eHealth, Inc. Announces Preliminary Results for the Fourth Quarter and Fiscal Year 2019
"I am proud of our achievements in 2019. After raising our guidance twice in the past year, we significantly exceeded our financial and operating targets driven by consistently strong execution throughout the year. 2019 culminated with an exceptional performance by our team during the fourth quarter
The preliminary, unaudited financial results and selected operating metrics included in this press release are based on information available as of January 23, 2020 and management's initial review of operations for the fourth quarter and year ended December 31, 2019. They remain subject to change based on management's ongoing review of the company's fourth-quarter and full year results and are forward-looking statements. eHealth assumes no obligation to update these statements. The actual results may be materially different and are affected by the risk factors and uncertainties identified in this press release and in eHealth's annual and quarterly filings with the
As part of the year-end closing process, the company is enhancing the manner in which it estimates residual or "tail" revenue from the company's
Fourth Quarter and Fiscal Year 2019 Preliminary Results
Excluding any positive impact from the changes in estimates to residual revenue for
- Revenue for the fourth quarter of 2019 is expected to be in the range of
$257.5 to $259.5 million with expected fourth quarter revenue from theMedicare segment in the range of$239.0 to $240.5 million . - GAAP net income for the fourth quarter of 2019 is expected to be in the range of
$53.0 to $55.0 million . Adjusted EBITDA(a) for the fourth quarter of 2019 is expected to be in the range of$98.5 to $100.5 million . - Revenue for the year ended
December 31, 2019 is expected to be in the range of$462.0 to $464.0 million as compared to the company's guidance of$365.0 to $385.0 million . Revenue from theMedicare segment for the full year 2019 is expected to be in the range of$403.5 to $405.0 million as compared to the company's guidance of$318.0 to $333.0 million . - GAAP net income for the year ended
December 31, 2019 is expected to be in the range of$31.0 to $33.0 million as compared to the company's guidance of$20.9 to $25.9 million . - Adjusted EBITDA(a) for the year ended
December 31, 2019 is expected to be in the range of$89.0 to $91.0 million as compared to the company's guidance of$65.0 to $70.0 million .
(a) |
Adjusted EBITDA is calculated by adding stock-based compensation expense, depreciation and amortization expense, change in fair value of earnout liability, amortization of intangible assets, other income, net of expenses and provision for income taxes to GAAP net income. See "Non-GAAP Financial Information Reconciliations." |
Approved Members
The number of approved members for all
The number of approved members for major medical individual and family plan (IFP) products grew 1% during the fourth quarter of 2019 compared to the fourth quarter a year ago. For the full year 2019, the number of approved members for IFP products declined 25% compared to 2018. The decline in approved IFP members reflects weaker than expected enrollment activity in the overall individual and family health insurance market as well as our continuing emphasis on the
About
Forward-Looking Statements
This press release contains statements that are forward-looking statements as defined within the Private Securities Litigation Reform Act of 1995. These include statements regarding our performance during the
These forward-looking statements are inherently subject to various risks and uncertainties that could cause actual results to differ materially from the statements made. In particular, we are required by the revenue recognition standard to make numerous assumptions that are based on historical trends and our management's judgment. These assumptions may change over time and have a material impact on our revenue recognition, guidance, and results of operations. Please review the assumptions stated in this press release carefully.
The risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements include our ability to retain existing members and enroll new members during the annual healthcare open enrollment period and
All forward-looking statements in this press release are based on information available to eHealth as of the date hereof, and eHealth does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made, except as required by law.
Non-GAAP Financial Information
This press release includes financial measures that are not in accordance with generally accepted accounting principles in
eHealth believes that the presentation of these non-GAAP financial measures provide important supplemental information to management and investors regarding financial and business trends relating to eHealth's financial condition and results of operations. Management believes that the use of these non-GAAP financial measures provides consistency and comparability with eHealth's past financial reports. Management also believes that the items described above provide an additional measure of eHealth's operating results and facilitates comparisons of eHealth's core operating performance against prior periods and business model objectives. This information is provided to investors in order to facilitate additional analyses of past, present and future operating performance and as a supplemental means to evaluate eHealth's ongoing operations. eHealth believes that these non-GAAP financial measures are useful to investors in their assessment of eHealth's operating performance.
Adjusted EBITDA is not calculated in accordance with GAAP, and should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Non-GAAP financial measures used in this press release have limitations in that they do not reflect all of the revenue and costs associated with the operations of eHealth's business and do not reflect income tax as determined in accordance with GAAP. As a result, you should not consider these measures in isolation or as a substitute for analysis of eHealth's results as reported under GAAP. eHealth expects to continue to incur the stock-based compensation costs and purchased intangible asset amortization costs described above, and exclusion of these costs, and their related income tax benefits, from non-GAAP financial measures should not be construed as an inference that these costs are unusual or infrequent. eHealth compensates for these limitations by prominently disclosing GAAP net income and providing investors with reconciliations from eHealth's GAAP operating results to the related non-GAAP financial measures for the relevant periods.
The accompanying tables provide more details on the GAAP financial measures that are most directly comparable to the non-GAAP financial measures described above and the related reconciliations between these financial measures.
Non-GAAP Financial Information Reconciliation |
|||||||||||||||
Q4 2019 |
Fiscal Year 2019 |
||||||||||||||
(in millions) |
Low |
High |
Low |
High |
|||||||||||
GAAP net income |
$ |
53.0 |
$ |
55.0 |
$ |
31.0 |
$ |
33.0 |
|||||||
Stock-based compensation |
9.2 |
9.2 |
22.6 |
22.6 |
|||||||||||
Change in fair value of earnout liability |
9.0 |
9.0 |
24.1 |
24.1 |
|||||||||||
Depreciation and amortization expense |
0.9 |
0.9 |
3.0 |
3.0 |
|||||||||||
Amortization of intangibles |
0.5 |
0.5 |
2.2 |
2.2 |
|||||||||||
Other income, net |
0.7 |
(0.3) |
(1.1) |
(2.1) |
|||||||||||
Provision for income taxes |
25.2 |
26.2 |
7.2 |
8.2 |
|||||||||||
Adjusted EBITDA |
$ |
98.5 |
$ |
100.5 |
$ |
89.0 |
$ |
91.0 |
Investor Relations Contact:
Vice President Investor Relations
(650) 210-3111
kate.sidorovich@ehealth.com
http://ir.ehealthinsurance.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/ehealth-inc-announces-preliminary-results-for-the-fourth-quarter-and-fiscal-year-2019-300992454.html
SOURCE