In This Article:
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Total Revenue: Increased by 33% year over year to $28.1 million.
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Adjusted EBITDA: Grew by 54% year over year to $16.7 million.
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Adjusted Net Income: Increased by 65% year over year to $14.9 million or $0.20 per diluted share.
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Capital Deployed: $93.2 million compared to $56.4 million in the prior year period.
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Policies Purchased: Increased by 53% to 278 policies.
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Balance Sheet Policy Assets: Valued at $274.4 million as of September 30, 2024.
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Adjusted EBITDA Margin: Increased to 59.2% from 51.1% in the prior year period.
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GAAP Net Loss: $5.1 million, primarily due to a non-cash increase in warrant liability.
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Cash and Cash Equivalents: $19.4 million as of September 30, 2024.
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Outstanding Long-Term Debt: $166.5 million.
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Adjusted Return on Equity: 23% for the three-month period ended September 30, 2024.
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Adjusted Return on Invested Capital: 21% for the three-month period ended September 30, 2024.
Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Abacus Life Inc (NASDAQ:ABL) reported a 33% year-over-year increase in total revenue for Q3 2024, reaching $28.1 million.
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Adjusted EBITDA grew by 54% year-over-year to $16.7 million, with an adjusted net income increase of 65% to $14.9 million.
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The company made significant progress with its ABL tech program, signing major clients including public pension funds and union pension funds.
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Abacus Life Inc (NASDAQ:ABL) announced key acquisitions, adding approximately $2.6 billion in assets under management to its portfolio.
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The company strengthened its executive team with strategic hires, enhancing its capabilities in capital markets and investor relations.
Negative Points
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Abacus Life Inc (NASDAQ:ABL) reported a GAAP net loss attributable to stockholders of $5.1 million for the quarter, primarily due to a non-cash increase in warrant liability.
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Total operating expenses increased to $19.4 million from $13.2 million in the prior year period, driven by higher investments in SG&A.
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The company experienced a decrease in portfolio servicing and origination revenue compared to the previous year.
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There is uncertainty regarding the closure of the Carlisle Management Company acquisition, which is expected by the end of the fourth quarter.
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The competitive environment remains tight, although Abacus Life Inc (NASDAQ:ABL) maintains a unique position as the only publicly traded company in its industry.
Q & A Highlights
Q: Can you discuss trends in the fourth quarter and seasonality, particularly regarding originated face value and capital deployed? A: Jay Jackson, Chairman & CEO: Historically, the fourth quarter has been strong for origination as policyholders look to conclude transactions by year-end. We saw strong numbers in Q3, and we remain optimistic about continued origination growth in Q4.