RELI - Earnings call transcript Q2 2024 | Reliance Global Group, Inc.

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Operator

Good day, and welcome to the Reliance Global Group Second Quarter Business Update Conference Call. [Operator Instructions] It is now my pleasure to turn the floor over to your host, Ted Ayvas, Investor Relations at Reliance Global. Sir, the floor is yours.

Ted Ayvas

Thanks, Paul. Good afternoon, and thank you for joining Reliance Global Group's 2024 Second Quarter 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 June press operating

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

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

call, Before All Mr. everyone reviews company's other statements remind may are facts that regarding position, XXXX, strategy XX, statements contained the statements results operations operating expectations results call Beyman conference our forward-looking operations and than the in ended June quarter to for and the would including of this statements. like forward-looking we historical future statements. conference and financial future our of plans for contain

anticipate, short-term forward-looking needs. intended long-term projections believes financial and These words in will, strategy, seek, current and intend, design continue, trends results such project, estimate, forward-looking business identify based expressions negative plan, might, of may condition, and on likely, that could, operations objectives affect similar expectations are of statements in the other and should, are terms about terms the operations, company's of it believe, largely and words and future events to its statements. financial may, expect, The

and circumstances adversely those not anticipated implied this the the April XXXX. with Exchange the assumptions, actual risks, several described the results Because call company's in filed or of risks, discussed XX-K may statements uncertainties X, in forward-looking these on and could from and materially forward-looking and differ in to uncertainties and statements. forward-looking occur, These and U.S. Commission Securities as subject conference events Form are assumptions

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

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

nor In these these company forward-looking the for responsibility statements. to the of any of company The addition, assumes disclaims neither any accuracy any update any forward-looking completeness and duty of statements. person

forward-looking attributable their in the entirety expressly All in these well made are statements company conference as others to statements call. as qualified cautionary by this

context You should risks the and evaluate all the in of uncertainties. statements by company forward-looking made these

Chairman said would Having that, like Ezra? and Executive over to I of Global Officer the Beyman, to turn now call Group. Reliance Ezra Chief

Ezra Beyman

joining today. Good Thanks, Ted. for us you everyone afternoon, to and thank

we $X.X from growth first represents with revenue We $X.X respectively, consistent pleased X the in to of million prior months period same for sustained year, million, that attend respectively. levels and the the X% and which XXXX report are X and and revenue of X%

improvement operating reduced the in of a successfully second expenses, we our Additionally, XX% same period compared quarter XXXX have in XXXX. efficiency achieving to the

loss from continuing improved second by from quarter net same has Our the last the period XX% year. operations for also

just in X% XXXX. second nominal Our loss metric, showed $XXX,XXX a key under quarter AEBITDA of of revenues the or of non-GAAP

we second quarter, of the first the the sustained organic in performance strong our growth on into quarter. Building momentum

commission foundational our revenue us emphasize significant growth. operated OneFirm driving cohesive cross-selling This strategy unit. one opportunities to integrating our continue to nationwide has agencies We X into owned access and business higher extensive and strategy granted created tiers

our and cross services. collaboration. access data across This A organization, utilization promote key maximizes talent the and segment of initiative exceptional of approach the OneFirm the specialized is strategy sharing support enhanced

consolidate contracts financial vendor relationships to rural expenses demonstrated this and another reducing has as our results. operating quarter in our company Additionally, second

and and to broaden as scale we Spetner rapidly market acquisition, will accretive approach Group's we as will reach. believe that out further seek which Associates believe also industry position such We unified integrate to continue the acquisitions OneFirm Reliance us Global

continues As significant to anticipate gain profitability. revenue momentum, in both our OneFirm improvements and we

announcing plans, voluntary when It's Since XX,XXX to initial our acquisition. experienced employees, the expectations. far covered the jump anticipated BenManage Spetner initially more now from XX,XXX is planned a benefit Spetner's impact substantial we significant announced insurance employees than growth exceeding the our covering Turning segment has transaction.

stakeholders expertise, client Spetner aligning solutions growth is into edge and base our our enhance in to more significantly we Integrating operations with and an create innovative our aim offerings accelerate goals, expand our competitive our for benefit strategic expected market position, value our industry. extensive the by to service our strengthen Spetner's

not Spetner's audience. it's acquisition broader enhanced setting growth, voluntary insurance about services -- considerable opportunities completed, believe synergistic our in programs expanding RELI This extensive lines once bringing market the to just the provide benefits particularly market transaction is personal search that through platform. our unique We standard a reach industry, is about in a and new Exchange will

to to our be date for would a our double Spetner, boost million revenues well acquisition acquiring as of our approximately transformational This will annual of marks the by the to we AEBITDA. history $XX company's transaction end one smoothly, According the closing pivotal XXXX. time significantly progressing largest the is projections, in and acquisition will Reliance. of our This anticipate as and be

Our multibillion-dollar our business deliver mission remains substantial that build to and a shareholders. highly sustainable profitable enterprise to returns

go-to-market align create with that confident will strategy. are perfectly this that We our OneFirm significant game-changing opportunities acquisition

enterprise value. that committed shareholder to growth trajectory. increase technology-driven with powerful the profitability believe prioritizes Spetner a We and sustainable are significantly Reliance will Associates We Reliance accelerate acquisition establishing as of

great successful where This area new announced building we dedicated accumulating a the is commercial division, joining properties. Abe company Reliance launching remarkable also real future navigating complex including In generate and new guidance of investor provide were through a I the will mortgage His and July, acquisitions, strategic initiative, and be July early to acquisition to an Miller, a will executive successful in creation asset dynamics our largest head to M&A estate nation strategic estate portfolio not the estate a a multifamily of record success estate only significant on to value, division and this ability multibillion-dollar in real with its portfolio we substantial real brokerage the investment billion endeavors. third $X skill in showcases have market real returns. a multifamily track of the past had personally but properties. enhance and the

our for Abe I will progress on this vision, Abe, an with prior estate provided initiative be salary witnessed not receive fixed success-based he accelerate his Abe worked entirely will real my confident a extensive to are our achieving have objectives. services, the With in [ Having bring strategic organization. ] personally instead, business, model. compensated immense experience value and insights we towards will a

set where Spetner acquisition the closing sector. following of estate our record on the have perfectly proven track ongoing positive with particularly cash brokerage the new focused of this real and the acquisitions. believe successful division integration, a strategy we accretive launch A insurance flow aligns We strategy in

business new broaden supported categories. real into by nondilutive portfolio of positioned financing to intrinsic and will multiple lines division will our this the company's Through and by the expansion both into the sources flows. leverage diversifying cash value our Furthermore, asset estate, Reliance be operational assets

the significant instruments exercise impacted structure, also which share perceived Finally, Series significantly to remove its B our warrants, publicly eliminated price. from which derivative balance of our capital Series warrant and simplified G outstanding adversely believe as overhang, we potentially announced, sheet traded has and publicly may all Series Reliance B pursuant have

enhanced with our current as continue well that through confident are as future as shareholders XXXX our to our table well we capital will key both and beyond. resonate advance investors initiatives We

will Global, Chief XXXX. I who Officer Joel Joel? to would review the quarter turn the XX, for Markovits, the to of Financial ended now like Reliance call financial results over June

Joel Markovits

And Ezra. all. good much, very very to you you Thank afternoon

It's quarter my XXXX. results approximate. with of to the All for some of presented pleasure figures our are share you financial second

periods June for and for the X%, and period. the revenues XX, $X.X XXXX, Ezra, X- from and the quarter in As revenues $X.X increased same respectively, X% ended period and of mentioned year-to-date resulting million in X-month by for the million XXXX to

Our solid primarily expanded are revenue sustained and growth. to attributed organic levels

decreased expenses of second million operating million $X the in from $X.X in to second XXXX. of $XXX,XXX XX% Our or XXXX by the for quarter XXXX quarter

company of agreements not decrease and XX% would have our operating have adjustments to our all XX% our that line affected decrease costs, a were in [ [ ] Some general related costs. terms paid results. include marketing key with value ] administrative out drivers in considering and And a of and/or

at primarily efficiencies were Compared expense These the company's The costs XX, and driven same this expansion a quarter's is a employee came just key the for decreased ended million metric, to June XXXX, loss by by from XX% under $XXX,XXX continuing company flat of continued sustained and loss operations. non-GAAP EBITDA our of offset from inflationary impacts. costs, by quarter in compensation result indicator, million. AEBITDA, X-month vastly increases decreased from the versus in a to adjusted this commission revenues. quarter prior $X.X operations operating X% improved net period essentially which but resulted a and revenues measure, continuing performance or marginal $X.X

the around June XXXX, expect Spetner period EBITDA to earlier to and continuously We year post progress of loss Ezra. [ fiscal nominal EBITDA entity through by ] growth the the acquisition was as X-month skewing just do onboarding improve $XXX,XXX, discussed a In XX, ended X-month especially revenues. and X% we post

be that, comments With or this, open the answer operator, participants prepared With we happy conclude kindly may We'll to have. remarks. our questions that any lines.

Operator

from Forest is today Capital. the Pincus [Operator coming Instructions] Nick first question And [ ] from

Unknown Analyst

making are the on Well, with continued you business. guys that the congratulations progress

first real was, division wondering you on question could launching. estate The that new I if provide color some was you're the more

Ezra Beyman

about. something that's Yes, Okay. that we're excited

is excited. the And in to have to people many we maybe as decades to, experience. everyone we buying And of know, the levels, they opposed close and that As real really up higher based when safest where opportunity needs place X the and property has right to also real and the feel, years probably several a value pick wanted their head estate. good [indiscernible] last have would the up feel being been rate down days some multifamily, with experience that, and types to of the our on we some put we're primarily estate that's prior at people that's ups other to which

them is and of deals, my to we're industry. He's really deal and the I right excited. getting Miller in he's Abe And closing the at crackerjack -- like small big, giants say known

mentioned, as of and but we But take involved in are a we at some we them. excitement course, look and Spetner sector. forward want very real first defining then -- we positive is care to we're on deals the of acquisition, in very the estate as forward looking well which working the So important, to way

Unknown Analyst

status it's were there any of actually the which the I share second seems the like additional exciting, any as question. -- was other my both it it well if sounds pretty takes as on may if on that Spetner and developments forward. Spetner. acquisition as relate detail Well, you the moving we if The -- acquisition, progress, wondering to

Ezra Beyman

the growing employees, less to XX,XXX itself, due requirements we closer, and the it's excited as the transaction, when and us. them this as far lot of half getting And getting a really growing and from us on of closer far the started closed. We're floored progress, contracts really as and mentioned, the employees because and as we So it really and it's and we're from we're half by we're everything diligence XX,XXX behind day, we're getting went than or business focusing God, in that's not growing. of about behind And as that other thank let actually. servicing

very fourth strong really excited. strong and generational and excited, we're actually. they're business, very it a excited watching They're a team, and It's we're

That's So it. about for up a gearing big question no -- that.

Unknown Analyst

That's good great. Well, luck. and congrats again on progress

Operator

the And back from questions to management were other I Instructions] team there call line. now [Operator the will for turn closing the remarks. no

Joel Markovits

sharing on very good parties. the onward journey best. Ezra, other Global and much. our Reliance you prospect Thank participation team, for Group. very the supercharged and and On you be very all you to update. to behalf evening with We're this excited Until in wish and value happy I'm traveling and interested a business Reliance thank this very next shareholders by you, of we your entire time, of

Operator

conclude conference today's Thank you. call. This does

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

Reliance Global (RELI) 25 Jul 242024 Q2 Earnings call transcript