Connecture, Inc., together with its subsidiaries, operates as a Web-based consumer shopping, enrollment, and retention platform for health insurance distribution. It serves health insurance marketplace operators, such as health plans, brokers, and exchange operators. The company was formerly known as SimplyHealth.com, Inc. and changed its name to Connecture, Inc. in 2002. Connecture, Inc. was founded in 1999 and is headquartered in Brookfield, Wisconsin.
18500 West Corporate Drive
Brookfield, WI 53045
Founded in 1999
Connecture, Inc. Announces Earnings Results for the Third Quarter and Nine Months Ended September 30, 2015; Provides Earnings Guidance for the Fourth Quarter and Revises Earnings Guidance for the Full Year of 2015
Nov 12 15
Connecture, Inc. announced earnings results for the third quarter and nine months ended September 30, 2015. For the quarter, the company reported revenue of $22,667,000 against $21,503,000 a year ago. Loss from operations was $894,000 against $1,365,000 a year ago. Loss before income taxes was $2,331,000 against $2,928,000 a year ago. Net loss was $2,308,000 against $2,873,000 a year ago. Diluted loss per share was $0.11 against $21.06 a year ago. Adjusted EBITDA was $1,785,000 against $288,000 a year ago. Cash used in operations was $1.6 million compared to cash generated from operations of $0.6 million for the same period last year. The year-over-year change was largely driven by an increase in working capital at September 30, 2015 compared to the same period last year and the timing of collections on outstanding accounts receivable.
For the nine months, the company reported revenue of $66,708,000 against $56,754,000 a year ago. Loss from operations was $7,425,000 against $10,213,000 a year ago. Loss before income taxes was $11,708,000 against $14,988,000 a year ago. Net loss was $11,666,000 against $14,944,000 a year ago. Diluted loss per share was $0.54 against $97.17 a year ago. Adjusted LBITDA was $310,000 against $5,299,000 a year ago. Net cash used in operating activities was $14,809,000 against $15,475,000 a year ago. Purchase of property and equipment was $1,177,000 against $732,000 a year ago.
For the full year of 2015, the company expects total revenue to be in the range of $96.0 million to $98.0 million. Adjusted EBITDA is expected to be in the range of $9.5 million to $10.5 million. Net loss per share is expected to be in the range of $0.22 to $0.27, based on an estimated basic and diluted weighted-average common share count of 22.0 million, and includes non-cash stock compensation expense of $4.8 million or $0.22 per basic and diluted share.
For the fourth quarter of 2015, the company expects total revenue to be in the range of $29.3 million to $31.3 million. Adjusted EBITDA is expected to be in the range of $9.8 million to $10.8 million. Net income per share is expected to be in the range of $0.25 to $0.30, based on an estimated basic and diluted weighted-average common share count of 23.0 million, and includes non-cash stock compensation expense of $1.4 million or $0.06 per basic and diluted share.
Connecture, Inc. Announces Executive Changes
Nov 12 15
Connecture, Inc. announced that Jeff Surges will assume leadership as CEO effective November 17, 2015. Doug Schneider, current CEO since January 2012, will continue with company as president and chief product officer, and retain his seat on the company’s board of directors. Surges will be responsible for driving all company growth strategies, operations, business functions, and overall organizational development. He joins company following his most recent and senior roles as chairman of strategic health services and president of Healthgrades. Prior to those positions, Surges served as CEO and as a Director of Merge Healthcare, as well as President of Allscripts Healthcare Solutions.
Connecture, Inc. and DestinationRx, Inc. Enter Amendment to Term Loan
Nov 10 15
On November 5, 2015, Connecture, Inc. and its wholly-owned subsidiary, DestinationRx, Inc. entered into an amendment no. 8 to second lien term loan agreement with THL Corporate Finance, Inc., as administrative agent for the lenders named therein. The THL note amendment amended the company's second lien term loan agreement, dated March 18, 2013, as amended, to (i) decrease the minimum liquidity covenant to $6.75 million, (ii) decrease the Base Rate Margin from a fixed rate of 10.00% to a variable rate of 9.00% or 10.00%, dependent on actual quarterly Adjusted Total Leverage Ratio, and (iii) decrease the LIBOR Rate Margin from a fixed rate of 11.00% to a variable rate of 10.00% or 11.00%, dependent on actual quarterly Adjusted Total Leverage Ratio. On November 10, 2015, the company entered into an amendment No. 10 to credit agreement with Wells Fargo Bank, National Association, as administrative agent for the lenders named therein. The credit facility amendment amended the company's credit agreement, dated January 15, 2013, as amended, to decrease the minimum liquidity covenant to $7.5 million.