Health Insurance Innovations (HIIQ) Tops Q4 EPS by 9c; Offers FY20 EPS/Revenue Guidance Below Consensus

Health Insurance Innovations (NASDAQ: HIIQ) reported Q4 EPS of $2.48, $0.09 better than the analyst estimate of $2.39. Revenue for the quarter came in at $160.9 million versus the consensus estimate of $161.45 million.

Fourth Quarter 2019 Consolidated Financial HighlightsAll comparisons are to the three months ended December 31, 2018

• Revenue was $160.9 million, compared to revenue of $131.9 million, an increase of 22.0%. Revenue from our Medicare segment was $55.9 million and is new to the Company in 2019. Revenue from our Individual and Family Plan (IFP) segment was $105.0 million, a decrease of 20.4%.
• Net income of $26.5 million, compared to net income of $8.3 million, an increase of 219.3%.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $46.2 million, compared to adjusted EBITDA of $21.6 million, an increase of 113.9%.
• Profit from our Medicare segment was $29.7 million. Profit from our IFP segment was $22.2 million.
• GAAP diluted net income per share was $1.77, compared to GAAP diluted net income per share of $0.40, an increase of 342.5%.
• Adjusted net income per share was $2.48 compared to adjusted net income per share of $0.97, an increase of 155.7%.
• Net contract asset (contract asset receivable plus advanced commissions less commission payable) at December 31, 2019 was $258.8 million (2). $185.2 million related to the IFP segment and $73.6 million related to the Medicare segment.

Commenting on the Company’s fourth quarter operating results, Gavin Southwell, President and Chief Executive Officer, said, “We are pleased with results in the fourth quarter, particularly with our success in the Medicare Annual Election Period. Medicare segment revenues represented approximately 35% of total revenues in the quarter, and full year Adjusted EBITDA and Adjusted Net Income Per Share were in line with expectations. We are excited about the opportunities to continue to scale our Medicare business in 2020 via enhanced digital capabilities, captive distribution and strategic outsourced relationships.”

GUIDANCE:

Health Insurance Innovations sees FY2020 EPS of $3.10-$4.15, versus the consensus of $4.72. Health Insurance Innovations sees FY2020 revenue of $290-350 million, versus the consensus of $417.48 million.

The following is guidance for the full year ending December 31, 2020.

• Total revenue is expected to be in the range of $290 million to $350 million. Revenue from the Medicare segment is expected to be in the range of $190 million to $210 million. Revenue from the IFP segment is expected to be in the range of $100 million to $140 million.
• Adjusted net income per share is expected to be in the range of $3.10 to $4.15.
• Adjusted EBITDA is expected to be in the range of $65.0 million to $80.0 million.
• Profit from the Medicare (3) segment is expected to be in the range of $70.0 million to $80.0 million. Profit from the IFP segment is expected to be in the range of $15.0 million to $20.0 million.
• Corporate (4) expense is expected to be approximately $20.0 million.
• The company expects cashflow to be approximately breakeven in 2020.

For earnings history and earnings-related data on Health Insurance Innovations (HIIQ) click here.

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