Hagerty(HGTY)2024-05-07 11:27Financial Performance - First quarter 2024 Total Revenue increased 24% year-over-year to $271.7 million[5] - First quarter 2024 Written Premium increased 19% year-over-year to $218.3 million[5] - First quarter 2024 Net Income of $8.2 million, an increase of $23.2 million compared to the prior year period[5] - First quarter 2024 Adjusted EBITDA of $27.3 million, an increase of $20.6 million compared to the prior year period[5] - Total revenue for Q1 2024 was $271,708,000, representing a 24.4% increase from $218,352,000 in Q1 2023[20] - Net income for Q1 2024 was $8,199,000, a significant improvement compared to a net loss of $15,025,000 in Q1 2023, marking a 154.6% change[20] - Total written premium increased to $218,286,000 in Q1 2024, up from $182,850,000 in Q1 2023, reflecting a growth of 19.4%[26] - Adjusted EBITDA for Q1 2024 was $27,327,000, compared to $6,705,000 in Q1 2023, indicating a substantial increase[26] - Operating income for Q1 2024 was $12,224,000, a turnaround from an operating loss of $16,489,000 in Q1 2023, representing a 174.1% change[20] - Adjusted EPS for Q1 2024 was $0.04, compared to a loss of $0.04 in Q1 2023, demonstrating a turnaround in earnings per share[36] Revenue Breakdown - First quarter 2024 Marketplace revenue increased 58% year-over-year to $10.5 million[7] - First quarter 2024 Membership revenue increased 7% year-over-year to $13.5 million[7] - Membership, marketplace, and other revenue grew by 17.9% to $31,249,000 in Q1 2024 from $26,509,000 in Q1 2023[20] Operational Metrics - Policies in Force Retention was 88.7% as of March 31, 2024, compared to 87.9% as of March 31, 2023[7] - The company reported a loss ratio of 41.1% for Q1 2024, slightly improved from 41.3% in Q1 2023[26] - The number of new business counts in insurance reached 59,286 in Q1 2024, up from 51,762 in Q1 2023[26] Cash and Assets - Cash and cash equivalents increased to $131,207,000 as of March 31, 2024, compared to $108,326,000 at the end of 2023[22] - Total assets decreased slightly to $1,570,248,000 as of March 31, 2024, from $1,588,212,000 at the end of 2023[22] Future Outlook - Reaffirmed 2024 Outlook for Total Revenue growth of 15-17% and Net Income growth of 116-148%[11] - The company projects a net income range of $61,000 to $70,000 for the full year 2024, with an Adjusted EBITDA forecast between $124,000 and $135,000[31] - Key 2024 business priorities include expanding insurance offerings in the post-1980s collectible space[11] Shareholder Information - The weighted average shares of Class A Common Stock outstanding increased to 84,656 in Q1 2024 from 83,227 in Q1 2023[36] - The total potentially dilutive shares outstanding increased to 290,024 in Q1 2024 from 281,994 in Q1 2023, indicating potential dilution in future earnings[36] Expenses - Depreciation and amortization expenses for Q1 2024 were $10,560, down from $13,743 in Q1 2023, contributing to improved EBITDA[31] - Interest and other expenses for Q1 2024 were $7,244, compared to $5,647 in Q1 2023, reflecting increased financial costs[31] Valuation Metrics - The company reported a change in fair value of warrant liabilities of $6,140 in Q1 2024, compared to $515 in Q1 2023, indicating increased valuation of warrants[31] - The company has highlighted the importance of Adjusted EPS as a measure of operating performance, despite its limitations as a non-GAAP metric[35]