Benefytt (BFYT) 8-K/A Results of Operations and Financial Condition

Exhibit 99.1

BENEFYTT TECHNOLOGIES, INC.

Condensed Consolidated Balance Sheets

($ in thousands, except share and per share data)

	March 31, 2020			December 31, 2019
	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	5,051		$	3,771
Restricted cash		16,030			17,788
Accounts receivable, net, prepaid expenses and other current assets		7,361			2,911
Income taxes receivable		23,018			18,210
Advanced commissions, net		40,524			45,250
Contract asset		172,554			184,474
Total current assets		264,538			272,404
Long-term contract asset		207,675			209,239
Property and equipment, net		5,494			5,415
Deferred tax asset		645			—
Right-of-use assets		16,568			496
Goodwill		94,814			135,182
Intangible assets, net		25,473			28,963
Other assets		2,623			159
Total assets	$	617,830		$	651,858
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable and accrued expenses	$	45,568		$	51,477
Commissions payable		92,833			97,785
Contingent consideration, current		1,750			—
Current portion of long-term debt, net		9,488			10,684
Operating lease liabilities, current		1,466			237
Other current liabilities		296			557
Total current liabilities		151,401			160,740
Commissions payable, long-term		79,287			82,369
Contingent consideration, long-term		66,302			65,171
Debt, net, long-term		183,470			167,947
Due to member		34,142			29,121
Deferred tax liability, net		—			5,722
Operating lease liabilities, long-term		14,965			224
Other liabilities		330			590
Total liabilities		529,897			511,884
Commitments and contingencies (Note 14)
Stockholders’ equity:
Class A common stock (par value $0.001 per share, 100,000,000 shares authorized; 17,119,217 and 16,219,217 shares issued as of March 31, 2020 and December 31, 2019, respectively; 13,203,527 and 12,273,630 shares outstanding as of March 31, 2020 and December 31, 2019, respectively)		17			16
Class B common stock (par value $0.001 per share, 20,000,000 shares authorized; 1,016,667 and 1,916,667 shares issued and outstanding as of March 31, 2020 and December 31, 2019, respectively)		1			2
Preferred stock (par value $0.001 per share, 5,000,000 shares authorized; no shares issued and outstanding as of March 31, 2020 and December 31, 2019, respectively)		—			—
Additional paid-in capital		131,943			118,465
Treasury stock, at cost (3,915,690 and 3,945,587 shares as of March 31, 2020 and December 31, 2019, respectively)		(125,643	)		(127,400	)
Retained earnings		66,152			110,418
Total Benefytt Technologies, Inc. stockholders’ equity		72,470			101,501
Noncontrolling interests		15,463			38,473
Total stockholders’ equity		87,933			139,974
Total liabilities and stockholders’ equity	$	617,830		$	651,858

BENEFYTT TECHNOLOGIES, INC.

Condensed Consolidated Statements of Cash Flows (unaudited)

($ in thousands)

	Three Months Ended March 31,
	2020			2019
Operating activities:
Net (loss) income	$	(49,815	)	$	2,182
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Stock-based compensation		2,627			1,816
Fair value adjustment to contingent acquisition consideration		2,881			—
Loss on disposal of assets		73			—
Provision for allowance for doubtful accounts		116			13
Impairment of assets		41,076			—
Depreciation and amortization		4,345			1,132
Deferred financing costs		202			—
Deferred income taxes		(4,838	)		191
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable, prepaid expenses and other assets		(6,914	)		275
Decrease (increase) in advanced commissions		4,610			(196	)
Increase in income taxes receivable		(4,808	)		—
Increase in right-of-use asset		(16,072	)		(639	)
Decrease (increase) in contract asset		12,776			(13,327	)
Increase in lease liability		15,893			538
Decrease in accounts payable, accrued expenses and other liabilities		(5,353	)		(6,568	)
(Decrease) increase in commission payable		(8,034	)		6,387
Increase in income taxes payable, net		—			2,452
Net cash used in operating activities		(11,235	)		(5,744	)
Investing activities:
Business acquisition: release of hold-back		(1,000	)		—
Capitalized internal-use software and website development costs		(501	)		(315	)
Purchases of property and equipment		(429	)		(109	)
Net cash used in investing activities		(1,930	)		(424	)
Financing activities:
Proceeds from borrowings under credit agreement		18,000			50,000
Payments on borrowings under credit agreement		(3,875	)		—
Payments related to tax withholding for share-based compensation		(1,526	)		(918	)
Purchases of Class A common stock pursuant to share repurchase plan		—			(45,272	)
Contributions (distributions)		88			(677	)
Net cash provided by financing activities		12,687			3,133
Net decrease in cash and cash equivalents, and restricted cash		(478	)		(3,035	)
Cash and cash equivalents, and restricted cash at beginning of period		21,559			25,999
Cash and cash equivalents, and restricted cash at end of period	$	21,081		$	22,964