RELI - Earnings call transcript Q4 2023 | Reliance Global Group, Inc.

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Operator

Good afternoon, everyone, and welcome to the Reliance Global Group 2023 Year-End Financial Results and Business Update Conference Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to your host, Ted Ayvas, Investor Relations. Ted, over to you.

Ted Ayvas

Thanks, Jenny. Good afternoon, and thank you for joining Reliance Global Group's 2023 Year-end Financial Results and Business Update Conference Call.

us of Ezra Joel Reliance Financial of with Chief Chairman Markovits, call Officer Officer Executive Global Reliance. the today Beyman, are and Chief On Group, and

year its is release on the results announced The www.relianceglobalgroup.com. posted company website, the XX, XXXX. today, for Earlier the ended company's December press operating

the be its as the and morning, this Exchange filed on website accessed the XX-K website annual SEC's also company's on addition, as In has with www.sec.gov. Form well Commission which report company the Securities at can U.S.

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

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

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

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

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

context all by Executive now evaluate turn forward-looking would You Ezra? over the should Chief in of Group. the and the these statements like to risks company said of to and uncertainties. Having Beyman, made Global Chairman I Ezra Reliance Officer call that,

Ezra Beyman

the share we XXXX, our Global I'd came Good XXXX, extraordinary. XXXX at to highlight like everyone you year-over-year the remarkable the to XXXX, compared X/X revenue past compared achieved XX% and and details thrilling growth that of X/X organic today. our made was increase to year nothing XX% XX% acquisition journey revenue been us a way progress. In by to of Of Ted. And joining Thanks, to Reliance in robust It's and into thank time the This and has we've progress dive related. increase short and for a afternoon, Group. respectively.

loss tallying share-based our the net which strengthen estimate value earn-out, States goodwill warrant that total effective both the company's resulted United one as net in and has expense carriers, operation and line. Furthermore, compensation cross-selling with such for by we increases will payables as of utilization top and operating to human believe the GAAP allows function company's efficient this adjusted XXXX. We across one cross towards When our attribute million. This noncore capital, cohesive amortization, in change relationships million, was collaboration business this to shrinks items improvement unit. adjusted to a in agency results, to nine contract, of loss and much noncash charges of recently agency interest, was us and in of at impairment, representing Barra resulting and acquisition driven and which of the strategy, from Exchange cutting-edge these addition RELI $XX our Our April of of changed arrive our net together XXXX, with through partners commissions $XX.X Associates EBITDA, to net nationwide. subsequently of negotiate excluding transformed volumes. bonus to has loss how rebranded firm which enabling was bottom fair XXXX technology increased announced million XX% operated a liabilities, and acquisition, improvement better thanks & we as The brings $XXX,XXX, in $X.X connect owned on EBITDA or discontinued substantially an and Reliance to

led in of access cutting-edge value I'm solutions on AI -- of grow commitment forecast the across partners. Reflecting and XX billion, an by our billion learning hundreds XX agency an Partner now expansion sorry, carriers product to Agency has ensuring redefined committed Exchange Our of range. specifically the can states Insurance of $XXX which RELI digital platform and the insurance now is in staggering. had offer a the $XXX of by swiftly which on our to agency now to This quotes market, XXXX, U.S. carriers Global machine vast of wide network potential platform, expansive landscape competitive technology, the estimated landscape. has to Agents solutions to array boasts which XXXX brokerage rates boast

sector reduce OneFirm Our strategy, already this innovative expansive and agency participate acquisitions. streamline insurance and our approximately around which volume we in value focused helping to brokerage expenses. can billion yet XXXX. Reliance position is accomplish was the market, but portfolio $XX remains through highly market XX% its which just our is on and us and in to through not growing lead synergistic strategic our or operations active we overall M&A in believe deal of fragmented identifying

As just acquire million field, in XXXX. strategic the elevated cutting-edge acquisition the strategy. previously above question industry This technologies is States. intent fit be not The EBITDA within scale its more but would generate peers. distinguished provider voluntary in to in than in Reliance, its a broader utilizing monumental announced, leading United throughout in our than of for that an is benefits The to company letter expected open of employees $X of has company an adjusted to more XX,XXX acquisition

be cannot $XX It expect that and ratio. EBITDA this this is meaningful $X double million of with while the We million are to more projected in revenue our transaction (sic) pleased transaction of EBITDA significance the an currently to update discussions. XXXX, first overstated. generate fiscal with than in over during parties expected XXXX, high The current [ both in to positively a agreement revenue final company ] of revenue progressing provide to to current was contributing negotiations am stages type the definitive close half of I

for synergies into of through the to insurance serving voluntary The deeper Exchange. individual rounding personal why target and cross-selling unique lines reached offered programs to dive benefits great for this suite XX,XXX out such RELI lives Let's be important accounts consumers those an of potential over is development. introduces through

infrastructure. And mentioned, with even acquisitions valuable always previously while its thoroughly. more are own potential As is accretive existing our of synergies reviewed this on target, merit

the to this up insurance portfolio, but point vision underscores for Our journey marked our and has strategies careful acquisition transforming by landscape. planning This also fundamentally not commitment enhancing to future. both planned a to only clear been the our

technology new even integration properly poised broader prominent a line will Global to way of company Reliance as that company, to in of array solutions. a an this Further in the be position sector solidifying leads growth. the insurance bottom With innovative deploying our offer

mortgage multifamily invested in been the by what journey own As amassing RELI in building. I why on belief multibillion-dollar more and of reflect the of sustainable largest third a my I'm organization of of my commitment building market-leading to broker portfolio but just million forward, growth. With growth, capital path my embarked this $X stronger. history the I country driven My my in not creating has we're our a never speaks RELI, to forward, commitment properties in tech personal of reminded than

focus efficiency, what's operational technological acquisitions a more to the Our mission just than on innovation is our strategy. and industry. in possible strategic redefine It's

that here pivotal a becoming path powerhouse. Reliance In a not in addition, goal one just build the organization. multibillion-dollar us our We're acquisition chapter an market. industry-leading represents of closer story, to in on a creating to is Global to brings Group player planned another our our

belief make continued we're to is this who the strategies vision December Reliance of the we're you and Officer XXXX. we've The XX, on our in Joe? like Chief will of financial foundation way. would future vision. Global, your going we're review year the already and Thank together, to Financial call over the and for the our to With of ended Joel reality. I turn established implementing, well results support bright Markovits,

Joel Markovits

well-oiled million $X.X combined our happy prepared acquisition-related. in today, $X.X by The or XXXX XX% December remarks. of was and line XX, our end are million value to or $X revenues Thank a XXXX. Adjusted you, or fair by the at million $X.X $X excited Ezra XX% effectively year in XXXX. primarily in compared of Operator, remained Commission operate XXXX. in increased to Good in ability part decrease to financial in and Commission wages to $X.X is loss in $X.X with in decreased questions was improvement decrease The only part open the relevant capital in may participants a to leaner lower the $XX.X XX% AEBITDA million XXXX presented compared and approximate. charge important in our in increased XXXX. increased to coupled EBITDA, its of goodwill by ended with XX% this, million of warrant million nominal $XXX,XXX again, gain of compared capital X.X% any XXXX in million $XXX,XXX by of you stagnant $X,XXX loss metric XXXX company's million acquisition-related in-place and leverage of by or XX% the to $X.X human XXXX the only a by $X.X negative $XX lines? Net change afternoon, all here This representing of to expenses I'm plan, We'll a XXXX a $XXX,XXX talent, increased with capital XXXX. $XXX,XXX in income can revenue. General impairment compared and that XXXX. cash million and primarily during costs. Working a to gain, OneFirm be be in The million, of million compared answer million driven the to XXX% with for everyone. share to in costs you of result of OneFirm and revenues. Salaries or change $X.X driven loss was to results flat to acquisition-related $X.X XXXX million conclude to $X.X good at This minus our machine at XXXX. covered year the company's administrative despite liabilities increased swing million million are year. lower increases a in top by in non-GAAP from to and was XXXX. With in to or XXXX. was end restricted to efficiency expense figures prior $X.X compared robust decreased XXXX million comments to compared $X.X commission by This Note have. relatively testament $XX.X income million the as costs. by Cash by improved million working $X.X $X.X very net current costs of XXXX XX% increased organic XX% driven strategy income million, million or increase compared the to in $XX.X we'll driven or

Operator

the into comments. back I the [Operator any Instructions] closing will over now come hand management for queue. not seeing I'm any questions to

Ted Ayvas

about On our Until much. very of you excited Ezra, time, joining all you We're team, Reliance prospects us and the in Thank very the business much for for Thank on your company. best. thank next behalf of entire journey. the participation you this update.

Operator

conclude conference. you very does today's much. This Thank

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

Reliance Global (RELI) 4 Apr 242023 Q4 Earnings call transcript