SelectQuote(SLQT)2024-11-04 21:17Policy Submissions and Approvals - Total submitted policies decreased by 1% to 118,537 for the three months ended September 30, 2024, compared to 119,452 in the same period of 2023[90] - Total approved policies decreased by 5% to 104,659 for the three months ended September 30, 2024, compared to 109,876 in the same period of 2023[92] - Medicare Advantage plans accounted for 88% of approved Senior policies for the three months ended September 30, 2024[83] Financial Performance - Total revenue for the three months ended September 30, 2024, was $292,263,000, representing a 26% increase from $232,730,000 in the same period of 2023[102] - Revenue from the Senior segment was $92.9 million for the three months ended September 30, 2024, a $3.0 million, or 3%, increase compared to $89.9 million for the same period in 2023[124] - Revenue from Healthcare Services was $155.7 million for the three months ended September 30, 2024, a $58.4 million, or 60%, increase compared to $97.4 million for the same period in 2023[125] - Revenue from the Life segment was $39.3 million for the three months ended September 30, 2024, a $1.5 million, or 4%, increase compared to $37.8 million for the same period in 2023[126] - The company completed a $100.0 million securitization transaction on October 15, 2024, to provide advanced financing against expected collections for previously sold policies[131] - The company expects to remain in compliance with debt covenants for the next 12 months based on financial projections[130] Expenses and Losses - Selling, general, and administrative expenses increased by $7.5 million, or 26%, primarily due to a $5.2 million increase in compensation costs[110] - Marketing and advertising expenses rose by $1.4 million, or 2%, mainly due to a $0.8 million increase in lead costs[108] - Net loss for the three months ended September 30, 2024, was $44,546,000, compared to a net loss of $31,051,000 in the same period of 2023[99] - Interest expense increased by $1.6 million, or 8%, due to higher interest rates during the period[112] - Technical development expenses increased by $1.4 million, or 19%, primarily due to a $1.6 million increase in compensation costs for technology personnel[112] - The net loss for the three months ended September 30, 2024, was $44.5 million, with non-cash adjustments totaling $26.3 million[138] Membership and Operations - Total number of SelectRx members increased by 64% to 86,521 as of September 30, 2024, compared to 52,750 in the same period of 2023[96] - Average prescriptions shipped per day increased to 24,998 for the three months ended September 30, 2024, compared to 15,479 in the same period of 2023[97] - The increase in Healthcare Services revenue was primarily due to a $58.1 million increase in SelectRx pharmacy revenue[125] Cash Flow and Debt - Cash and cash equivalents decreased to $10.4 million as of September 30, 2024, from $42.7 million as of June 30, 2024[134] - Net cash used in operating activities for the three months ended September 30, 2024, was $16.6 million, compared to $23.7 million for the same period in 2023[138][140] - Net cash used in investing activities was $2.6 million for the three months ended September 30, 2024, primarily due to $2.1 million in software purchases[142] - Net cash used in financing activities was $13.1 million for the three months ended September 30, 2024, mainly due to $8.5 million in principal payments on term loans[144] - As of September 30, 2024, total debt obligations amounted to $680.4 million, slightly down from $683.3 million as of June 30, 2024[132] Market and Competitive Position - The company continues to seek opportunities for market expansion through acquisitions and partnerships in healthcare services[82] - The proprietary routing and workflow system is a key competitive advantage that enhances sales and customer retention[81] - The company remains exposed to market risks associated with unfavorable movements in interest rates, with no material changes to its risk policies[147]