SelectQuote(US:SLQT)2025-02-10 22:23Policy Submissions and Approvals - Total submitted policies for all products increased by 5% for the three months ended December 31, 2024, compared to the same period in 2023, driven by a 24% increase in overall close rates [147]. - Total approved policies for all products increased by 5% for the three months ended December 31, 2024, compared to the same period in 2023, correlating with the increase in submitted policies [152]. - Medicare Advantage plans accounted for 93% of approved Senior policies for the three months ended December 31, 2024 [139]. - Term life policies accounted for 44% of new premium within the Life segment for the three months ended December 31, 2024 [141]. Financial Performance - Total revenue for the three months ended December 31, 2024, was $481,069,000, a 19% increase from $405,438,000 in 2023, with pharmacy revenue rising by 65% to $180,000,000 [168]. - Operating income for the three months ended December 31, 2024, was $70,940,000, representing a 28% increase from $55,294,000 in 2023 [164]. - Net income for the three months ended December 31, 2024, was $53,236,000, compared to $19,392,000 in 2023, reflecting a significant improvement in profitability [164]. - Total consolidated revenue for the three months ended December 31, 2024, was $481.1 million, with external revenue from the Senior segment at $253.8 million [196]. - Revenue from the Senior segment for the three months ended December 31, 2024, was $255.6 million, a 3% increase compared to $247.5 million for the same period in 2023 [203][204]. - Revenue from Healthcare Services for the three months ended December 31, 2024, was $183.4 million, a 64% increase compared to $111.7 million for the same period in 2023, primarily driven by a $71.2 million increase in SelectRx pharmacy revenue [205][206]. Expenses and Costs - Total operating costs and expenses for the three months ended December 31, 2024, were $410,129,000, which is 84% of total revenue [164]. - Cost of goods sold for pharmacy revenue increased by 66% to $156,201,000 for the three months ended December 31, 2024, primarily due to a $53.8 million increase in medication costs [174]. - Marketing and advertising expenses decreased by $19.4 million, or 17%, for the three months ended December 31, 2024, primarily due to a $16.3 million decrease in lead costs [178]. - Selling, general, and administrative expenses increased by $11.6 million, or 35%, for the three months ended December 31, 2024, primarily due to a $4.9 million increase in compensation costs [182]. - Technical development expenses increased by $2.0 million, or 25%, for the three months ended December 31, 2024, primarily due to a $1.6 million increase in compensation costs [184]. Member Growth and Market Expansion - The total number of SelectRx members increased by 54% as of December 31, 2024, compared to December 31, 2023, reflecting the company's growth strategy [159]. - The company continues to seek opportunities for market expansion through acquisitions and partnerships in healthcare services [138]. - The company completed a $4.0 million acquisition of a chronic care management platform to enhance its healthcare services [140]. Cash Flow and Debt - Net cash used in operating activities for the six months ended December 31, 2024, was $45.3 million, consisting of net income of $8.7 million and adjustments for non-cash items of $41.0 million [231]. - Net cash used in investing activities was $4.8 million for the six months ended December 31, 2024, primarily due to $4.1 million in software purchases [235]. - Net cash provided in financing activities was $21.1 million for the six months ended December 31, 2024, mainly from $99.1 million proceeds on notes issued [238]. - Total debt obligations as of December 31, 2024, were $711.9 million, compared to $683.3 million as of June 30, 2024 [223]. - The company completed a $100.0 million securitization transaction on October 15, 2024, to pay down a portion of its outstanding term loans [219]. Tax and Adjusted EBITDA - The effective tax rate for the three months ended December 31, 2024, was (34.6)%, compared to 37.2% for the same period in 2023 [188]. - Adjusted Segment EBITDA for the Senior segment was $100.5 million for the three months ended December 31, 2024 [196]. - Adjusted EBITDA from the Senior segment for the three months ended December 31, 2024, was $100.5 million, a 28% increase from $78.7 million for the same period in 2023 [210]. - Adjusted EBITDA from the Life segment for the three months ended December 31, 2024, was $7.4 million, a 62% increase compared to $4.6 million for the same period in 2023 [212].