Goosehead Insurance unveils Q1 earnings
Goosehead Insurance unveils Q1 earnings | Insurance Business America
Insurance News
Goosehead Insurance unveils Q1 earnings
Capacity of revolving credit facility adjusted
Insurance News
By
Terry Gangcuangco
Independent personal lines insurance agency Goosehead Insurance has released its financial results for the first three months of the year.
Here’s how the rapidly growing firm performed in the quarter:
Metric
Q1 2024
Q1 2023
Total revenues
$64.46 million
$57.96 million
Total operating expenses
$63.01 million
$56.49 million
Income from operations
$1.46 million
$1.47 million
Net income (loss)
$1.809 million
$(181,000)
Net income (loss) attributable to Goosehead Insurance
$1.814 million
$(81,000)
Commenting on the figures, chair and chief executive Mark E. Jones said: “Our first quarter 2024 results demonstrate our business is moving into a re-accelerating growth phase with total revenue, core revenue, and franchise productivity all accelerating from fourth quarter 2023 growth rates.
“One of the more exciting trends we are seeing is continued improvement in our franchise new business productivity, as this network now accounts for 87% of our distribution force. While we are seeing some temporary headwinds related to product availability, I could not be more pleased with the underlying trends we are seeing on new business productivity, recruiting, and technology investment.
“Goosehead is in a tremendous position of financial strength with robust ongoing cash generation, so we have recently taken steps to increase our leverage by amending our credit agreement to upsize our term loan and revolver.
“In light of the dislocation of our equity valuation from the long-term fundamentals of our business, the board of directors has approved a $100 million share repurchase authorization to capitalize on what we see as a highly favorable buying opportunity.”
Goosehead Insurance, as of March 31, had cash and cash equivalents of $51.1 million, with an unused line of credit of $49.8 million. Total outstanding term note payable balance as of the ned of Q1 was $75.6 million. On April 24, the company agreed to increase the term note payable by $25 million and the capacity of the revolving credit facility by $25 million to $75 million in total capacity.
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