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Segment Information
6 Months Ended
Jun. 30, 2019
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 net income 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”) 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 tables (in thousands). 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 equity-based compensation, certain legal expenses and interest related to the note payable.

 
 
Corporate
Channel
 
Franchise
Channel
 
Other
 
Total
Three months ended June 30, 2019:
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
Commissions and fees
 
$
10,672

 
$
91

 
$

 
$
10,763

Franchise revenues
 

 
8,475

 

 
8,475

Interest income
 

 
148

 

 
148

Total
 
10,672

 
8,714

 

 
19,386

Operating expenses:
 
 
 
 
 
 
 
 
Employee compensation and benefits, excluding equity-based compensation
 
5,972

 
4,038

 

 
10,010

General and administrative expenses
 
2,078

 
1,531

 
592

 
4,201

Bad debts
 
275

 
207

 

 
482

Total
 
8,325

 
5,776

 
592

 
14,693

Adjusted EBITDA
 
2,347

 
2,938

 
(592
)
 
4,693

Equity-based compensation
 

 

 
(368
)
 
(368
)
Interest expense
 

 

 
(626
)
 
(626
)
Depreciation and amortization
 
(234
)
 
(218
)
 

 
(452
)
Taxes
 

 

 
(430
)
 
(430
)
Net income (loss)
 
$
2,113

 
$
2,720

 
$
(2,016
)
 
$
2,817

At June 30, 2019:
 
 
 
 
 
 
 
 
Total Assets
 
$
7,018

 
$
13,165

 
$
17,909

 
$
38,092


 
 
Corporate
Channel
 
Franchise
Channel
 
Other
 
Total
Three months ended June 30, 2018:
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
Commissions and fees
 
$
8,525

 
$
191

 
$

 
$
8,716

Franchise revenues
 

 
5,969

 

 
5,969

Interest income
 

 
102

 

 
102

Total
 
8,525

 
6,262

 

 
14,787

Operating expenses:
 
 
 
 
 
 
 
 
Employee compensation and benefits, excluding equity-based compensation
 
4,609

 
2,852

 

 
7,461

General and administrative expenses
 
1,794

 
1,112

 
119

 
3,025

Bad debts
 
217

 
89

 

 
306

Total
 
6,620

 
4,053

 
119

 
10,792

Adjusted EBITDA
 
1,905

 
2,209

 
(119
)
 
3,995

Equity-based compensation
 

 

 
(26,394
)
 
(26,394
)
Interest expense
 

 

 
(972
)
 
(972
)
Depreciation and amortization
 
(238
)
 
(112
)
 

 
(350
)
Taxes
 

 

 
(154
)
 
(154
)
Net income (loss)
 
$
1,667

 
$
2,097

 
$
(27,639
)
 
$
(23,875
)
At June 30, 2018:
 
 
 
 
 
 
 
 
Total Assets
 
$
12,824

 
$
6,147

 
$
13,045

 
$
32,016

 
 
Corporate
Channel
 
Franchise
Channel
 
Other
 
Total
Six Months Ended June 30, 2019:
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
Commissions and fees
 
$
22,627

 
$
4,306

 
$

 
$
26,933

Franchise revenues
 

 
15,303

 

 
15,303

Interest income
 

 
283

 

 
283

Total
 
22,627

 
19,892

 

 
42,519

Operating expenses:
 
 
 
 
 
 
 
 
Employee compensation and benefits, excluding equity-based compensation
 
11,039

 
7,795

 

 
18,834

General and administrative expenses
 
3,980

 
3,162

 
1,489

 
8,631

Bad debts
 
516

 
367

 

 
883

Total
 
15,535

 
11,324

 
1,489

 
28,348

Adjusted EBITDA
 
7,092

 
8,568

 
(1,489
)
 
14,171

Equity-based compensation
 

 

 
(735
)
 
(735
)
Interest expense
 

 

 
(1,252
)
 
(1,252
)
Depreciation and amortization
 
(473
)
 
(402
)
 

 
(875
)
Taxes
 

 

 
(1,174
)
 
(1,174
)
Net income (loss)
 
$
6,619

 
$
8,166

 
$
(4,650
)
 
$
10,135

At June 30, 2019:
 
 
 
 
 
 
 
 
Total Assets
 
$
7,018

 
$
13,165

 
$
17,909

 
$
38,092



 
 
Corporate
Channel
 
Franchise
Channel
 
Other
 
Total
Six Months Ended June 30, 2018:
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
Commissions and fees
 
$
16,381

 
$
1,931

 
$

 
$
18,312

Franchise revenues
 

 
10,880

 

 
10,880

Interest income
 

 
185

 

 
185

Total
 
16,381

 
12,996

 

 
29,377

Operating expenses:
 
 
 
 
 
 
 
 
Employee compensation and benefits, excluding equity-based compensation
 
8,653

 
5,643

 

 
14,296

General and administrative expenses
 
3,422

 
1,857

 
120

 
5,399

Bad debts
 
423

 
163

 

 
586

Total
 
12,498

 
7,663

 
120

 
20,281

Adjusted EBITDA
 
3,883

 
5,333

 
(120
)
 
9,096

Equity-based compensation
 

 

 
(26,394
)
 
(26,394
)
Interest expense
 

 

 
(1,968
)
 
(1,968
)
Depreciation and amortization
 
(474
)
 
(213
)
 

 
(687
)
Taxes
 

 

 
(154
)
 
(154
)
Net income (loss)
 
$
3,409

 
$
5,120

 
$
(28,636
)
 
$
(20,107
)
At June 30, 2018:
 
 
 
 
 
 
 
 
Total Assets
 
$
12,824

 
$
6,147

 
$
13,045

 
$
32,016