SelectQuote Life – Financial Summary
28 44 74 113 19 19 56 56 9 24 16 55 1 1 2 2 Core Premium Final Expense Ancillary Premium Q3 FY2020 Q3 FY2021 FYTD 20 FYTD 21 3 3 16 20 Q3 FY2020 Q3 FY2021 FYTD 20 FYTD 21 31 46 88 126 Q3 FY2020 Q3 FY2021 FYTD 20 FYTD 21 Adj. EBITDA Margin 7%11% 176% 58% 2% CAGR (9)% 50% Life Premium ($MM) Revenue ($
Slide 12: SelectQuote Auto & Home – Financial Summary
2 1 6 7 Q3 FY2020 Q3 FY2021 FYTD 20 FYTD 21 10 7 29 24 Q3 2020 Q3 2021 FYTD 20 FYTD 21 17 12 49 42 Q3 2020 Q3 2021 FYTD 20 FYTD 21 Adj. EBITDA Margin 16%15% (33)% (31)% (29)% Net New Effective Premium ($MM) Revenue ($MM) Adj. EBITDA* ($MM) *See reconciliations from non-GAAP measure, Adjusted EBITDA,
Slide 13: Growing Faster While Using Less Cash
Growing Faster While Using Less Cash *See reconciliations from non-GAAP measure, Adjusted EBITDA, to net income on slides 17-19. ◦ IPO provided growth capital for the next several years ◦ Post IPO results have exceeded forecasts for revenue and EBITDA ◦ Accelerated growth would typically drive great
Slide 14: Capitalization Summary
• Net debt position of $103 million ◦ $369 million of cash and cash equivalents ◦ $472 million of term debt • Available borrowing capacity of $75 million on undrawn revolver • Accounts receivable, short and long term commissions receivable balance of $902 million • Refinanced Term Loan, lowered inte
Slide 15: SelectQuote – FY2021 Consolidated Guidance
($'s in millions) Range Implied YoY Growth Revenue $920 - $940 73% - 77% Net Income $130 - $138 60% - 70% Adjusted EBITDA* $225 - $235 46% - 53% *See reconciliations from non-GAAP measure, Adjusted EBITDA, to net income on slides 17-19. SelectQuote – FY2021 Consolidated Guidance 15
Slide 16: Supplemental information
Supplemental information 16
Slide 17: 3Q FY 2021 and FYTD 2021 Adjusted EBITDA to Net Income Reconciliation
3Q FY 2021 (in thousands) Senior Life Auto & Home Corp & Elims Consolidated Revenue $ 215,600 $ 46,400 $ 6,973 $ (2,050) $ 266,923 Operating expenses (140,111) (43,225) (5,877) (12,507) (201,720) Other expenses, net — — — (15) (15) Adjusted EBITDA 75,489 3,175 1,096 (14,572) 65,188 Share-based compe
Slide 18: 3Q FY 2020 and FYTD 2020 Adjusted EBITDA to Net Income Reconciliation
3Q FY 2020 (in thousands) Senior Life Auto & Home Corp & Elims Consolidated Revenue $ 107,351 $ 30,956 $ 10,442 $ (145) $ 148,604 Operating expenses (61,169) (27,462) (8,856) (7,059) (104,546) Other expenses, net — — — (4) (4) Adjusted EBITDA 46,182 3,494 1,586 (7,208) 44,054 Share-based compensatio
Slide 19: FY21 Guidance Adjusted EBITDA to Net Income Reconciliation
(in thousands) Range Net Income $ 130,000 $ 138,000 Income tax expense 34,000 36,000 Loss on extinguishment of debt 3,000 3,000 Interest expense, net 29,000 29,000 Depreciation and amortization 16,000 16,000 Fair value adjustments to contingent earnout obligations 1,000 1,000 Non-recurring expenses