Goosehead Insurance, Inc. Announces Fourth Quarter and Full Year 2023 Results

– Total Revenue Increased 25% for the year to $261.3 million –

– Core Revenue Grew 24% for the year to $233.0 million –

– Total Written Premium in 2023 Increased 34% to $3.0 billion –

– 2023 Net Income of $23.7 million versus $2.6 million in 2022 –

– Adjusted EBITDA in 2023 up 90% to $69.8 million –

WESTLAKE, Texas, Feb. 21, 2024 (GLOBE NEWSWIRE) -- Goosehead Insurance, Inc. ("Goosehead" or the "Company") (NASDAQ:GSHD), a rapidly growing independent personal lines insurance agency, today announced results for the fourth quarter and year ended December 31, 2023.

Fourth Quarter 2023 Highlights

• Total Revenues grew 10% over the prior-year period to $63.0 million in the fourth quarter of 2023
• Fourth quarter Core Revenues* of $56.9 million increased 10% over the prior-year period
• Fourth quarter net income of $5.4 million improved from net income of $2.6 million a year ago. EPS of $0.15 per share increased 650% and adjusted EPS* of $0.28 per share increased 155%, over the prior-year period
• Net income margin for the fourth quarter was 9%
• Adjusted EBITDA* of $14.1 million increased from $11.9 million in the prior-year period
• Adjusted EBITDA Margin* increased 1 percentage points over the prior-year period to 22%
• Total written premiums placed for the fourth quarter increased 29% over the prior-year period to $756.1 million
• Policies in force grew 16% from the prior-year period to approximately 1,486,000

^*Core Revenue, Adjusted EPS, Adjusted EBITDA, and Adjusted EBITDA Margin are non-GAAP measures. Reconciliations of Core Revenue to total revenues, Adjusted EPS to basic earnings per share and Adjusted EBITDA to net income, the most directly comparable financial measures presented in accordance with GAAP, are set forth in the reconciliation table accompanying this release.

"We had a tremendous 2023 with premium growth of 34%, total revenue growth of 25%, Core revenue growth of 24%, and EBITDA growth of 90% with margin expansion of 900 basis points to 27%," stated Mark E. Jones, Chairman and CEO. "Our overall results this year unfolded according to plan as we have successfully implemented strategic changes to improve productivity and increase earnings power. The results of our Corporate sales leadership reorganization in late 2022, followed by consolidating Franchise leadership with Corporate in Q4 2023 drove very large productivity gains. The next phase of our execution will be driving accelerating new business production growth in 2024, particularly in our Franchise network and adding meaningfully to our overall productive capacity which should spring load into accelerating revenue and earnings growth in 2025 and beyond. We will be driving this improved growth on a significantly higher and expanding profitability base, further enhancing our competitive moat and positioning us well to execute on our long term objective of personal lines industry leadership."

Fourth Quarter 2023 Results

For the fourth quarter of 2023, revenues were $63.0 million, an increase of 10% compared to the corresponding period in 2022. Core Revenues, a non-GAAP measure which excludes contingent commissions, initial franchise fees, interest income, and other income, were $56.9 million, a 10% increase from $51.8 million in the prior-year period. 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 Revenue growth was driven by improved productivity, strong client retention of 86%, and rising premium rates. The Company grew total written premiums, which we consider to be the leading indicator of future revenue growth, by 29% in the fourth quarter.

Total operating expenses, excluding equity-based compensation, depreciation and amortization and impairment expenses, for the fourth quarter of 2023 were $48.9 million, up 7% from $45.5 million in the prior-year period. The increase from the prior period was due to increased employee compensation and benefits expenses related to investments in partnership, technology, marketing, and service functions. Equity-based compensation increased to $5.0 million for the period, compared to $3.3 million a year ago. Bad debt expense of $1.0 million decreased from $1.4 million a year ago due to reduced terminations of signed franchises that have yet to launch. General and administrative expenses are also higher versus a year ago due to investments in technology, systems and marketing efforts to drive growth and continue to improve the client experience.

Net income in the fourth quarter of 2023 was $5.4 million versus net income of $2.6 million a year ago, with the improvement due to strong revenue growth and expense discipline. Earnings per share and Net Income Margin for the fourth quarter of 2023 were $0.15 and 9%, respectively. Adjusted EPS for the fourth quarter of 2023, which excludes equity-based compensation and impairment expense, was $0.28 per share. Total Adjusted EBITDA was $14.1 million for the fourth quarter of 2023 compared to $11.9 million in the prior-year period. Adjusted EBITDA Margin of 22% was up 1 percentage point in the quarter.

Liquidity and Capital Resources

As of December 31, 2023, the Company had cash and cash equivalents of $44.0 million. We had an unused line of credit of $49.8 million as of December 31, 2023. Total outstanding term note payable balance was $77.5 million as of December 31, 2023.

2024 Outlook

Our guidance for the full year 2024 is as follows:

• Total written premiums placed are expected to be between $3.70 billion and $3.85 billion representing 25% organic growth on the low end of the range, and 30% organic growth on the high end of the range.
• Total revenues are expected to be between $310 million and $320 million representing 19% organic growth on the low end of the range and 22% organic growth on the high end of the range.
• Contingent commissions for 2024 are expected to be approximately 35 basis points of total written premiums.
• Adjusted EBITDA Margin is expected to expand for the full year 2024.

Conference Call Information

Goosehead will host a conference call and webcast today at 4:30 PM ET to discuss these results.

To access the call by phone, participants should go to this link (registration link), and you will be provided with the dial in details.

In addition, a live webcast of the conference call will also be available on Goosehead's investor relations website at http://ir.goosehead.com.

A webcast replay of the call will be available at http://ir.goosehead.com for one year following the call.

About Goosehead

Goosehead (NASDAQ:GSHD) is a rapidly growing and innovative independent personal lines insurance agency that distributes its products and services through corporate and franchise locations 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. Goosehead represents over 150 insurance companies that underwrite personal and commercial lines. For more information, please visit goosehead.com or goosehead.com/become-a-franchisee.

Forward-Looking Statements

This press release may contain various "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which represent Goosehead's expectations or beliefs concerning future events. Forward-looking statements are statements other than historical facts and may include statements that address future operating, financial or business performance or Goosehead's strategies or expectations. In some cases, you can identify these statements by forward-looking words such as "may", "might", "will", "should", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "projects", "potential", "outlook" or "continue", or the negative of these terms or other comparable terminology. Forward-looking statements are based on management's current expectations and beliefs and involve significant risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those contemplated by these statements.

Factors that could cause actual results or performance to differ from the expectations expressed or implied in such forward-looking statements include, but are not limited to, conditions impacting insurance carriers or other parties with which Goosehead does business, the loss of one or more key executives or an inability to attract and retain qualified personnel and the failure to attract and retain highly qualified franchisees. These risks and uncertainties also include, but are not limited to, those described under the captions "1A. Risk Factors" in Goosehead's Annual Report on Form 10-K for the year ended December 31, 2023 and in Goosehead's other filings with the SEC, which are available free of charge on the Securities Exchange Commission's website at: www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated. All forward-looking statements and all subsequent written and oral forward-looking statements attributable to Goosehead or to persons acting on behalf of Goosehead are expressly qualified in their entirety by reference to these risks and uncertainties. You should not place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made, and Goosehead does not undertake any obligation to update them in light of new information, future developments or otherwise, except as may be required under applicable law.

Contacts

Investor Contact:

Dan Farrell

Goosehead Insurance - VP Capital Markets

Phone: (214) 838-5290

Email: [email protected]; [email protected];

PR Contact:

Mission North for Goosehead Insurance

Email: [email protected]; [email protected]

Goosehead Insurance, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

(In thousands, except per share amounts)

		Three Months Ended December 31,								Twelve Months Ended December 31,
			2023				2022				2023				2022
Revenues:
Commissions and agency fees		$	27,424			$	26,589			$	116,061			$	100,265
Franchise revenues			35,282				30,423				143,772				107,722
Interest income			308				391				1,443				1,403
Total revenues			63,014				57,403				261,276				209,390
Operating Expenses:
Employee compensation and benefits			38,803				33,822				152,604				133,293
General and administrative expenses			14,092				13,529				62,111				52,887
Bad debts			1,009				1,436				4,361				6,198
Depreciation and amortization			2,427				1,841				9,244				6,884
Total operating expenses			56,331				50,628				228,320				199,262
Income from operations			6,683				6,775				32,956				10,128
Other Income:
Interest expense			(1,511	)			(1,588	)			(6,568	)			(4,999	)
Income before taxes			5,172				5,187				26,388				5,129
Tax expense (benefit)			(252	)			2,603				2,692				2,499
Net Income			5,423				2,584				23,696				2,630
Less: net income attributable to non-controlling interests			1,803				2,083				9,556				2,065
Net Income attributable to Goosehead Insurance, Inc.		$	3,620			$	501			$	14,140			$	565
Earnings per share:
Basic		$	0.15			$	0.02			$	0.59			$	0.03
Diluted		$	0.14			$	0.02			$	0.55			$	0.03
Weighted average shares of Class A common stock outstanding:
Basic			24,688				22,373				23,929				20,995
Diluted			25,516				23,900				38,356				21,773

Goosehead Insurance, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

(In thousands, except per share amounts)

		Three Months Ended December 31,								Twelve Months Ended December 31,
			2023				2022				2023				2022
Revenues:
Core Revenue:
Renewal Commissions(1)		$	17,335			$	16,310			$	70,730			$	57,543
Renewal Royalty Fees(2)			27,180				22,900				107,524				77,346
New Business Commissions(1)			5,512				5,814				23,411				24,126
New Business Royalty Fees(2)			5,349				4,402				23,168				18,244
Agency Fees(1)			1,532				2,421				8,174				10,912
Total Core Revenue			56,908				51,847				233,007				188,171
Cost Recovery Revenue:
Initial Franchise Fees(2)			2,458				2,910				11,238				10,853
Interest Income			308				391				1,443				1,403
Total Cost Recovery Revenue			2,766				3,301				12,681				12,256
Ancillary Revenue:
Contingent Commissions(1)			3,045				2,044				13,746				7,684
Other Franchise Revenues(2)			295				211				1,843				1,279
Total Ancillary Revenue			3,340				2,255				15,588				8,963
Total Revenues			63,014				57,403				261,276				209,390
Operating Expenses:
Employee compensation and benefits, excluding equity-based compensation			33,765				30,536				128,615				113,651
General and administrative expenses, excluding impairment			14,092				13,529				58,483				52,887
Bad debts			1,009				1,436				4,361				6,198
Total			48,866				45,501				191,459				172,736
Adjusted EBITDA			14,148				11,902				69,817				36,654
Adjusted EBITDA Margin			22	%			21	%			27	%			18	%
Interest expense			(1,511	)			(1,588	)			(6,568	)			(4,999	)
Depreciation and amortization			(2,427	)			(1,841	)			(9,244	)			(6,884	)
Tax (expense) benefit			252				(2,603	)			(2,692	)			(2,499	)
Equity-based compensation			(5,038	)			(3,286	)			(23,989	)			(19,642	)
Impairment expense			—				—				(3,628	)			—
Net Income		$	5,424			$	2,584			$	23,696			$	2,630
Net Income Margin			9	%			5	%			9	%			1	%

(1) Renewal Commissions, New Business Commissions, Agency Fees, and Contingent Commissions are included in "Commissions and agency fees" as shown on the Condensed Consolidated Statements of Operations within Goosehead's Form 10-K for the three and twelve months ended December 31, 2023 and 2022.

(2) Renewal Royalty Fees, New Business Royalty Fees, Initial Franchise Fees, and Other Franchise Revenues are included in "Franchise revenues" as shown on the Condensed Consolidated Statements of Operations within Goosehead's Form 10-K for the three and twelve months ended December 31, 2023 and 2022.

Goosehead Insurance, Inc.

Condensed Consolidated Balance Sheets

(Unaudited) 

(In thousands, except par value amounts)

		December 31,
			2023				2022
Assets
Current Assets:
Cash and cash equivalents		$	41,956			$	28,743
Restricted cash			2,091				1,644
Commissions and agency fees receivable, net			12,903				14,440
Receivable from franchisees, net			9,720				4,932
Prepaid expenses			7,889				4,334
Total current assets			74,559				54,093
Receivable from franchisees, net of current portion			9,269				23,835
Property and equipment, net of accumulated depreciation			30,316				35,347
Right-of-use asset			38,406				44,080
Intangible assets, net of accumulated amortization			17,266				4,487
Deferred income taxes, net			181,209				155,318
Other assets			3,867				4,193
Total assets		$	354,892			$	321,353
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable and accrued expenses		$	16,398			$	15,958
Premiums payable			2,091				1,644
Lease liability			8,897				6,627
Contract liabilities			4,129				6,031
Note payable			9,375				6,875
Total current liabilities			40,890				37,135
Lease liability, net of current portion			57,382				64,947
Note payable, net of current portion			67,562				86,711
Contract liabilities, net of current portion			22,970				40,522
Liabilities under tax receivable agreement			149,302				125,662
Total liabilities			338,106				354,977
Class A common stock, $0.01 par value per share 300,000 shares authorized, 24,966 shares issued and outstanding as of December 31, 2023, 23,034 issued and outstanding as of December 31, 2022			250				228
Class B common stock, $0.01 par value per share - 50,000 shares authorized, 12,954 issued and outstanding as of December 31, 2023, 14,471 issued and outstanding as of December 31, 2022			130				146
Additional paid in capital			103,228				70,866
Accumulated deficit			(47,056	)			(60,570	)
Total stockholders' equity			56,552				10,670
Non-controlling interests			(39,766	)			(44,294	)
Total equity			16,786				(33,624	)
Total liabilities and equity		$	354,892			$	321,353

Goosehead Insurance, Inc.

Reconciliation Non-GAAP Measures to GAAP

This release includes Core Revenue, Cost Recovery Revenue, Ancillary Revenue, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted EPS that are not required by, nor presented in accordance with, generally accepted accounting principles in the United States ("GAAP"). The Company refers to these measures as "non-GAAP financial measures." The Company uses these non-GAAP financial measures when planning, monitoring and evaluating its performance and considers these non-GAAP financial measures to be useful metrics for management and investors to facilitate operating performance comparisons from period to period by excluding potential differences caused by variations in capital structures, tax position, depreciation, amortization and certain other items that the Company believes are not representative of its core business. The Company uses Core Revenue, Cost Recovery Revenue, Ancillary Revenue, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted EPS for business planning purposes and in measuring its performance relative to that of its competitors.

These non-GAAP financial measures are defined by the Company as follows:

• "Core Revenue" is a supplemental measure of our performance and includes Renewal Commissions, Renewal Royalty Fees, New Business Commissions, New Business Royalty Fees, and Agency Fees. We believe that Core Revenue is an appropriate measure of operating performance because it summarizes all of our revenues from sales of individual insurance policies.
• "Cost Recovery Revenue" is a supplemental measure of our performance and includes Initial Franchise Fees and Interest Income. We believe that Cost Recovery Revenue is an appropriate measure of operating performance because it summarizes revenues that are viewed by management as cost recovery mechanisms.
• "Ancillary Revenue" is a supplemental measure of our performance and includes Contingent Commissions and Other Income. We believe that Ancillary Revenue is an appropriate measure of operating performance because it summarizes revenues that are ancillary to our core business.
• "Adjusted EBITDA" is a supplemental measure of the Company's performance. We believe that Adjusted EBITDA is an appropriate measure of operating performance because it eliminates the impact of items that do not relate to business performance. Adjusted EBITDA is defined as net income (the most directly comparable GAAP measure) before interest, income taxes, depreciation and amortization, adjusted to exclude equity-based compensation and other non-operating items, including, among other things, certain non-cash charges and certain non-recurring or non-operating gains or losses.
• "Adjusted EBITDA Margin" is Adjusted EBITDA as defined above, divided by total revenue excluding other non-operating items. Adjusted EBITDA Margin is helpful in measuring profitability of operations on a consolidated level.
• "Adjusted EPS" is a supplemental measure of our performance, defined as earnings per share (the most directly comparable GAAP measure) before non-recurring or non-operating income and expenses. Adjusted EPS is a useful measure to management because it eliminates the impact of items that do not relate to business performance and helps measure our profitability on a consolidated level.

While the Company believes that these non-GAAP financial measures are useful in evaluating its business, this information should be considered as supplemental in nature and is not meant as a substitute for revenues, net income, or earnings per share, in each case as recognized in accordance with GAAP. In addition, other companies, including companies in the Company's industry, may calculate such measures differently, which reduces their usefulness as comparative measures.

The following tables show a reconciliation from total revenues to Core Revenue, Cost Recovery Revenue, and Ancillary Revenue (non-GAAP basis) for the three and twelve months ended December 31, 2023 and 2022 (in thousands):

	Three Months Ended December 31,						Twelve Months Ended December 31,
		2023			2022			2023			2022
Total Revenues	$	63,014		$	57,403		$	261,276		$	209,390
Core Revenue:
Renewal Commissions(1)	$	17,335		$	16,310		$	70,730		$	57,543
Renewal Royalty Fees(2)		27,180			22,900			107,524			77,346
New Business Commissions(1)		5,512			5,814			23,411			24,126
New Business Royalty Fees(2)		5,349			4,402			23,168			18,244
Agency Fees(1)		1,532			2,421			8,174			10,912
Total Core Revenue		56,908			51,847			233,007			188,171
Cost Recovery Revenue:
Initial Franchise Fees(2)		2,458			2,910			11,238			10,853
Interest Income		308			391			1,443			1,403
Total Cost Recovery Revenue		2,766			3,301			12,681			12,256
Ancillary Revenue:
Contingent Commissions(1)		3,045			2,044			13,746			7,684
Other Franchise Revenues(2)		295			211			1,843			1,279
Total Ancillary Revenue		3,340			2,255			15,588			8,963
Total Revenues	$	63,014		$	57,403		$	261,276		$	209,390

(1) Renewal Commissions, New Business Commissions, Agency Fees, and Contingent Commissions are included in "Commissions and agency fees" as shown on the Condensed Consolidated Statements of Operations.

(2) Renewal Royalty Fees, New Business Royalty Fees, Initial Franchise Fees, and Other Franchise Revenues are included in "Franchise revenues" as shown on the Condensed Consolidated Statements of Operations.

The following tables show a reconciliation from net income to Adjusted EBITDA and Adjusted EBITDA Margin (non-GAAP basis) for the three and twelve months ended December 31, 2023 and 2022 (in thousands):

		Three Months Ended December 31,								Twelve Months Ended December 31,
			2023				2022				2023				2022
Net Income		$	5,424			$	2,584			$	23,696			$	2,630
Interest expense			1,511				1,588				6,568				4,999
Depreciation and amortization			2,427				1,841				9,244				6,884
Tax expense (benefit)			(252	)			2,603				2,692				2,499
Equity-based compensation			5,038				3,286				23,989				19,642
Impairment expense			—				—				3,628				—
Other (income) expense			—				—				—				—
Adjusted EBITDA		$	14,148			$	11,902			$	69,817			$	36,654
Net Income Margin(1)			9	%			5	%			9	%			1	%
Adjusted EBITDA Margin(2)			22	%			21	%			27	%			18	%

(1) Net Income Margin is calculated as Net Income divided by Total Revenue ($5,424/$63,014) and ($2,584/$57,403) for the three months ended December 31, 2023 and 2022. Net Income Margin is calculated as Net Income divided by Total Revenue ($23,696/$261,276) and ($2,630/$209,390) for the twelve months ended December 31, 2023 and 2022.

(2) Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by Total Revenue ($14,148/$63,014), and ($11,902/$57,403) for the three months ended December 31, 2023 and 2022, respectively. Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by Total Revenue ($69,817/$261,276), and ($36,654/$209,390) for the twelve months ended December 31, 2023 and 2022.

The following tables show a reconciliation from basic earnings per share to Adjusted EPS (non-GAAP basis) for the three and twelve months ended December 31, 2023 and 2022. Note that totals may not sum due to rounding:

		Three Months Ended December 31,						Twelve Months Ended December 31,
			2023			2022			2023			2022
Earnings per share - basic (GAAP)		$	0.15		$	0.02		$	0.59		$	0.03
Add: equity-based compensation(1)			0.13			0.09			0.64			0.52
Add: impairment expense(2)			—			—			0.10			—
Adjusted EPS (non-GAAP)		$	0.28		$	0.11		$	1.33		$	0.55

(1) Calculated as equity-based compensation divided by sum of weighted average Class A and Class B shares [$5.0 million/(24.7 million + 13.2 million)] for the three months ended December 31, 2023 and [$3.3 million/ (22.4 million + 15.0 million)] for the three months ended December 31, 2022. Calculated as equity-based compensation divided by sum of weighted average Class A and Class B shares [$24.0 million/(23.9 million + 13.8 million)] for the twelve months ended December 31, 2023 and [$19.6 million/ (21.0 million + 16.2 million)] for the twelve months ended December 31, 2022.

(2) Calculated as impairment expense divided by sum of weighted average Class A and Class B shares [$3.6 million/(23.9 million + 13.8 million)] for the twelve months ended December 31, 2023. No impairment was recorded for the three months ended December 31, 2023, three months ended December 31, 2022 nor the twelve months ended December 31, 2022.

Goosehead Insurance, Inc.

Key Performance Indicators

		December 31, 2023				December 31, 2022
Corporate sales agents < 1 year tenured			135				165
Corporate sales agents > 1 year tenured			165				155
Operating franchises < 1 year tenured			183				472
Operating franchises > 1 year tenured			1,043				941
Total Franchise Producers			1,957				2,101
QTD Corporate Agent Productivity < 1 Year(1)		$	13,789			$	13,241
QTD Corporate Agent Productivity > 1 Year(1)		$	25,738			$	27,228
QTD Franchise Productivity < 1 Year(2)		$	10,975			$	8,481
QTD Franchise Productivity > 1 Year(2)		$	21,103			$	18,059
Policies in Force			1,486,000				1,284,000
Client Retention			86	%			88	%
Premium Retention			101	%			100	%
QTD Written Premium (in thousands)		$	756,082			$	584,575
Net Promoter Score ("NPS")			92				90

(1) - Corporate Productivity is New Business Production per Agent (Corporate): The New Business Revenue collected related to corporate sales, divided by the average number of full-time corporate sales agents for the same period. This calculation excludes interns, part-time sales agents and partial full-time equivalent sales managers.

(2) - Franchise Productivity is New Business Production per Agent (Franchise): The gross commissions paid by Carriers and Agency Fees received related to policies in their first term sold by franchise sales agents divided by the average number of franchise sales agents for the same period prior to paying Royalty Fees to the Company.

Goosehead Insurance, Inc.

Supplemental Disclosure

		Q4 2023			Q3 2023			Q2 2023			Q1 2023			Q4 2022			Q3 2022			Q2 2022			Q1 2022
Corporate sales agents < 1 year tenured			135			132			146			117			165			241			312			297
Corporate sales agents > 1 year tenured			165			184			134			159			155			170			191			193
Operating franchises < 1 year tenured			183			254			348			426			472			465			421			383
Operating franchises > 1 year tenured			1,043			1,031			996			961			941			938			923			885
Total Franchise Producers			1,957			2,008			2,069			2,098			2,101			2,102			2,005			1,912
Corporate Agent Productivity < 1 Year(1)		$	13,789		$	16,266		$	23,664		$	19,747		$	13,241		$	12,206		$	13,935		$	10,442
Corporate Agent Productivity > 1 Year(1)		$	25,738		$	28,963		$	33,323		$	30,429		$	27,228		$	27,952		$	28,803		$	26,245
Franchise Productivity < 1 Year(2)		$	10,975		$	9,583		$	9,606		$	9,020		$	8,481		$	9,370		$	9,435		$	8,532
Franchise Productivity > 1 Year(2)		$	21,103		$	22,305		$	23,348		$	20,812		$	18,059		$	21,293		$	21,681		$	20,135

(1) - Corporate Productivity is New Business Production per Agent (Corporate): The New Business Revenue collected related to corporate sales, divided by the average number of full-time corporate sales agents for the same period. This calculation excludes interns, part-time sales agents and partial full-time equivalent sales managers.

(2) - Franchise Productivity is New Business Production per Agent (Franchise): The gross commissions paid by Carriers and Agency Fees received related to policies in their first term sold by franchise sales agents divided by the average number of franchise sales agents for the same period prior to paying Royalty Fees to the Company.