HIIQ announces extension of strategic alternatives review
Health Insurance Innovations , which voluntarily stopped doing business in Washington following multiple violations, announced that as a result of its “in-progress strategic transformation and successful development and growth of its Medicare business,” it is extending its process for exploring, reviewing, and evaluating alternative strategies focused on maximizing shareholder value that commenced in July 2019. These alternatives could include, among other things, a sale of the Company or a portion thereof, a strategic business combination, changes in the company’s operations or strategy, or continuing to execute on the Company’s current business plan.
In addition, the company also announced preliminary financial results and key metrics for fourth quarter and fiscal year 2019:
[1] The gross contract asset is inclusive of all future collections from our members, reduced by the amount due to the carriers or discount benefit plan providers.
[2] The net contract asset is the gross asset, less the future commissions due to our third-party distribution partners.
“The Board of Directors believes that the best path for enhancing value for our shareholders is to allow additional time for potential strategic and financial partners to review the Company’s strategy and recent and projected operating results. We are encouraged by our recent Medicare sales volume success and the level of interest that this has garnered in the marketplace. Since the announcement of our Medicare results in early December, we have received additional inquiries from multiple new strategic parties expressing an interest in participating in our process. We believe it is prudent to allow these parties more time to complete their assessment of the Company in light of the business transformation in progress.” – Paul Gabos, Chairman of the Board.
“We are pleased with our preliminary fourth quarter and fiscal year 2019 financial results which reflect annual growth in revenues of approximately 8-10%, growth in Adjusted EBITDA of approximately 34-41%, and growth in Adjusted net income per share of approximately 57-67%. Although revenues were slightly below our forecast for 2019, we benefitted from the successful build-out of our Medicare platform while narrowing our focus on certain IFP products.” – Gavin Southwell, HIIQ’s president and CEO.