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8-K/A - FORM 8K AMENDMENT #2 - Benefytt Technologies, Inc. | d864187d8ka.htm |
Exhibit 99.1
Unaudited Pro Forma Combined Statement of Operations
For the Nine Months Ended September 30, 2014
($ in 000s, except share and per share data)
Health Insurance Innovations, Inc. Historical |
Health Pocket, Inc. Historical (through July 14, 2014) |
Pro Forma Adjustments |
Pro Forma Combined |
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Revenues (consolidated premium equivalents of $110,375 and pro forma premium equivalents of $111,083, respectively, for the nine months ended September 30, 2014) |
$ | 62,228 | $ | 863 | $ | (155 | ) (a) | $ | 62,936 | |||||||
Cost of revenues |
(397 | ) | (134 | ) | | (531 | ) | |||||||||
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Gross margin |
61,831 | 729 | (155 | ) | 62,405 | |||||||||||
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Operating expenses: |
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Third-party commissions |
30,577 | | | 30,577 | ||||||||||||
Credit cards and ACH fees |
1,367 | | | 1,367 | ||||||||||||
Selling, general and administrative |
27,478 | 1,122 | (155 | ) (a) | 28,445 | |||||||||||
723 | (b) | 723 | ||||||||||||||
(520 | ) (c) | (520 | ) | |||||||||||||
Depreciation and amortization |
1,723 | 3 | 918 | (d) | 2,644 | |||||||||||
404 | (e) | 404 | ||||||||||||||
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Total operating expenses |
61,145 | 1,125 | 1,370 | 63,640 | ||||||||||||
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Loss from operations |
686 | (396 | ) | (1,525 | ) | (1,235 | ) | |||||||||
Other expense (income): |
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Interest (income) expense |
(17 | ) | 48 | (48 | ) (f) | (17 | ) | |||||||||
Other expense |
957 | | | 957 | ||||||||||||
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Net loss before income taxes |
(254 | ) | (444 | ) | (1,477 | ) | (2,175 | ) | ||||||||
Provision from income taxes |
(205 | ) | | (1,550 | ) (g) | (1,755 | ) | |||||||||
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Net income (loss) |
(49 | ) | (444 | ) | 73 | (420 | ) | |||||||||
Net income (loss) attributable to noncontrolling interests |
364 | | (56 | ) (h) | 308 | |||||||||||
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Net income (loss) attributable to Health Insurance Innovations, Inc. |
$ | (413 | ) | $ | (444 | ) | $ | 129 | $ | (728 | ) | |||||
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Per share data: |
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Net income (loss) per share attributable to Health Insurance Innovations, Inc. |
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Basic |
$ | (0.07 | ) | $ | (0.13 | ) | ||||||||||
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Diluted |
$ | (0.07 | ) | $ | (0.13 | ) | ||||||||||
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Weighted average Class A shares outstanding |
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Basic |
5,538,422 | 5,538,422 | ||||||||||||||
Diluted |
5,538,422 | 5,538,422 |
(a) | To eliminate revenues and costs incurred in transactions between HII and HealthPocket. |
(b) | To record stock compensation expense that would have incurred from the employees of HealthPocket. |
(c) | To adjust for acquisition-related expenses incurred during the nine months ended September 30, 2014. |
(d) | To record amortization expense on acquired intangible assets. |
(e) | To record compensation expense that would have been paid to Telkamp and Wang pursuant to employment agreements entered into with HII. |
(f) | To adjust for interest expense incurred during the nine months ended September 30, 2014. |
(g) | To record the income tax effect on the pro forma earnings before income taxes. The Pro forma adjustment for income tax reflects an effective tax rate of 80.7% for the nine months ended September 30, 2014. |
(h) | To adjust for the effects of the pro forma adjustments described herein on the allocation of net loss to noncontrolling interests. |