Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Jun. 07, 2018 | |
Entity Information [Line Items] | ||
Entity Registrant Name | Goosehead Insurance, Inc. | |
Entity Central Index Key | 1,726,978 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Class A Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 13,533,267 | |
Class B Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 22,746,667 |
Condensed Consolidated and Comb
Condensed Consolidated and Combined Balance Sheets (Unaudited) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Current Assets | ||
Cash and cash equivalents | $ 6,331,916 | $ 4,947,671 |
Restricted cash | 609,632 | 417,911 |
Commissions and agency fees receivable, net | 1,767,765 | 1,268,172 |
Receivable from franchisees, net | 579,681 | 564,087 |
Prepaid expenses | 740,050 | 521,362 |
Other assets | 3,213,348 | 0 |
Total current assets | 13,242,392 | 7,719,203 |
Receivable from franchisees, net of current portion | 1,679,478 | 1,360,686 |
Property and equipment, net of accumulated depreciation | 6,866,621 | 6,845,121 |
Intangible assets, net of accumulated amortization | 235,878 | 216,468 |
Other assets | 179,075 | 565,191 |
Total assets | 22,203,444 | 16,706,669 |
Current Liabilities: | ||
Accounts payable and accrued expenses | 4,925,944 | 2,759,241 |
Premiums payable | 609,632 | 417,911 |
Unearned revenue | 775,050 | 1,062,050 |
Dividends payable | 0 | 550,000 |
Deferred rent | 460,674 | 477,818 |
Note payable | 500,000 | 500,000 |
Total current liabilities | 7,271,300 | 5,767,020 |
Deferred rent, net of current portion | 4,217,549 | 3,916,257 |
Note payable, net of current portion | 48,079,733 | 48,156,340 |
Total liabilities | 59,568,582 | 57,839,617 |
Commitments and contingencies (see note 7) | ||
Members’ deficit | (37,365,138) | (41,132,948) |
Total liabilities and members’ deficit | $ 22,203,444 | $ 16,706,669 |
Condensed Consolidated and Com3
Condensed Consolidated and Combined Statements of Income (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues: | ||
Revenues | $ 14,588,881 | $ 9,890,949 |
Operating Expenses: | ||
Employee compensation and benefits | 6,835,424 | 4,867,647 |
General and administrative expenses | 2,373,622 | 1,833,599 |
Bad debts | 279,688 | 251,882 |
Depreciation and amortization | 336,935 | 137,657 |
Total operating expenses | 9,825,669 | 7,090,785 |
Income from operations | 4,763,212 | 2,800,164 |
Other Income (Expense): | ||
Interest expense | (995,402) | (532,715) |
Net Income | $ 3,767,810 | $ 2,267,449 |
Pro forma earnings per share: | ||
Basic (in dollars per share) | $ 0.08 | $ 0.05 |
Diluted (in dollars per share) | $ 0.08 | $ 0.05 |
Commissions and agency fees | ||
Revenues: | ||
Revenues | $ 9,595,576 | $ 6,361,846 |
Franchise revenues | ||
Revenues: | ||
Revenues | 4,910,528 | 3,481,116 |
Interest income | ||
Revenues: | ||
Revenues | $ 82,777 | $ 47,987 |
Condensed Consolidated and Com4
Condensed Consolidated and Combined Statements of Members' Deficit (Unaudited) | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Members’ deficit, December 31, 2017 | $ (41,132,948) |
Net income | 3,767,810 |
Capital withdrawn | 0 |
Members’ deficit, March 31, 2018 | $ (37,365,138) |
Condensed Consolidated and Com5
Condensed Consolidated and Combined Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 3,767,810 | $ 2,267,449 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 336,935 | 137,657 |
Bad debts | 279,688 | 251,882 |
Changes in operating assets and liabilities: | ||
Commissions and agency fees receivable | (705,261) | (191,651) |
Receivable from franchisees | (413,833) | (278,955) |
Prepaid expenses | (218,688) | (245,959) |
Other assets | (2,827,232) | (33,844) |
Accounts payable and accrued expenses | 2,166,702 | (153,595) |
Deferred rent | 284,148 | (35,079) |
Premiums payable | 191,721 | 26,991 |
Unearned revenue | (287,000) | (255,000) |
Net cash provided by operating activities | 2,574,990 | 1,489,896 |
Cash flows from investing activities: | ||
Changes in restricted cash | (191,721) | (26,991) |
Proceeds from notes receivable | 5,426 | 31,845 |
Purchase of software | (44,670) | (21,097) |
Purchase of property and equipment | (334,080) | (79,833) |
Net cash used for investing activities | (565,045) | (96,076) |
Cash flows from financing activities: | ||
Loan origination fees | 49,300 | 33,000 |
Repayment of note payable | (125,000) | (75,000) |
Dividends paid | (550,000) | (500,000) |
Net cash used for financing activities | (625,700) | (542,000) |
Net increase in cash and cash equivalents | 1,384,245 | 851,820 |
Cash, beginning of period | 4,947,671 | 3,778,098 |
Cash, end of period | $ 6,331,916 | $ 4,629,918 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization On May 1, 2018 Goosehead Insurance, Inc. ("GSHD") completed an initial public offering (the “Offering”) of 9,809,500 shares of Class A common stock at a price of $10.00 per share, which included 1,279,500 shares issued pursuant to the underwriter's over-allotment option. GSHD became the sole managing member of Goosehead Financial, LLC (“GF”). The operations of GF represent the predecessor to GSHD prior to the Offering, and the consolidated and combined entities of GF are described in more detail below. GF was organized on January 1, 2016 as a Delaware Limited Liability Company and is headquartered in Westlake, TX. GF (collectively with its combined and consolidated subsidiaries and affiliates, the “Company”) provides personal and commercial property and casualty insurance brokerage services for its clients through a network of corporate-owned and franchise units across the nation. The operations of the corporate-owned units are reflected in the financial statements of Texas Wasatch Insurance Services, L.P. (“TWIS”)—a Texas limited partnership headquartered in Westlake, TX and operating since 2003 . TWIS is 99.6% owned by Goosehead Insurance Holdings, LLC (“GIH”), a wholly owned subsidiary of GF. The Company had seven and four corporate-owned locations in operation at March 31, 2018 and 2017 , respectively. The operations of the franchise units are reflected in the financial statements of Goosehead Insurance Agency, LLC (“GIA”)—a Delaware limited liability company headquartered in Westlake, TX and operating since 2011 . GIA is 100% owned by GIH. Franchisees are provided access to insurance Carrier Appointments, product training, technology infrastructure, client service centers and back office services. During the three months ended March 31, 2018 and 2017 , the Company sold 58 and 38 franchise locations and had 341 and 220 operating franchise locations, respectively. No franchises were purchased by the Company during the three months ended March 31, 2018 or 2017 . All intercompany accounts and transactions have been eliminated in consolidation of GF. Basis of Combination In connection with the Offering, both Goosehead Management, LLC (“GM”) and Texas Wasatch Insurance Holdings Group LLC (“TWIHG”) became wholly owned indirect subsidiaries of GF. Both GM and TWIHG are non-operating holding companies created to receive management fees from the operating entities TWIS and GIA. All intercompany accounts and transactions have been eliminated in combination of the Company. Basis of Presentation The accompanying condensed consolidated and combined financial statements of the Company have been prepared in accordance with the instructions to Form 10-Q. Therefore, they do not include all of the annual disclosures required by accounting principles generally accepted in the United States of America ("GAAP"). However, in the opinion of management, these statements include all adjustments, consisting of normal recurring adjustments, which are necessary for a fair presentation of the condensed consolidated and combined financial position at March 31, 2018 , and the condensed consolidated and combined results of operations, and cash flows for the periods ended March 31, 2018 and 2017 . The interim period condensed consolidated and combined financial statements should be read in conjunction with the Consolidated and Combined Financial Statements that are included in the Final Prospectus. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reported period. Accordingly, actual results could differ from those estimates as more information becomes known. Capitalized IPO Related Costs In connection with the Offering, the Company has incurred costs which have been recorded in other assets on the condensed consolidated and combined balance sheet. Upon completion of the Offering, these deferred costs were charged against the proceeds from the Offering with a corresponding reduction to additional paid-in capital. There were $3.2 million and $170 thousand of IPO related costs included in other assets at March 31, 2018 and December 31, 2017 , respectively. Income Taxes Prior to the Offering, the Company was treated as a partnership for U.S. federal and applicable state and local income tax purposes. As a partnership, the Company's taxable income or loss was included in the taxable income of its members. Accordingly, no income tax expense has been recorded for federal and state and local jurisdictions. In connection with the Offering completed on May 1, 2018 , the Company became a taxable entity. Recently Issued Accounting Pronouncements Statement of Cash Flows (ASU 2016-18) : This standard requires that the Statement of Cash Flows explain the changes during the period of cash and cash equivalents inclusive of amounts categorized as Restricted Cash. As such, upon adoption, the Company’s consolidated and combined statement of cash flows will show the sources and uses of cash that explain the movement in the balance of cash and cash equivalents, inclusive of restricted cash, over the period presented. As an emerging growth company (“EGC”), the standard will become effective for the Company January 1, 2019 . Statement of Cash Flows (ASU 2016-15) : This standard addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice in how certain cash receipts and cash payments are presented and classified and applies to all entities, including both business entities and not-for-profit entities that are required to present a statement of cash flows under Topic 230. The standard will become effective for the Company on January 1, 2019 . The Company has evaluated the impact of ASU 2016-15 and has determined the impact to be immaterial. The Company does not, at this time, engage in the activities being addressed. Revenue from Contracts with Customers (ASU 2014-09) : This standard supersedes the existing revenue recognition guidance and provides a new framework for recognizing revenue. The core principle of the standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The new standard also requires significantly more comprehensive disclosures than the existing standard. Guidance subsequent to ASU 2014-09 has been issued to clarify various provisions in the standard, including principal versus agent considerations, identifying performance obligations, licensing transactions, as well as various technical corrections and improvements. This standard may be adopted using either a retrospective or modified retrospective method. According to the superseding standard ASU 2015-14 that deferred the effective dates of the preceding, the standard will become effective for the Company January 1, 2019 . The Company is currently in the process of evaluating the impact this standard is expected to have on the consolidated and combined financial statements. As the Company continues the evaluation during 2018 , specifically as it relates to revenue recognition (commissions, contingent commissions, and franchise fees, among others), cost deferrals, systems and processes, the Company will further clarify the expected material impact of the adoption of the standard when known. Leases (ASU 2016-02) : This standard establishes a new lease accounting model, which introduces the recognition of lease assets and liabilities for those leases classified as operating leases under previous GAAP. It should be applied using a modified retrospective approach, with the option to elect various practical expedients. Early adoption is permitted. The standard will become effective for us January 1, 2020 . The Company is currently evaluating the impact this standard will have on the Company's consolidated and combined financial statements. |
Franchise Fees Receivable
Franchise Fees Receivable | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Franchise Fees Receivable | Franchise Fees Receivable The balance of Franchise fees receivable included in Receivable from franchisees consisted of the following at March 31, 2018 and December 31, 2017 : March 31 December 31 2018 2017 Franchise fees receivable $ 3,124,196 $ 2,501,000 Less: Unamortized discount (1,076,754 ) (823,391 ) Less: Allowance for uncollectible franchise fees (409,542 ) (335,522 ) $ 1,637,900 $ 1,342,087 Activity in the allowance for uncollectible franchise fees was as follows: Balance at December 31, 2016 $ 193,204 Charges to bad debts 140,493 Write offs (84,162 ) Balance at March 31, 2017 $ 249,535 Balance at December 31, 2017 335,522 Charges to bad debts 74,020 Write offs — Balance at March 31, 2018 $ 409,542 Allowance for Uncollectible Agency Fees Activity in the allowance for uncollectible agency fees was as follows: Balance at December 31, 2016 $ 166,681 Charges to bad debts 111,389 Write offs (133,068 ) Balance at March 31, 2017 $ 145,002 Balance at December 31, 2017 182,509 Charges to bad debts 205,668 Write offs (181,033 ) Balance at March 31, 2018 $ 207,144 |
Allowance for Uncollectible Age
Allowance for Uncollectible Agency Fees | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Allowance for Uncollectible Agency Fees | Franchise Fees Receivable The balance of Franchise fees receivable included in Receivable from franchisees consisted of the following at March 31, 2018 and December 31, 2017 : March 31 December 31 2018 2017 Franchise fees receivable $ 3,124,196 $ 2,501,000 Less: Unamortized discount (1,076,754 ) (823,391 ) Less: Allowance for uncollectible franchise fees (409,542 ) (335,522 ) $ 1,637,900 $ 1,342,087 Activity in the allowance for uncollectible franchise fees was as follows: Balance at December 31, 2016 $ 193,204 Charges to bad debts 140,493 Write offs (84,162 ) Balance at March 31, 2017 $ 249,535 Balance at December 31, 2017 335,522 Charges to bad debts 74,020 Write offs — Balance at March 31, 2018 $ 409,542 Allowance for Uncollectible Agency Fees Activity in the allowance for uncollectible agency fees was as follows: Balance at December 31, 2016 $ 166,681 Charges to bad debts 111,389 Write offs (133,068 ) Balance at March 31, 2017 $ 145,002 Balance at December 31, 2017 182,509 Charges to bad debts 205,668 Write offs (181,033 ) Balance at March 31, 2018 $ 207,144 |
Notes Receivable
Notes Receivable | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Notes Receivable | Notes Receivable In 2015 , the Company entered into a $100,000 revolving line of credit with a franchisee in the form of a note receivable. The note dated December 14, 2015 has a 5 -year maturity with payments due monthly and is secured by the franchisee’s commissions. The note bears interest at 7% per annum. As of March 31, 2018 and December 31, 2017 , the note balance was $61 thousand and $67 thousand , of which $22 thousand and $22 thousand was current. |
Note payable
Note payable | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Note payable | Note payable On October 27, 2016 , the Company entered into a credit agreement consisting of a revolving credit facility and a note payable used to pay off existing debt and fund a distribution to members. The $3,000,000 revolving credit facility accrues interest on amounts drawn at LIBOR plus 5.50% . At March 31, 2018 and December 31, 2017 , the Company had a letter of credit of $500,000 applied against the maximum borrowing availability, at an interest rate of 5.50% , thus amounts available to draw totaled $2,500,000 . No interest was paid during the three months ended March 31, 2018 or during 2017 on the revolving credit facility. The revolving credit facility is collateralized by substantially all the Company’s assets, which includes rights to future commissions. The note payable on the consolidated and combined balance sheets includes a $50,000,000 term note payable in quarterly installments of $125,000 with a balloon payment of $47,250,000 on October 27, 2022 . Interest is calculated at LIBOR plus 5.50% ( 7.20% and 6.45% at March 31, 2018 and December 31, 2017 ), and the note is collateralized by substantially all of the Company’s assets, which includes rights to future commissions. The balance of the note payable was $49,500,000 , of which $500,000 was current, and $49,625,000 , of which $500,000 was current, at March 31, 2018 and December 31, 2017 , respectively. Included as a reduction to the note payable are capitalized loan origination fees, the unamortized balance of which was $920,267 and $969,567 as of March 31, 2018 and December 31, 2017 , respectively. The amortization of these loan origination fees is included in interest expense and totaled $49,300 and $33,000 during the three months ended March 31, 2018 and 2017 , respectively. Maturities of note payable for the next five years are as follows: Amount As of March 31, 2018: 2018 $ 375,000 2019 500,000 2020 500,000 2021 500,000 2022 47,625,000 $ 49,500,000 The Company’s note payable agreement contains certain restrictions and covenants. Under these restrictions, the Company is limited in the amount of debt incurred and distributions payable. In addition, the credit agreement contains certain change of control provisions that, if broken, would trigger a default. Finally, the Company must maintain certain financial ratios. As of March 31, 2018 and December 31, 2017 , the Company was in compliance with these covenants. Because of both instruments’ origination date and variable interest rate, the note payable balance at March 31, 2018 and December 31, 2017 , approximates fair value using Level 2 inputs, described below. The framework for measuring fair value provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy are described as follows: • Level 1—Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets. • Level 2—Significant other observable inputs other than Level 1 prices such as quoted prices in markets that are not active, quoted prices for similar assets or other inputs that are observable, either directly or indirectly, for substantially the full term of the asset. • Level 3—Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The asset or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company leases its facilities under non-cancelable operating leases, expiring in various years through 2029 . In addition to monthly lease payments, the lease agreements require the Company to reimburse the lessors for its portion of operating costs each year. The following is a schedule of future minimum lease payments as of March 31, 2018 : Amount 2018 1,083,835 2019 1,251,306 2020 1,690,476 2021 1,761,524 2022 1,604,230 Thereafter 8,233,711 $ 15,625,082 |
Litigation
Litigation | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation | Litigation From time to time, the Company may be involved in various legal proceedings, lawsuits and claims incidental to the conduct of the Company's business. The amount of any loss from the ultimate outcomes is not probable or reasonably estimable. It is the opinion of management that the resolution of outstanding claims will not have a material adverse effect on the financial position or results of operations of the Company. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company has two reportable segments: Corporate Channel and Franchise Channel. The Corporate Channel consists of company-owned and financed operations with employees who are hired, trained, and managed by Goosehead. The Franchise Channel network consists of franchisee operations that are owned and managed by individual business owners. These business owners have a contractual relationship with Goosehead to use the Company's processes, systems, and back-office support team to sell insurance and manage their business. In exchange, Goosehead is entitled to an initial franchise fee and ongoing royalty fees. Allocations of contingent commissions and certain operating expenses are based on reasonable assumptions and estimates primarily using revenue, headcount and other information. The Company’s chief operating decision maker uses earnings before interest, income taxes, depreciation and amortization, adjusted to exclude Class B unit compensation and other income (“Adjusted EBITDA”) as a performance measure to manage resources and make decisions about the business. Summarized financial information concerning the Company’s reportable segments is shown in the following table. There are no intersegment sales, only interest income and interest expense related to an intersegment line of credit, all of which eliminate in consolidation. The “Other” column includes any income and expenses not allocated to reportable segments and corporate-related items, including certain legal expenses and interest related to the note payable entered into on October 27, 2016 . Corporate Channel Franchise Channel Other Total Three months ended March 31, 2018: Revenues: Commissions and fees $ 7,855,665 $ 1,739,911 $ — $ 9,595,576 Franchise revenues — 4,910,528 — 4,910,528 Interest income — 82,777 — 82,777 Total 7,855,665 6,733,216 — 14,588,881 Operating expenses: Employee compensation and benefits 4,044,587 2,790,837 — 6,835,424 General and administrative expenses 1,627,876 745,142 604 2,373,622 Bad debts 205,668 74,020 — 279,688 Total 5,878,131 3,609,999 604 9,488,734 Adjusted EBITDA 1,977,534 3,123,217 (604 ) 5,100,147 Class B unit compensation — — — — Interest expense — — (995,402 ) (995,402 ) Depreciation and amortization (236,182 ) (100,753 ) — (336,935 ) Net income $ 1,741,352 $ 3,022,464 $ (996,006 ) $ 3,767,810 At March 31, 2018: Total Assets $ 10,407,528 $ 5,992,548 $ 5,803,368 $ 22,203,444 Corporate Channel Franchise Channel Other Total Three months ended March 31, 2017: Revenues: Commissions and fees $ 5,549,105 $ 812,741 $ — $ 6,361,846 Franchise revenues — 3,481,116 — 3,481,116 Interest income — 47,987 — 47,987 Total 5,549,105 4,341,844 — 9,890,949 Operating expenses: Employee compensation and benefits 2,850,691 2,016,956 — 4,867,647 General and administrative expenses 1,124,572 694,143 14,884 1,833,599 Bad debts 111,389 140,493 — 251,882 Total 4,086,652 2,851,592 14,884 6,953,128 Adjusted EBITDA 1,462,453 1,490,252 (14,884 ) 2,937,821 Other income (expense) — — — — Class B unit compensation — — — — Interest expense — — (532,715 ) (532,715 ) Depreciation and amortization (114,237 ) (23,420 ) — (137,657 ) Net income $ 1,348,216 $ 1,466,832 $ (547,599 ) $ 2,267,449 At March 31, 2017: Total Assets $ 3,269,874 $ 3,299,877 $ 3,433,388 $ 10,003,139 |
Pro Forma Earnings Per Share
Pro Forma Earnings Per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Pro Forma Earnings Per Share | Pro Forma Earnings Per Share Following the Offering, GSHD became the sole managing member of GF and, as a result, it consolidates and combines the financial results of GF. GSHD will report a non-controlling interest representing the economic interest in GF held by the other members of GF. Under the amended and restated Goosehead Financial, LLC Agreement, the Pre-IPO LLC Members will have the right, from and after the completion of the Offering (subject to the terms of the amended and restated Goosehead Financial, LLC Agreement), to require GSHD to redeem all or a portion of their LLC Units for, at GSHD's election, newly-issued shares of Class A common stock on a one -for-one basis or a cash payment equal to the volume weighted average market price of one share of GSHD's Class A common stock for each LLC Unit redeemed (subject to customary adjustments, including for stock splits, stock dividends and reclassifications) in accordance with the terms of the amended and restated Goosehead Financial, LLC Agreement. Additionally, in the event of a redemption request by a Pre-IPO LLC Member, GSHD may, at its option, effect a direct exchange of cash or Class A common stock for LLC Units in lieu of such a redemption. Shares of Class B common stock will be cancelled on a one -for-one basis if GSHD, at the election of a Pre-IPO LLC Member, redeems or exchanges LLC Units of such Pre-IPO LLC Member pursuant to the terms of the amended and restated Goosehead Financial, LLC Agreement. Except for transfers to GSHD pursuant to the amended and restated Goosehead Financial, LLC Agreement or to certain permitted transferees, the Pre-IPO LLC Members are not permitted to sell, transfer or otherwise dispose of any LLC Units or shares of Class B common stock. The following table summarizes the pro forma ownership interest in GF as of March 31, 2018 and December 31, 2017 . March 31, 2018 December 31, 2017 LLC Units Ownership % LLC Units Ownership % Pro forma number of LLC Units held by Goosehead Insurance, Inc. 13,533,267 37.3% 13,533,267 37.3% Pro forma number of LLC Units held by non-controlling interest holders 22,746,667 62.7% 22,746,667 62.7% Total pro forma number of LLC Units outstanding 36,279,934 100.0% 36,279,934 100.0% The weighted average ownership percentages for the applicable reporting periods are used to attribute net income to GSHD. and the non-controlling interest holders. The non-controlling interest holders' weighted average ownership percentage for the quarter ended March 31, 2018 and March 31, 2017 was 62.7% . The following table sets forth the calculation of pro forma basic EPS based on net income attributable to GSHD. divided by the pro forma basic weighted average number of Class A common stock. Three Months Ended March 31 2018 2017 Numerator: Net income $ 3,767,810 $ 2,267,449 Less: pro forma net income attributable to non-controlling interests 2,362,328 1,421,637 Pro forma income before taxes attributable to Goosehead Insurance, Inc. $ 1,405,482 $ 845,812 Less: pro forma income tax expense 336,332 202,403 Pro forma net income attributable to Goosehead Insurance Inc. 1,069,150 643,409 Denominator: Pro forma weighted average shares of Class A common stock outstanding 13,533,267 13,533,267 Pro forma earnings per share $ 0.08 $ 0.05 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Credit Agreement On April 4, 2018, GIH and the other loan parties amended and restated the credit agreement to permit the reorganization transactions undertaken in connection with the Offering and provide additional flexibility under the covenants contained therein following the Offering. There was no additional borrowing as part of the amended and restated credit agreement. The Offering In connection with the Offering on May 1, 2018, 9,809,500 shares of Class A common stock were issued by GSHD. at a price of $10.00 per share, which included 1,279,500 shares issued pursuant to the underwriter's over-allotment option. After the Offering, 13,533,267 shares of Class A common stock were outstanding, including 3,723,767 shares issued to historical owners of GM and TWIHG. Also on May 1, 2018, in connection with certain reorganization transactions immediately prior to the Offering, historical Class B interests in TWIHG and GM were deemed vested by converting to notes paid by a combination of Offering proceeds and shares of Class A common stock. This conversion changed the nature of the Class B interests from a profit sharing arrangement to a substantive class of equity and resulted in $6,231,910 recorded as compensation expense. On the same day, Class B interests in GF were deemed vested by converting, along with all pre-IPO Class A equity, on a one -to-one basis with the number of LLC units previously owned, to both LLC Units and shares of Class B common stock. This conversion changed the nature of the Class B interests from a profit sharing arrangement to a substantive class of equity, expensed under the guidance of ASC 718. At the Offering price of $10.00 per share, GSHD issued a total of 1,978,058 LLC Units and shares of Class B common stock and incurred compensation expense of $19,780,578 as part of the conversion. Tax Receivable Agreement GSHD entered into a tax receivable agreement with the Pre-IPO LLC Members on May 1, 2018 that provides for the payment by GSHD to the Pre-IPO LLC Members of 85% of the amount of cash savings, if any, in U.S. federal, state and local income tax or franchise tax that we actually realize as a result of (i) any increase in tax basis in GSHD's assets and (ii) tax benefits related to imputed interest deemed arising as a result of payments made under the tax receivable agreement. During the three months ended March 31, 2018 , no distributions or redemptions were made that triggered an increase in our tax basis. |
Summary of Significant Accoun17
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Combination | Basis of Combination In connection with the Offering, both Goosehead Management, LLC (“GM”) and Texas Wasatch Insurance Holdings Group LLC (“TWIHG”) became wholly owned indirect subsidiaries of GF. Both GM and TWIHG are non-operating holding companies created to receive management fees from the operating entities TWIS and GIA. All intercompany accounts and transactions have been eliminated in combination of the Company. |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated and combined financial statements of the Company have been prepared in accordance with the instructions to Form 10-Q. Therefore, they do not include all of the annual disclosures required by accounting principles generally accepted in the United States of America ("GAAP"). However, in the opinion of management, these statements include all adjustments, consisting of normal recurring adjustments, which are necessary for a fair presentation of the condensed consolidated and combined financial position at March 31, 2018 , and the condensed consolidated and combined results of operations, and cash flows for the periods ended March 31, 2018 and 2017 . The interim period condensed consolidated and combined financial statements should be read in conjunction with the Consolidated and Combined Financial Statements that are included in the Final Prospectus. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reported period. Accordingly, actual results could differ from those estimates as more information becomes known. |
Capitalized IPO Related Costs | Capitalized IPO Related Costs In connection with the Offering, the Company has incurred costs which have been recorded in other assets on the condensed consolidated and combined balance sheet. Upon completion of the Offering, these deferred costs were charged against the proceeds from the Offering with a corresponding reduction to additional paid-in capital. There were $3.2 million and $170 thousand of IPO related costs included in other assets at March 31, 2018 and December 31, 2017 , respectively. |
Income Taxes | Income Taxes Prior to the Offering, the Company was treated as a partnership for U.S. federal and applicable state and local income tax purposes. As a partnership, the Company's taxable income or loss was included in the taxable income of its members. Accordingly, no income tax expense has been recorded for federal and state and local jurisdictions. In connection with the Offering completed on May 1, 2018 , the Company became a taxable entity. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Statement of Cash Flows (ASU 2016-18) : This standard requires that the Statement of Cash Flows explain the changes during the period of cash and cash equivalents inclusive of amounts categorized as Restricted Cash. As such, upon adoption, the Company’s consolidated and combined statement of cash flows will show the sources and uses of cash that explain the movement in the balance of cash and cash equivalents, inclusive of restricted cash, over the period presented. As an emerging growth company (“EGC”), the standard will become effective for the Company January 1, 2019 . Statement of Cash Flows (ASU 2016-15) : This standard addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice in how certain cash receipts and cash payments are presented and classified and applies to all entities, including both business entities and not-for-profit entities that are required to present a statement of cash flows under Topic 230. The standard will become effective for the Company on January 1, 2019 . The Company has evaluated the impact of ASU 2016-15 and has determined the impact to be immaterial. The Company does not, at this time, engage in the activities being addressed. Revenue from Contracts with Customers (ASU 2014-09) : This standard supersedes the existing revenue recognition guidance and provides a new framework for recognizing revenue. The core principle of the standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The new standard also requires significantly more comprehensive disclosures than the existing standard. Guidance subsequent to ASU 2014-09 has been issued to clarify various provisions in the standard, including principal versus agent considerations, identifying performance obligations, licensing transactions, as well as various technical corrections and improvements. This standard may be adopted using either a retrospective or modified retrospective method. According to the superseding standard ASU 2015-14 that deferred the effective dates of the preceding, the standard will become effective for the Company January 1, 2019 . The Company is currently in the process of evaluating the impact this standard is expected to have on the consolidated and combined financial statements. As the Company continues the evaluation during 2018 , specifically as it relates to revenue recognition (commissions, contingent commissions, and franchise fees, among others), cost deferrals, systems and processes, the Company will further clarify the expected material impact of the adoption of the standard when known. Leases (ASU 2016-02) : This standard establishes a new lease accounting model, which introduces the recognition of lease assets and liabilities for those leases classified as operating leases under previous GAAP. It should be applied using a modified retrospective approach, with the option to elect various practical expedients. Early adoption is permitted. The standard will become effective for us January 1, 2020 . The Company is currently evaluating the impact this standard will have on the Company's consolidated and combined financial statements. |
Framework for Measuring Fair Value | The framework for measuring fair value provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy are described as follows: • Level 1—Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets. • Level 2—Significant other observable inputs other than Level 1 prices such as quoted prices in markets that are not active, quoted prices for similar assets or other inputs that are observable, either directly or indirectly, for substantially the full term of the asset. • Level 3—Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The asset or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. |
Franchise Fees Receivable (Tabl
Franchise Fees Receivable (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Schedule of Franchise Fees Receivable | The balance of Franchise fees receivable included in Receivable from franchisees consisted of the following at March 31, 2018 and December 31, 2017 : March 31 December 31 2018 2017 Franchise fees receivable $ 3,124,196 $ 2,501,000 Less: Unamortized discount (1,076,754 ) (823,391 ) Less: Allowance for uncollectible franchise fees (409,542 ) (335,522 ) $ 1,637,900 $ 1,342,087 Activity in the allowance for uncollectible agency fees was as follows: Balance at December 31, 2016 $ 166,681 Charges to bad debts 111,389 Write offs (133,068 ) Balance at March 31, 2017 $ 145,002 Balance at December 31, 2017 182,509 Charges to bad debts 205,668 Write offs (181,033 ) Balance at March 31, 2018 $ 207,144 |
Schedule of Allowance For Uncollectible Franchise Fees | Activity in the allowance for uncollectible franchise fees was as follows: Balance at December 31, 2016 $ 193,204 Charges to bad debts 140,493 Write offs (84,162 ) Balance at March 31, 2017 $ 249,535 Balance at December 31, 2017 335,522 Charges to bad debts 74,020 Write offs — Balance at March 31, 2018 $ 409,542 |
Allowance for Uncollectible A19
Allowance for Uncollectible Agency Fees (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Schedule of Allowance for Uncollectible Agency Fees | The balance of Franchise fees receivable included in Receivable from franchisees consisted of the following at March 31, 2018 and December 31, 2017 : March 31 December 31 2018 2017 Franchise fees receivable $ 3,124,196 $ 2,501,000 Less: Unamortized discount (1,076,754 ) (823,391 ) Less: Allowance for uncollectible franchise fees (409,542 ) (335,522 ) $ 1,637,900 $ 1,342,087 Activity in the allowance for uncollectible agency fees was as follows: Balance at December 31, 2016 $ 166,681 Charges to bad debts 111,389 Write offs (133,068 ) Balance at March 31, 2017 $ 145,002 Balance at December 31, 2017 182,509 Charges to bad debts 205,668 Write offs (181,033 ) Balance at March 31, 2018 $ 207,144 |
Note payable (Tables)
Note payable (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Note Payable | Maturities of note payable for the next five years are as follows: Amount As of March 31, 2018: 2018 $ 375,000 2019 500,000 2020 500,000 2021 500,000 2022 47,625,000 $ 49,500,000 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments | The following is a schedule of future minimum lease payments as of March 31, 2018 : Amount 2018 1,083,835 2019 1,251,306 2020 1,690,476 2021 1,761,524 2022 1,604,230 Thereafter 8,233,711 $ 15,625,082 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | Corporate Channel Franchise Channel Other Total Three months ended March 31, 2018: Revenues: Commissions and fees $ 7,855,665 $ 1,739,911 $ — $ 9,595,576 Franchise revenues — 4,910,528 — 4,910,528 Interest income — 82,777 — 82,777 Total 7,855,665 6,733,216 — 14,588,881 Operating expenses: Employee compensation and benefits 4,044,587 2,790,837 — 6,835,424 General and administrative expenses 1,627,876 745,142 604 2,373,622 Bad debts 205,668 74,020 — 279,688 Total 5,878,131 3,609,999 604 9,488,734 Adjusted EBITDA 1,977,534 3,123,217 (604 ) 5,100,147 Class B unit compensation — — — — Interest expense — — (995,402 ) (995,402 ) Depreciation and amortization (236,182 ) (100,753 ) — (336,935 ) Net income $ 1,741,352 $ 3,022,464 $ (996,006 ) $ 3,767,810 At March 31, 2018: Total Assets $ 10,407,528 $ 5,992,548 $ 5,803,368 $ 22,203,444 Corporate Channel Franchise Channel Other Total Three months ended March 31, 2017: Revenues: Commissions and fees $ 5,549,105 $ 812,741 $ — $ 6,361,846 Franchise revenues — 3,481,116 — 3,481,116 Interest income — 47,987 — 47,987 Total 5,549,105 4,341,844 — 9,890,949 Operating expenses: Employee compensation and benefits 2,850,691 2,016,956 — 4,867,647 General and administrative expenses 1,124,572 694,143 14,884 1,833,599 Bad debts 111,389 140,493 — 251,882 Total 4,086,652 2,851,592 14,884 6,953,128 Adjusted EBITDA 1,462,453 1,490,252 (14,884 ) 2,937,821 Other income (expense) — — — — Class B unit compensation — — — — Interest expense — — (532,715 ) (532,715 ) Depreciation and amortization (114,237 ) (23,420 ) — (137,657 ) Net income $ 1,348,216 $ 1,466,832 $ (547,599 ) $ 2,267,449 At March 31, 2017: Total Assets $ 3,269,874 $ 3,299,877 $ 3,433,388 $ 10,003,139 |
Pro Forma Earnings Per Share (T
Pro Forma Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Summary of Pro Forma Ownership Interest | The following table summarizes the pro forma ownership interest in GF as of March 31, 2018 and December 31, 2017 . March 31, 2018 December 31, 2017 LLC Units Ownership % LLC Units Ownership % Pro forma number of LLC Units held by Goosehead Insurance, Inc. 13,533,267 37.3% 13,533,267 37.3% Pro forma number of LLC Units held by non-controlling interest holders 22,746,667 62.7% 22,746,667 62.7% Total pro forma number of LLC Units outstanding 36,279,934 100.0% 36,279,934 100.0% |
Schedule of Calculation of Pro Forma Basic EPS | The following table sets forth the calculation of pro forma basic EPS based on net income attributable to GSHD. divided by the pro forma basic weighted average number of Class A common stock. Three Months Ended March 31 2018 2017 Numerator: Net income $ 3,767,810 $ 2,267,449 Less: pro forma net income attributable to non-controlling interests 2,362,328 1,421,637 Pro forma income before taxes attributable to Goosehead Insurance, Inc. $ 1,405,482 $ 845,812 Less: pro forma income tax expense 336,332 202,403 Pro forma net income attributable to Goosehead Insurance Inc. 1,069,150 643,409 Denominator: Pro forma weighted average shares of Class A common stock outstanding 13,533,267 13,533,267 Pro forma earnings per share $ 0.08 $ 0.05 |
Organization - Narrative (Detai
Organization - Narrative (Details) | May 01, 2018$ / sharesshares | Mar. 31, 2018locationfranchise | Mar. 31, 2017locationfranchise |
Subsidiary, Sale of Stock [Line Items] | |||
Corporate-owned locations | location | 7 | 4 | |
Franchise locations sold | 58 | 38 | |
Operating franchise locations | 341 | 220 | |
Franchises purchased | 0 | 0 | |
Initial Public Offering | Subsequent Event | Class A Common Stock | |||
Subsidiary, Sale of Stock [Line Items] | |||
Shares issued (in shares) | shares | 9,809,500 | ||
Share price (in dollars per share) | $ / shares | $ 10 | ||
Over-Allotment Option | Subsequent Event | Class A Common Stock | |||
Subsidiary, Sale of Stock [Line Items] | |||
Shares issued (in shares) | shares | 1,279,500 | ||
Goosehead Insurance Holding, LLC | Goosehead Insurance Agency, LLC | |||
Subsidiary, Sale of Stock [Line Items] | |||
Ownership interest | 100.00% | ||
Goosehead Insurance Holding, LLC | Texas Wasatch Insurance Services, L.P. | |||
Subsidiary, Sale of Stock [Line Items] | |||
Ownership interest | 99.60% |
Summary of Significant Accoun25
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | ||
IPO related costs included in other assets | $ 3,200 | $ 170 |
Franchise Fees Receivable - Bal
Franchise Fees Receivable - Balance of Franchise Fees Receivable (Details) - Franchise Fees Receivable - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Franchise fees receivable | $ 3,124,196 | $ 2,501,000 | ||
Less: Unamortized discount | (1,076,754) | (823,391) | ||
Less: Allowance for uncollectible franchise fees | (409,542) | (335,522) | $ (249,535) | $ (193,204) |
Net franchise fees receivable | $ 1,637,900 | $ 1,342,087 |
Franchise Fees Receivable - Rol
Franchise Fees Receivable - Roll-Forward of Allowance (Details) - Franchise Fees Receivable - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Beginning balance | $ 335,522 | $ 193,204 |
Charges to bad debts | 74,020 | 140,493 |
Write offs | 0 | (84,162) |
Ending balance | $ 409,542 | $ 249,535 |
Allowance for Uncollectible A28
Allowance for Uncollectible Agency Fees - Roll-Forward of Allowance (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||
Charges to bad debts | $ 279,688 | $ 251,882 |
Agency Fees | ||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||
Beginning balance | 182,509 | 166,681 |
Charges to bad debts | 205,668 | 111,389 |
Write offs | (181,033) | (133,068) |
Ending balance | $ 207,144 | $ 145,002 |
Notes Receivable - Narrative (D
Notes Receivable - Narrative (Details) - Notes Receivable - USD ($) | Dec. 14, 2015 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Note receivable, face amount | $ 100,000 | |||
Note receivable, term | 5 years | |||
Notes receivable, interest rate | 7.00% | |||
Notes receivable | $ 61,000 | $ 67,000 | ||
Notes receivable, current | $ 22,000 | $ 22,000 |
Note payable - Narrative (Detai
Note payable - Narrative (Details) - USD ($) | Oct. 27, 2016 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||||
Note payable outstanding | $ 49,500,000 | |||
Long-term debt, current | 500,000 | $ 500,000 | ||
Loan origination fees | 49,300 | $ 33,000 | ||
Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Letter of credit | $ 500,000 | $ 500,000 | ||
Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Note payable | $ 50,000,000 | |||
Installment payment | 125,000 | |||
Balloon payment | $ 47,250,000 | |||
Effective interest rate | 7.20% | 6.45% | ||
Note payable outstanding | $ 49,500,000 | $ 49,625,000 | ||
Long-term debt, current | 500,000 | 500,000 | ||
Unamortized capitalized loan origination fees | 920,267 | 969,567 | ||
Loan origination fees | 49,300 | 33,000 | ||
Secured Debt | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 5.50% | |||
Revolving Credit Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing availability | $ 3,000,000 | |||
Remaining borrowing availability | 2,500,000 | $ 2,500,000 | ||
Interest paid | $ 0 | $ 0 | ||
Revolving Credit Facility | Line of Credit | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 5.50% | |||
Letter of Credit | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 5.50% | 5.50% |
Note payable - Schedule of Matu
Note payable - Schedule of Maturities of Note Payable (Details) $ in Thousands | Mar. 31, 2018USD ($) |
Debt Disclosure [Abstract] | |
2,018 | $ 375 |
2,019 | 500 |
2,020 | 500 |
2,021 | 500 |
2,022 | 47,625 |
Note payable outstanding | $ 49,500 |
Commitments And Contingencies -
Commitments And Contingencies - Narrative (Details) | Mar. 31, 2018USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,018 | $ 1,083,835 |
2,019 | 1,251,306 |
2,020 | 1,690,476 |
2,021 | 1,761,524 |
2,022 | 1,604,230 |
Thereafter | 8,233,711 |
Future minimum payments | $ 15,625,082 |
Segment Information - Schedule
Segment Information - Schedule of Segment Information (Details) | 3 Months Ended | ||
Mar. 31, 2018USD ($)segment | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | |
Segment Reporting [Abstract] | |||
Number of reportable segments | segment | 2 | ||
Revenues: | |||
Revenues | $ 14,588,881 | $ 9,890,949 | |
Operating Expenses: | |||
Employee compensation and benefits | 6,835,424 | 4,867,647 | |
General and administrative expenses | 2,373,622 | 1,833,599 | |
Bad debts | 279,688 | 251,882 | |
Total operating expenses | 9,488,734 | 6,953,128 | |
Adjusted EBITDA | 5,100,147 | 2,937,821 | |
Other income (expense) | 0 | ||
Class B unit compensation | 0 | 0 | |
Interest expense | (995,402) | (532,715) | |
Depreciation and amortization | (336,935) | (137,657) | |
Net Income | 3,767,810 | 2,267,449 | |
Total Assets | 22,203,444 | 10,003,139 | $ 16,706,669 |
Operating Segments | Corporate Channel | |||
Revenues: | |||
Revenues | 7,855,665 | 5,549,105 | |
Operating Expenses: | |||
Employee compensation and benefits | 4,044,587 | 2,850,691 | |
General and administrative expenses | 1,627,876 | 1,124,572 | |
Bad debts | 205,668 | 111,389 | |
Total operating expenses | 5,878,131 | 4,086,652 | |
Adjusted EBITDA | 1,977,534 | 1,462,453 | |
Other income (expense) | 0 | ||
Class B unit compensation | 0 | 0 | |
Interest expense | 0 | 0 | |
Depreciation and amortization | (236,182) | (114,237) | |
Net Income | 1,741,352 | 1,348,216 | |
Total Assets | 10,407,528 | 3,269,874 | |
Operating Segments | Franchise Channel | |||
Revenues: | |||
Revenues | 6,733,216 | 4,341,844 | |
Operating Expenses: | |||
Employee compensation and benefits | 2,790,837 | 2,016,956 | |
General and administrative expenses | 745,142 | 694,143 | |
Bad debts | 74,020 | 140,493 | |
Total operating expenses | 3,609,999 | 2,851,592 | |
Adjusted EBITDA | 3,123,217 | 1,490,252 | |
Other income (expense) | 0 | ||
Class B unit compensation | 0 | 0 | |
Interest expense | 0 | 0 | |
Depreciation and amortization | (100,753) | (23,420) | |
Net Income | 3,022,464 | 1,466,832 | |
Total Assets | 5,992,548 | 3,299,877 | |
Other | |||
Revenues: | |||
Revenues | 0 | 0 | |
Operating Expenses: | |||
Employee compensation and benefits | 0 | 0 | |
General and administrative expenses | 604 | 14,884 | |
Bad debts | 0 | 0 | |
Total operating expenses | 604 | 14,884 | |
Adjusted EBITDA | (604) | (14,884) | |
Other income (expense) | 0 | ||
Class B unit compensation | 0 | 0 | |
Interest expense | (995,402) | (532,715) | |
Depreciation and amortization | 0 | 0 | |
Net Income | (996,006) | (547,599) | |
Total Assets | 5,803,368 | 3,433,388 | |
Commissions and agency fees | |||
Revenues: | |||
Revenues | 9,595,576 | 6,361,846 | |
Commissions and agency fees | Operating Segments | Corporate Channel | |||
Revenues: | |||
Revenues | 7,855,665 | 5,549,105 | |
Commissions and agency fees | Operating Segments | Franchise Channel | |||
Revenues: | |||
Revenues | 1,739,911 | 812,741 | |
Commissions and agency fees | Other | |||
Revenues: | |||
Revenues | 0 | 0 | |
Franchise revenues | |||
Revenues: | |||
Revenues | 4,910,528 | 3,481,116 | |
Franchise revenues | Operating Segments | Corporate Channel | |||
Revenues: | |||
Revenues | 0 | 0 | |
Franchise revenues | Operating Segments | Franchise Channel | |||
Revenues: | |||
Revenues | 4,910,528 | 3,481,116 | |
Franchise revenues | Other | |||
Revenues: | |||
Revenues | 0 | 0 | |
Interest income | |||
Revenues: | |||
Revenues | 82,777 | 47,987 | |
Interest income | Operating Segments | Corporate Channel | |||
Revenues: | |||
Revenues | 0 | 0 | |
Interest income | Operating Segments | Franchise Channel | |||
Revenues: | |||
Revenues | 82,777 | 47,987 | |
Interest income | Other | |||
Revenues: | |||
Revenues | $ 0 | $ 0 |
Pro Forma Earnings Per Share -
Pro Forma Earnings Per Share - Pro Forma Ownership Interest (Details) | May 01, 2018 | Mar. 31, 2018shares | Dec. 31, 2017shares | Mar. 31, 2017 |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Pro forma number of LLC Units outstanding (in shares) | 36,279,934 | 36,279,934 | ||
Subsequent Event | LLC Units | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Conversion ratio | 1 | |||
Pro Forma | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Ownership interest held by Goosehead Insurance, Inc. | 37.30% | 37.30% | ||
Ownership interest held by non-controlling interest holders | 62.70% | 62.70% | 62.70% | |
Ownership interest | 100.00% | 100.00% | ||
Parent | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Pro forma number of LLC Units outstanding (in shares) | 13,533,267 | 13,533,267 | ||
Noncontrolling Interest | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Pro forma number of LLC Units outstanding (in shares) | 22,746,667 | 22,746,667 |
Pro Forma Earnings Per Share 35
Pro Forma Earnings Per Share - Pro Forma Basic EPS (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Pro forma earnings per share: | ||
Net income | $ 3,767,810 | $ 2,267,449 |
Pro forma weighted average shares of Class A common stock outstanding (in shares) | 13,533,267 | 13,533,267 |
Pro forma earnings per share (in dollars per share) | $ 0.08 | $ 0.05 |
Pro Forma | ||
Pro forma earnings per share: | ||
Less: pro forma net income attributable to non-controlling interests | $ 2,362,328 | $ 1,421,637 |
Pro forma income before taxes attributable to Goosehead Insurance, Inc. | 1,405,482 | 845,812 |
Less: pro forma income tax expense | 336,332 | 202,403 |
Pro forma net income attributable to Goosehead Insurance Inc. | $ 1,069,150 | $ 643,409 |
Subsequent Events - Narrative (
Subsequent Events - Narrative (Details) | May 01, 2018USD ($)$ / sharesshares | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | May 02, 2018shares |
Subsequent Event [Line Items] | ||||
Class B unit compensation | $ | $ 0 | $ 0 | ||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Percentage of cash savings of tax receivable due to Pre-IPO LLC Members | 85.00% | |||
Class A Common Stock | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Shares outstanding (in shares) | 13,533,267 | |||
Class B Common Stock | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Class B unit compensation | $ | $ 6,231,910 | |||
LLC Units and Common Class B | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Shares issued (in shares) | 1,978,058 | |||
Class B unit compensation | $ | $ 19,780,578 | |||
Conversion ratio | 1 | |||
Initial Public Offering | Class A Common Stock | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Shares issued (in shares) | 9,809,500 | |||
Share price (in dollars per share) | $ / shares | $ 10 | |||
Over-Allotment Option | Class A Common Stock | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Shares issued (in shares) | 1,279,500 | |||
GM and TWIHG | Class A Common Stock | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Shares outstanding (in shares) | 3,723,767 |