SelectQuote, Inc. (SLQT) Earnings Call Transcript & Summary

Good morning, and welcome to the SelectQuote, Inc. 2020 Annual Meeting of Stockholders. I would now like to hand the meeting over to Mr. Donald Hawks III, Chairman of the Board of Directors. The floor is yours, sir.

Thank you, operator. On behalf of the Board of Directors and the management of SelectQuote, Inc., I would like to welcome you to the 2020 Annual Meeting of the Stockholders of SelectQuote, Inc.. We appreciate your attendance at today's virtual meeting. As you know, given the ongoing public health impact of coronavirus outbreak and to support the health and well-being of our employees, shareholders and our community, we determined that it made the most sense to conduct our annual meeting in a virtual-only format. We thank all of our shareholders for their understanding and flexibility during this challenging time for all of us. It is now shortly after 9:00 a.m. Central time on October 27, 2020. In accordance with the notice of the meeting, I ask that this annual meeting of the stockholders of SelectQuote, Inc. come to order. Also with me today is Tim Danker, Chief Executive Officer and a Director of the company; and Al Boulware, General Counsel and Secretary of the company. Al will serve as secretary of today's meeting. Also present at this meeting are members of the company's Board of Directors and members of the company's management team. In addition, Dana Jermain, a partner with Deloitte & Touche, our independent registered public accounting firm is with us. Ms. Jermain will be available to answer any questions you may have regarding the audit. The company has appointed Peter W. Descovich as the inspector of elections. Peter is present on the call. Prior to the start of the meeting, our online stockholder forum has been open for questions regarding the proposals on the agenda. If you have any questions about any of the 2 proposals on the agenda and you haven't submitted them yet, we ask that you submit them now via the ask a question tool on the virtual meeting platform to ensure that we have sufficient time to answer your questions before the polls close. Please note, we are only entertaining questions related to the 2 proposals at this time due to the fact that we are currently in a quiet period, and have announced that we plan to release earnings on November 5, 2020. We will plan to address questions as it relates to the company at that time. A copy of the rules of conduct has been made available virtually as part of the meeting materials listed below the webcast. We kindly ask that all participants respect these rules so that we may conduct an orderly meeting. If you have already submitted your proxy, you need not do so again unless you wish to change your vote. For those who have not voted and wish to vote now, please go to the web voting area, which is located on the lower right side of the web page directly above the meeting materials section. Click on the words vote here to complete and submit your ballot. Al, has notice of the annual meeting been given to all shareholders?

Yes, it has. Under the general corporation law of the State of Delaware, an affidavit has been prepared, stating that the notice of an annual meeting of the stockholders to be held on October 27, 2020, and a proxy, along with voting instructions, was mailed or made available on or about September 29, 2020, to all stockholders of record at the close of business on September 18, 2020. Also as required by the general corporation law of the State of Delaware, a complete list of the stockholders entitled to vote at this meeting is available. That list and the affidavit of mailing will be filed with the records of the company pertaining to this annual meeting. As we share information today to help you better understand our business, it is important to note that we may make statements in the course of this meeting that state our intentions, hopes, beliefs, expectations or predictions of the future. These and all other statement, except for statements of historical fact, constitute forward-looking statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. SelectQuote's actual results could differ materially from those projected in any forward-looking statements that may be made. We disclaim any intention or obligation to revise any forward-looking statements, except as required by law. Additional information concerning factors that could cause actual results to differ materially from those contemplated by forward-looking statements, is contained in documents we file with the SEC, including, but not limited to, our most recent reports on Form 10-K, 10-Q, and 8-K. In particular, please refer to the risk factors described in our Form 10-K for the year ended June 30, 2020, which was filed with the Securities and Exchange Commission on September 10, 2020 and is in our subsequent filings with the Securities and Exchange Commission.

Al, is there a quorum present at the meeting?

Yes, the inspector of elections has informed the company that a majority of the shares entitled to vote are represented at this meeting in person or by proxy.

Thanks, Al. As notice of this meeting has been given to all stockholders entitled to receive such notice and a quorum is present, it is my pleasure to declare this annual meeting of the stockholders of SelectQuote, Inc. to be lawfully convened and to welcome all of you to this meeting. I will now call upon Al to introduce the proposals.

Thank you, Don. There are 2 proposals on the agenda today. The first proposal is to elect 2 Class I director nominees, each to serve until the 2023 annual meeting of the stockholders, and until their successors are duly elected and qualified subject to their earlier resignation or removal. The 2 nominees are Tim Danker and Kavita Patel. The Board of Directors recommends a vote for all of the nominees. The second proposal is to ratify the appointment of Deloitte & Touche LLP as the company's independent registered public accounting firm for the year ending June 30, 2021. That the stockholders ratify the appointment by the Audit Committee of the Board of Directors of Deloitte & Touche LLP, independent registered public accounting firm, to audit the financial statements of the company for the year ending June 30, 2021. The Board of Directors has recommended a vote for the adoption of this proposal.

I move that each of the proposals be approved.

I second the motion.

Information supporting the recommendation of the Board of Directors regarding each proposal is set out in the proxy statement. If any stockholder has questions or comments specifically related to an item on the proposals. Please submit them through the online portal now. We will now pause to review any questions submitted on the proposals. Again, we will only answer questions related to the proposals at this time.

Don, I can report that there are no proposal related questions that have been submitted.

Thanks, Al. We'll now move on to the voting. If you have already submitted your proxy, you need not do so again unless you wish to change your vote. For those who have not voted and wish to vote now, please do so pursuant to the instructions on the virtual meeting platform. I will now pause for a few minutes to allow folks to vote. [Voting]

With that, I now declare the polls closed and direct the inspector of elections to tabulate the votes and report the preliminary results of the voting.

Mr. Chairman, I have completed tabulating the votes.

Thank you. Al, please report the votes for each of the matters voted upon today.

Thanks, Don. The inspector of elections has provided a preliminary tabulation of votes. And based on the preliminary tabulation and reports, we confirm on a preliminary basis as follows: regarding proposal one, each of the nominees for director has been elected by the affirmative vote of the majority of the votes cast at the meeting; regarding proposal two, the ratification of the appointment of Deloitte & Touche, as the company's independent registered public accounting firm as described in the proxy statement, has received the affirmative vote of the majority of the votes cast at the meeting.

Thank you, Al. Subject to the final tabulation of the votes, I therefore, can declare the following: Mr. Danker and Dr. Patel, have each been elected as a Class I director of the company to hold office until the 2023 annual meeting of stockholders or until their successors are duly elected and qualified. The appointment of Deloitte & Touche as the outside auditors, as described in the proxy statement, has been ratified. Al will file the report on the voting related to all of the proposals in the records of this meeting. That concludes the official business, and I, therefore, declare this annual meeting adjourned. On behalf of the Board and management, thank you for attending the SelectQuote 2020 Annual Meeting of Stockholders.

Thank you, sir. The conference has now concluded. Again, we thank you all for attending today's presentation. At this time, you may disconnect your lines.