RELI - Earnings call transcript Q2 2022 | Reliance Global Group, Inc.

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Operator

Good morning, ladies and gentlemen. And welcome to the Reliance Global Group Second Quarter 2022 Business Update Conference. At this time, all participants have been placed on a listen-only mode and the floor will be open for questions-and-comments after the presentation. It is now my pleasure to turn the floor over to your host, David Waldman.

David Waldman

Good afternoon, everyone. joining Group’s for conference quarter you call. thank Reliance second Global XXXX And

with Ezra quarter posted William website, today Chief the operating release this us On call is announced company is XX, Officer Reliance. of its www.relianceglobalgroup.com. XXXX. Global morning, press the Financial for Executive Reliance company’s Beyman, June Group; on Chief and the the Lebovics, results of Earlier ended Officer and Chairman The

the report addition, accessed and U.S. company as with its SE Form In www.sec.gov. which on be website the C’s website, Securities quarterly Commission also on today, the company’s earlier well Exchange as at XX-Q filed can the

at any have any about please you XXX-XXX-XXXX. additional If information Communications company, after would the call or the like Crescendo questions contact

company’s and for and than for of results our facts terms Beyman of other statements. Before might, these plan, [Technical expressions words statements. position, of board should, statements plans, call terms forward-looking may, The this business to the described remind that operations The the statements continue, strategy conference These its in as other March operations and Mr. that financial statements. XXXX. and and intent, or expectations and expectations financial we’d financial operations those Form and contained XXXX, it affect call company’s estimate, could this such assumptions regarding contain anticipated call, with uncertainties this reviews materially the and and -- expect, results forward-looking and statements are may statements project, from several operations filed words in the and results forward-looking seek, implied occur on projections quarter forward-looking may long-term largely circumstances objectives likely, All everyone short-term assumptions these including could, events and about the on not future trends similar Because current of conference of Securities to subject based will, the condition, strategy, Commission in uncertainties believe, future the negative results actual and design, Exchange anticipate, are of discussed statements forward-looking in risks, events company’s U.S. differ and XX, like believes Difficulty] conference adversely identify our XX-K and the historical risks, in statements. second and forward-looking operating may forward-looking are needs. future

future as forward-looking You should of prediction rely not upon events. statements

that are future company the the results, guarantee Although, believes reasonable performance achievements. or statements the level reflected expectations of and cannot activity, forward-looking in

In addition, any neither The company statements person made to nor of any these of to these statements. conference those update in disclaims these assumes in expressly company are entirety their accuracy the call. responsibility All qualified the of statements, completeness by duty attributable any forward-looking any as forward-looking cautionary statements. other well for forward-looking and company this as

ahead, Ezra. in With go You evaluate these the to all the by uncertainties. of made now risks and call forward-looking Ezra Beyman. over turn the company that, should context I’ll statements Please

Ezra Beyman

acquisitions, agents enthusiastic last We us XX% a have strategy successful am and Insurance thanks which year-over-year And Associates, the I our growth in Associates perfect acquisition to existing XXXX acquisition, vehicle extremely as were year. you, joining one quarter more recently, has compared very which David, that year viewed to Barra highly Thank everyone transaction Company, partners strategic by This JP added we a scale increase -- Barra of RELI good successes the the Health for searching we Medigap of most & in revenue to partner was the cost for, XX afternoon. in to achieved the than rapidly support more importantly, relaunched proven as our exactly and that and recent we our We we and driven report acquired been when nationwide plans. this effectively. type business to increasing been This agency pleased expansion both second network our & of could with Exchange. second bought and complimentary we April Associates, the Kush of and offering, to Barra had subsequently believe was our highly existing quarter. and & agency today.

relaunched create well including to text as with with acquisition technology opportunity XMinuteInsure.com agents acquisition advanced our for an importantly, model. InsurTech By the network, Exchange, Barra saw XMinuteInsure.com, first-in-class, mining Barra More on platform data that infrastructure designed affiliated network Barra was artificial the and intelligence the technology that growth, was and RELI the combining this strategy. as aligned brought synergies partner we an that infrastructure, business builds target direct of a to platform business-to-business eventually consumer backbone was agency market. a

short by as will illustrates our we network aggressively is months, partner few We number both grown The higher than which significantly thetically that to and the competitive instant designed that, with are more three just as the than XX%. more report have carriers agency add, to actually XX provide insurance proud quotes I power in than insurance platform, popularity in just minutes. is the well its platform strength of nationwide from a partners. our agency

the to will highly the grow us and are offering since response business with contributed RELI positive whether platform. to growth business provide and Exchange versatility insurance proposition franchise platform now our add to on their continuing compelling The us any using forward multiplier that aware agents has back addition, was with low our of our to additional They an business. the Unlike in-house agents to a both which speed our a they network designed agent a experiencing. or believe have as effect partners model, software, of thus the expenses outside a a believe we In Exchange entry, selling on significantly little moving or agency with line office with their on partners to network businesses. the best-in-class burden clients, that overwhelmingly the building Using it the their We have as this transitioning and not new paperwork, eliminating to RELI costs. that aggressively to from currently and network, new believe are it policies the providing on to has by developed, embraced barrier accelerated are value Exchange. partner we reporting platform, agency agency ability RELI a is positive. time Exchange look more industry experiencing other reduces focus platform proprietary agents We believe of RELI our agency growth the we been of we well we have have to which that our built will scalable with of and are impact our we

Reliance company our largest as acquisition robust already also the was Company we is a into step Exchange partner demonstrate evolution significantly the within Insurance broadened ourselves footprint, in background organic the indeed the as the well geographic acquired has and since Health our this actually build response. Their we back to it Like are expanded earlier supplement in -- Our as growth market. capabilities experienced RELI U.S. year. Medigap significant Exchange, Medicare right tremendous with the path. goal It RELI on have believe surprised agency we network we experienced results the

earlier our Financial as aggressively them Our well attractive Global cash William financial will June since Officer existing operations, turn RELI well growth goal of on portfolio Reliance and to -- as ability multiples. who for three-month this organic was would further review flow positive our as to XXXX. Chief of the opportunities companies. to cross-selling and strong over companies both and expand build, acquired William? Medigap we now across validates agencies XX, capitalize their acquire strategy such I results experience as buy the With Lebovics, our Exchange experiencing like period call to ending the at year,

William Lebovics

of in of to June $X.X good million acquired two Ezra, June June June ended per largely loss ended and XX, the of full XX, The to year to in is agencies increase liabilities increase operation XXXX due industry $XX.X to additional million expense quarter expense acquired compared for to commission outreach reported the to The XXXX $XX.X $XXX,XXX period. income per year million. the June in XX, to Total the as for and expense efforts due and three the months ended XXXX. the $X.XX during and made everyone. expanded million totaled commission ended company’s value to of the XXXX reporting acquisitions totaled months growth advertising which increase three full XX, company June presence compared remarks. of ended of XX, the administrative attributable of and three company’s $XXX,XXX or greater company increase months change to of is for $X.X which the three The fair expenses including in wages $X.X The three and increased compared months for by increased million months was insurance for including million expense increase XX, million year. the to insurance The ended XXXX. months the XXXX. XXXX. the $XXX,XXX of XX, or to branding three June for acquired is revenue XXXX. share, a share. in to Thanks, XXXX. and $X.XX $X.X the million insurance the prepared primarily to income XXXX, of recognition XX, insurance a million three XX, XX, afternoon, is That $X.X the operations, quarters. or totaled compared agency ended for commission the months June reported June for the months compared $X XXXX. XX% million increase the company XXXX, acquired compared in XXXX, is other and $X.X for warrant Salaries million agency Marketing XXXX, the $XX.X ended expenses ended the increase and two quarter agencies to reporting -- year XXXX, XX, ago three revenues XXXX of during of for months a the operations, $XX,XXX XXXX, ended of primarily million include insurance totaled expense result operations to for include primarily the and prior three $X.X June General attributable prior a in The compared compared result ended our $XX.X June $XXX,XXX, other an concludes Net the The increase achieve

assist any please now per will usual. questions. We as be to Operator, happy answer

Operator

[Operator Thank Instructions] you.

coming Sir, is please question first ahead. Our with Riley Hutton. EF from go Edward

Edward Riley

Hi, guys. taking Thanks for my question.

expect organic you guidance for the you would year planning at maybe the -- on of growth to and what are forward look all? wondering Just like rest issuing going

Ezra Beyman

So that being rolled are out as will at the mean, we is, are truth Ed, sure, as talk been understated will the soon I probably amount best overwhelming. of guidance. really. well, joining the not growth with as the that significantly. and in this we I but do Exchange, and granting in has agents things say now think, the overwhelming finalized as growth Medigap are RELI as far right numbers stage, is being and of response especially but put about we response I The I’m things

with are we’re actually say that this exponentially, even this, sure, because we -- have partnerships in grow think I we could aligned conversations we in In we’re -- I’m and really. serious business so could fact, -- several in

with excited, I’m that actually few hours a in and recent, happened we’re Chicago. talking about conversation Barra we ago, mean, had I Grant guess, a I like, as and So I see,

say So now really I be to expectations, ready but happens, think our we’re as that excited the this guidance, beyond response. I’ll and much. right available about more we’ll give It’s

Edward Riley

costs mention? Of you. wondering wonder might million operating I -- Okay. I there want the -- $X.X if any expenses, in one-time to there’s anything in am Got material you that

Ezra Beyman

our going Financial Chief Joel Accounting that I’m Definitely. Chief Officer. to answer -- Yeah. let

Joel Markovits

everyone. Hi,

the had to offering earlier There PIPE non-recurring one-time and this of kinds year. Okay. that items relate are some we they

wants yes, but, there know, So the anyone expenses. one-time if -- we was to numbers, had that

Ezra Beyman

bit. Explain a little

Joel Markovits

Oh! course. Yes. Of

non-recurring the would the [Audio months Gap] would and then the $XXX,XXX So, for three for six non for about about $XXX,XXX $XXX,XXX. be months be

Ezra Beyman

in which maybe. the some All probably were to non-cash is also by know items there, There important way, right.

Joel Markovits

Yeah. Yeah. course. Of

would non-cash months about six for $X.X So million. be the

loss in to So, about again, be we’d in about from less adjustments six months for at total, $X.X XX% which was of our what XX-Q. operations looking we than million, reported

loss, be you the $X.X So in adjustments, from XX-Q as of about out XX%. we’ll the these $XXX,XXX loss operations. well as is looking decrease million Once at back a

million from months, down better in we about that as from comes from loss six less, the operations operations was it three story we what $X,XXX,XXX so about our the $XXX,XXX. $X So about to months, and similar loss comes XX% -- reported down

Ezra Beyman

that healthy situation when out back see, yeah, our can and pretty at in stage you the the So, of a it company. puts non-cash, you as non-recurring us that

Edward Riley

Great. seeing, a one for just wondering unpack pipeline, Okay. you’re little any bit the me, competition And for to about in that increase last just me? want you acquisition

Ezra Beyman

well, didn’t we know go we at, we I was competition. into just we at to But needle. doing we have think, up things something last competition, we’re looking it. we the joke. do as acquisitions. did This started, So there looking just now at, things acquisitions move I look since before always if That done, we that’s a we going to what, it we when are one were about was We was would XX in we’re said to very want look I the I strategic. and want answer acquisitions

Exchange a something agent, of it’s pretty for much, paying have the something at, technology, another if is we much is place Grant every platform, in but of Barra, to without you talks in significant we I significant, credit remarkable. But besides because we’re to fact, very in it potentials. a going be our it’s that, itself infrastructure different are effectiveness, acquire fancy, to cost RELI it’s going tremendous to significant, acquisition we want talking, to time really but looking So remind it’s is are catch in

really, strong of platform that I industry because very, the So there’s place. it scalable, of know at their this in it few and extremely and makes very organizations in that scalable, very organized

we’re let’s We So look sale, looking a is those of me the wouldn’t do big and for that things, afraid not acquisition do it in I private put from -- very say, But things. But but Amazon open. if that way. not acquisitions. we because afraid big we I’m course, world If itself world, of an the big could different who are know public to business, if something, of we’re we’re platform. some

Joel Markovits

yeah. not, are We

Ezra Beyman

sorry. Yeah. I’m -- That’s

Operator

Thank you, ladies gentlemen. and

Sorry, I do apologize. [Operator Instructions] [Audio Gap]

Ezra Beyman

things which several adding the But Ronnie [ph], to recruiting, they’re of of to million the have we XXX low just hey, marketing, agents targeting to to ratio already audience, the hard adding we’re believe targeted we’re and cost agents. revenue -- revenue the It it’s -- very We are say happy this even with added adding to Americans, on structure. low we very recruiting and need targeting extremely of is busy. add, this, insurance because we not a ratio

growing more agents, numbers the we it’s scale, okay, are infrastructure what -- with of reaching direct everything got very system press add was -- the -- But smaller are actually. talking else. more amount marketing, a that, in can not and and have are another there. The process boarding in which agents, current in significantly. that place is agents, a to that on a ways with revenue it’s there of did, existing of you’re Now we just that release, little over when them, much we start Grant A meaning, want the our what already the recruiting if technology and about when do way them said we our by remarkable, places dividing you it he in than about arithmetic, XX to lot XXX and we we’re

adding want I do numbers, to -- I of more to the when forward, give per than going is were but they have way on we am we are which we goals you agents, minimal. before XXX I’ll what month do middle mean, So it’s some, acquisition made

what can million about you in -- we’re And I figure could not but talking to could talking You’re XXX about now, extrapolate out going am $X.X agents a maybe then you salaries. do. -- right

because rule with it them are sometimes infrastructure the concentrate agents, streamlined for can on that some Of big they more the in do becoming with few always technology really but join more course, the the ones the bring us, office, selling, of it’s which place. is pays back and to the of numbers, we the,

do So discussed guidance give numbers rocket who all to place the -- very, we’ve not this, advance scenes space It’s want it’s But I with year blown this We them, it It’s because acquisition the agents platform like we not for it a don’t internally, is actually accumulating. plus a looks a ship, And XX bicycle was building in and them were launch. was a concept to encouraging. to behind that existing it. because carriers we we -- the hypothetical. the away. a to anyone and from whole a very been are of and now. at had a course, just the This platform felt were is doing ready are make of licensing this states interest looking for in wanted. we amazing, type D.C., we for Washington, we’ve we’re went look

So bases place watching all speak, it we’re the in it’s infrastructure and it’s phenomenal. going weaponry, to in and all it’s is and so the we’re God, Thank the really. now just and and

franchise a and because your that in build more not in place. for but answers saying I that have to afraid too in I’m one say we question feel like one to can out it, do it, I combination I there to your the take almost there’s long, not that world much us absolutely they this ashamed know in minimal. I’m does got question. is think that agents the have else hope I nothing don’t cost competition, answering the period. we get So this. of no franchise to and Anyone in much factors There’s no model call there and listen more who just confident or out was really

Unidentified Analyst

did. absolutely I Thanks. appreciate It Oh! color. all the

Operator

Thank you.

Edward is Our from with next Riley EF question Hutton. go coming ahead. Please

Edward Riley

Hey, guys.

off goal you it’ll take agents, are today? agents piggyback questions, to you the where long think of how to the that XXX Just you do last many sign from

Ezra Beyman

partnerships more But the and certainly and tell farfetched a we’re be into at tell the I with you services I’m is I’m haven’t we us. you, offering. rate yet. rolled doesn’t one going in months I something wanting take year, that conservative. I’ll that that place. out To no can the thinking offering honest a not we’re because their XX even mean, be what it blow okay. some add at see little really, break It’s of consideration strategic to you people to not to join franchise I realistically, agreements infrastructure think say I away. to going I’ll is And really that can

Edward Riley

Okay. just confirm… Great. And to

Ezra Beyman

am. really I if know, I I I’m Yeah. am sorry excited,

Edward Riley

Okay. then at just of Great. XX% end confirm to And are QX. at you the

Ezra Beyman

XX%. than Actually went that. were we We at, No. more up by

We’re about to on… closer XX%

Edward Riley

Okay.

Ezra Beyman

… already rearview of and process and That’s and XX% too above shooting of the as this them number boarding, much the Two XX% above numbers. It’s the are that bigger some licensing above digits number. morning. past. the in finishing and in in mirror. that the But the of I’m are we’re really above we’re but we’re

We’re now at looking the…

Edward Riley

Okay.

Ezra Beyman

four digits …three and digits.

Edward Riley

Okay.

Okay. Thanks much. so Great.

Operator

There the be queue at no this appear questions to time. further in

comments any with. it finish to to they’d going for hand to So closing management I’m back like

William Lebovics

Okay.

quarter, across footprint. to we our So strategy our agency validation forward expand to States as which continue we’re RELI with we gain revenue achieved partners in the see progress Exchange independent the the our as about InsurTech to traction excited of We United during look second nationwide make platform. and to agents we continuing growth

quarter. for we We for second country. in forward is would across and are to XX XXXX sell the like everyone very quarter than Reliance future thank The XX to carriers more bright our participating on call. you updating licensed now I policies again to states next conference for look

Ezra Beyman

Thank you.

Operator

conclude ladies today’s call. conference and This does gentlemen. you, Thank

Thank disconnect your wonderful at day. your may for have you You time and lines a participation. this

Reliance Global (RELI) 15 Aug 222022 Q2 Earnings call transcript