Goosehead Insurance, Inc., an independent personal lines insurance agency, has posted a net income of $1.8 million in their results for the first quarter of 2024, compared to a net loss of $0.2 million from the prior year period.
At the same time, earnings per share (EPS) and net income margin for Q1 were $0.07 and 3%, respectively.
Adjusted EPS for the first quarter of 2024 (which excludes equity-based compensation and impairment expense) was $0.28 per share.
Moreover, the company’s total Adjusted EBITDA was $11.7 million for the quarter, compared to $10.2 million in the prior-year period. Adjusted EBITDA Margin of 18% was flat compared to the prior-year period.
Goosehead’s revenues were $64.5 million for Q1, representing an increase of 11% compared to the corresponding period in 2023.
In addition, core revenues, a non-GAAP measure which excludes contingent commissions, initial franchise fees, interest income, and other income, were climbed 13% from $52.0 million to $58.8 million.
Goosehead also grew total written premiums by 28% in the first quarter.
Further, Goosehead also confirmed that it is revising its outlook for full year 2024 as follows:
- Total written premiums placed for 2024 are expected to be between $3.62 billion and $3.82 billion, representing growth of 22% on the low end of the range to 29% on the high end of the range.
- Total revenues for 2024 are expected to be between $290 million and $310 million, representing growth of 11% on the low end of the range to 19% on the high end of the range.
Mark E. Jones, Chairman and CEO, commented: “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.”
Adding: “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.”
