- Second quarter 2024 Total Revenue increased 20% year-over-year to $313.2 million, and year-to-date 2024 Total Revenue increased 22% year-over-year to $584.9 million
- Second quarter 2024 Written Premium increased 16% year-over-year to $321.2 million, and year-to-date 2024 Written Premium increased 18% year-over-year to $539.5 million
- Second quarter 2024 Operating Income margin expanded by 560 bps compared to the prior year period, and year-to-date 2024 Operating Income margin expanded by 840 bps compared to the prior year period
- Second quarter 2024 Net Income of $42.7 million, an increase of $27.1 million compared to the prior year period, and year-to-date 2024 Net Income of $50.9 million, an increase of $50.3 million compared to the prior year period
- Second quarter 2024 Adjusted EBITDA of $53.1 million, an increase of $18.7 million compared to the prior year period, and year-to-date 2024 Adjusted EBITDA of $80.4 million, an increase of $39.4 million compared to the prior year period
- Delivered Policies in Force Retention of 89% and maintained a Net Promoter Score of 82
- Increased 2024 growth outlook for Total Revenue to 16-18%, Written Premium of 14-15%, Net Income of 170-198% and Adjusted EBITDA of 47-59%
- Completed warrant exchange offer and mandatory exchange in July 2024, whereby the Company issued 9 million shares of Class A Common Stock in exchange for 19.5 million warrants
TRAVERSE CITY, Mich., August 6, 2024 /PRNewswire/ – Hagerty, Inc. (NYSE: HGTY), an automotive enthusiast brand and leading specialty vehicle insurance provider, announced today financial results for the three and six months ended June 30, 2024.
“We delivered excellent top line growth and margin expansion during the first half of 2024 as our differentiated business model delivers sustained, compounding growth,” said McKeel Hagerty, Chief Executive Officer and Chairman of Hagerty. “Total revenue gains of 22% were fueled by written premium growth of 18% as our vehicle count increased 8% over the prior year. High rates of growth, combined with more efficient and effective business processes drove operating margin expansion of 840 basis points.”
“This laser focus on profitability resulted in Net Income of $51 million and Adjusted EBITDA of $80 million during the first six months of 2024, ahead of expectations,” continued Mr. Hagerty.
“Given the strong start to the year and continued business momentum, we have increased our 2024 growth outlook,” added Mr. Hagerty. “We now expect written premium growth of 14-15% for the year, powered by strong new business count. Operating margin expansion is expected to drive net income growth of 170-198% and Adjusted EBITDA growth of 47-59% as we help car enthusiasts protect, buy and sell, and enjoy their special vehicles.”
SECOND QUARTER2024 FINANCIAL HIGHLIGHTS
- Second quarter 2024 Total Revenue increased 20% year-over-year to $313.2 million, and year-to-date 2024 Total Revenue increased 22% year-over-year to $584.9 million
- Second quarter 2024 Written Premium increased 16% year-over-year to $321.2 million, and year-to-date 2024 Written Premium increased 18% year-over-year to $539.5 million
- Second quarter 2024 Commission and fee revenue increased 17% year-over-year to $128.8 million, and year-to-date 2024 Commission and fee revenue increased 18% year-over-year to $217.7 million
- Policies in Force Retention was 89% as of June 30, 2024 compared to 88% in the prior year period and total insured vehicles increased 8% year-over-year to 5 million
- Second quarter 2024 Loss Ratio was 1% compared to 42.0% in the prior year period, and year-to-date 2024 Loss Ratio was 41.1% compared to 41.7% in the prior year period
- Second quarter 2024 Earned Premium increased 24% year-over-year to $157.6 million, and year-to-date 2024 Earned Premium increased 26% year-over-year to $309.2 million
- Second quarter 2024 Membership, marketplace and other revenue increased 14% year-over-year to $26.8 million, and year-to-date 2024 Membership, marketplace and other revenue increased 16% year-over-year to $58.0 million
- Second quarter 2024 Marketplace revenue increased 20% year-over-year to $6.3 million, and year-to-date 2024 Marketplace revenue increased 41% year-over-year to $16.8 million
- Second quarter 2024 Membership revenue increased 7% year-over-year to $14.1 million, and year-to-date 2024 Membership revenue increased 7% year-over-year to $27.6 million Hagerty Drivers Club (HDC) paid members increased 8% year-over-year to approximately 854,000 compared to 792,000
- Hagerty Drivers Club (HDC) paid members increased 8% year-over-year to approximately 854,000 compared to 792,000
- Second quarter 2024 Operating Income of $38.1 million, an increase of $20.8 million compared to the prior year period, and year-to-date 2024 Operating Income of $50.3 million, an increase of $49.5 million compared to the prior year period
- Second quarter 2024 Operating Income margin expanded by 560 bps compared to the prior year period, and year-to-date 2024 Operating Income margin expanded by 840 bps compared to the prior year period
- Cost containment and resource prioritization initiatives held general and administrative growth to only 0.3% and salary and benefits growth to 7.7% in the second quarter 2024. Year-to-date 2024 general and administrative services declined 3.4% and salary and benefits increased only 4.6%
- Second quarter 2024 depreciation and amortization was $10.0 million compared to $10.4 million in the prior year period, and year-to-date 2024 depreciation and amortization was $20.6 million compared to $24.1 million in the prior year period. The year-to-date decrease was primarily driven by the prior year’s $3.8 million impairment of digital media content assets
- Second quarter 2023 results included restructuring charges of $2.8 million, and year-to-date 2023 results included restructuring charges of $8.4 million. The prior year period’s charges were primarily associated with a reduction in force and the impairment and related charges associated with operating lease assets and cost containment initiatives
- Second quarter 2024 Net Income of $42.7 million, an increase of $27.1 million compared to the prior year period, and year-to-date 2024 Net Income of $50.9 million, an increase of $50.3 million compared to the prior year period
- Second quarter 2024 Net Income includes an $8.6 million increase in interest and other income, and year-to-date 2024 Net Income includes a $10.2 million increase in interest and other income, primarily due to the diversification of Hagerty Re’s investment portfolio which resulted in investing in higher yielding fixed maturity securities. In addition, Net Income includes a $1.9 million loss from the change in fair value of warrant liabilities
- Completed warrant exchange offer and mandatory exchange in July 2024, whereby the Company issued 3.9 million shares of Class A Common Stock in exchange for 19.5 million warrants
- Second quarter 2024 Adjusted EBITDA (a non-GAAP measure) of $53.1 million, an increase of $18.7 million compared to the prior year period, and year-to-date 2024 Adjusted EBITDA of $80.4 million, an increase of $39.4 million compared to the prior year period
- Second quarter 2024 Basic and Diluted Earnings per Share was $0.09, and year-to-date 2024 Basic and Diluted Earnings per Share was $0.06
- Second quarter 2024 Adjusted EPS (a non-GAAP measure) was $0.12, and year-to-date 2024 Adjusted EPS was $0.16
The definitions and reconciliations of non-GAAP financial measures are provided under the heading Key Performance Indicators and Certain Non-GAAP Financial Measures at the end of this press release.
INCREASED 2024 OUTLOOK FOR GROWTH AND PROFITABILITY
Despite the uncertain macro environment and challenging dynamics for the insurance industry with heightened inflationary pressures, 2024 is on track to be another year of strong top-line growth and margin expansion for Hagerty as our performance-based culture powers great results for stakeholders. We remain focused on growing our Insurance, Membership and Marketplace businesses, positioning us to deliver sustained, compounding profit growth over the coming years and fund our purpose to save driving and to fuel car culture for future generations.
- Key 2024 business priorities include: Further improve loyalty to drive renewals and referrals
- Further improve loyalty to drive renewals and referrals
- Enhance member experience in a cost effective and efficient way
- Build Hagerty Marketplace into the most trusted and preferred place to buy, sell, and finance collector cars
- Expand insurance offerings, particularly in the post-1980s collectible space
- For full year 2024, the Company increased its outlook:
- Written Premium growth of 14-15%
- Total Revenue growth of 16-18%
- Net Income growth of 170-198%
- Adjusted EBITDA growth of 47-59%
| Prior 2024 Outlook1 | Revised 2024 Outlook | ||||
| in thousands | 2023 Results | Low End | High End | Low End | High End |
| Total Written Premium | $907,175 | $1,025,000 | $1,034,000 | $1,034,000 | $1,043,000 |
| Total Revenue | $1,000,213 | $1,150,000 | $1,170,000 | $1,160,000 | $1,180,000 |
| Net Income2 | $28,179 | $61,000 | $70,000 | $76,000 | $84,000 |
| Adjusted EBITDA3 | $88,162 | $124,000 | $135,000 | $130,000 | $140,000 |
1 Prior 2024 Outlook shared on the Company’s first quarter earnings call on May 7th, 2024.
2 Net income range assumes no impact from warrants. Fully diluted share count post warrant exchange of ~360 million including Class A Common Stock, Class V Common Stock, Series A Convertible Preferred Stock, and share-based compensation awards.
3 See Non-GAAP Financial Measures below for additional information regarding this non-GAAP financial measure.
Conference Call Details
Hagerty will hold a conference call to discuss the financial results today at 10:00 am Eastern Time. A webcast of the conference call, including the Company’s Investor Presentation highlighting second quarter 2024 financial results, will be available on Hagerty’s investor relations website at investor.hagerty.com. The dial-in for the conference call is (877) 423-9813 (toll-free) or (201) 689-8573 (international). Please dial the number 10 minutes prior to the scheduled start time.
A webcast replay of the call will be available at investor.hagerty.com following the call.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts. These forward-looking statements reflect Hagerty’s current expectations and projections with respect to its expected future business and financial performance, including, among other things: (i) expected operating results, such as revenue growth and increases in profit and earned premium; (ii) changes in the market for Hagerty’s products and services, (iii) anticipated business objectives; and (iv) the strength of Hagerty’s business model. These statements may be preceded by, followed by or include the words “aim,” “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “future,” “goal,” “intend,” “likely,” “outlook,” “plan,” “potential,” “project,” “seek,” “target,” “can,” “could,” “may,” “should,” “would,” “will,” the negatives thereof and other words and terms of similar meaning.
A number of factors could cause actual results or outcomes to differ materially from those indicated by these forward-looking statements. These factors include, among other things, Hagerty’s ability to: (i) compete effectively within its industry and attract and retain insurance policy holders and paid HDC subscribers; (ii) maintain key strategic relationships with its insurance distribution and underwriting carrier partners; (iii) prevent, monitor and detect fraudulent activity; (iv) manage risks associated with disruptions, interruptions, outages with its technology platforms or third-party services; (v) accelerate the adoption of Hagerty’s membership products as well as any new insurance programs and products; (vi) manage the cyclical nature of the insurance business including through any periods of recession, economic downturn or inflation; (vii) address unexpected increases in the frequency or severity of claims; (viii) comply with the numerous laws and regulations applicable to Hagerty’s business, including state, federal and foreign laws relating to insurance and rate increases, privacy, the internet and accounting matters; (ix) manage risks associated with being a controlled company; (x) successfully defend any litigation, government inquiries and investigations, and (xi) other risks and uncertainties indicated from time to time in documents filed or to be filed with the Securities and Exchange Commission (the “SEC”) by Hagerty.
The forward-looking statements herein represent the judgment of Hagerty as of the date of this release and Hagerty disclaims any intent or obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise. This press release should be read in conjunction with the information included in the Company’s other press releases, reports and other filings with the SEC. Understanding the information contained in these filings is important in order to fully understand Hagerty’s reported financial results and its business outlook for future periods.
About Hagerty, Inc. (NYSE: HGTY)
Hagerty is an automotive enthusiast brand committed to saving driving and to fueling car culture for future generations. The company is a leading provider of specialty vehicle insurance, expert car valuation data and insights, live and digital car auction services, immersive events and automotive entertainment custom made for the 67 million Americans who self-describe as car enthusiasts. Hagerty also operates in Canada and the U.K. and is home to Hagerty Drivers Club, a community of over 850,000 who can’t get enough of cars. As a purpose-driven organization, Hagerty Impact aims to be a catalyst for positive change across the issues that matter most to our teams, our members, the broader automotive community, our shareholders and the planet at large. For more information, please visit www.hagerty.com or connect with us on Facebook, Instagram, Twitter and LinkedIn.
More information can be found at newsroom.hagerty.com.
Contact: Jay Koval, investor@hagerty.com
Hagerty Media Contact: Andrew Heller, aheller@hagerty.com
Category: Financial
Source: Hagerty
Hagerty, Inc.
Condensed Consolidated Statements of Operations (Unaudited)
| | Three months ended June 30, | ||||||
| 2024 | | 2023 | $ Change | | % Change | ||
| REVENUE: | in thousands (except percentages and per share amounts) | ||||||
| Commission and fee revenue | $ 128,816 | $ 110,187 | | $ 18,629 | | 16.9 % | |
| Earned premium | 157,612 | 127,482 | | 30,130 | | 23.6 % | |
| Membership, marketplace and other revenue | 26,797 | 23,575 | | 3,222 | | 13.7 % | |
| Total revenue | 313,225 | 261,244 | 51,981 | | 19.9 % | ||
| OPERATING EXPENSES: | | | | | |||
| Salaries and benefits | 57,693 | 53,572 | | 4,121 | | 7.7 % | |
| Ceding commissions, net | 73,446 | 60,350 | | 13,096 | | 21.7 % | |
| Losses and loss adjustment expenses | 64,729 | 53,564 | | 11,165 | | 20.8 % | |
| Sales expense | 47,990 | 41,941 | | 6,049 | | 14.4 % | |
| General and administrative | 21,373 | 21,318 | 55 | | 0.3 % | ||
| Depreciation and amortization | 10,014 | 10,397 | (383) | | (3.7) % | ||
| Restructuring, impairment and related charges, net | — | 2,849 | (2,849) | (100.0) % | |||
| Gain related to divestiture | (87) | — | (87) | — % | |||
| Total operating expenses | 275,158 | 243,991 | 31,167 | | 12.8 % | ||
| OPERATING INCOME | 38,067 | 17,253 | 20,814 | | 120.6 % | ||
| Change in fair value of warrant liabilities | (1,941) | (1,754) | (187) | 10.7 % | |||
| Interest and other income (expense) | 12,342 | 3,770 | 8,572 | | N/M | ||
| INCOME BEFORE INCOME TAX EXPENSE | 48,468 | 19,269 | 29,199 | | 151.5 % | ||
| Income tax expense | (5,811) | (3,730) | (2,081) | | 55.8 % | ||
| NET INCOME | 42,657 | 15,539 | 27,118 | | 174.5 % | ||
| Net income attributable to non-controlling interest | (32,279) | (13,134) | (19,145) | 145.8 % | |||
| Accretion of Series A Convertible Preferred Stock | (1,839) | — | (1,839) | — % | |||
| NET INCOME ATTRIBUTABLE TO CLASS A COMMON STOCKHOLDERS | $ 8,539 | $ 2,405 | $ 6,134 | N/M | |||
| Earnings per share of Class A Common Stock: | |||||||
| Basic | $ 0.09 | $ 0.03 | |||||
| Diluted | $ 0.09 | $ 0.03 | |||||
| Weighted average shares of Class A Common Stock outstanding: | |||||||
| Basic | 85,687 | 84,371 | |||||
| Diluted | 85,687 | 85,563 |
N/M = Not meaningful
Hagerty, Inc.
Condensed Consolidated Statements of Operations (Unaudited)
| Six months ended June 30, | |||||||
| 2024 | | 2023 | $ Change | | % Change | ||
| REVENUE: | in thousands (except percentages and per share amounts) | ||||||
| Commission and fee revenue | $ 217,656 | $ 184,799 | | $ 32,857 | 17.8 % | ||
| Earned premium | 309,231 | 244,713 | | 64,518 | 26.4 % | ||
| Membership, marketplace and other revenue | 58,046 | 50,084 | | 7,962 | 15.9 % | ||
| Total revenue | 584,933 | 479,596 | 105,337 | 22.0 % | |||
| OPERATING EXPENSES: | | | | ||||
| Salaries and benefits | 113,809 | 108,804 | | 5,005 | 4.6 % | ||
| Ceding commissions, net | 144,376 | 115,775 | | 28,601 | 24.7 % | ||
| Losses and loss adjustment expenses | 127,085 | 101,976 | | 25,109 | 24.6 % | ||
| Sales expense | 87,650 | 77,054 | | 10,596 | 13.8 % | ||
| General and administrative | 41,235 | 42,699 | (1,464) | (3.4) % | |||
| Depreciation and amortization | 20,574 | 24,140 | (3,566) | (14.8) % | |||
| Restructuring, impairment and related charges, net | — | 8,384 | (8,384) | (100.0) % | |||
| Gain related to divestiture | (87) | — | (87) | — % | |||
| Total operating expenses | 534,642 | 478,832 | 55,810 | 11.7 % | |||
| OPERATING INCOME | 50,291 | 764 | 49,527 | N/M | |||
| Change in fair value of warrant liabilities | (8,081) | (2,269) | (5,812) | N/M | |||
| Interest and other income (expense) | 19,586 | 9,417 | 10,169 | 108.0 % | |||
| INCOME BEFORE INCOME TAX EXPENSE | 61,796 | 7,912 | 53,884 | N/M | |||
| Income tax expense | (10,940) | (7,398) | (3,542) | 47.9 % | |||
| NET INCOME | 50,856 | 514 | 50,342 | N/M | |||
| Net income attributable to non-controlling interest | (41,829) | (208) | (41,621) | N/M | |||
| Accretion of Series A Convertible Preferred Stock | (3,677) | — | (3,677) | — % | |||
| NET INCOME ATTRIBUTABLE TO CLASS A COMMON STOCKHOLDERS | $ 5,350 | $ 306 | $ 5,044 | N/M | |||
| Earnings per share of Class A Common Stock: | |||||||
| Basic | $ 0.06 | $ — | |||||
| Diluted | $ 0.06 | $ — | |||||
| Weighted average shares of Class A Common Stock outstanding: | |||||||
| Basic | 85,171 | 83,820 | |||||
| Diluted | 86,072 | 84,424 |
N/M = Not meaningful
Hagerty, Inc.
Condensed Consolidated Balance Sheets (Unaudited)
| June 30, | December 31, | ||
| | 2024 | | 2023 |
| ASSETS | in thousands (except share amounts) | ||
| Current Assets: | | | |
| Cash and cash equivalents | $ 120,936 | $ 108,326 | |
| Restricted cash and cash equivalents | 194,586 | 615,950 | |
| Investments | 65,444 | 10,946 | |
| Accounts receivable | 88,365 | 71,530 | |
| Premiums receivable | 221,788 | 137,525 | |
| Commissions receivable | 17,719 | 79,115 | |
| Notes receivable | 60,285 | 35,896 | |
| Deferred acquisition costs, net | 159,307 | 141,637 | |
| Other current assets | 84,371 | 49,293 | |
| Total current assets | 1,012,801 | 1,250,218 | |
| Investments | 404,799 | 5,526 | |
| Notes receivable | 1,291 | 17,018 | |
| Property and equipment, net | 19,899 | 20,764 | |
| Lease right-of-use assets | 47,219 | 50,515 | |
| Intangible assets, net | 82,838 | 91,924 | |
| Goodwill | 114,165 | 114,214 | |
| Other long-term assets | 46,619 | 38,033 | |
| TOTAL ASSETS | $ 1,729,631 | $ 1,588,212 | |
| LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS’ EQUITY | |||
| Current Liabilities: | |||
| Accounts payable, accrued expenses and other current liabilities | $ 76,509 | $ 87,175 | |
| Losses payable and provision for unpaid losses and loss adjustment expenses | 217,545 | 198,508 | |
| Commissions payable | 101,100 | 108,739 | |
| Due to insurers | 139,099 | 79,815 | |
| Advanced premiums | 36,839 | 20,471 | |
| Unearned premiums | 362,509 | 317,275 | |
| Contract liabilities | 36,614 | 30,316 | |
| Total current liabilities | 970,215 | 842,299 | |
| Long-term lease liabilities | 46,689 | 50,459 | |
| Long-term debt, net | 98,029 | 130,680 | |
| Warrant liabilities | 42,099 | 34,018 | |
| Deferred tax liability | 17,997 | 15,937 | |
| Contract liabilities | 16,335 | 17,335 | |
| Other long-term liabilities | 2,961 | 4,139 | |
| TOTAL LIABILITIES | 1,194,325 | 1,094,867 | |
| Commitments and Contingencies | — | | — |
| TEMPORARY EQUITY1 | |||
| Preferred stock, $0.0001 par value (20,000,000 shares authorized, 8,483,561 Series A Convertible Preferred Stock issued and outstanding as of June 30, 2024 and December 31, 2023) | 80,913 | 82,836 | |
| STOCKHOLDERS’ EQUITY | |||
| Class A Common Stock, $0.0001 par value (500,000,000 shares authorized, 85,703,286 and 84,588,536 issued and outstanding as of June 30, 2024 and December 31, 2023, respectively) | 8 | 8 | |
| Class V Common Stock, $0.0001 par value (300,000,000 authorized, 251,033,906 shares issued and outstanding as of June 30, 2024 and December 31, 2023) | 25 | 25 | |
| Additional paid-in capital | 555,040 | 561,754 | |
| Accumulated earnings (deficit) | (459,968) | (468,995) | |
| Accumulated other comprehensive income (loss) | (667) | (88) | |
| Total stockholders’ equity | 94,438 | 92,704 | |
| Non-controlling interest | 359,955 | 317,805 | |
| Total equity | 454,393 | 410,509 | |
| TOTAL LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS’ EQUITY | $ 1,729,631 | $ 1,588,212 |
1 The Series A Convertible Preferred Stock is recorded within Temporary Equity because it has equity conversion and cash redemption features.
Hagerty, Inc.
Condensed Consolidated Statements of Cash Flows (Unaudited)
| Six months ended June 30, | |||
| | 2024 | | 2023 |
| OPERATING ACTIVITIES: | in thousands | ||
| Net income | $ 50,856 | $ 514 | |
| Adjustments to reconcile net income to net cash from operating activities: | | | |
| Change in fair value of warrant liabilities | 8,081 | 2,269 | |
| Depreciation and amortization | 20,574 | 24,140 | |
| Provision for deferred taxes | 1,984 | 3,480 | |
| Share-based compensation expense | 8,926 | 8,222 | |
| Non-cash lease expense | 4,038 | 6,300 | |
| Other | (5) | 3,433 | |
| Changes in operating assets and liabilities: | | ||
| Accounts, premiums and commission receivable | (39,306) | (93,549) | |
| Deferred acquisition costs, net | (17,670) | (32,756) | |
| Losses payable and provision for unpaid losses and loss adjustment expenses | 19,037 | 4,876 | |
| Commissions payable | (7,639) | 24,664 | |
| Due to insurers | 59,470 | 60,174 | |
| Advanced premiums | 16,399 | 17,043 | |
| Unearned premiums | 45,234 | 68,123 | |
| Operating lease liabilities | (4,531) | (5,960) | |
| Other assets and liabilities, net | (43,193) | (20,416) | |
| Net Cash Provided by Operating Activities | 122,255 | 70,557 | |
| INVESTING ACTIVITIES: | | | |
| Capital expenditures | (11,936) | (16,251) | |
| Acquisitions, net of cash acquired | (3,843) | (7,084) | |
| Issuance of notes receivable | (32,136) | (11,015) | |
| Collection of notes receivable | 19,354 | 6,235 | |
| Purchases of fixed maturity securities | (455,766) | (6,172) | |
| Proceeds from sales of fixed maturity securities | 7,570 | — | |
| Proceeds from maturities of fixed maturity securities | 5,596 | 2,964 | |
| Purchases of equity securities | (9,407) | — | |
| Other investing activities | 631 | 22 | |
| Net Cash Used in Investing Activities | (479,937) | (31,301) | |
| FINANCING ACTIVITIES: | |||
| Payments on long-term debt | (60,757) | (99,250) | |
| Proceeds from long-term debt, net of issuance costs | 25,482 | 71,590 | |
| Proceeds from issuance of Series A Preferred Stock, net of issuance costs | — | 79,159 | |
| Contribution from non-controlling interest | — | 600 | |
| Distributions paid to non-controlling interest unit holders | (5,320) | — | |
| Payment of Series A Preferred Stock dividends | (5,600) | — | |
| Funding of employee tax obligations upon vesting of share-based payments | (4,588) | — | |
| Proceeds from issuance of Class A Common Stock under employee stock purchase plan | — | 906 | |
| Net Cash Provided by (Used in) Financing Activities | (50,783) | 53,005 | |
| Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents | (289) | 909 | |
| | |||
| Change in cash and cash equivalents and restricted cash and cash equivalents | (408,754) | 93,170 | |
| Beginning cash and cash equivalents and restricted cash and cash equivalents | 724,276 | 539,191 | |
| Ending cash and cash equivalents and restricted cash and cash equivalents | $ 315,522 | $ 632,361 |
Hagerty, Inc.
Key Performance Indicators and Certain Non-GAAP Financial Measures
Key Performance Indicators
The tables below present a summary of our Key Performance Indicators, which include important operational metrics, as well as certain accounting principles generally accepted in the United States of America (“GAAP”) and non-GAAP financial measures as of and for the periods presented. We use these Key Performance Indicators to evaluate our business, measure our performance, identify trends against planned initiatives, prepare financial projections, and make strategic decisions. We believe these Key Performance Indicators are useful in evaluating our performance when read together with our Condensed Consolidated Financial Statements prepared in accordance with GAAP.
| 2024 | 2023 | 2024 | 2023 | |||||
| Operational Metrics | ||||||||
| Total Written Premium (in thousands) | $ 321,173 | $ 275,895 | $ 539,459 | $ 458,745 | ||||
| Loss Ratio | 41.1 % | 42.0 % | 41.1 % | 41.7 % | ||||
| New Business Count—Insurance | 89,049 | 80,140 | 148,335 | 131,902 | ||||
| GAAP Measures | ||||||||
| Total Revenue(in thousands) | $ 313,225 | $ 261,244 | $ 584,933 | $ 479,596 | ||||
| Operating Income(in thousands) | $ 38,067 | $ 17,253 | $ 50,291 | $ 764 | ||||
| Net Income(in thousands) | $ 42,657 | $ 15,539 | $ 50,856 | $ 514 | ||||
| Basic Earnings Per Share | $ 0.09 | $ 0.03 | $ 0.06 | $ — | ||||
| Diluted Earnings Per Share | $ 0.09 | $ 0.03 | $ 0.06 | $ — | ||||
| Non-GAAP Financial Measures | ||||||||
| Adjusted EBITDA(in thousands) | $ 53,113 | $ 34,367 | $ 80,440 | $ 41,072 | ||||
| Adjusted Earnings Per Share | $ 0.12 | $ 0.05 | $ 0.16 | $ 0.01 | ||||
| June 30, | December 31, | |||||||
| 2024 | 2023 | |||||||
| Operational Metrics | ||||||||
| Policies in Force | 1,468,612 | 1,401,037 | ||||||
| Policies in Force Retention | 88.7 % | 88.7 % | ||||||
| Vehicles in Force | 2,510,566 | 2,378,883 | ||||||
| HDC Paid Member Count | 853,564 | 815,007 | ||||||
| Net Promoter Score (NPS) | 82 | 82 | ||||||
| 2024 | | 2023 | 2024 | | 2023 | |||
| in thousands | ||||||||
| Net income | $ 42,657 | $ 15,539 | $ 50,856 | $ 514 | ||||
| Interest and other (income) expense1 | (12,342) | (3,770) | (19,586) | (9,417) | ||||
| Income tax expense | 5,811 | 3,730 | 10,940 | 7,398 | ||||
| Depreciation and amortization | 10,014 | 10,397 | 20,574 | 24,140 | ||||
| EBITDA | 46,140 | 25,896 | 62,784 | 22,635 | ||||
| Restructuring, impairment and related charges, net | — | 2,849 | — | 8,384 | ||||
| Change in fair value of warrant liabilities | 1,941 | 1,754 | 8,081 | 2,269 | ||||
| Share-based compensation expense | 4,383 | 4,018 | 8,926 | 7,934 | ||||
| Gain related to divestiture | (87) | — | (87) | — | ||||
| Other unusual items2 | 736 | (150) | 736 | (150) | ||||
| Adjusted EBITDA | $ 53,113 | $ 34,367 | $ 80,440 | $ 41,072 | ||||
| 2024 Low | | 2024 High | ||||||
| in thousands | ||||||||
| Net income | $ 76,000 | $ 84,000 | ||||||
| Interest and other (income) expense1 | (30,000) | (30,000) | ||||||
| Income tax expense | 20,000 | 22,000 | ||||||
| Depreciation and amortization | 46,000 | 46,000 | ||||||
| Change in fair value of warrant liabilities | — | — | ||||||
| Share-based compensation expense | 18,000 | 18,000 | ||||||
| Adjusted EBITDA | $ 130,000 | $ 140,000 | ||||||
| 2024 | 2023 | 2024 | 2023 | |||||
| in thousands (except per share amounts) | ||||||||
| Numerator: | ||||||||
| Net income available to Class A Common Stockholders1 | $ 7,912 | $ 2,388 | $ 4,955 | $ 305 | ||||
| Accretion of Series A Convertible Preferred Stock | 1,839 | — | 3,677 | — | ||||
| Undistributed earnings allocated to Series A Convertible Preferred Stock | 627 | 17 | 395 | 1 | ||||
| Net income attributable to non-controlling interest | 32,279 | 13,134 | 41,829 | 208 | ||||
| Consolidated net income | 42,657 | 15,539 | 50,856 | 514 | ||||
| Change in fair value of warrant liabilities | 1,941 | 1,754 | 8,081 | 2,269 | ||||
| Adjusted consolidated net income2 | $ 44,598 | $ 17,293 | $ 58,937 | $ 2,783 | ||||
| Denominator: | ||||||||
| Weighted average shares of Class A Common Stock outstanding — basic1 | 85,687 | 84,371 | 85,171 | 83,820 | ||||
| Total potentially dilutive securities outstanding: | ||||||||
| Non-controlling interest units | 255,368 | 255,499 | 255,368 | 255,499 | ||||
| Series A Convertible Preferred Stock, on an as-converted basis | 6,785 | 6,785 | 6,785 | 6,785 | ||||
| Total unissued share-based compensation awards | 8,228 | 7,022 | 8,228 | 7,022 | ||||
| Total warrants outstanding3 | 3,876 | 19,484 | 3,876 | 19,484 | ||||
| Potentially dilutive shares outstanding | 274,257 | 288,790 | 274,257 | 288,790 | ||||
| Fully dilutive shares outstanding2 | 359,944 | 373,161 | 359,428 | 372,610 | ||||
| Basic EPS1 | $ 0.09 | $ 0.03 | $ 0.06 | $ — | ||||
| Adjusted EPS2 | $ 0.12 | $ 0.05 | $ 0.16 | $ 0.01 |