Q1 2024 Reliance Global Group Inc Earnings Call Transcript
Key Points
- Reliance Global Group Inc (RELI) reported steady organic growth in the first quarter of 2024.
- The company is implementing a 'one firm' approach, integrating nine owned and operated agencies across the United States into a single unified entity.
- Reliance Global Group Inc (RELI) entered into a definitive agreement to acquire Spectrum, a well-established benefits and enrollment company, expected to significantly enhance market position and service offerings.
- The acquisition of Spectrum is anticipated to more than double the company's revenue, bringing in over $14 million in revenue for fiscal year 2024.
- The integration of Spectrum is expected to boost EBITDA by an additional $4 million in 2024, thanks to its high EBITDA to revenue ratio.
- Net loss increased to $5.3 million in Q1 2024 compared to a net loss of $1.8 million in Q1 2023.
- General and administrative expenses increased by $537,000 to $1.4 million in the first quarter of 2024, driven by acquisition costs and higher regulatory compliance costs.
- Commission expenses increased by $193,000 or 18% to $1.3 million in Q1 2024, primarily due to the growth in commission income revenues.
- Adjusted EBITDA was a nominal negative $74,000 for the quarter, indicating room for improvement.
- The acquisition of Spectrum involves a significant financial commitment, with $8 million in cash and the remainder in a promissory note, translating to roughly one times forward sales and about four times forward EBITDA.
Greetings, and welcome to the Reliance Global Group First Quarter Business Update Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Ted Davis, Investor Relations. You may begin.
Thanks, John. Good afternoon, and thank you for joining Reliance global Group's 2024 First Quarter Financial Results and Business Update Conference Call on the call with us today are as repayment, Chairman and Chief Executive Officer of Reliance global group, and Joe Margolis, Chief Financial Officer of Reliant earlier today, the Company announced its operating results for the quarter ended March 31st, 2024. The press release is posted on the Company's website,
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