Reliance Global Group Reports Second Quarter 2024 Results and Provides Business Update
Reliance Global Group Reports Second Quarter 2024 Results and Provides Business Update
Spetner Associates Acquisition on Track to Close in Second Half of 2024; Projected to Double Annual Revenue to Approximately $28 Million and Boost AEBITDA
Spetner Associates的收購有望在2024年下半年完成;預計年收入將翻一番,達到約2,800萬美元,並提高息稅折舊攤銷前利潤
Reliance Forms Real Estate Division Headed up by Successful Real Estate Investor and M&A Executive Abe Miller, to Drive Growth and Diversification
信實成立了房地產部門,由成功的房地產投資者兼併購高管安倍·米勒領導,以推動增長和多元化
Simplified Capital Structure- Reliance Removes Warrant Overhang to Unlock Shareholder Value
簡化的資本結構——信實取消認股權證積壓以釋放股東價值
Company to Host Conference Call Today at 4:30 PM Eastern Time
公司將於美國東部時間今天下午 4:30 主持電話會議
LAKEWOOD, N.J., July 25, 2024 — Reliance Global Group, Inc. (Nasdaq: RELI) ("Reliance", "we" or the "Company") today provided a business update and reported financial results for the three and six months ended June 30, 2024.
新澤西州萊克伍德,2024年7月25日——信實環球集團有限公司(納斯達克股票代碼:RELI)(“信實”,“我們” 或 “公司”)今天提供了截至2024年6月30日的三個月和六個月的最新業務和財務業績。
Ezra Beyman, Reliance's Chairman and Chief Executive Officer, commented, "We are pleased to report consistent and sustained revenue levels for the first three and six months ended June 30, 2024, with revenues of $3.2 million and $7.3 million, which represent 1% and 3% growth from the same periods in the prior year, respectively. We've also been decreasing our operating expenses with the Company. As a result, we've seen 13% efficiencies for the second quarter of 2024 over the same period in 2023, and our $1.5 million net loss from continuing operations for the second quarter has improved by 62% from the same period in the prior year. AEBITDA, our key non-GAAP metric, came in at a nominal loss of $178,000, or just under 6% of revenues, for the second quarter of 2024.
信實董事長兼首席執行官埃茲拉·貝曼評論說:“我們很高興地宣佈,截至2024年6月30日的前三個月和六個月的收入水平保持穩定,收入爲320萬美元和730萬美元,分別比去年同期增長1%和3%。我們還一直在減少公司的運營開支。因此,我們在2024年第二季度的效率與2023年同期相比增長了13%,第二季度持續經營的150萬美元淨虧損比去年同期增長了62%。我們的關鍵非公認會計准則指標息稅折舊攤銷前利潤在2024年第二季度名義虧損17.8萬美元,略低於收入的6%。
"Building on the Company's strong performance in the first quarter, the second quarter of 2024 continued our trend of sustained organic growth. Throughout the quarter, we continued to emphasize our foundational 'OneFirm' strategy, uniting our nine owned and operated agencies nationwide to function as one cohesive business unit. OneFirm has provided the Company with access to higher commission tiers and has created broad cross-selling opportunities which has, and we believe will continue to, drive material revenue growth. Additionally, cross-collaboration is a key OneFirm initiative and spotlights cross-utilization of our exceptional talent employed across our organization, in addition to promoting enhanced data access and sharing and the segmentation of specialized support services. As part of OneFirm, we continue to consolidate our vendor relationships and contracts, thereby reducing our overall operating spend, as is illustrated in our second quarter financial results.
“在公司第一季度強勁表現的基礎上,2024年第二季度延續了我們持續有機增長的趨勢。在整個季度中,我們繼續強調我們基本的 “OneFirm” 戰略,將我們在全國的九個自有和運營機構聯合起來,成爲一個有凝聚力的業務部門。OneFirm爲公司提供了更高的佣金等級,並創造了廣泛的交叉銷售機會,我們相信這將繼續推動實質性收入的增長。此外,交叉協作是OneFirm的一項重要舉措,除了促進加強數據訪問和共享以及專業支持服務的細分外,它還聚焦了我們在整個組織中僱用的傑出人才的交叉利用。作爲OneFirm的一部分,我們將繼續整合供應商關係和合同,從而減少我們的總體運營支出,如第二季度財務業績所示。
"The pending acquisition of Spetner Associates, which we now believe will be even more impactful than we initially expected, continues to progress smoothly toward an anticipated closing in the second half of 2024. Since first announcing our acquisition plans, Spetner's BenManage voluntary benefit insurance segment has experienced impressive growth, now covering over 85,000 employees, a significant increase from their 45,000 covered employees when we initially announced the planned transaction. This acquisition will be one of the largest in our Company's history and will mark a pivotal moment for Reliance, with projections suggesting it will close to double our annual revenues to around $28 million and significantly boost our AEBITDA. We believe that Spetner's wide array of unique voluntary benefits programs and its extensive market reach offer considerable synergistic opportunities, especially in expanding our personal insurance lines through the RELI Exchange platform."
“我們現在認爲即將進行的對Spetner Associates的收購將比我們最初的預期更具影響力,將繼續順利進行,預計將於2024年下半年完成。自首次宣佈我們的收購計劃以來,Spetner的BenManage自願福利保險板塊經歷了驚人的增長,目前覆蓋了超過8.5萬名員工,比我們最初宣佈計劃交易時的45,000名受保員工大幅增加。此次收購將是我們公司歷史上規模最大的收購之一,也將標誌着信實的關鍵時刻。預計這將使我們的年收入增加近一倍,達到約2,800萬美元,並顯著提高我們的息稅折舊攤銷前利潤。我們認爲,斯佩特納各種獨特的自願福利計劃及其廣泛的市場覆蓋範圍提供了大量的協同機會,尤其是在通過RELI Exchange平台擴大我們的個人保險範圍方面。”
Mr. Beyman continued, "In early July, we initiated the formation of a new division within Reliance focused on acquiring multi-family and commercial real estate properties. Abe Miller, a successful real estate investor and M&A executive, has joined the Company to lead this division and provide strategic guidance for our future real estate projects. With a remarkable track record that includes creating a $3 billion real estate portfolio through strategic acquisitions, his expertise in enhancing asset value and navigating complex market dynamics to generate substantial investment returns will be invaluable. We anticipate that the new real estate division, set to launch following the closing of the Spetner acquisition, will align perfectly with our strategy of pursuing accretive and cash flow-positive deals, an area where we have a proven track record, especially in the insurance brokerage sector. Additionally, we expect this division to broaden our Company's portfolio by diversifying into multiple business lines and asset categories. Through this expansion into real estate, we expect that Reliance will be well positioned to leverage non-dilutive financing sources, supported by the intrinsic value of the assets and our operational cash flows.
貝曼繼續說:“7月初,我們在信實內部開始成立一個新部門,專注於收購多戶住宅和商業地產。Abe Miller是一位成功的房地產投資者和併購高管,現已加入公司,領導該部門,爲我們未來的房地產項目提供戰略指導。他擁有非凡的往績,包括通過戰略收購創建30億美元的房地產投資組合,他在提高資產價值和駕馭複雜的市場動態以產生可觀的投資回報方面的專業知識將是無價的。我們預計,將在Spetner收購完成後成立的新房地產部門將完全符合我們追求增值和現金流積極交易的戰略,我們在這一領域有着良好的往績,尤其是在保險經紀領域。此外,我們預計該部門將通過分散到多個業務領域和資產類別來擴大我們公司的投資組合。通過向房地產領域的擴張,我們預計,在資產內在價值和運營現金流的支持下,信實將完全有能力利用非稀釋性融資來源。
"Finally, as previously announced, pursuant to exercises of all outstanding Series B and Series G warrants, Reliance has vastly simplified its capital structure by removing the Series B derivative instrument from its balance sheet, and by eliminating the potentially perceived significant warrant overhang which may also have adversely impacted our publicly traded share price. We are confident that our enhanced capital table will resonate well with our current shareholders and future investors, as we continue to advance our key initiatives through 2024 and beyond."
“最後,正如先前宣佈的那樣,根據所有未償還的b系列和G系列認股權證的行使,信實從資產負債表中刪除了b系列衍生工具,並取消了可能對我們的公開交易股價產生不利影響的潛在重大認股權證積壓,從而極大地簡化了其資本結構。我們相信,隨着我們在2024年及以後繼續推進關鍵舉措,我們增強的資本表將引起當前股東和未來投資者的共鳴。”
Mr. Beyman concluded, "Our mission remains to build a multi-billion dollar, highly profitable business enterprise that delivers substantial returns to our shareholders. We are confident that the developments and efforts discussed herein, firmly set us on this trajectory and we look forward to continuing this onward journey with mutually beneficial financial results."
貝曼總結說:“我們的使命仍然是建立一個價值數十億美元、利潤豐厚的商業企業,爲股東帶來可觀的回報。我們相信,本文討論的事態發展和努力使我們堅定地走上了這條軌道,我們期待繼續這一前進之路,取得互惠互利的財務業績。”
Conference Call
電話會議
Reliance Global Group will host a conference call today at 4:30 PM Eastern Time to discuss the Company's financial results for the quarter ended June 30, 2024, as well as the Company's corporate progress and other developments.
信實環球集團將於美國東部時間今天下午 4:30 舉行電話會議,討論公司截至2024年6月30日的季度財務業績,以及公司的公司進展和其他發展。
The conference call will be available via telephone by dialing toll-free +1 888-506-0062 for U.S. callers or +1 973-528-0011 for international callers and entering access code 246542. A webcast of the call may be accessed at or on the investor relations section of the Company's website, .
電話會議將通過電話進行,美國來電者撥打免費電話+1 888-506-0062,國際來電者撥打+1 973-528-0011,然後輸入接入碼246542。電話會議的網絡直播可在以下地址觀看 或在公司網站的投資者關係欄目上, 。
A webcast replay will be available on the investor relations section of the Company's website at through July 25, 2025. A telephone replay of the call will be available approximately one hour following the call, through August 8, 2024, and can be accessed by dialing +1 877-481-4010 for U.S. callers or +1 919-882-2331 for international callers and entering access code 50932.
網絡直播重播將在公司網站的投資者關係欄目上播出 直到 2025 年 7 月 25 日。電話會議結束後大約一小時將提供電話重播,直至2024年8月8日,美國來電者可撥打+1 877-481-4010,國際來電者撥打+1 919-882-2331,然後輸入接入碼50932。
About Reliance Global Group, Inc.
關於信實環球集團有限公司
Reliance Global Group, Inc. (NASDAQ: RELI) is an InsurTech pioneer, leveraging artificial intelligence (AI), and cloud-based technologies, to transform and improve efficiencies in the insurance agency/brokerage industry. The Company's business-to-business InsurTech platform, RELI Exchange, provides independent insurance agencies an entire suite of business development tools, enabling them to effectively compete with large-scale national insurance agencies, whilst reducing back-office cost and burden. The Company's business-to-consumer platform, 5minuteinsure.com, utilizes AI and data mining, to provide competitive online insurance quotes within minutes to everyday consumers seeking to purchase auto, home, and life insurance. In addition, the Company operates its own portfolio of select retail "brick and mortar" insurance agencies which are leaders and pioneers in their respective regions throughout the United States, offering a wide variety of insurance products. Further information about the Company can be found at .
信實環球集團有限公司(納斯達克股票代碼:RELI)是保險科技的先驅,它利用人工智能(AI)和基於雲的技術來改造保險機構/經紀行業並提高其效率。該公司的企業對企業保險科技平台RELI Exchange爲獨立保險機構提供了一整套業務發展工具,使他們能夠有效地與大型全國性保險機構競爭,同時降低後臺成本和負擔。該公司的企業對消費者平台5minuteinsure.com利用人工智能和數據挖掘,在幾分鐘內爲尋求購買汽車、房屋和人壽保險的日常消費者提供有競爭力的在線保險報價。此外,該公司還經營自己的精選零售 “實體店” 保險機構組合,這些機構是美國各自地區的領導者和先驅者,提供各種各樣的保險產品。有關該公司的更多信息,請訪問。
Forward-Looking Statements
前瞻性陳述
This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. In some cases, forward-looking statements can be identified by terminology such as "may," "should," "potential," "continue," "expects," "anticipates," "intends," "plans," "believes," "estimates," and similar expressions and include statements such as the Company having built a best-in-class InsurTech platform, making RELI Exchange an even more compelling value proposition and further accelerating growth of the platform, rolling out several other services in the near future to RELI Exchange agency partners, building RELI Exchange into the largest agency partner network in the U.S., the Company moving in the right direction and the Company's highly scalable business model driving significant shareholder value. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in our filings with the Securities and Exchange Commission and elsewhere and risks as and uncertainties related to: the Company's ability to generate the revenue anticipated and the ability to build the RELI Exchange into the largest agency partner network in the U.S., and the other factors described in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, as the same may be updated from time to time. The foregoing review of important factors that could cause actual events to differ from expectations should not be construed as exhaustive and should be read in conjunction with statements that are included herein and elsewhere, including the risk factors included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, the Company's Quarterly Reports on Form 10-Q, the Company's Current Reports on Form 8-K and other subsequent filings with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.
本新聞稿包含1995年《私人證券訴訟改革法》“安全港” 條款所指的前瞻性陳述。本新聞稿中包含的歷史事實陳述以外的陳述可能構成前瞻性陳述,不能保證未來的業績、狀況或業績,涉及許多風險和不確定性。在某些情況下,前瞻性陳述可以通過 “可能”、“應該”、“潛在”、“繼續”、“預期”、“打算”、“計劃”、“相信”、“估計” 等術語和類似表述來識別,幷包括諸如公司建立了同類最佳的保險科技平台、使RELI Exchange成爲更具吸引力的價值主張以及進一步加速該平台的增長,推出多項陳述在不久的將來爲RELI Exchange代理合作伙伴提供其他服務,使RELI Exchange成爲最大的代理合作伙伴在美國的網絡,公司朝着正確的方向前進,以及公司高度可擴展的商業模式推動了可觀的股東價值。由於多種因素,實際業績可能與前瞻性陳述中的業績存在重大差異,包括我們在向美國證券交易委員會和其他地方提交的文件中不時描述的因素,以及與以下方面相關的風險和不確定性:公司創造預期收入的能力和將RELI交易所打造成美國最大的機構合作伙伴網絡的能力,以及公司本財年10-k表年度報告中描述的其他因素截至 2023 年 12 月 31 日的年度,與 5 月相同不時更新。上述對可能導致實際事件與預期不同的重要因素的審查不應解釋爲詳盡無遺,應與本文和其他地方的陳述一起閱讀,包括公司截至2023年12月31日財年的10-k表年度報告、公司10-Q表季度報告、公司8-k表最新報告以及隨後向證券交易所提交的其他文件中包含的風險因素佣金。公司沒有義務更新此處發表的任何前瞻性陳述。所有前瞻性陳述僅代表截至本新聞稿發佈之日。
Contact:
聯繫人:
Crescendo Communications, LLC
Tel: +1 (212) 671-1020
Email: RELI@crescendo-ir.com
克雷森多通訊有限責任公司
電話:+1 (212) 671-1020
電子郵件:RELI@crescendo-ir.com
INFORMATION REGARDING A NON-GAAP MEASURE
有關非公認會計准則指標的信息
We exclude the following items when calculating AEBITDA, and the following items define our non-GAAP financial measure AEBITDA:
我們在計算AEBITDA時不包括以下項目,以下項目定義了我們的非公認會計准則財務指標AEBITDA:
• | Interest and related party interest expense: Unrelated to core Company operations and excluded to provide more meaningful supplemental information regarding the Company's core operational performance. | |
• | Depreciation and amortization: Non-cash charge, excluded to provide more meaningful supplemental information regarding the Company's core operational performance. | |
• | Goodwill and/or asset impairments: Non-cash charge, excluded to provide more meaningful supplemental information regarding the Company's core operational performance. | |
• | Equity-based compensation: Non-cash compensation provided to employees and service providers, excluded to provide more meaningful supplemental information regarding the Company's core cash impacted operational performance. | |
• | Change in estimated acquisition earn-out payables: An earn-out liability is a liability to the seller upon an acquisition which is contingent on future earnings. These liabilities are valued at each reporting period and the changes are reported as either a gain or loss in the change in estimated acquisition earn-out payables account in the consolidated statements of operations. The gain or loss is non-cash, can be highly volatile and overall is not deemed relevant to ongoing operations, thus, it's excluded to provide more meaningful supplemental information regarding the Company's core operational performance. | |
• | Recognition and change in fair value of warrant liabilities: This account includes changes to derivative warrant liabilities which are valued at each reporting period and could result in either a gain or loss. The period changes do not impact cash, can be highly volatile, and are unrelated to ongoing operations, and thus are excluded to provide more meaningful supplemental information regarding the Company's core operational performance. | |
• | Other income (expense), net: Includes non-routine income or expenses and other individually de minimis items and is thus excluded as unrelated to core operations of the company. | |
• | Transactional costs: This includes expenses related to mergers, acquisitions, financings and refinancings, and amendments or modification to indebtedness. Thes costs are unrelated to primary Company operations and are excluded to provide more meaningful supplemental information regarding the Company's core operational performance. | |
• | Non-recuring costs: This account includes non-recurring non-operational items, related to costs incurred for a legal suit the Company has filed against one of the third parties involved in the discontinued operations and was excluded to provide more meaningful supplemental information regarding the Company's core operational performance. | |
• | Loss from discontinued operations before tax: This account includes the net results from discontinued operations, and since discontinued, are unrelated to the Company's ongoing operations and thus excluded to provide more meaningful supplemental information regarding the Company's core operational performance. |
• | 利息和關聯方利息支出:與公司核心業務無關,不包括在內,以提供有關公司核心運營業績的更有意義的補充信息。 | |
• | 折舊和攤銷:非現金費用,不包括在內,以提供有關公司核心運營業績的更有意義的補充信息。 | |
• | 商譽和/或資產減值:非現金費用,不包括在內,以提供有關公司核心經營業績的更有意義的補充信息。 | |
• | 股權薪酬:向員工和服務提供商提供的非現金薪酬,不包括提供有關公司受核心現金影響的運營業績的更有意義的補充信息。 | |
• | 預計收購收益應付賬款的變化:收益負債是收購時對賣方的負債,視未來收益而定。這些負債按每個報告期估值,變動在合併運營報表中作爲估計收購收益應付賬款變動的損益報告。收益或虧損是非現金的,波動性可能很大,總體上被認爲與正在進行的業務無關,因此,不包括提供有關公司核心運營業績的更有意義的補充信息。 | |
• | 認股權證負債公允價值的確認和變動:該帳戶包括衍生權證負債的變動,這些負債按每個報告期估值,可能導致收益或虧損。期內變動不會影響現金,波動性可能很大,與正在進行的業務無關,因此不包括在提供有關公司核心經營業績的更有意義的補充信息之列。 | |
• | 其他收入(支出),淨額:包括非常規收入或支出以及其他個人最低限度項目,因此因與公司核心業務無關而被排除在外。 | |
• | 交易成本:這包括與合併、收購、融資和再融資以及債務修正或修改相關的費用。這些成本與公司的主要業務無關,不包括在內,以提供有關公司核心運營業績的更有意義的補充信息。 | |
• | 非經常性成本:該帳戶包括非經常性非運營項目,與公司對參與已終止業務的第三方提起的法律訴訟所產生的費用有關,不包括提供有關公司核心經營業績的更有意義的補充信息。 | |
• | 稅前已終止業務的虧損:該帳戶包括已終止業務的淨業績,自終止以來,與公司的持續業務無關,因此不包括提供有關公司核心經營業績的更有意義的補充信息。 |
The following table provides a reconciliation from net loss to AEBITDA for the periods ended June 30, 2024, and June 30, 2023:
下表提供了截至2024年6月30日和2023年6月30日的淨虧損與息稅折舊攤銷前利潤的對賬情況:
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Net loss | $ | (1,489,395) | $ | (1,055,286) | $ | (6,836,057) | $ | (2,843,824) | ||||||||
Adjustments: | ||||||||||||||||
Interest and related party interest expense | 403,495 | 422,058 | 813,780 | 815,091 | ||||||||||||
Depreciation and amortization | 469,788 | 655,449 | 1,003,941 | 1,309,227 | ||||||||||||
Asset impairment | – | – | 3,922,110 | – | ||||||||||||
Share-based compensation to employees, directors and service providers | 333,897 | 413,362 | 488,808 | 457,158 | ||||||||||||
Change in estimated acquisition earn-out payables | – | 543,233 | 47,761 | 1,019,925 | ||||||||||||
Other (income) expense, net | (11) | 16,979 | (22) | 13,297 | ||||||||||||
Transactional costs | 119,203 | – | 373,096 | – | ||||||||||||
Nonrecurring costs | 45,724 | 47,513 | 90,963 | 47,513 | ||||||||||||
Recognition and change in fair value of warrant liabilities | (60,667) | 1,592,509 | (156,000) | (2,673,723) | ||||||||||||
(Income) loss from discontinued operations before tax | – | (2,814,445) | – | 1,846,048 | ||||||||||||
Total adjustments | 1,311,429 | 876,657 | 6,584,437 | 2,834,536 | ||||||||||||
AEBITDA | $ | (177,966) | $ | (178,630) | $ | (251,620) | $ | (9,288) |
截至6月30日的三個月 | 截至6月30日的六個月 | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
淨虧損 | $ | (1,489,395) | $ | (1,055,286) | $ | (6,836,057) | $ | (2,843,824) | ||||||||
調整: | ||||||||||||||||
利息和關聯方利息支出 | 403,495 | 422,058 | 813,780 | 815,091 | ||||||||||||
折舊和攤銷 | 469,788 | 655,449 | 1,003,941 | 1,309,227 | ||||||||||||
資產減值 | — | — | 3,922,110 | — | ||||||||||||
向員工、董事和服務提供商提供基於股份的薪酬 | 333,897 | 413,362 | 488,808 | 457,158 | ||||||||||||
預計收購收益應付賬款的變化 | — | 543,233 | 47,761 | 1,019,925 | ||||||||||||
其他(收入)支出,淨額 | (11) | 16,979 | (22) | 13,297 | ||||||||||||
交易成本 | 119,203 | — | 373,096 | — | ||||||||||||
非經常性費用 | 45,724 | 47,513 | 90,963 | 47,513 | ||||||||||||
認股權證負債公允價值的確認和變動 | (60,667) | 1,592,509 | (156,000) | (2,673,723) | ||||||||||||
稅前已終止業務的(收入)虧損 | — | (2,814,445) | — | 1,846,048 | ||||||||||||
調整總額 | 1,311,429 | 876,657 | 6,584,437 | 2,834,536 | ||||||||||||
AEBITDA | $ | (177,966) | $ | (178,630) | $ | (251,620) | $ | (9,288) |