Benefytt Technologies — Q1 2020 Earnings Presentation
15 slides from Benefytt Technologies's earnings presentation, May 7, 2020
Slide 1: First Quarter 2020 Earnings Presentation
First Quarter 2020 Earnings Presentation May 7, 2020
Slide 2: Disclosure
@ Benefytt Disclosure Certain statements made in this presentation contain "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements other than historical fact, and may include statements relating to goals,
Slide 3: 1Q20 Summary
1Q20 Summary @ Benefytt Strategic Alternatives Review Continues Covid-19 Response: Shifted to work from home; Minimal Disruption Launched healthinsurance.com and Digital Medicare Enrollment Revenue Ahead of Guidance; Adjusted EBITDA & EPS Below Medicare Revenues in Line with Guidance; Medicare Profi
Slide 4: 1Q20 GAAP Results
1Q20 GAAP Results @ Benefytt $2.2 ($49.8) $0.11 ($3.68) 1019 1019 $41.1mm ($2.85 of EPS) Goodwill Impairment Related to Previously Announced De- Emphasis of IFP Increase in amortization expense from 2019 acquisitions Increase in Interest on Debt in Current Year
Slide 5: 1Q20 Financial Results
1Q20 Financial Results $87.3 $71.6 $18.9 1Q19 1020 Medicare mIFP BFYT new to Medicare in 2H19 Medicare Revenues in line with Guidance IFP Revenues Significantly Outperformed 1Q20 Revenues reflect ($4.8)mm of LTV reassessments @ Benefytt $9.3 $0.9 5.8 1Q19 1Q20 Medicare mIFP Corporate Total Adjusted
Slide 6: 1Q20 Financial Results
1Q20 Financial Results @ Benefytt $0.01 1Q19 1Q20 Total Adjusted EPS below Expectations Adjusted EPS Reflects ($0.20) of LTV Reassessments Results reflect lower Medicare margins due to higher cost per call and BPO underperformance *Adjusted EPS, or adjusted net income per share, is a non-GAAP financ
Slide 7: Reaffirming 2020 Revenue and Earnings Guidance
Reaffirming 2020 Revenue and Earnings Guidance ‘@Benefytt $65.0 $80.0 $15.0 = ; ; $80.0 $190.0 $210.0 $70.0 -$20.0 -$20.0 Low High Low High Medicare mIFP Medicare mIFP Corporate $4.15 $3.10 Low High *In accordance with SEC Regulation G, the Company does not reconcile Adjusted EBITDA guidance and Adj
Slide 8: BFYT Opportunities
BFYT Opportunities @ Benefytt ‘ Significant runway for expansion in growing Medicare market ———a Significant Tailwinds in IFP 280 Omni-channel, consumer-facing digital portals and O52 advertisement campaigns Qo Significant Opportunities in Provider Network Scaling and Optimizing Agent Model 2. OOO U
Slide 9: BFYT Medicare Omni-Channel Marketing
BFYT Medicare Omni-Channel Marketing ‘@ Benefytt Organic Search Medicare Enrollment . Provider Medicare : Partners Enrollment 1Q20 4Q20/2021 *Diagram is for illustration purposes and may 9 not represent Benefytt’s total channel mix
Slide 10: BFYT Medicare Runway
BFYT Medicare Runway @ Benefytt CMS/Carrier review & approval: 90-120 days O DRTV Additional Submission Omni-channel mix operating channel materials deadline for operating in 4Q successfully submitted ahead additional chan- of schedule nel materials AEP October 15 — December 7 | Jan Feb Mar | Apr Ma
Slide 11: Appendix
@ Benefytt Appendix 11
Slide 12: Financial Footnotes
@ Benefytt Financial Footnotes To supplement the Company's financial information presented in accordance with generally accepted accounting principles in the United States of America, or GAAP, the Company presents certain financial measures that are not prepared in accordance with GAAP, which are ad
Slide 13: Financial Footnotes
@ Benefytt Financial Footnotes EBITDA is defined as net income before interest, income taxes and depreciation and amortization. We have included EBITDA in this report because it is a key measure used by our management and board of directors to understand and evaluate our core operating performance a
Slide 14: Reconciliation of Net Income to EBITDA and Adjusted EBITDA
@ Benefytt Reconciliation of Net Income to EBITDA and Adjusted EBITDA Reconciliation of Net Income to EBITDA and Adjusted EBITDA Net (loss) income Interest expense Depreciation and amortization (Benefit) provision for income taxes EBITDA Loss on impairment Stock-based compensation and related costs
Slide 15: Reconciliation of Net Income to Adj. Net Income per Share
@ Benefytt Reconciliation of Net Income to Adj. Net Income per Share Reconciliation of Net Income to Adjusted Net Income per Share ($ in thousands except per share data) Net (loss) income Interest expense Amortization (Benefit) provision for income taxes Loss on impairment Stock-based compensation a
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