GoHealth(US:GOCO)2022-11-14 17:43Financial Performance - For the three months ended September 30, 2022, net revenues were $133.052 million, a decrease of 37% compared to $211.734 million for the same period in 2021[24] - Commission revenues for the nine months ended September 30, 2022, were $414.735 million, down 16.4% from $496.437 million in the same period of 2021[24] - The company reported a net loss of $74.654 million for the three months ended September 30, 2022, compared to a net loss of $55.518 million for the same period in 2021[24] - For the three months ended September 30, 2022, GoHealth, Inc. reported a net loss of $74.654 million, compared to a net loss of $55.518 million for the same period in 2021, representing a 34.4% increase in losses year-over-year[27] - Comprehensive income attributable to GoHealth, Inc. for the three months ended September 30, 2022, was a loss of $29.942 million, compared to a loss of $20.231 million in the same period of 2021, indicating a 48.5% increase in losses[27] - For the nine months ended September 30, 2022, GoHealth reported a net loss of $225.6 million, compared to a net loss of $102.0 million for the same period in 2021, representing a 121% increase in losses year-over-year[40] - The company experienced a significant increase in share-based compensation, totaling $22.8 million for the nine months ended September 30, 2022, compared to $20.1 million in the prior year, reflecting a 13.4% increase[40] - The company reported a total of $113.6 million in deferred revenue for the nine months ended September 30, 2022, compared to a decrease of $175,000 in the prior year, indicating a positive shift in revenue recognition[40] - The effective tax rate for the three months ended September 30, 2022, was 0.00%, compared to 0.14% for the same period in 2021, primarily due to the effect of loss entities[119] Operating Expenses - Operating expenses totaled $192.191 million for the three months ended September 30, 2022, down from $260.440 million in the same period of 2021[24] - The cost of revenue for the three months ended September 30, 2022, was $48.044 million, a decrease from $53.632 million in the same period of 2021[24] - Marketing and advertising expenses were $22.661 million for the three months ended September 30, 2022, significantly lower than $59.511 million in the same period of 2021[24] - The company experienced operating lease impairment charges of $25.3 million for the nine months ended September 30, 2022, compared to $1.1 million for the same period in 2021[58] - The Company recorded total share-based compensation expense of $6.456 million for the three months ended September 30, 2022, compared to $7.389 million for the same period in 2021, reflecting a decrease of approximately 12.6%[104] Assets and Liabilities - Total current assets increased to $468.147 million as of September 30, 2022, from $428.995 million as of December 31, 2021, reflecting an increase of 9.5%[30] - Cash and cash equivalents rose significantly to $215.403 million as of September 30, 2022, compared to $84.361 million at the end of 2021, marking a substantial increase of 155.7%[30] - Total liabilities increased to $1.264 billion as of September 30, 2022, from $1.176 billion at December 31, 2021, representing a rise of 7.5%[30] - The accumulated deficit as of September 30, 2022, was $295.691 million, up from $208.317 million at the end of 2021, indicating an increase of 42%[30] - GoHealth's total assets decreased to $2.002 billion as of September 30, 2022, from $2.069 billion at December 31, 2021, a decline of 3.2%[30] - Non-controlling interests decreased to $364.294 million as of September 30, 2022, from $539.387 million at December 31, 2021, a decline of 32.5%[30] - GoHealth's total stockholders' equity attributable to the company was $324.944 million as of September 30, 2022, down from $353.103 million at the end of 2021, reflecting a decrease of 8.0%[30] Debt and Financing - The company experienced a loss on extinguishment of debt of $39.752 million for the nine months ended September 30, 2022[24] - As of September 30, 2022, the total long-term debt amounted to $660.4 million, a slight decrease from $665.1 million as of December 31, 2021[66] - The Company has a total debt of $665.7 million as of September 30, 2022, which includes term loan facilities and revolving credit facilities[66] - The effective interest rate for the Incremental Term Loan Facility was 8.8% at September 30, 2022, compared to 7.5% at December 31, 2021[74] - The Company incurred $2.5 million, $1.7 million, and $1.0 million in debt issuance costs associated with Amendments No. 6, 7, and 8, respectively, which are being amortized over the life of the debt[69][70][71] Revenue and Commissions - Total commission revenue for the three months ended September 30, 2022, was $87.058 million, down from $174.948 million in the same period of 2021, reflecting a 50.2% decrease[124] - As of September 30, 2022, commissions receivable amounted to $1.177 billion, a decrease from $970.734 million as of September 30, 2021, indicating a 21.3% increase year-over-year[129] - The total enterprise revenue for the nine months ended September 30, 2022, was $147.564 million, compared to $116.378 million for the same period in 2021, representing a 26.8% increase[124] Restructuring and Workforce - The restructuring initiatives led to a total of $9.797 million in restructuring and related charges for the three months ended September 30, 2022[159] - Employee termination benefits accounted for $8.722 million of the restructuring charges in the third quarter of 2022[159] - The company eliminated 828 full-time positions, representing approximately 23.7% of its workforce, primarily in customer care and enrollment[158] Operational Efficiency - The company reported a segment profit of $328, compared to a loss of $404 in the same quarter of 2021, indicating a slight improvement in operational efficiency[154] - Interest expense increased to $15.630 million for the three months ended September 30, 2022, compared to $6.921 million in the same period of 2021[154] - The company incurred a loss before income taxes of $74.654 million for the three months ended September 30, 2022, compared to a loss of $55.597 million in the prior year[154]