Revenue increased 40.1% on a year over year basis to $41.9 million during 2012, compared to $29.9 million in 2011. Revenue in the fourth quarter of 2012 increased 45.7% to $11.8 million compared to $8.1 million in the fourth quarter of 2011.

EBITDA (earnings before interest, taxes, depreciation and amortization) was $4.5 million for the full year 2012, representing 10.7% of revenue, compared to $2.7 million of EBITDA in 2011, representing 9.0% of revenue. For the fourth quarter of 2012, EBITDA was $1.0 million representing 8.5% of revenue compared to $0.9 million for the same period in 2011. EBITDA as a percentage of revenue is lower in the fourth quarter of 2012 compared to the year ended 2012, primarily due to professional fees related to our reorganization and other actions leading up to our initial public offering in the first quarter of 2013. A reconciliation of net income to EBITDA for the three months and years ended December 31, 2012 and 2011is included in the financial supplement included in this press release.

Premium equivalents increased 42.7% to $75.9 million in 2012, compared to $53.2 million in 2011. Premium equivalents in the fourth quarter of 2012 increased 43.0% to $21.3 million, compared to $14.9 million for the same period in 2011. A reconciliation of premium equivalents to revenues for the three months and years ended December 31, 2012 and 2011 is included in the financial supplement included in this press release.

Net income increased 37.5% to $3.3 million in 2012, compared to $2.4 million in 2011. Net income in the fourth quarter of 2012 increased 40.0% to $0.7 million, compared to $0.5 million in the fourth quarter of 2011.

Operating cash flow increased140.9% to $5.3 million in 2012, compared to $2.2 million in 2011. Operating cash flow in the fourth quarter of 2012 increased 16.7% to $0.7 million, compared to $0.6 million in the fourth quarter of 2011.

Completed initial public offering which consisted of 4,666,667 shares of Class A common stock priced at $14 per share. HII also granted the underwriters a 30-day option to purchase up to an additional 700,000 shares of Class A common stock to cover over-allotments, of which 100,000 shares were exercised on March 8, 2013.

Policies in force have expanded by 93.7% in 2012 to 58.1 thousand, compared to 30.0 thousand in 2011.

Initiated Insurance Academy to train call center managers and establish relationships with new call centers.

Expanded distribution service to 46 licensed agent call centers, 262 wholesalers and more than 8,275 licensed brokers.

Expanded the product offering to include Critical Illness, Accident Medical Expense, Dental Insurance, and International Travel Medical.

Advancing commissions to our distributors that will assist in funding their lead generation costs and will provide us with a competitive advantage in attracting and retaining distributors and increase sales.

Expansion of call centers and training call center managers to successfully selling HII’s products. Our goal is to establish relationships with 10-20 new call centers each year through the Insurance Academy initiative.

We expect changes in the Affordable Care Act scheduled for 2014 will make HII short-term medical (“STM”) products more appealing, because these new rules assure members that if they discontinue STM, another health insurance product will be available to them, regardless of their health status at that time.

HII entered into an agreement to terminate certain contract rights with TSG Agency, LLC (“TSG”) for an aggregate cash price of $5.5 million. Additionally, there will be approximately $0.3 million of costs related to the transaction. Due to the structure of the transaction, the full amount plus transaction costs will be expensed in the first quarter of 2013 under U.S. generally accepted accounting principles (“U.S. GAAP”), which we believe will result in a net loss for the quarter. Ivan Spinner, founder and owner of TSG Agency, LLC, a managing general agent of HII, will join HII as an employee. HII expects the transaction to reduce third party commissions otherwise payable to TSG on a quarterly basis beginning in the second quarter of 2013 and forward, which we believe will positively impact our bottom line. We do not expect to incur any material amount of future expense associated with the transaction.

We incurred additional professional fees and other costs of approximately $0.6 million associated with the IPO, which will impact our earnings in the first quarter of 2013.

Equity grants were awarded to certain employees and members of our Board of Directors, including a restricted stock grant of 400,000 shares to Michael Hershberger, our Chief Financial Officer. The anticipated charges related to this non-cash equity-based compensation will be recorded on an accelerated basis, resulting in approximately $0.8 million recognized in the first quarter of 2013 and approximately $4.9 million recognized during the year ending December 31, 2013.

Assets

Current assets:

Cash

Cash held on behalf of others

Credit card transactions receivable

Credit card transactions receivable for others

Accounts receivable

Notes receivable

Advanced commissions

Prepaid expenses and other assets

Total current assets

Property and equipment, net of accumulated depreciation

Deferred financing costs, net

Capitalized offering costs

Deposits

Goodwill

Intangible assets, net of accumulated amortization

Total assets

Liabilities and member’s equity

Current liabilities:

Accounts payable and accrued expenses

Carriers and vendors payable

Commissions payable

Unearned commissions

Notes payable

Deferred rent

Deferred other income

Current portion of long-term debt

Current portion of noncompete obligation

Current portion of capital leases

Due to member

Total current liabilities

Capital lease obligations, less current portion

Long-term debt, less current portion

Noncompete obligation

Deferred rent

Total liabilities

Member’s equity

Noncontrolling interest in subsidiary

Total equity

Total liabilities and equity

Revenues

Third-party commissions

Credit cards and ACH fees

General and administrative expenses

Depreciation and amortization

Total operating costs and expenses

Income from operations

Other expenses (income):

Interest expense

Other income

Net income

Net loss attributable to noncontrolling interest in subsidiary

Net income attributable to Health Plan Intermediaries, LLC

Net income

Interest expense

Interest income

Depreciation and amortization

EBITDA (1)

Premium equivalents (1)

Less risk premium

Less amounts earned by third party obligors

Revenues