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Goosehead Insurance, Inc. Announces Second Quarter 2021 Results and Will Demonstrate Digital Agent Platform

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   Total Revenue Growth of 28% and Core Revenue Growth of 40% over the Prior Year Period –
– Total Written Premium Growth of 46% over the Prior Year Period  
   Total Franchises and Corporate Sales Headcount Grew 59% and 43%, Respectively  
   Record High Client Retention of 89%  
– Policies in Force Growth of 48% over the Prior Year Period –
– Special Dividend of $60 Million Declared –

WESTLAKE, Texas, July 28, 2021 (GLOBE NEWSWIRE) — Goosehead Insurance, Inc. (“Goosehead” or the “Company”) (NASDAQ: GSHD), a rapidly growing independent personal lines insurance agency, today announced results for the second quarter ended June 30, 2021.

Second Quarter 2021 Highlights

  • Total Revenues grew organically 28% to $38.2 million in the second quarter of 2021
  • Core Revenues* of $34.7 million increased 40% over the prior year period
  • Second quarter net income of $3.1 million; net income attributable to Goosehead Insurance, Inc. of $1.5 million or $0.08 per basic share and $0.07 per diluted share
  • Second quarter Adjusted EBITDA* of $6.8 million.
  • Second quarter Adjusted EPS* of $0.13 per share.
  • Total written premiums placed increased 46% from the prior-year period to $399 million
  • Policies in force grew 48% from the prior-year period to 872,000
  • Corporate sales headcount of 452 was up 43% year-over-year
  • Total franchises increased 59% compared to the prior year period to 1,801; operating franchises grew 47% compared to the prior-year period to 1,072

*Core Revenue, Adjusted EPS, and Adjusted EBITDA are non-GAAP measures. Reconciliations of Core Revenue to total revenues, Adjusted EBITDA to net income and Adjusted EPS to basic earnings per share, the most directly comparable financial measures presented in accordance with GAAP, are set forth in the reconciliation table accompanying this release.

“Our second quarter of 2021 saw continued momentum in our business and further reinforces our formidable and expanding competitive moat,” stated Mark E. Jones, Chairman and CEO. “We achieved these strong growth levels while continuing to deliver an unmatched client experience as evidenced by our 92 net promoter score which drove a record level of client retention of 89%. We are very excited to launch our Digital Agent Platform in the coming weeks. We believe this innovative proprietary platform will be highly differentiated from any competitive offering in the marketplace, providing an effortless insurance shopping experience that leverages artificial intelligence driven by our accumulated experience of millions of quotes prepared by our professional agents. With as little as three data points – name, address, and date of birth – clients will be able to generate accurate home and auto quotes online from multiple carriers in less than 60 seconds. We are excited to demonstrate this platform during our Q2 results call this afternoon. We believe this powerful technology will be accretive to revenue over time, strengthen our existing go-to-market strategy through lenders, realtors and client referrals, and enhance the value proposition for our clients, agents and franchises.”

Second Quarter 2021 Results
For the second quarter of 2021, revenues were $38.2 million, an increase of 28% compared to the corresponding period in 2020. Core Revenues, a non-GAAP measure which excludes contingent commissions and initial franchise fees, were $34.7 million, a 40% increase from $24.7 million in the prior year period. Core Revenues are the most reliable revenue stream for the Company, consisting of New Business Commissions, Agency Fees, New Business Royalty Fees, Renewal Commissions, and Renewal Royalty Fees. Core Revenue growth was driven by growth in the number of corporate agents and operating franchises (which were driven by investments in our recruiting team in 2019 and prior), productivity improvements in the Franchise Channel, and increasingly high levels of retention of 89%. The Company grew total written premiums, which we consider to be the leading indicator of future revenue growth, by 46% in the second quarter.

Total operating expenses for the second quarter of 2021 were $34.4 million, up 54% from $22.3 million in the prior-year period. The increase from the prior period was due to larger employee compensation and benefits expenses related to ongoing investments in our corporate agents, agent support team, service agents, and information systems developers. Also, we continued to expand our real estate footprint with additional office openings, plus additional investments in our technology roadmap, including finalizing our Digital Agent Platform and enhancements to our client-facing portal, which grew the Company’s general and administrative expenses for the quarter.

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Net income for the second quarter of 2021 was $3.1 million. We expect to continue to experience seasonality in our earnings throughout each year due to insurance sales patterns and recognition of contingent commissions, with the bulk of contingents realized in the fourth quarter. Net income attributable to Goosehead Insurance, Inc. for the second quarter of 2021 was $1.5 million, or $0.08 per basic share and $0.07 per diluted share. Total Adjusted EBITDA was $6.8 million for the second quarter of 2021. Adjusted EPS for the second quarter of 2021, which excludes equity-based compensation, was $0.13 per share.

Liquidity and Capital Resources
During the second quarter, the Company generated $12.1 million of operating cash flow, which brought the balance of cash and cash equivalents to $35.0 million as of June 30, 2021. We also had an unused line of credit of $19.7 million at quarter end. Total outstanding term note payable balance was $77.0 million as of June 30, 2021.

On July 21, 2021, the company refinanced its $25 million revolving credit facility and $77 million term note payable to a $50 million revolving facility, which will be partially drawn in advance of the dividend payment, and a $100 million term note payable agreement.

Special Dividend
Goosehead also announced today that Goosehead Financial, LLC declared a special dividend of $60 million payable in cash on August 23, 2021 to holders of LLC Units of record, including Goosehead Insurance, Inc., as of the close of business on August 9, 2021. In addition, Goosehead Insurance announced today that its Board of Directors declared a special cash dividend of an estimated $1.63 per share on the Company’s Class A common stock.

2021 Outlook
Based on our experience to date, the Company is reiterating its full-year 2021 outlook with respect to total written premiums and revenue:

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  • Total written premiums placed for 2021 are expected to be between $1.50 billion and $1.56 billion, representing organic growth of 40% on the low end of the range to 45% on the high end of the range.
  • Total revenues for 2021 are expected to be between $146 million and $156 million, representing organic growth of 25% on the low end of the range to 33% on the high end of the range.

Conference Call Information
Goosehead will host a conference call and webcast today at 4:30 PM ET to discuss these results.

The dial-in number for the conference call is (855) 327-6837 (toll-free) or (631) 891-4304 (international). Please dial the number 10 minutes prior to the scheduled start time.

In addition, a live webcast of the conference call will also be available on Goosehead’s investor relations website at http://ir.gooseheadinsurance.com.

A webcast replay of the call will be available at http://ir.gooseheadinsurance.com for one year following the call.

About Goosehead
Goosehead (NASDAQ: GSHD) is a rapidly growing and innovative independent personal lines insurance agency that distributes its products and services throughout the United States.   Goosehead was founded on the premise that the consumer should be at the center of our universe and that everything we do should be directed at providing extraordinary value by offering broad product choice and a world-class service experience.   Goosehead represents over 140 insurance companies that underwrite personal lines and small commercial lines risks, and its operations include a network of eleven corporate sales offices and over 1,801 operating and contracted franchise locations. For more information, please visit gooseheadinsurance.com.

Forward-Looking Statements

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This press release may contain various “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which represent Goosehead’s expectations or beliefs concerning future events. Forward-looking statements are statements other than historical facts and may include statements that address future operating, financial or business performance or Goosehead’s strategies or expectations. In some cases, you can identify these statements by forward-looking words such as “may”, “might”, “will”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “projects”, “potential”, “outlook” or “continue”, or the negative of these terms or other comparable terminology. Forward-looking statements are based on management’s current expectations and beliefs and involve significant risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those contemplated by these statements.

Factors that could cause actual results or performance to differ from the expectations expressed or implied in such forward-looking statements include, but are not limited to, conditions impacting insurance carriers or other parties with which Goosehead does business, the economic effects of the COVID-19 pandemic, the loss of one or more key executives or an inability to attract and retain qualified personnel and the failure to attract and retain highly qualified franchisees. These risks and uncertainties also include, but are not limited to, those described under the captions “1A. Risk Factors” in Goosehead’s Annual Report on Form 10-K for the year ended December 31, 2020 and in Goosehead’s other filings with the SEC, which are available free of charge on the Securities Exchange Commission’s website at: www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated. All forward-looking statements and all subsequent written and oral forward-looking statements attributable to Goosehead or to persons acting on behalf of Goosehead are expressly qualified in their entirety by reference to these risks and uncertainties. You should not place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made, and Goosehead does not undertake any obligation to update them in light of new information, future developments or otherwise, except as may be required under applicable law.

Contacts
Investor Contact:
Dan Farrell
Goosehead Insurance – VP Capital Markets
Phone: (214) 838-5290
Email: [email protected]; [email protected];

PR Contact:
Mission North for Goosehead Insurance
Email: [email protected]; [email protected]

Goosehead Insurance, Inc.
Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)

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    Three Months Ended
June 30,
  Six Months Ended
June 30,
    2021   2020   2021   2020
Revenues:                
Commissions and agency fees           $ 21,053       $ 18,248       $ 38,587       $ 30,059    
Franchise revenues           16,841       11,484       30,274       19,929    
Interest income           279       192       540       361    
Total revenues           38,173       29,924       69,401       50,349    
Operating Expenses:                
Employee compensation and benefits           22,475       15,904       43,784       29,407    
General and administrative expenses           10,134       5,364       19,408       11,236    
Bad debts           646       319       1,093       628    
Depreciation and amortization           1,132       712       2,132       1,252    
Total operating expenses           34,387       22,299       66,417       42,523    
Income from operations           3,786       7,625       2,984       7,826    
Other Income (Expense):                
Other income   119             139       66    
Interest expense           (546 )     (479 )     (1,147 )     (1,083 )  
Income before taxes           3,359       7,146       1,976       6,809    
Tax expense (benefit)           223       (240 )     (71 )     (281 )  
Net income           3,136       7,386       2,047       7,090    
Less: net income attributable to non-controlling interests           1,649       4,007       956       3,867    
Net income attributable to Goosehead Insurance, Inc.           $ 1,487       $ 3,379       $ 1,091       $ 3,223    
Earnings per share:                
Basic           $ 0.08       $ 0.21       $ 0.06       $ 0.20    
Diluted           $ 0.07       $ 0.19       $ 0.05       $ 0.18    
Weighted average shares of Class A common stock outstanding                
Basic           18,774       16,458       18,574       16,011    
Diluted           20,367       17,947       20,251       17,432    
                                 

Goosehead Insurance, Inc.
Consolidated Supplemental Statements of Operations
(Unaudited)
(In thousands, except per share amounts)

    Three Months Ended June 30,   Six Months Ended June 30,
    2021   2020   2021   2020
Revenues:                
Core Revenue:                
Renewal Commissions(1)           $ 10,310       $ 7,718       $ 18,067       $ 13,451    
Renewal Royalty Fees(2)           11,670       7,903       20,416       13,289    
New Business Commissions(1)           5,944       4,329       10,560       7,662    
New Business Royalty Fees(2)           3,680       2,599       6,837       4,647    
Agency Fees(1)           3,105       2,185       5,529       3,871    
Total Core Revenue           34,709       24,734       61,409       42,920    
Cost Recovery Revenue:                            
Initial Franchise Fees(2)           1,458       901       2,890       1,879    
Interest Income           279       192       540       361    
Total Cost Recovery Revenue           1,737       1,093       3,430       2,240    
Ancillary Revenue:                            
Contingent Commissions(1)           1,694       4,016       4,431       5,075    
Other Income(2)           33       81       131       114    
Total Ancillary Revenue           1,727       4,097       4,562       5,189    
Total Revenues           38,173       29,924       69,401       50,349    
Operating Expenses:                
Employee compensation and benefits           22,475       15,904       43,784       29,407    
General and administrative expenses           10,134       5,364       19,408       11,236    
Bad debts           646       319       1,093       628    
Depreciation and amortization           1,132       712       2,132       1,252    
Total operating expenses           34,387       22,299       66,417       42,523    
Income from operations           3,786       7,625       2,984       7,826    
Other Income (Expense):                
Other income           119             139       66    
Interest expense           (546 )     (479 )     (1,147 )     (1,083 )  
Income before taxes           3,359       7,146       1,976       6,809    
Tax (benefit) expense           223       (240 )     (71 )     (281 )  
Net Income           3,136       7,386       2,047       7,090    
Less: net income attributable to non-controlling interests           1,649       4,007       956       3,867    
Net Income attributable to Goosehead Insurance Inc.           $ 1,487       $ 3,379       $ 1,091       $ 3,223    
                 
Earnings per share:                
Basic           $ 0.08        0.21        0.06        0.20     
Diluted           $ 0.07        0.19        0.05        0.18     
Weighted average shares of Class A common stock outstanding                
Basic           18,774        16,458        18,574        16,011     
Diluted           20,367        17,947        20,251        17,432     

(1) Renewal Commissions, New Business Commissions, Agency Fees, and Contingent Commissions are included in “Commissions and agency fees” as shown on the Consolidated statements of operations within Goosehead’s Form 10-Q for the three and six months ended June 30, 2021 and 2020.
(2) Renewal Royalty Fees, New Business Royalty Fees, Initial Franchise Fees, and Other Income are included in “Franchise revenues” as shown on the Consolidated statements of operations within Goosehead’s Form 10-Q for the three and six months ended June 30, 2021 and 2020.

Goosehead Insurance, Inc.
Segment Information
(Unaudited)
(In thousands, except per share amounts)

    Three Months Ended June 30, 2021
    Franchise
Channel
  Corporate
Channel
  Other   Total
Revenues:                
Core Revenue:                
Renewal Commissions(1)           $       $ 10,310       $       $ 10,310    
Renewal Royalty Fees(2)           11,670                   11,670    
New Business Commissions(1)                 5,944             5,944    
New Business Royalty Fees(2)           3,680                   3,680    
Agency Fees(1)                 3,105             3,105    
Total Core Revenue           15,350       19,359             34,709    
Cost Recovery Revenue:                
Initial Franchise Fees(2)           1,458                   1,458    
Interest Income           279                   279    
Total Cost Recovery Revenue           1,737                   1,737    
Ancillary Revenue:                
Contingent Commissions(1)           1,136       558             1,694    
Other Income(2)           33                   33    
Total Ancillary Revenue           1,169       558             1,727    
Total Revenues           18,256       19,917             38,173    
Operating expenses:                
Employee compensation and benefits, excluding equity based compensation           8,020       12,603             20,623    
General and administrative expenses           4,927       4,402       805       10,134    
Bad debts           135       511             646    
Total Operating Expenses           13,082       17,516       805       31,403    
Adjusted EBITDA           5,174       2,401       (805 )     6,770    
Other income (expense)           11       108             119    
Equity based compensation                       (1,852 )     (1,852 )  
Interest expense                       (546 )     (546 )  
Depreciation and amortization           (728 )     (404 )           (1,132 )  
Taxes                       (223 )     (223 )  
Net income           $ 4,457       $ 2,105       $ (3,426 )     $ 3,136    
June 30, 2021:                
Total Assets           $ 94,489       $ 44,332       $ 99,182       $ 238,003    

(1) Renewal Commissions, New Business Commissions, Agency Fees, and Contingent Commissions are included in “Commissions and agency fees” as shown on the Consolidated statements of operations within Goosehead’s Form 10-Q for the three months ended June 30, 2021 and 2020.
(2) Renewal Royalty Fees, New Business Royalty Fees, Initial Franchise Fees, and Other Income are included in “Franchise revenues” as shown on the Consolidated statements of operations within Goosehead’s Form 10-Q for the three months ended June 30, 2021 and 2020.

    Six Months Ended June 30, 2021
    Franchise
Channel
  Corporate
Channel
  Other   Total
Revenues:                
Core Revenue:                
Renewal Commissions(1)           $       $ 18,067       $       $ 18,067    
Renewal Royalty Fees(2)           20,416                   20,416    
New Business Commissions(1)                 10,560             10,560    
New Business Royalty Fees(2)           6,837                   6,837    
Agency Fees(1)                 5,529             5,529    
Total Core Revenue           27,253       34,156             61,409    
Cost Recovery Revenue:                
Initial Franchise Fees(2)           2,890                   2,890    
Interest Income           540                   540    
Total Cost Recovery Revenue           3,430                   3,430    
Ancillary Revenue:                
Contingent Commissions(1)           3,252       1,179             4,431    
Other Income(2)           131                   131    
Total Ancillary Revenue           3,383       1,179             4,562    
Total Revenues           34,066       35,335             69,401    
Operating expenses:                
Employee compensation and benefits, excluding equity based compensation           15,589       24,402             39,991    
General and administrative expenses           9,140       8,908       1,360       19,408    
Bad debts           296       797             1,093    
Total Operating Expenses           25,025       34,107       1,360       60,492    
Adjusted EBITDA           9,041       1,228       (1,360 )     8,909    
Other income           31       108             139    
Equity based compensation                       (3,793 )     (3,793 )  
Interest expense                       (1,147 )     (1,147 )  
Depreciation and amortization           (1,375 )     (757 )           (2,132 )  
Income tax benefit                       71       71    
Net income           $ 7,697       $ 579       $ (6,229 )     $ 2,047    
June 30, 2021:                
Total Assets           $ 94,489       $ 44,332       $ 99,182       $ 238,003    

(1) Renewal Commissions, New Business Commissions, Agency Fees, and Contingent Commissions are included in “Commissions and agency fees” as shown on the Consolidated statements of operations within Goosehead’s Form 10-Q for the six months ended June 30, 2021 and 2020.
(2) Renewal Royalty Fees, New Business Royalty Fees, Initial Franchise Fees, and Other Income are included in “Franchise revenues” as shown on the Consolidated statements of operations within Goosehead’s Form 10-Q for the six months ended June 30, 2021 and 2020.

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Goosehead Insurance, Inc.
Consolidated Balance Sheets
(Unaudited)
(In thousands, except per share amounts)

    June 30,   December 31,
    2021   2020
Assets        
Current Assets:        
Cash and cash equivalents           $ 34,975       $ 24,913    
Restricted cash           1,551       1,323    
Commissions and agency fees receivable, net           6,063       18,604    
Receivable from franchisees, net           2,724       2,100    
Prepaid expenses           7,394       3,705    
Total current assets           52,707       50,645    
Receivable from franchisees, net of current portion           23,354       18,179    
Property and equipment, net of accumulated depreciation           22,618       16,650    
Right-of-use asset           34,207       22,513    
Intangible assets, net of accumulated amortization           1,756       549    
Deferred income taxes, net           98,114       73,363    
Other assets           5,247       3,938    
Total assets           $ 238,003       $ 185,837    
Liabilities and Stockholders’ Equity        
Current Liabilities:        
Accounts payable and accrued expenses           $ 7,884       $ 8,101    
Premiums payable           1,551       1,323    
Lease liability           4,360       3,203    
Contract liabilities           5,189       4,233    
Note payable           5,000       3,500    
Total current liabilities           23,984       20,360    
Lease liability, net of current portion           48,549       32,933    
Note payable, net of current portion           76,539       79,408    
Contract liabilities, net of current portion           36,200       29,968    
Liabilities under tax receivable agreement, net of current portion           80,232       61,572    
Total liabilities           265,504       224,241    
Class A common stock, $0.01 par value per share – 300,000 shares authorized, 19,209 shares issued and outstanding as of June 30, 2021, 18,304
shares issued and outstanding as of December 31, 2020        
  191       183    
Class B common stock, $0.01 par value per share – 50,000 shares authorized, 17,586 issued and outstanding as of June 30, 2021, 18,447
shares issued and outstanding as of December 31, 2020        
  176       184    
Additional paid in capital           36,579       29,371    
Accumulated deficit           (33,527 )     (34,614 )  
Total stockholders’ equity           3,419       (4,876 )  
Non-controlling interests           (30,920 )     (33,528 )  
Total equity           (27,501 )     (38,404 )  
Total liabilities and equity           $ 238,003       $ 185,837    
                     

Goosehead Insurance, Inc.
Reconciliation Non-GAAP Measures to GAAP

This release includes Core Revenue, Cost Recovery Revenue, Ancillary Revenue, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted EPS that are not required by, nor presented in accordance with, generally accepted accounting principles in the United States (“GAAP”). The Company refers to these measures as “non-GAAP financial measures.” The Company uses these non-GAAP financial measures when planning, monitoring and evaluating its performance and considers these non-GAAP financial measures to be useful metrics for management and investors to facilitate operating performance comparisons from period to period by excluding potential differences caused by variations in capital structures, tax position, depreciation, amortization and certain other items that the Company believes are not representative of its core business. The Company uses Core Revenue, Cost Recovery Revenue, Ancillary Revenue, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted EPS for business planning purposes and in measuring its performance relative to that of its competitors.

These non-GAAP financial measures are defined by the Company as follows:

  • “Core Revenue” is a supplemental measure of our performance and includes Renewal Commissions, Renewal Royalty Fees, New Business Commissions, New Business Royalty Fees, and Agency Fees. We believe that Core Revenue is an appropriate measure of operating performance because it summarizes all of our revenues from sales of individual insurance policies.
  • “Cost Recovery Revenue” is a supplemental measure of our performance and includes Initial Franchise Fees and Interest Income. We believe that Cost Recovery Revenue is an appropriate measure of operating performance because it summarizes revenues that are viewed by management as cost recovery mechanisms.
  • “Ancillary Revenue” is a supplemental measure of our performance and includes Contingent Commissions and Other Income. We believe that Ancillary Revenue is an appropriate measure of operating performance because it summarizes revenues that are ancillary to our core business.
  • “Adjusted EBITDA” is a supplemental measure of the Company’s performance. We believe that Adjusted EBITDA is an appropriate measure of operating performance because it eliminates the impact of items that do not relate to business performance. Adjusted EBITDA is defined as net income (the most directly comparable GAAP measure) before interest, income taxes, depreciation and amortization, adjusted to exclude equity-based compensation and other non-operating items, including, among other things, certain non-cash charges and certain non-recurring or non-operating gains or losses.
  • “Adjusted EBITDA Margin” is Adjusted EBITDA as defined above, divided by total revenue excluding other non-operating items. Adjusted EBITDA Margin is helpful in measuring profitability of operations on a consolidated level.
  • “Adjusted EPS” is a supplemental measure of our performance, defined as earnings per share (the most directly comparable GAAP measure) before non-recurring or non-operating income and expenses. Adjusted EPS is a useful measure to management because it eliminates the impact of items that do not relate to business performance and helps measure our profitability on a consolidated level.

While the Company believes that these non-GAAP financial measures are useful in evaluating its business, this information should be considered as supplemental in nature and is not meant as a substitute for revenues, net income, or earnings per share, in each case as recognized in accordance with GAAP. In addition, other companies, including companies in the Company’s industry, may calculate such measures differently, which reduces their usefulness as comparative measures.

The following tables show a reconciliation from total revenues to Core Revenue, Cost Recovery Revenue, and Ancillary Revenue (non-GAAP basis) for the three and six months ended June 30, 2021 and 2020 (in thousands):

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  Three Months Ended June 30,   Six Months Ended June 30,
  2021   2020   2021   2020
Total Revenues $ 38,173      $ 29,924      $ 69,401      $ 50,349   
               
Core Revenue:              
Renewal Commissions(1)         $ 10,310     $ 7,718     $ 18,067     $ 13,451  
Renewal Royalty Fees(2)         11,670     7,903     20,416     13,289  
New Business Commissions(1)         5,944     4,329     10,560     7,662  
New Business Royalty Fees(2)         3,680     2,599     6,837     4,647  
Agency Fees(1)         3,105     2,185     5,529     3,871  
Total Core Revenue         34,709     24,734     61,409     42,920  
Cost Recovery Revenue:              
Initial Franchise Fees(2)         1,458     901     2,890     1,879  
Interest Income         279     192     540     361  
Total Cost Recovery Revenue         1,737     1,093     3,430     2,240  
Ancillary Revenue:              
Contingent Commissions(1)         1,694     4,016     4,431     5,075  
Other Income(2)         33     81     131     114  
Total Ancillary Revenue         1,727     4,097     4,562     5,189  
Total Revenues         $ 38,173     $ 29,924     $ 69,401     $ 50,349  

(1) Renewal Commissions, New Business Commissions, Agency Fees, and Contingent Commissions are included in “Commissions and agency fees” as shown on the Consolidated statements of operations.
(2) Renewal Royalty Fees, New Business Royalty Fees, Initial Franchise Fees, and Other Income are included in “Franchise revenues” as shown on the Consolidated statements of operations.

The following tables show a reconciliation from net income to Adjusted EBITDA and Adjusted EBITDA Margin (non-GAAP basis) for the three and six months ended June 30, 2021 and 2020 (in thousands):

    Three Months Ended
June 30,
  Six Months Ended
June 30,
    2021   2020   2021   2020
Net income (loss)           $ 3,136       $ 7,386       $ 2,047       $ 7,090    
Interest expense           546       479       1,147       1,083    
Depreciation and amortization           1,132       712       2,132       1,252    
Tax expense (benefit)           223       (240 )     (71 )     (281 )  
Equity-based compensation           1,852       1,416       3,793       1,914    
Other income (expense)           (119 )           (139 )     (66 )  
Adjusted EBITDA           $ 6,770       $ 9,753       $ 8,909       $ 10,992    
Adjusted EBITDA Margin(1)           18   %   33   %   13   %   22   %

(1) Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by Total Revenue ($6,770 / 38,173) and ($9,753 / 29,924) three months ended June 30, 2021 and 2020. Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by Total Revenue ($8,909 / 69,401) and ($10,992 / 50,349) six months ended June 30, 2021 and 2020.

The following tables show a reconciliation from basic earnings per share to Adjusted EPS (non-GAAP basis) for the three and six months ended June 30, 2021 and 2020 (in thousands, except per share amounts). Note that totals may not sum due to rounding:

    Three Months Ended
June 30,
  Six Months Ended
June 30,
    2021   2020   2021   2020
Earnings per share – basic (GAAP)           $ 0.08     $ 0.21     $ 0.06     $ 0.20  
Add: equity-based compensation(1)           0.05     0.04     0.10     0.05  
Adjusted EPS (non-GAAP)           $ 0.13     $ 0.25     $ 0.16     $ 0.25  

(1) Calculated as equity-based compensation divided by sum of weighted average Class A and Class B shares [ $1.9 million / ( 18.8 million + 18.0 million )] for the three months ended June 30, 2021 and [ $1.4 million / ( 16.5 million + 20.0 million )] for the three months ended June 30, 2020. Calculated as equity-based compensation divided by sum of weighted average Class A and Class B shares [ $3.8 million / ( 18.6 million + 18.2 million )] for the six months ended June 30, 2021 and [ $1.9 million / ( 16.0 million + 20.4 million )] for the six months ended June 30, 2020.

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Goosehead Insurance, Inc.
Key Performance Indicators

    June 30, 2021   December 31, 2020   June 30, 2020
Corporate sales agents < 1 year tenured           266     207     182  
Corporate sales agents > 1 year tenured           186     157     135  
Operating franchises < 1 year tenured (TX)           53     43     26  
Operating franchises > 1 year tenured (TX)           196     185     182  
Operating franchises < 1 year tenured (Non-TX)           353     285     235  
Operating franchises > 1 year tenured (Non-TX)           470     378     287  
Policies in Force           872,000     713,000     590,000  
Client Retention           89 %   88 %   88 %
Premium Retention           90 %   89 %   89 %
QTD Written Premium (in thousands)           $ 398,920     $ 285,209     $ 273,693  
Net Promoter Score (“NPS”)           92     92     90  

 

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Artificial Intelligence

Workers embrace AI and prioritise skills growth amid rising workloads and an accelerating pace of change: PwC 2024 Global Workforce Hopes & Fears Survey

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Almost half (45%) of workers say their workload has increased significantly in the past year, as almost two-thirds (62%) say the pace of change at work has increased over the same timeMore than one-quarter (28%) say they are very or extremely likely to switch employer in the next 12 months – a higher proportion than during the ‘Great Resignation’ (19%) in 2022Employees prioritise skills-growth: fewer than half (46%) strongly or moderately agree that their employer provides adequate opportunities to learn new skills. This is particularly important for workers considering leaving: two-thirds (67%) say opportunities to learn new skills are a key factor in any decision to job-switchMore than 80% of workers who use generative AI daily expect it to make their time at work more efficient in the next 12 months. Half (49%) of all users expect it to lead to higher salariesCost-of-living pressures ease slightly: the proportion of workers with money left over each month rises to 45% (compared to 38% in 2023). However, 52% say they are still financially stressedLONDON, June 25, 2024 /PRNewswire/ — Among more than 56,000 workers across 50 countries and territories, many say they are prioritising long-term skills growth to accelerate their careers amid rising workloads and heightened workplace uncertainty, according to PwC’s 2024 Global Workforce Hopes & Fears Survey, published today.

In the last 12 months, workers say they have experienced rising workloads (45%) and an accelerating pace of workplace change. Nearly two-thirds (62%) say they have experienced more change at work in the past year than the 12 months prior, with two-fifths (40%) noting their daily responsibilities have changed to a large or very large extent. Almost half (44%) don’t understand the purpose of changes taking place.
In the midst of this growing mix of employee pressures, the findings suggest workers are alert to opportunities elsewhere, and are highly focused on skills growth and embracing AI.
More than one-quarter (28%) say they are likely to switch employer in the next 12 months, a percentage far higher than during the ‘Great Resignation’ (19%) of 2022. Two-thirds (67%) of those considering moving say skills is an important factor in their decision to stay with their current employer or switch to a new one.
Carol Stubbings, Global Markets and Tax & Legal Services (TLS) Leader, PwC UK, said:
“As workers face heightened uncertainty, rising workloads and continue to face financial stress, they are prioritising skills growth and embracing new and emerging technologies such as GenAI to turbocharge their growth and accelerate their careers. The findings suggest that job satisfaction is no longer enough. Employees are placing an increased premium on skills growth in a climate characterised by constant technological change. Employers must ensure they are investing in their employees and technological platforms to mitigate employee pressures and retain the brightest talent.”
Workers embrace AI to ease workplace pressures and unlock personal growth
As employees face heightened workplace pressures, they are also turning to new and emerging technologies such as generative AI (GenAI) to help. Among those employees who use GenAI daily, 82% expect it to make their time at work more efficient in the next 12 months.
Employees are also optimistic about opportunities for GenAI to support their growth. Half (49%) of all users expect GenAI to lead to higher salaries – an expectation that’s even higher (76%) among employees who use the technology daily. More than 70% of users agree that GenAI tools will create opportunities to be more creative at work (73%) and improve the quality of their work (72%).
The skills imperative
Workers are placing an increased premium on skills growth to mitigate their concerns and accelerate their careers. Employees who say they are likely to switch employers in the next 12 months are nearly twice as likely to strongly consider upskilling in that decision than workers planning to stay (67% vs. 36%). This comes as fewer than half (46%) of all employees moderately or strongly agree that their employer provides adequate opportunities to learn new skills that will be helpful to their careers.
Employees who are likely to leave in the next year may be more attuned to skills changes that are needed than the general workforce, with 51% moderately or strongly agreeing that the skills their job requires will change in the next five years (vs. 29% of those unlikely to change employer).
There is particular interest in the impact of AI on skills development, with 76% of all users expecting it to create opportunities to learn new skills at work. However, employers will need to invest heavily in new and emerging technology training and access. Among employees who have not used GenAI at work in the last 12 months, one-third (33%) don’t think there are opportunities to use the technology in their line of work, while 24% don’t have access to the tools at work, and 23% don’t know how to use the tools.
Despite the pace of change, there are also signs of optimism and engagement at work. 60% of workers expressed at least moderate job satisfaction (up from 56% in 2023) while more than half (57%) of employees who view fair pay as important agree that their job is fairly paid. Cost-of-living pressures have slightly eased since 2023 (the proportion of workers with money left over each month has risen to 45%, up from 38%). However,  more than half (52%) say they are still financially stressed to some degree.
Pete Brown, Global Workforce Leader, PwC UK, said:
“Technology is fundamentally transforming the way work gets done and the types of skills employers are looking for. Employees are therefore placing an increased premium on organisations that invest in their skills growth so that they can stay relevant and thrive in a digital world. Businesses in turn must be proactive in their upskilling programs – prioritising the employee experience and being transparent. Because when you meaningfully engage your workforce, they become an accelerant for successful transformation.”
Notes to Editors: 
About the Survey
In March 2024, PwC surveyed 56,600 individuals across 50 countries and territories who are in work or active in the labour market. The sample was designed to reflect a range of industries, demographic characteristics and working patterns. You can read the full report on pwc.com.
About PwC
© 2024 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details.
Contact:  Imran Javaid, Global Corporate Affairs and Communications, PwC UK: [email protected] Dan Barabas, Global Corporate Affairs and Communications, PwC UK: [email protected]
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Amagi Showcases New Stream Technology With VIZIO

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Amagi’s new Zero Slate delivers personalized linear streaming, resulting in increased viewership on VIZIO FAST channels 
NEW YORK, June 24, 2024 /PRNewswire/ — Amagi, the global leader in cloud-based SaaS technology for broadcast and Connected TV (CTV), today announced the first successful showcase of Amagi’s Zero Slate technology on VIZIO’s owned and operated WatchFree+ channels, part of Amagi’s broader Stream Personalization initiative. This innovative new offering enhances the streaming experience with its highly impactful, patent-pending technology that can dynamically adjust the length of ad breaks on a per-viewer basis, eliminating the need for slates or filler to round out linear ad breaks.

This new “viewer-first” personalized approach to digital streaming has already demonstrated a lift in viewership (Amagi ANALYTICS showing more than 20% increase) on VIZIO’s owned and operated channels utilizing the Zero Slate capabilities. This industry-first innovation from Amagi paves the path for a more engaging and profitable future for entertainment and enhanced viewer experiences.
Data from Amagi ANALYTICS indicates that slates, often used to fill the unsold portion of ad pods, may increase viewer churn by as much as 15% in today’s Free Ad-supported Streaming TV (FAST) ecosystem. Zero Slate’s early success demonstrates that personalizing pod length can boost viewer engagement, enabling more high-quality viewing experiences over time. This capability also represents an important first step for Amagi toward a broader suite of Stream Personalization capabilities that offer even more engaging linear viewing experiences.
“We are pleased to partner with Amagi on this showcase of their Zero Slate technology. This collaboration reinforces VIZIO’s commitment to enhancing user experiences and delivering personalized content as we expand Zero Slate across more channels,” said Katherine Pond, Group Vice President of Platform Content and Partnerships at VIZIO.
“We are grateful to have partnered with an industry leader like VIZIO to test the impact of our new Zero Slate capability and are excited about Stream Personalization’s ability to further transform the linear viewing experience,” said Srinivasan KA, Co-founder and Chief Revenue Officer, Amagi.
About VIZIOFounded and headquartered in Orange County, California, our mission at VIZIO Holding Corp. (NYSE: VZIO) is to deliver immersive entertainment and compelling lifestyle enhancements that make our products the center of the connected home. We are driving the future of televisions through our integrated platform of cutting-edge Smart TVs and powerful operating system. We also offer a portfolio of innovative sound bars that deliver consumers an elevated audio experience. Our platform gives content providers more ways to distribute their content and advertisers more tools to connect with the right audience.
For more information, visit VIZIO.com and follow VIZIO on Facebook, Twitter, and [email protected] 
About AmagiAmagi is a next-generation media technology company that provides cloud broadcast and targeted advertising solutions to broadcast TV and streaming TV platforms. Amagi enables content owners to launch, distribute, and monetize live linear channels on Free Ad-supported Streaming TV and video services platforms. Amagi also offers 24×7 cloud-managed services bringing simplicity, advanced automation, and transparency to the entire broadcast operations. Overall, Amagi supports 800+ content brands, 800+ playout chains, and over 5,000 channel deliveries on its platform in over 150 countries. Amagi has a presence in New York, Los Angeles, London, Paris, Melbourne, Seoul, Singapore, and broadcast operations in New Delhi, and innovation centers in Bengaluru, Zagreb, and Łódź.
Link to Word Doc: www.wallstcom.com/Amagi/240624-Amagi-VIZIO_ZSlate.docx 
Agency Contact:Joseph LesieutreWall Street CommunicationsEmail: [email protected]
Amagi Contact:Aashish WashikarDirector – Corporate CommunicationsEmail: [email protected]: +91 9533390005

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ResourceWise Brings Its Cross-Commodity Data and Analytics Expertise to New Oleochemicals Service

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ResourceWise has met a key milestone in providing cross-commodity price benchmarks, data, and analysis on chemicals, forest products, and decarbonization markets. 
CHARLOTTE, N.C., June 24, 2024 /PRNewswire/ — ResourceWise has met a key milestone in providing cross-commodity price benchmarks, data, and analysis on chemicals, forest products, and decarbonization markets. 

For the first time, one digital product encompasses expertise that spans all the key commodity sectors that ResourceWise covers. Dedicated to renewable feedstock, the new platform-based oleochemicals analysis and insight tools draw on decades of experience within each distinct business sector. 
Dwight Lynch, Biomaterials Business Manager at ResourceWise, is leading the transition towards data and insight on renewable intermediates and biobased and biodegradable polymer inputs. 
“Navigating oleochemicals markets at a time when regulation, legislation, and competition from renewable fuels markets are the key drivers is a challenge. Our new service offers pricing and analysis that informs decision-makers and allows sustainable business to thrive.” 
The new oleochemicals portal in ResourceWise’s flagship chemicals market intelligence platform, OrbiChem360, has evolved beyond its legacy biomaterials insights to focus on the fats and oils markets that are key to sustainability.  
It presents pricing data and analysis that ResourceWise biomaterials experts have furnished within OrbiChem360 this past decade and includes a crude tall oil (CTO) price index. The inclusion of a forest-based output introduces the ResourceWise platform FisherSolve’s pulp and paper industry insight to our portfolio. 
Pete Stewart, the CEO of ResourceWise, is focused on the future. “From raw material converters to end-use consumer goods producers, manufacturing value chain participants are increasingly seeking cross-commodity insights to meet low-carbon targets. We are building and providing the data and analytics businesses need to achieve environmental, social, and governance (ESG) targets and market products competitively worldwide.  
“The ResourceWise mission is to use the intelligence within the increasingly inter-related business sectors we have harnessed to guide customers in their journey toward a net-zero future. This new offering is the first of many milestones in our endeavor to do just that,” adds Stewart.  
A Streamlined Renewable Chemicals Service  
The new product leverages oleochemical pricing and commentary gathered by ResourceWise legacy brands since 2014 and insight collected since the 1990s. It extends our regional reach with additional price points and streamlines the data and analytics provided.  
The new portal is designed with personal care, cosmetics, detergents, lubricants, pharmaceuticals, flavor and fragrance, and food and beverage market participants in mind. However, it provides pricing data and insights for producers, intermediaries, and consumer product manufacturers in broader industries. 
More Than Forty Current and Historical Prices          
International price indexes for oleochemicals include the feedstocks soybean, coconut, tall, rapeseed, and palm oils, as well as tallow and glycerine grades Dozens of spot and contract prices for fatty acids and fatty alcohols plus comprehensive commentary based on intelligence from a worldwide contact base       Low-carbon price benchmarks and commentary in our oleochemicals offering will increasingly leverage intelligence on the biofuels sector within the Prima CarbonZero platform      Global Trade Flow graphics for all oils and tallow to help customers understand how key plant and animal-based feedstocks are traded globally to identify new markets and sources   Industry experts contextualize data, making it actionable, and respond personally to customer inquiries By bridging information gaps in the chemicals market, OrbiChem360 subscribers gain a competitive edge in volatile markets. The platform provides decision makers with robust, data-driven insight that unravels market trends so they can harness growth opportunities. For more information on the OrbiChem360 platform, visit the ResourceWise OrbiChem360 page. 
CONTACT:
Contact:Suz-Anne Kinney          Vice President, Marketing & Communications at [email protected]  +1 (980) 233-4021
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