- Third Quarter 2020 Revenue Grew 72% Year-Over-Year to
- Third Quarter 2020 Organic Revenue Growth of 20% -
- “MGA of the Future” Policies in Force Cross 500,000 Policy Milestone -
THIRD QUARTER 2020 AND SUBSEQUENT EVENT HIGHLIGHTS
- Revenue increased 72% year-over-year to
$65.8 million - Pro Forma Revenue(1) grew 70% year-over-year to
$66.1 million - Organic Revenue Growth(2) was 20% year-over-year
- “MGA of the Future” revenue grew 43% to
$17.5 million , compared to$12.2 million in the prior-year period - GAAP net loss of
$7.6 million and GAAP loss per share of$0.10 - Adjusted Net Income(3) of
$9.0 million , or$0.11 (3) per fully diluted share - “MGA of the Future” policies in force grew by 54,313 to 500,301 at
September 30, 2020 from 445,988 atJune 30, 2020 . Comparatively, in the third quarter 2019, policies in force grew sequentially by 41,179 - Adjusted EBITDA(4) grew 48% to
$10.9 million , compared to$7.4 million in the prior-year period - Pro Forma Adjusted EBITDA(5) of
$11.0 million and Pro Forma Adjusted EBITDA Margin(5) of 17% - Closed two Partner acquisitions that generated total annualized revenue(6) of over
$3 million for the 12-month period pre-acquisition; subsequent toSeptember 30, 2020 , announced an additional Partner acquisition that generated total annualized revenue(6) of$38.5 million for the 12-month period pre-acquisition
“BRP delivered another quarter of tremendous performance as we sustained high levels of organic and total growth, once again firmly validating our hybrid growth strategy and differentiated business model,” said
LIQUIDITY AND CAPITAL RESOURCES
As of
On
NINE MONTHS 2020 RESULTS
- Revenue increased 69% year-over-year to
$171.3 million - Pro Forma Revenue(1) grew 74% year-over-year to
$202.0 million - Organic Revenue Growth(2) of 15% year-over-year
- “MGA of the Future” revenue(7) grew 41% to
$41.6 million , compared to$29.5 million in the prior-year period - GAAP net loss of
$10.8 million and GAAP loss per share of$0.22 - Adjusted Net Income(3) of
$27.5 million , or$0.39 (3) per fully diluted share - Adjusted EBITDA(4) grew 47% to
$33.3 million , compared to$22.7 million in the prior-year period - Pro Forma Adjusted EBITDA(5) of
$47.6 million and Pro Forma Adjusted EBITDA Margin(5) of 24% - Closed 11 Partner acquisitions that generated total annualized revenue(6) of over
$81.0 million for the 12-month period pre-acquisition
WEBCAST AND CONFERENCE CALL INFORMATION
A webcast replay of the call will be available at ir.baldwinriskpartners.com for one year following the call.
ABOUT
FOOTNOTES
(1) Pro Forma Revenue is a non-GAAP measure. Reconciliation of Pro Forma Revenue to commissions and fees, the most directly comparable GAAP financial measure, is set forth in the reconciliation table accompanying this release.
(2) Pro Forma Adjusted EBITDA and Pro Forma Adjusted EBITDA Margin are non-GAAP measures. Reconciliation of Pro Forma Adjusted EBITDA to net income (loss), the most directly comparable GAAP financial measure, is set forth in the reconciliation table accompanying this release.
(3) Annualized revenue represents the aggregate revenues of Partners acquired during the relevant period presented, for the most recent trailing twelve month period prior to acquisition by the Company, in each case, at the time the due diligence was concluded based on a quality of earnings review and not an audit.
(4) Organic Revenue for the three and nine months ended
(5) Adjusted Net Income and Adjusted Diluted EPS are non-GAAP measures. Reconciliation of Adjusted Net Income to net income attributable to
(6) Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures. Reconciliation of Adjusted EBITDA to net income (loss), the most directly comparable GAAP financial measure, is set forth in the reconciliation table accompanying this release.
(7) “MGA of the Future” was acquired by the Company on
NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release may contain various “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which represent BRP Group’s expectations or beliefs concerning future events. Forward-looking statements are statements other than historical facts and may include statements that address future operating, financial or business performance or BRP Group’s strategies or expectations. In some cases, you can identify these statements by forward-looking words such as “may”, “might”, “will”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “projects”, “potential”, “outlook” or “continue”, or the negative of these terms or other comparable terminology. Forward-looking statements are based on management’s current expectations and beliefs and involve significant risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those contemplated by these statements.
Factors that could cause actual results or performance to differ from the expectations expressed or implied in such forward-looking statements include, but are not limited to, those described under the caption “Risk Factors” in BRP Group’s Annual Report on Form 10-K for the year ended
CONTACTS
INVESTOR RELATIONS
Investor Relations
(813) 259-8032
IR@baldwinriskpartners.com
PRESS
(813) 418-5166
Rachel.carr@baldwinriskpartners.com
Condensed Consolidated Statements of Comprehensive Income (Loss)
(Unaudited)
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
(in thousands, except share and per share data) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Revenues: | ||||||||||||||||
Commissions and fees | $ | 65,843 | $ | 38,383 | $ | 171,270 | $ | 101,280 | ||||||||
Operating expenses: | ||||||||||||||||
Commissions, employee compensation and benefits | 48,469 | 26,788 | 122,280 | 67,068 | ||||||||||||
Other operating expenses | 12,146 | 6,320 | 30,577 | 16,711 | ||||||||||||
Amortization expense | 5,185 | 3,082 | 13,231 | 6,793 | ||||||||||||
Change in fair value of contingent consideration | 6,455 | 535 | 12,697 | (3,222 | ) | |||||||||||
Depreciation expense | 258 | 184 | 663 | 460 | ||||||||||||
Total operating expenses | 72,513 | 36,909 | 179,448 | 87,810 | ||||||||||||
Operating income (loss) | (6,670 | ) | 1,474 | (8,178 | ) | 13,470 | ||||||||||
Other expense: | ||||||||||||||||
Interest expense, net | (922 | ) | (3,785 | ) | (2,554 | ) | (8,998 | ) | ||||||||
Other income (expense) | (23 | ) | 5 | (23 | ) | 5 | ||||||||||
Total other expense | (945 | ) | (3,780 | ) | (2,577 | ) | (8,993 | ) | ||||||||
Income (loss) before income taxes | (7,615 | ) | (2,306 | ) | (10,755 | ) | 4,477 | |||||||||
Income tax provision | — | — | 12 | — | ||||||||||||
Net income (loss) | (7,615 | ) | (2,306 | ) | (10,767 | ) | 4,477 | |||||||||
Less: net income (loss) attributable to noncontrolling interests | (4,347 | ) | (2,306 | ) | (5,379 | ) | 4,477 | |||||||||
Net loss attributable to | $ | (3,268 | ) | $ | — | $ | (5,388 | ) | $ | — | ||||||
Comprehensive income (loss) | $ | (7,615 | ) | $ | (2,306 | ) | $ | (10,767 | ) | $ | 4,477 | |||||
Comprehensive income (loss) attributable to noncontrolling interests | (4,347 | ) | (2,306 | ) | (5,379 | ) | 4,477 | |||||||||
Comprehensive loss attributable to | (3,268 | ) | — | (5,388 | ) | — | ||||||||||
Basic and diluted net loss per share | $ | (0.10 | ) | $ | (0.22 | ) | ||||||||||
Basic and diluted weighted-average shares of Class A common stock outstanding | 33,098,356 | 24,371,304 |
Condensed Consolidated Balance Sheets
(Unaudited)
(in thousands, except share and per share data) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 50,220 | $ | 67,689 | ||||
Restricted cash | 7,778 | 3,382 | ||||||
Premiums, commissions and fees receivable, net | 98,345 | 58,793 | ||||||
Prepaid expenses and other current assets | 2,689 | 3,019 | ||||||
Due from related parties | 41 | 43 | ||||||
Total current assets | 159,073 | 132,926 | ||||||
Property and equipment, net | 7,791 | 3,322 | ||||||
Other assets | 7,949 | 5,600 | ||||||
Intangible assets, net | 203,555 | 92,450 | ||||||
344,396 | 164,470 | |||||||
Total assets | $ | 722,764 | $ | 398,768 | ||||
Liabilities, Mezzanine Equity and Stockholders’ Equity | ||||||||
Current liabilities: | ||||||||
Premiums payable to insurance companies | $ | 83,617 | $ | 50,541 | ||||
Producer commissions payable | 12,019 | 7,470 | ||||||
Accrued expenses and other current liabilities | 21,851 | 12,334 | ||||||
Current portion of contingent earnout liabilities | 7,065 | 2,480 | ||||||
Total current liabilities | 124,552 | 72,825 | ||||||
Revolving lines of credit | 101,000 | 40,363 | ||||||
Contingent earnout liabilities, less current portion | 78,323 | 46,289 | ||||||
Other liabilities | 2,194 | 2,017 | ||||||
Total liabilities | 306,069 | 161,494 | ||||||
Commitments and contingencies | ||||||||
Mezzanine equity: | ||||||||
Redeemable noncontrolling interest | 101 | 23 | ||||||
Stockholders’ equity: | ||||||||
Class A common stock, par value | 339 | 194 | ||||||
Class B common stock, par value | 4 | 4 | ||||||
Additional paid-in capital | 237,644 | 82,425 | ||||||
Accumulated deficit | (14,038 | ) | (8,650 | ) | ||||
Notes receivable from stockholders | (519 | ) | (688 | ) | ||||
Total stockholders’ equity attributable to | 223,430 | 73,285 | ||||||
Noncontrolling interest | 193,164 | 163,966 | ||||||
Total stockholders’ equity | 416,594 | 237,251 | ||||||
Total liabilities, mezzanine equity and stockholders’ equity | $ | 722,764 | $ | 398,768 |
Condensed Consolidated Statements of Cash Flows
(Unaudited)
For the Nine Months Ended | ||||||||
(in thousands) | 2020 | 2019 | ||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | $ | (10,767 | ) | $ | 4,477 | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 13,894 | 7,253 | ||||||
Change in fair value of contingent consideration | 12,697 | (3,222 | ) | |||||
Share-based compensation expense | 5,357 | 110 | ||||||
Payment of contingent earnout consideration in excess of purchase price accrual | (1,727 | ) | — | |||||
Amortization of deferred financing costs | 384 | 1,117 | ||||||
Loss on extinguishment of debt | — | 115 | ||||||
Issuance and vesting of Management Incentive Units | — | 663 | ||||||
Participation unit compensation | — | 150 | ||||||
Changes in operating assets and liabilities, net of effect of acquisitions: | ||||||||
Premiums, commissions and fees receivable, net | (12,717 | ) | (441 | ) | ||||
Prepaid expenses and other current assets | 230 | (921 | ) | |||||
Due from related parties | 2 | 73 | ||||||
Accounts payable, accrued expenses and other current liabilities | 23,418 | 5,090 | ||||||
Other liabilities | — | 105 | ||||||
Net cash provided by operating activities | 30,771 | 14,569 | ||||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (4,135 | ) | (1,465 | ) | ||||
Investment in business venture | — | (200 | ) | |||||
Cash consideration paid for asset acquisitions, net of cash received | (695 | ) | (671 | ) | ||||
Cash consideration paid for business combinations, net of cash received | (230,403 | ) | (99,486 | ) | ||||
Net cash used in investing activities | (235,233 | ) | (101,822 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from issuance of Class A common stock, net of underwriting discounts | 167,346 | — | ||||||
Repurchase/redemption of LLC Units and Class B common stock | (32,610 | ) | — | |||||
Payment of common stock offering costs | (798 | ) | — | |||||
Payment of contingent and guaranteed earnout consideration | (1,192 | ) | (813 | ) | ||||
Proceeds from revolving line of credit | 185,637 | 68,464 | ||||||
Repayments of revolving line of credit | (125,000 | ) | — | |||||
Proceeds from related party debt | — | 49,845 | ||||||
Payments on long-term debt | — | (204 | ) | |||||
Payments of debt issuance costs and debt extinguishment costs | (2,182 | ) | (15 | ) | ||||
Proceeds from repayment of stockholder/member notes receivable | 169 | 160 | ||||||
Repurchase of common units | — | (12,500 | ) | |||||
Distributions | — | (9,831 | ) | |||||
Other | 19 | 1,662 | ||||||
Net cash provided by financing activities | 191,389 | 96,768 | ||||||
Net increase (decrease) in cash and cash equivalents and restricted cash | (13,073 | ) | 9,515 | |||||
Cash and cash equivalents and restricted cash at beginning of period | 71,071 | 7,995 | ||||||
Cash and cash equivalents and restricted cash at end of period | $ | 57,998 | $ | 17,510 |
NON-GAAP FINANCIAL MEASURES
Adjusted EBITDA, Adjusted EBITDA Margin, Organic Revenue, Organic Revenue Growth, Adjusted Net Income, Adjusted Diluted Earnings Per Share (“EPS”), Pro Forma Revenue, Pro Forma Adjusted EBITDA and Pro Forma Adjusted EBITDA Margin are not measures of financial performance under GAAP and should not be considered substitutes for GAAP measures, including commissions and fees (for Organic Revenue, Organic Revenue Growth and Pro Forma Revenue), net income (loss) (for Adjusted EBITDA, Adjusted EBITDA Margin, Pro Forma Adjusted EBITDA and Pro Forma Adjusted EBITDA Margin), net income (loss) attributable to
Adjusted EBITDA eliminates the effects of financing, depreciation, amortization and change in fair value of contingent consideration. We define Adjusted EBITDA as net income (loss) before interest, taxes, depreciation, amortization, change in fair value of contingent consideration and certain items of income and expense, including share-based compensation expense, transaction-related expenses related to Partnerships including severance, and certain non-recurring costs, including those related to raising capital. We believe that Adjusted EBITDA is an appropriate measure of operating performance because it eliminates the impact of expenses that do not relate to business performance, and that the presentation of this measure enhances an investor’s understanding of our financial performance.
Adjusted EBITDA Margin is Adjusted EBITDA divided by commissions and fees. Adjusted EBITDA Margin is a key metric used by management and our board of directors to assess our financial performance. We believe that Adjusted EBITDA Margin is an appropriate measure of operating performance because it eliminates the impact of expenses that do not relate to business performance, and that the presentation of this measure enhances an investor’s understanding of our financial performance. We believe that Adjusted EBITDA Margin is helpful in measuring profitability of operations on a consolidated level.
Adjusted EBITDA and Adjusted EBITDA Margin have important limitations as analytical tools. For example, Adjusted EBITDA and Adjusted EBITDA Margin:
- do not reflect any cash capital expenditure requirements for the assets being depreciated and amortized that may have to be replaced in the future;
- do not reflect changes in, or cash requirements for, our working capital needs;
- do not reflect the impact of certain cash charges resulting from matters we consider not to be indicative of our ongoing operations;
- do not reflect the interest expense or the cash requirements necessary to service interest or principal payments on our debt;
- do not reflect share-based compensation expense and other non-cash charges; and
- exclude certain tax payments that may represent a reduction in cash available to us.
We calculate Organic Revenue Growth based on commissions and fees for the relevant period by excluding the first twelve months of commissions and fees generated from new Partners. Organic Revenue Growth is the change in Organic Revenue period-to-period, with prior period results adjusted for Organic Revenues that were excluded in the prior period because the relevant Partners had not yet reached the twelve-month owned mark, but which have reached the twelve-month owned mark in the current period. For example, revenues from a Partner acquired on
Adjusted Net Income is presented for the purpose of calculating Adjusted Diluted EPS. We define Adjusted Net Income as net income (loss) attributable to
Adjusted Diluted EPS measures our per share earnings excluding certain expenses as discussed above and assuming all shares of Class B common stock were exchanged for Class A common stock. Adjusted Diluted EPS is calculated as Adjusted Net Income divided by adjusted dilutive weighted-average shares outstanding. We believe Adjusted Diluted EPS is useful to investors because it enables them to better evaluate per share operating performance across reporting periods.
Pro Forma Revenue reflects GAAP revenue (commissions and fees), plus revenue from Partnerships in the unowned periods.
Pro Forma Adjusted EBITDA takes into account Adjusted EBITDA from Partnerships in the unowned periods and eliminates the effects of financing, depreciation and amortization. We define Pro Forma Adjusted EBITDA as pro forma net income (loss) before interest, taxes, depreciation, amortization, change in fair value of contingent consideration and certain items of income and expense, including share-based compensation expense, transaction-related expenses related to Partnerships including severance, and certain non-recurring costs, including those related to raising capital. We believe that Pro Forma Adjusted EBITDA is an appropriate measure of operating performance because it eliminates the impact of expenses that do not relate to business performance, and that the presentation of this measure enhances an investor’s understanding of our financial performance.
Pro Forma Adjusted EBITDA Margin is Pro Forma Adjusted EBITDA divided by Pro Forma Revenue. Pro Forma Adjusted EBITDA is a key metric used by management and our board of directors to assess our financial performance. We believe that Pro Forma Adjusted EBITDA is an appropriate measure of operating performance because it eliminates the impact of expenses that do not relate to business performance, and that the presentation of this measure enhances an investor’s understanding of our financial performance. We believe that Pro Forma Adjusted EBITDA Margin is helpful in measuring profitability of operations on a consolidated level.
Adjusted EBITDA and Adjusted EBITDA Margin
The following table reconciles Adjusted EBITDA and Adjusted EBITDA Margin to net income (loss), which we consider to be the most directly comparable GAAP financial measure to Adjusted EBITDA and Adjusted EBITDA Margin:
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Commissions and fees | $ | 65,843 | $ | 38,383 | $ | 171,270 | $ | 101,280 | ||||||||
Net income (loss) | $ | (7,615 | ) | $ | (2,306 | ) | $ | (10,767 | ) | $ | 4,477 | |||||
Adjustments to net income (loss): | ||||||||||||||||
Amortization expense | 5,185 | 3,082 | 13,231 | 6,793 | ||||||||||||
Change in fair value of contingent consideration | 6,455 | 535 | 12,697 | (3,222 | ) | |||||||||||
Share-based compensation | 2,240 | 382 | 5,357 | 773 | ||||||||||||
Interest expense, net | 922 | 3,785 | 2,554 | 8,998 | ||||||||||||
Depreciation expense | 258 | 184 | 663 | 460 | ||||||||||||
2,904 | 500 | 6,772 | 1,535 | |||||||||||||
Severance related to Partnership activity | (324 | ) | — | 89 | 300 | |||||||||||
Capital related expenses | — | 1,124 | 1,000 | 2,214 | ||||||||||||
Income tax provision | — | — | 12 | — | ||||||||||||
Other | 899 | 92 | 1,733 | 391 | ||||||||||||
Adjusted EBITDA (1) | $ | 10,924 | $ | 7,378 | $ | 33,341 | $ | 22,719 | ||||||||
Adjusted EBITDA Margin | 17 | % | 19 | % | 19 | % | 22 | % |
__________
(1) Adjusted EBITDA for the nine months ended
Organic Revenue and Organic Revenue Growth
The following table reconciles Organic Revenue to commissions and fees, which we consider to be the most directly comparable GAAP financial measure to Organic Revenue:
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
(in thousands, except percentages) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Commissions and fees | $ | 65,843 | $ | 38,383 | $ | 171,270 | $ | 101,280 | ||||||||
Partnership commissions and fees (1) | (19,637 | ) | (17,520 | ) | (54,569 | ) | (36,749 | ) | ||||||||
Organic Revenue | $ | 46,206 | $ | 20,863 | $ | 116,701 | $ | 64,531 | ||||||||
Organic Revenue Growth (2) | $ | 7,809 | $ | 2,297 | $ | 15,393 | $ | 5,479 | ||||||||
Organic Revenue Growth % (2) | 20 | % | 12 | % | 15 | % | 9 | % |
__________
(1) Includes the first twelve months of such commissions and fees generated from newly acquired Partners.
(2) Organic Revenue for the three and nine months ended
Adjusted Net Income and Adjusted Diluted EPS
The following table reconciles Adjusted Net Income to net income (loss) attributable to
(in thousands, except per share data) | For the Three Months Ended | For the Nine Months Ended | ||||||
Net loss attributable to | $ | (3,268 | ) | $ | (5,388 | ) | ||
Net loss attributable to noncontrolling interests | (4,347 | ) | (5,379 | ) | ||||
Amortization expense | 5,185 | 13,231 | ||||||
Change in fair value of contingent consideration | 6,455 | 12,697 | ||||||
Share-based compensation | 2,240 | 5,357 | ||||||
2,904 | 6,772 | |||||||
Capital related expenses | — | 1,000 | ||||||
Amortization of deferred financing costs | 189 | 384 | ||||||
Severance related to Partnership activity | (324 | ) | 89 | |||||
Other | 899 | 1,733 | ||||||
Adjusted pre-tax income | 9,933 | 30,496 | ||||||
Adjusted income taxes (1) | 983 | 3,019 | ||||||
Adjusted Net Income | $ | 8,950 | $ | 27,477 | ||||
Weighted-average shares of Class A common stock outstanding - diluted | 33,098 | 24,371 | ||||||
Dilutive effect of unvested restricted shares of Class A common stock | 759 | 483 | ||||||
Exchange of Class B shares (2) | 45,288 | 44,767 | ||||||
Adjusted dilutive weighted-average shares outstanding | 79,145 | 69,621 | ||||||
Adjusted Diluted EPS | $ | 0.11 | $ | 0.39 | ||||
Diluted loss per share | $ | (0.10 | ) | $ | (0.22 | ) | ||
Effect of exchange of Class B shares and net loss attributable to noncontrolling interests per share | — | 0.07 | ||||||
Other adjustments to net loss per share | 0.22 | 0.58 | ||||||
Adjusted income taxes per share | (0.01 | ) | (0.04 | ) | ||||
Adjusted Diluted EPS | $ | 0.11 | $ | 0.39 |
___________
(1) Represents corporate income taxes at assumed effective tax rate of 9.9% applied to adjusted pre-tax income.
(2) Assumes the full exchange of Class B shares for Class A common stock pursuant to the Amended LLC Agreement.
Pro Forma Revenue
The following table reconciles Pro Forma Revenue to commissions and fees, which we consider to be the most directly comparable GAAP financial measure to Pro Forma Revenue:
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
(in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Commissions and fees | $ | 65,843 | $ | 38,383 | $ | 171,270 | $ | 101,280 | ||||||||
Revenue for Partnerships in the unowned period (1) | 232 | 430 | 30,690 | 14,769 | ||||||||||||
Pro Forma Revenue | $ | 66,075 | $ | 38,813 | $ | 201,960 | $ | 116,049 |
___________
(1) The adjustments for the three months ended
Pro Forma Adjusted EBITDA and Pro Forma Adjusted EBITDA Margin
The following table reconciles Pro Forma Adjusted EBITDA and Pro Forma Adjusted EBITDA Margin to net income (loss), which we consider to be the most directly comparable GAAP financial measure to Pro Forma Adjusted EBITDA and Pro Forma Adjusted EBITDA Margin:
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
(in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Pro Forma Revenue | $ | 66,075 | $ | 38,813 | $ | 201,960 | $ | 116,049 | ||||||||
Net income (loss) | $ | (7,615 | ) | $ | (2,306 | ) | $ | (10,767 | ) | $ | 4,477 | |||||
Net income (loss) for Partnerships in the unowned period (1) | 27 | 136 | 9,885 | (472 | ) | |||||||||||
Pro Forma Net Income (Loss) | (7,588 | ) | (2,170 | ) | (882 | ) | 4,005 | |||||||||
Adjustments to pro forma net income (loss): | ||||||||||||||||
Interest expense, net | 922 | 3,785 | 3,997 | 13,011 | ||||||||||||
Amortization expense | 5,206 | 3,082 | 16,135 | 8,652 | ||||||||||||
Change in fair value of contingent consideration | 6,455 | 535 | 12,697 | (3,222 | ) | |||||||||||
Share-based compensation | 2,240 | 382 | 5,357 | 773 | ||||||||||||
2,904 | 500 | 6,772 | 1,535 | |||||||||||||
Depreciation expense | 258 | 184 | 663 | 460 | ||||||||||||
Severance related to Partnership activity | (324 | ) | — | 89 | 300 | |||||||||||
Capital related expenses | — | 1,124 | 1,000 | 2,214 | ||||||||||||
Income tax provision | — | — | 12 | — | ||||||||||||
Other | 899 | 92 | 1,733 | 391 | ||||||||||||
Pro Forma Adjusted EBITDA (2) | $ | 10,972 | $ | 7,514 | $ | 47,573 | $ | 28,119 | ||||||||
Pro Forma Adjusted EBITDA Margin | 17 | % | 19 | % | 24 | % | 24 | % |
___________
(1) The adjustments for the three months ended
(2) Pro Forma Adjusted EBITDA for the nine months ended
COMMONLY USED DEFINED TERMS
The following terms have the following meanings throughout this press release unless the context indicates or requires otherwise:
Clients | Our insureds |
Colleagues | Our employees |
GAAP | Accounting principles generally accepted in |
Partners | Companies that we have acquired, or in the case of asset acquisitions, the producers |
Partnerships | Strategic acquisitions made by the Company |
Source:
2020 GlobeNewswire, Inc., source