 - Second Quarter Revenues Were 29.9 Million - - Total Written Premiums Grew 41 - - Total Franchises and Corporate Sales Headcount Grew 48 and 49, Respectively - - Net Income of 7.4 Million, Adjusted EBITDA of 9.8 Million and Adjusted EBITDA Margin of 33 - - Special Dividend of 42 Million Declared - - Raising 2020 Outlook for Total Written Premiums and Revenues -WESTLAKE, Texas, July 30, 2020 GLOBE NEWSWIRE -- Goosehead Insurance, Inc. Goosehead or the Company NASDAQ: GSHD, a rapidly growing independent personal lines insurance agency, today announced results for the second quarter ended June 30, 2020. Beginning with the fourth quarter and full year 2019, the Company began reporting results under accounting standard ASC 606. The Company is using the modified retrospective approach to applying ASC 606 and accordingly prior period numbers have not been restated in the Form 10-Q to give effect to the application of ASC 606. A reconciliation of ASC 606 accounting to ASC 605 accounting for 2020 has been provided as a supplemental schedule in this earnings release.Second Quarter 2020 Highlights Revenues grew 54 to 29.9 million in the second quarter of 2020 as recognized under ASC 606, compared to 19.4 million in the second quarter of 2019 as recognized under ASC 605; revenues would have been 27.6 million for the second quarter of 2020 if recognized under ASC 605, representing growth of 42 Core Revenues of 24.7 million as recognized under ASC 606, an increase of 41; if recognized under ASC 605, Core Revenues also increased 41 to 24.8 million Net income of 7.4 million; net income attributable to Goosehead Insurance, Inc. of 3.4 million or 0.21 per basic share and 0.19 per diluted share Adjusted EPS of 0.25 per share Adjusted EBITDA of 9.8 million, or 33 of revenues, in the second quarter of 2020 as recognized under ASC 606 or 7.3 million, or 27 of revenues, if recorded under ASC 605 Total written premiums placed increased 41 from the prior-year period to 274 million Policies in force grew 45 from the prior-year period to 590,000 Corporate sales headcount of 317 was up 49 year-over-year Total franchises increased 48 compared to the prior year period to 1,132; total operating franchises grew 36 compared to the prior-year period to 730Core Revenue, Adjusted EPS, and Adjusted EBITDA are non-GAAP measures. Reconciliations of Core Revenue to total revenues, Adjusted EBITDA to net income and basic earnings per share to Adjusted EPS, the most directly comparable financial measures presented in accordance with GAAP are set forth in the reconciliation table accompanying this release.We had outstanding second quarter results that continue to demonstrate the resiliency and exciting long-term growth potential of our unique and powerful platform, stated Mark E. Jones, Chairman and Chief Executive Officer of Goosehead. With almost our entire workforce operating in a virtual environment during the second quarter, we delivered exceptional growth, strong profitability, continued high retention, and unmatched service to our clients. We have played aggressive offense during this period of economic uncertainty, with relentless external focus on our clients and partners. Our success during 2020 is a direct result of the consistent investment we have made in extraordinary and unmatched human capital and technology for many years, and we believe our success in the future will be a result of our continued investment in these areas. Because of our confidence that our unique business model will continue to deliver strong results, we are proud to raise our full-year outlook for total written premium and revenue, and we are excited to announce a special dividend of 1.15 per share. I want to thank our employees and franchises for their tireless efforts to continue to deliver for our clients and shareholders in this challenging and unprecedented environment.Second Quarter 2020 Results For the second quarter of 2020, revenues were 29.9 million, compared to 19.4 million in the corresponding period in 2019. If recognized under ASC 605, revenues would have been 27.6 million for the second quarter of 2020. Core Revenues, a non-GAAP measure which excludes contingent commissions and initial franchise fees, were 24.7 million, a 41 increase from 17.6 million in the prior year period. If reported under ASC 605, Core Revenues growth is consistent at 41. Core Revenues are the most reliable revenue stream for the Company, consisting of New Business Commissions, Agency Fees, New Business Royalty Fees, Renewal Commissions and Renewal Royalty Fees. Core Revenues were driven by growth in corporate agents and operating franchises, productivity improvements in the Franchise Channel, and continued high levels of retention. Total written premiums placed, which is a leading indicator of future revenue growth, grew 41 in the second quarter to 274 million, compared to 194 million in the second quarter of 2019.Total operating expenses for the second quarter of 2020 were 22.3 million, up 44 from 15.5 million in the prior-year period. If recognized under ASC 605, total operating expenses would have been 22.4 million. The increase from the prior period was primarily due to larger employee compensation and benefits expenses related to continued investment in corporate agent hiring, virtual sales coaching for our franchisees and 917 thousand of additional non-cash employee stock compensation expense for options granted in April 2020. The Company continued to invest in our technology roadmap, with enhancements to our client-facing portal and numerous additional carrier integration projects. Additionally, the Company incurred approximately 200,000 in general and administrative expenses due to one-time investments in accounting process enhancements related to the Sarbanes-Oxley internal controls build-out.Net income for the second quarter of 2020 was 7.4 million. Net income attributable to Goosehead Insurance, Inc. for the second quarter of 2020 was 3.4 million, or 0.21 per basic and 0.19 per diluted share. Adjusted EPS for the second quarter of 2020, which excludes equity-based compensation, was 0.25 per share. Total Adjusted EBITDA was 9.8 million for the second quarter of 2020, or 7.3 million if reported under ASC 605, an increase of 56.Six Months 2020 Results For the six months ended June 30, 2020, revenues were 50.3 million, compared to 42.5 million in the corresponding period in 2019. If recognized under ASC 605, revenues would have been 52.4 million for the six months ended June 30, 2020. Core Revenues, a non-GAAP measure which excludes contingent commissions and initial franchise fees, were 42.9 million, a 37 increase from 31.4 million in the prior year period. If reported under ASC 605, Core Revenues increased 41.Net income for the six months ended June 30, 2020 was 7.1 million. Net income attributable to Goosehead Insurance, Inc. was 3.2 million, or 0.20 per basic and 0.18 per diluted share. Adjusted EPS, which excludes equity-based compensation, was 0.25 per share for the six months ended June 30, 2020. Total Adjusted EBITDA was 11.0 million for the six months ended June 30, 2020, or 12.6 million if reported under ASC 605, a decrease of 11.Liquidity and Capital Resources As of June 30, 2020, the Company had cash and cash equivalents of 54.3 million and an unused line of credit of 19.7 million. In June, the Company drew down the remaining balance of 37.9 million on its term note payable, bringing the outstanding term note payable balance to 79.5 million as of June 30, 2020.Special Dividend Goosehead also announced today that Goosehead Financial, LLC declared a special cash dividend of 42.0 million payable in cash on August 24, 2020 to holders of LLC Units of record, including Goosehead Insurance, Inc., as of the close of business on August 10, 2020. In addition, Goosehead Insurance, Inc. announced today that its Board of Directors declared a special cash dividend of an estimated 1.15 per share on the Companys Class A common stock. The dividend will be payable in cash on August 24, 2020 to holders of the Class A common stock of record as of the close of business on August 10, 2020.2020 Outlook Based on our experience to date, the Company is raising its full-year 2020 outlook with respect to written premiums and revenue: Total written premiums placed for 2020 are expected to be between 1 billion and 1.050 billion, representing organic growth of 35 on the low end of the range to 42 on the high end of the range. Total revenues for 2020 under ASC 606 revenue accounting are expected to be between 104 million and 109 million, representing organic growth of 34 on the low end of the range to 41 on the high end of the range.Conference Call InformationGoosehead will host a conference call and webcast today at 4:30 PM ET to discuss these results.The dial-in number for the conference call is 855 327-6837 toll-free or 631 891-4304 international. Please dial the number 10 minutes prior to the scheduled start time.In addition, a live webcast of the conference call will also be available on Gooseheads investor relations website at A webcast replay of the call will be available at for one year following the call.About GooseheadGoosehead NASDAQ: GSHD is a rapidly growing and innovative independent personal lines insurance agency that distributes its products and services throughout the United States. Goosehead was founded on the premise that the consumer should be at the center of our universe and that everything we do should be directed at providing extraordinary value by offering broad product choice and a world-class service experience. 