In This Article:
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Revenue: Increased by 5% to $3.4 million for Q3 2024.
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Total Operating Expenses: Decreased by 16% to $3.9 million.
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Net Loss: Approximately $837,000, improved by 54% from the previous year's comparable quarter.
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Adjusted EBITDA: Positive $42,000, representing a 121% increase from the same period in the prior year.
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Commission Expense: Increased by 13% due to higher first-year commissions.
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General and Administrative Costs: Decreased by 23%.
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Marketing and Advertising Costs: Decreased by 15%.
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Salaries and Wages Efficiency: Improved by 5%.
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Intangible Asset Impairment Charge: $3.2 million for the nine-month period ended 9/30/2024.
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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Reliance Global Group Inc (NASDAQ:RELI) reported a 5% increase in revenue for the third quarter, reaching $3.4 million.
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Total operating expenses decreased by 16%, reflecting effective cost management.
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The company achieved a positive adjusted EBITDA of approximately $42,000, marking a 121% increase from the previous year.
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The OneFirm strategy has successfully unified geographically dispersed insurance agencies, enhancing cross-selling and collaboration.
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The anticipated acquisition of Spetner Associates is expected to double consolidated revenues and accelerate growth.
Negative Points
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Despite improvements, Reliance Global Group Inc (NASDAQ:RELI) reported a net loss of approximately $837,000 for the quarter.
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Commission expenses rose by 13% due to higher first-year commissions, impacting overall financial results.
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The company faced a $3.2 million intangible asset impairment charge, affecting year-to-date operating costs.
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The integration of Spetner Associates, while promising, presents potential challenges in merging operations and realizing synergies.
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Market perception issues related to previous warrant overhang may have impacted the company's share price.
Q & A Highlights
Q: Congrats on achieving positive adjusted EBITDA. Can you provide more details on the synergies and cost savings from the Spetner acquisition? A: Ezra Beyman, CEO: The potential for cross-selling is phenomenal, with over 85,000 employees needing various types of insurance. Our testing showed substantial savings, which could attract many customers. Spetner's advanced technology will help streamline expenses and back-office support. Joel Markovits, CFO: Spetner has strong revenue, around $14-$15 million annually, with a healthy EBITDA margin of 40%. This will significantly benefit us as we merge.