Doma Makes Significant Progress in Finalizing a Scalable and Mission-Driven Go-Forward Strategy; Management Remains Focused on Achieving Adjusted EBITDA Profitability by End-of-Year
First Quarter 2023 Business Highlights(1):
-
Total revenue of
$74 million , down (23)% versus Q4 2022 -
Retained premiums and fees of
$25 million , down (29)% versus Q4 2022 -
Gross profit of
$1 million , down (85)% versus Q4 2022 -
Adjusted gross profit of
$4 million , down (68)% versus Q4 2022 - Purchase closed orders down (25)% versus Q4 2022, Refinance closed orders down (60)% versus Q4 2022, and Total closed orders down (40)% versus Q4 2022
Over the past several months, Doma has conducted a comprehensive review of its business to evaluate the optimal organizational structure to successfully deliver on the Company's mission and to maximize shareholder value. Doma is now finalizing a singular transformative core strategy for the business that will be primarily focused on the distribution of its instant underwriting technology by external partners. The company has made solid progress towards finalizing potential partnerships to deploy its instant underwriting capabilities with some of the largest participants in the national mortgage origination market with the end goal of bringing down title and closing costs for consumers. Doma believes its instant underwriting technology is the Company's core value proposition and the key to modernizing the greater than
Doma feels confident that its new strategy will grow its market share, improve its profitability margin, and will best fulfill the Company’s founding mission to make homeownership more affordable for all. As Doma strengthens its focus on its underwriting and technology business, the Company is identifying areas of the business that are considered non-core. As it relates to the Local division, Doma has previously communicated that it has been moving aggressively to close unprofitable branches to refocus efforts on more profitable opportunities, leading to the closure of an additional 13% of the Company's total branch footprint in the first quarter. Doma’s Local leadership team also finalized and implemented a strategic plan during the first quarter to ensure that the Local division will accelerate the company’s path to profitability for the remainder of the year.
“We see the home affordability crisis becoming more severe nation-wide, and as we've been finalizing the path forward for Doma, it was crystal clear that mitigating affordability concerns needed to be front and center,” said
Doma’s first quarter decline in adjusted Gross Profit and adjusted EBITDA compared to the prior quarter primarily resulted from the delayed full effect of the expense reduction measures implemented in the fourth quarter of 2022, which are not expected to fully materialize until the second quarter of this year. Additionally, the Company had a number of one-time employee benefit-related reductions and favorable reserve development in the fourth quarter of 2022, which did not repeat in the first quarter. This, combined with seasonal softness and continued challenging macro pressures, drove the quarter-over-quarter decline. Doma anticipates improvements in adjusted EBITDA for the remainder of the year as it continues marching toward profitability as efficiently and effectively as possible.
“Looking ahead, we expect our retained premiums & fees to benefit from the tailwinds from the opened order momentum we’ve been experiencing due to both seasonality and rates that have declined since peaking in February and March,” said
(1) |
Reconciliations of retained premiums and fees, adjusted gross profit, and the other financial measures used in this press release that are not calculated in accordance with generally accepted accounting principles in |
|
|
|
|
(2) |
Doma completed its business combination with |
Non-GAAP Financial Measures
Some of the financial information and data contained in this press release, such as retained premiums and fees, adjusted gross profit and adjusted EBITDA, have not been prepared in accordance with
Conference Call Information
Doma will host a conference call at
Dial-in Details: To access the call by phone, please go to this link (registration link), and you will be provided with dial-in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time.
The live webcast of the call will be accessible on the Company’s website at investor.doma.com. Approximately two hours after conclusion of the live event, an archived webcast of the conference call will be accessible from the Investor Relations section of the Company’s website for twelve months.
About
Doma is a real estate technology company that is disrupting a century-old industry by building an instant and frictionless home closing experience for buyers and sellers. Doma uses proprietary machine intelligence technology and deep human expertise to create a vastly more simple and affordable experience for everyone involved in a residential real estate transaction, including current and prospective homeowners, mortgage lenders, title agents, and real estate professionals. With Doma, what used to take days can now be done in minutes, replacing an arcane and cumbersome process with a digital experience designed for today’s world. To learn more visit doma.com.
Forward-Looking Statements Legend
This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "estimate," "plan," "project," "forecast," "intend," "will," "expect," "anticipate," "believe," "seek," "target" or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. The absence of these words does not mean that a statement is not forward-looking. Such statements are based on the beliefs of, as well as assumptions made by information currently available to Doma management. These forward-looking statements include, but are not limited to, statements regarding estimates and forecasts of financial and performance metrics, projections of market opportunity, total addressable market ("TAM"), market share and competition. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectation of Doma’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict, will differ from assumptions and are beyond the control of Doma.
These forward-looking statements are subject to a number of risks and uncertainties, including changes in business, market, financial, political and legal conditions; risks relating to the uncertainty of the projected financial information with respect to Doma; future global, regional or local economic, political, market and social conditions, including due to the COVID-19 pandemic; the development, effects and enforcement of laws and regulations, including with respect to the title insurance industry; Doma’s ability to manage its future growth or to develop or acquire enhancements to its platform; the effects of competition on Doma’s future business; the outcome of any potential litigation, government and regulatory proceedings, investigations and inquiries; and those other factors described in Part I, Item 1A - “Risk Factors” of our Annual Report on Form 10-K for the year ended
If any of these risks materialize or Doma’s assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that Doma does not presently know or that Doma currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect Doma’s expectations, plans or forecasts of future events and views as of the date of this press release. Doma anticipates that subsequent events and developments will cause Doma’s assessments to change. However, while Doma may elect to update these forward-looking statements at some point in the future, Doma specifically disclaims any obligation to do so, except as required by law. These forward-looking statements should not be relied upon as representing Doma’s assessment as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.
Key Operating and Financial Indicators
|
Three Months Ended |
||||||
|
2023 |
|
2022 |
||||
|
(Unaudited - in thousands, except for
|
||||||
Key operating data: |
|
|
|
||||
Opened orders |
|
9,940 |
|
|
|
35,192 |
|
Closed orders |
|
6,280 |
|
|
|
27,347 |
|
|
|
|
|
||||
GAAP financial data: |
|
|
|
||||
Revenue (1) |
$ |
74,368 |
|
|
$ |
112,207 |
|
Gross profit (2) |
$ |
1,396 |
|
|
$ |
7,134 |
|
Net loss (3) |
$ |
(42,123 |
) |
|
$ |
(50,026 |
) |
Non-GAAP financial data (4): |
|
|
|
||||
Retained premiums and fees |
$ |
25,184 |
|
|
$ |
51,605 |
|
Adjusted gross profit |
$ |
4,471 |
|
|
$ |
10,370 |
|
Ratio of adjusted gross profit to retained premiums and fees |
|
18 |
% |
|
|
20 |
% |
Adjusted EBITDA |
$ |
(21,591 |
) |
|
$ |
(44,905 |
) |
_________________ |
||
(1) |
|
Revenue is comprised of (i) net premiums written, (ii) escrow, other title-related fees and other, and (iii) investment, dividend and other income. |
(2) |
|
Gross profit, calculated in accordance with GAAP, is calculated as total revenue, minus premiums retained by third-party agents, direct labor expense (including mainly personnel expense for certain employees involved in the direct fulfillment of policies) and direct non-labor expense (including mainly title examination expense, provision for claims, and depreciation and amortization). In our consolidated income statements, depreciation and amortization is recorded under the “other operating expenses” caption. |
(3) |
|
Net loss is made up of the components of revenue and expenses. |
(4) |
|
Retained premiums and fees, adjusted gross profit and adjusted EBITDA are non-GAAP financial measures. |
Non-GAAP Financial Measures
Retained premiums and fees
The following table reconciles our retained premiums and fees to our gross profit, the most closely comparable GAAP financial measure, for the periods indicated:
|
Three Months Ended |
||||||
|
2023 |
|
2022 |
||||
|
(Unaudited - in thousands) |
||||||
Revenue |
$ |
74,368 |
|
$ |
112,207 |
||
Minus: |
|
|
|
||||
Premiums retained by third-party agents |
|
49,184 |
|
|
|
60,602 |
|
Retained premiums and fees |
$ |
25,184 |
|
|
$ |
51,605 |
|
Minus: |
|
|
|
||||
Direct labor |
|
12,937 |
|
|
|
27,798 |
|
Provision for claims |
|
3,959 |
|
|
|
4,611 |
|
Depreciation and amortization |
|
3,075 |
|
|
|
3,236 |
|
Other direct costs (1) |
|
3,817 |
|
|
|
8,826 |
|
Gross Profit |
$ |
1,396 |
|
|
$ |
7,134 |
|
__________________ | ||
(1) |
|
Includes title examination expense, office supplies, and premium and other taxes. |
Adjusted gross profit
The following table reconciles our adjusted gross profit to our gross profit, the most closely comparable GAAP financial measure, for the periods indicated:
|
Three Months Ended |
||||||
|
2023 |
|
2022 |
||||
|
(Unaudited - in thousands) |
||||||
Gross Profit |
$ |
1,396 |
|
|
$ |
7,134 |
|
Adjusted for: |
|
|
|
|
|
||
Depreciation and amortization |
|
3,075 |
|
|
|
3,236 |
|
Adjusted Gross Profit |
$ |
4,471 |
|
|
$ |
10,370 |
|
Adjusted EBITDA
The following table reconciles our adjusted EBITDA to our net loss, the most closely comparable GAAP financial measure, for the periods indicated:
|
Three Months Ended |
||||||
|
2023 |
|
2022 |
||||
|
(Unaudited - in thousands) |
||||||
Net loss (GAAP) |
$ |
(42,123 |
) |
|
$ |
(50,026 |
) |
Adjusted for: |
|
|
|
||||
Depreciation and amortization |
|
3,075 |
|
|
|
3,236 |
|
Interest expense |
|
4,989 |
|
|
|
4,207 |
|
Income taxes |
|
185 |
|
|
|
185 |
|
EBITDA |
$ |
(33,874 |
) |
|
$ |
(42,398 |
) |
Adjusted for: |
|
|
|
||||
Stock-based compensation |
|
5,697 |
|
|
|
11,393 |
|
Severance and interim salary costs |
|
6,420 |
|
|
|
— |
|
Long-lived asset impairment |
|
181 |
|
|
|
— |
|
Change in fair value of Warrant and Sponsor Covered shares liabilities |
|
(15 |
) |
|
|
(13,900 |
) |
Adjusted EBITDA |
$ |
(21,591 |
) |
|
$ |
(44,905 |
) |
The following table reconciles our adjusted gross profit to our adjusted EBITDA, for the periods indicated:
|
Three Months Ended |
||||||
|
2023 |
|
2022 |
||||
|
(Unaudited - in thousands) |
||||||
Adjusted Gross Profit |
$ |
4,471 |
|
|
$ |
10,370 |
|
Minus: |
|
|
|
||||
Customer acquisition costs |
|
5,024 |
|
|
|
15,925 |
|
Other indirect costs (1) |
|
21,038 |
|
|
|
39,350 |
|
Adjusted EBITDA |
$ |
(21,591 |
) |
|
$ |
(44,905 |
) |
__________________ |
||
(1) |
|
Includes corporate support, research and development, and other operating costs. |
|
|||||||
Consolidated Statements of Operations |
|||||||
|
Three Months Ended |
||||||
(Unaudited - in thousands, except share and per share information) |
2023 |
|
2022 |
||||
Revenues: |
|
|
|
||||
Net premiums written (1) |
$ |
66,770 |
|
|
$ |
95,666 |
|
Escrow, other title-related fees and other |
|
6,598 |
|
|
|
16,113 |
|
Investment, dividend and other income |
|
1,000 |
|
|
|
428 |
|
Total revenues |
$ |
74,368 |
|
|
$ |
112,207 |
|
|
|
|
|
||||
Expenses: |
|
|
|
||||
Premiums retained by Third-Party Agents (2) |
$ |
49,184 |
|
|
$ |
60,602 |
|
Title examination expense |
|
2,000 |
|
|
|
5,981 |
|
Provision for claims |
|
3,959 |
|
|
|
4,611 |
|
Personnel costs |
|
40,569 |
|
|
|
77,793 |
|
Other operating expenses |
|
15,439 |
|
|
|
22,754 |
|
Long-lived asset impairment |
|
181 |
|
|
|
— |
|
Total operating expenses |
$ |
111,332 |
|
|
$ |
171,741 |
|
|
|
|
|
||||
Loss from operations |
$ |
(36,964 |
) |
|
$ |
(59,534 |
) |
|
|
|
|
||||
Other (expense) income: |
|
|
|
||||
Change in fair value of Warrant and Sponsor Covered Shares liabilities |
|
15 |
|
|
|
13,900 |
|
Interest expense |
|
(4,989 |
) |
|
|
(4,207 |
) |
Loss before income taxes |
$ |
(41,938 |
) |
|
$ |
(49,841 |
) |
|
|
|
|
||||
Income tax expense |
|
(185 |
) |
|
|
(185 |
) |
Net loss |
$ |
(42,123 |
) |
|
$ |
(50,026 |
) |
|
|
|
|
||||
Earnings per share: |
|
|
|
||||
Net loss per share attributable to stockholders - basic and diluted |
$ |
(0.13 |
) |
|
$ |
(0.15 |
) |
Weighted average shares outstanding common stock - basic and diluted |
|
329,894,708 |
|
|
|
323,890,562 |
|
__________________ |
||
(1) |
|
Net premiums written includes revenues from a related party of |
(2) |
|
Premiums retained by Third-Party Agents includes expenses associated with a related party of |
|
|||||||
Consolidated Balance Sheets |
|||||||
(Unaudited - in thousands, except share information) |
|
|
|
||||
Assets |
|
|
|
||||
Cash and cash equivalents |
$ |
81,330 |
|
|
$ |
78,450 |
|
Restricted cash |
|
2,888 |
|
|
|
2,933 |
|
Investments: |
|
|
|
||||
Fixed maturities |
|
|
|
||||
Held-to-maturity debt securities, at amortized cost (net of allowance for credit losses of |
|
61,841 |
|
|
|
90,328 |
|
Available-for-sale debt securities, at fair value (amortized cost |
|
58,792 |
|
|
|
58,254 |
|
Mortgage loans |
|
47 |
|
|
|
297 |
|
Total investments |
$ |
120,680 |
|
|
$ |
148,879 |
|
Receivables (net of allowance for credit losses of |
|
9,458 |
|
|
|
21,292 |
|
Prepaid expenses, deposits and other assets |
|
6,943 |
|
|
|
8,124 |
|
Lease right-of-use assets |
|
17,697 |
|
|
|
18,634 |
|
Fixed assets (net of accumulated depreciation of |
|
38,410 |
|
|
|
39,383 |
|
Title plants |
|
14,533 |
|
|
|
14,533 |
|
|
|
46,280 |
|
|
|
46,280 |
|
Total assets |
$ |
338,219 |
|
|
$ |
378,508 |
|
|
|
|
|
||||
Liabilities and stockholders’ equity |
|
|
|
||||
Accounts payable |
$ |
2,916 |
|
|
$ |
2,909 |
|
Accrued expenses and other liabilities |
|
23,099 |
|
|
|
28,892 |
|
Lease liabilities |
|
26,043 |
|
|
|
27,489 |
|
Senior secured credit agreement, net of debt issuance costs and original issue discount |
|
158,211 |
|
|
|
154,790 |
|
Liability for loss and loss adjustment expenses |
|
81,517 |
|
|
|
82,070 |
|
Warrant liabilities |
|
347 |
|
|
|
347 |
|
Sponsor Covered Shares liability |
|
204 |
|
|
|
219 |
|
Total liabilities |
$ |
292,337 |
|
|
$ |
296,716 |
|
|
|
|
|
||||
Stockholders’ equity: |
|
|
|
||||
Common stock, 0.0001 par value; 2,000,000,000 shares authorized at |
|
33 |
|
|
|
33 |
|
Additional paid-in capital |
|
583,362 |
|
|
|
577,483 |
|
Accumulated deficit |
|
(536,910 |
) |
|
|
(494,787 |
) |
Accumulated other comprehensive income |
|
(603 |
) |
|
|
(937 |
) |
Total stockholders’ equity |
$ |
45,882 |
|
|
$ |
81,792 |
|
Total liabilities and stockholders’ equity |
$ |
338,219 |
|
|
$ |
378,508 |
|
Quarterly Results of Operations and Other Data
The following tables set forth our selected unaudited quarterly consolidated statements of operations data for each of the quarters indicated. The information for each quarter has been prepared on a basis consistent with our audited consolidated financial statements, and reflect, in the opinion of management, all adjustments, which consist only of a normal, recurring nature that are necessary for a fair statement of the financial information contained in those financial statements. Our historical results are not necessarily indicative of the results that may be expected in the future. The following quarterly financial data should be read in conjunction with our consolidated financial statements.
Consolidated Statements of Operations
|
Three Months Ended |
|||||||||||||||||||||||||||||||||||
(Unaudited - in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net premiums written |
|
$ |
107,992 |
|
|
$ |
109,271 |
|
|
$ |
141,491 |
|
|
$ |
116,598 |
|
|
$ |
95,666 |
|
|
$ |
108,926 |
|
|
$ |
94,488 |
|
|
$ |
86,173 |
|
|
$ |
66,770 |
|
Escrow, other title-related fees and other |
|
|
18,575 |
|
|
|
20,065 |
|
|
|
20,452 |
|
|
|
20,493 |
|
|
|
16,113 |
|
|
|
14,366 |
|
|
|
12,627 |
|
|
|
8,902 |
|
|
|
6,598 |
|
Investment, dividend and other income |
|
|
1,229 |
|
|
|
650 |
|
|
|
639 |
|
|
|
588 |
|
|
|
428 |
|
|
|
452 |
|
|
|
741 |
|
|
|
1,299 |
|
|
|
1,000 |
|
Total revenues |
|
$ |
127,796 |
|
|
$ |
129,986 |
|
|
$ |
162,582 |
|
|
$ |
137,679 |
|
|
$ |
112,207 |
|
|
$ |
123,744 |
|
|
$ |
107,856 |
|
|
$ |
96,374 |
|
|
$ |
74,368 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Premiums retained by Third-Party Agents |
|
$ |
70,338 |
|
|
$ |
65,181 |
|
|
$ |
91,596 |
|
|
$ |
71,330 |
|
|
$ |
60,602 |
|
|
$ |
74,638 |
|
|
$ |
65,141 |
|
|
$ |
61,095 |
|
|
$ |
49,184 |
|
Title examination expense |
|
|
4,853 |
|
|
|
5,500 |
|
|
|
5,289 |
|
|
|
6,495 |
|
|
|
5,981 |
|
|
|
5,146 |
|
|
|
3,709 |
|
|
|
3,425 |
|
|
|
2,000 |
|
Provision for claims |
|
|
3,249 |
|
|
|
6,807 |
|
|
|
6,685 |
|
|
|
4,594 |
|
|
|
4,611 |
|
|
|
6,310 |
|
|
|
4,665 |
|
|
|
1,154 |
|
|
|
3,959 |
|
Personnel costs |
|
|
43,464 |
|
|
|
53,954 |
|
|
|
62,410 |
|
|
|
78,306 |
|
|
|
77,793 |
|
|
|
73,233 |
|
|
|
60,481 |
|
|
|
48,432 |
|
|
|
40,569 |
|
Other operating expenses |
|
|
14,165 |
|
|
|
17,181 |
|
|
|
21,693 |
|
|
|
26,912 |
|
|
|
22,754 |
|
|
|
23,637 |
|
|
|
20,656 |
|
|
|
26,172 |
|
|
|
15,439 |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
33,746 |
|
|
|
31,461 |
|
|
|
— |
|
Long-lived asset impairment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
32,027 |
|
|
|
181 |
|
Total operating expenses |
|
$ |
136,069 |
|
|
$ |
148,623 |
|
|
$ |
187,673 |
|
|
$ |
187,637 |
|
|
$ |
171,741 |
|
|
$ |
182,964 |
|
|
$ |
188,398 |
|
|
$ |
203,766 |
|
|
$ |
111,332 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Loss from operations |
|
$ |
(8,273 |
) |
|
$ |
(18,637 |
) |
|
$ |
(25,091 |
) |
|
$ |
(49,958 |
) |
|
$ |
(59,534 |
) |
|
$ |
(59,220 |
) |
|
$ |
(80,542 |
) |
|
$ |
(107,392 |
) |
|
$ |
(36,964 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Change in fair value of warrant and Sponsor Covered Shares liabilities |
|
|
— |
|
|
|
— |
|
|
|
(4,478 |
) |
|
|
11,169 |
|
|
|
13,900 |
|
|
|
5,193 |
|
|
|
1,438 |
|
|
|
786 |
|
|
|
15 |
|
Interest expense |
|
|
(3,360 |
) |
|
|
(4,451 |
) |
|
|
(4,531 |
) |
|
|
(4,519 |
) |
|
|
(4,207 |
) |
|
|
(4,489 |
) |
|
|
(4,584 |
) |
|
|
(4,800 |
) |
|
|
(4,989 |
) |
Loss before income taxes |
|
$ |
(11,633 |
) |
|
$ |
(23,088 |
) |
|
$ |
(34,100 |
) |
|
$ |
(43,308 |
) |
|
$ |
(49,841 |
) |
|
$ |
(58,516 |
) |
|
$ |
(83,688 |
) |
|
$ |
(111,406 |
) |
|
$ |
(41,938 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Income tax expense |
|
|
(125 |
) |
|
|
(211 |
) |
|
|
(170 |
) |
|
|
(421 |
) |
|
|
(185 |
) |
|
|
(136 |
) |
|
|
(425 |
) |
|
|
1,988 |
|
|
|
(185 |
) |
Net loss |
|
$ |
(11,758 |
) |
|
$ |
(23,299 |
) |
|
$ |
(34,270 |
) |
|
$ |
(43,729 |
) |
|
$ |
(50,026 |
) |
|
$ |
(58,652 |
) |
|
$ |
(84,113 |
) |
|
$ |
(109,418 |
) |
|
$ |
(42,123 |
) |
Reconciliation of GAAP to Non-GAAP Measures
The following tables present our reconciliation of GAAP measures to non-GAAP measures for the historical periods indicated.
Retained premiums and fees
|
Three Months Ended |
||||||||||||||||||||||||||
(Unaudited - in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Revenue |
|
$ |
127,796 |
|
$ |
129,986 |
|
$ |
162,582 |
|
$ |
137,679 |
|
$ |
112,207 |
|
$ |
123,744 |
|
$ |
107,856 |
|
$ |
96,374 |
|
$ |
74,368 |
Minus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Premiums retained by Third-Party Agents |
|
|
70,338 |
|
|
65,181 |
|
|
91,596 |
|
|
71,330 |
|
|
60,602 |
|
|
74,638 |
|
|
65,141 |
|
|
61,095 |
|
|
49,184 |
Retained premiums and fees |
|
$ |
57,458 |
|
$ |
64,805 |
|
$ |
70,986 |
|
$ |
66,349 |
|
$ |
51,605 |
|
$ |
49,106 |
|
$ |
42,715 |
|
$ |
35,279 |
|
$ |
25,184 |
Minus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Direct labor |
|
|
17,979 |
|
|
20,902 |
|
|
23,948 |
|
|
26,787 |
|
|
27,798 |
|
|
23,890 |
|
|
20,220 |
|
|
14,665 |
|
|
12,937 |
Provision for claims |
|
|
3,249 |
|
|
6,807 |
|
|
6,685 |
|
|
4,594 |
|
|
4,611 |
|
|
6,310 |
|
|
4,665 |
|
|
1,154 |
|
|
3,959 |
Depreciation and amortization |
|
|
2,707 |
|
|
3,021 |
|
|
1,978 |
|
|
2,615 |
|
|
3,236 |
|
|
3,747 |
|
|
4,251 |
|
|
4,785 |
|
|
3,075 |
Other direct costs(1) |
|
|
7,109 |
|
|
7,561 |
|
|
10,073 |
|
|
10,322 |
|
|
8,826 |
|
|
8,016 |
|
|
6,224 |
|
|
5,478 |
|
|
3,817 |
Gross Profit |
|
$ |
26,414 |
|
$ |
26,514 |
|
$ |
28,302 |
|
$ |
22,031 |
|
$ |
7,134 |
|
$ |
7,143 |
|
$ |
7,355 |
|
$ |
9,197 |
|
$ |
1,396 |
__________________ |
||
(1) |
|
Includes title examination expense, office supplies, and premium and other taxes. |
Adjusted gross profit
|
Three Months Ended |
||||||||||||||||||||||||||
(Unaudited - in thousands) |
|
|
|
|
|
|
|
|
|
March, 31,
|
|
|
|
|
|
|
|
|
|||||||||
Gross Profit |
|
$ |
26,414 |
|
$ |
26,514 |
|
$ |
28,302 |
|
$ |
22,031 |
|
$ |
7,134 |
|
$ |
7,143 |
|
$ |
7,355 |
|
$ |
9,197 |
|
$ |
1,396 |
Adjusted for: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Depreciation and amortization |
|
|
2,707 |
|
|
3,021 |
|
|
1,978 |
|
|
2,615 |
|
|
3,236 |
|
|
3,747 |
|
|
4,251 |
|
|
4,785 |
|
|
3,075 |
Adjusted Gross Profit |
|
$ |
29,121 |
|
$ |
29,535 |
|
$ |
30,280 |
|
$ |
24,646 |
|
$ |
10,370 |
|
$ |
10,890 |
|
$ |
11,606 |
|
$ |
13,982 |
|
$ |
4,471 |
Adjusted EBITDA
|
Three Months Ended |
|||||||||||||||||||||||||||||||||||
(Unaudited - in thousands) |
|
|
|
|
|
|
|
|
|
March, 31,
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net loss (GAAP) |
|
$ |
(11,758 |
) |
|
$ |
(23,299 |
) |
|
$ |
(34,270 |
) |
|
$ |
(43,729 |
) |
|
$ |
(50,026 |
) |
|
$ |
(58,652 |
) |
|
$ |
(84,113 |
) |
|
$ |
(109,418 |
) |
|
$ |
(42,123 |
) |
Adjusted for: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Depreciation and amortization |
|
|
2,707 |
|
|
|
3,021 |
|
|
|
1,978 |
|
|
|
2,615 |
|
|
|
3,236 |
|
|
|
3,747 |
|
|
|
4,251 |
|
|
|
4,785 |
|
|
|
3,075 |
|
Interest expense |
|
|
3,360 |
|
|
|
4,451 |
|
|
|
4,531 |
|
|
|
4,519 |
|
|
|
4,207 |
|
|
|
4,489 |
|
|
|
4,584 |
|
|
|
4,800 |
|
|
|
4,989 |
|
Income taxes |
|
|
125 |
|
|
|
211 |
|
|
|
170 |
|
|
|
421 |
|
|
|
185 |
|
|
|
136 |
|
|
|
425 |
|
|
|
(1,988 |
) |
|
|
185 |
|
EBITDA |
|
$ |
(5,566 |
) |
|
$ |
(15,616 |
) |
|
$ |
(27,591 |
) |
|
$ |
(36,174 |
) |
|
$ |
(42,398 |
) |
|
$ |
(50,280 |
) |
|
$ |
(74,853 |
) |
|
$ |
(101,821 |
) |
|
$ |
(33,874 |
) |
Adjusted for: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Stock-based compensation |
|
|
2,289 |
|
|
|
3,713 |
|
|
|
3,004 |
|
|
|
11,040 |
|
|
|
11,393 |
|
|
|
8,255 |
|
|
|
7,746 |
|
|
|
6,293 |
|
|
|
5,697 |
|
Severance and interim salary costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,828 |
|
|
|
4,567 |
|
|
|
11,218 |
|
|
|
6,420 |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
33,746 |
|
|
|
31,461 |
|
|
|
— |
|
Long-lived asset impairment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
32,027 |
|
|
|
181 |
|
Change in fair value of warrant and Sponsor Covered Shares liabilities |
|
|
— |
|
|
|
— |
|
|
|
4,478 |
|
|
|
(11,169 |
) |
|
|
(13,900 |
) |
|
|
(5,193 |
) |
|
|
(1,438 |
) |
|
|
(786 |
) |
|
|
(15 |
) |
Accelerated contract expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,221 |
|
|
|
— |
|
Adjusted EBITDA |
|
$ |
(3,277 |
) |
|
$ |
(11,903 |
) |
|
$ |
(20,109 |
) |
|
$ |
(36,303 |
) |
|
$ |
(44,905 |
) |
|
$ |
(43,390 |
) |
|
$ |
(30,232 |
) |
|
$ |
(16,387 |
) |
|
$ |
(21,591 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230509006054/en/
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