ABL - Earnings call transcript Q3 2024

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Operator

Good day, ladies and gentlemen, and thank you for standing by. [Operator Instructions] Please note, this event is being recorded. I'd now like to turn the call over to Robert Phillips, Abacus Life's Senior Vice President of Investor Relations and Corporate Affairs. Please go ahead.

Robert Phillips

Thank you, operator, and thank you, everyone, for joining Abacus Life's Third Quarter 2024 Earnings Call.

are McCauley, Chairman Chief today Officer; Chief me Bill and Financial with Jay and Jackson, Executive Here Officer. This afternoon at X:XX p.m. Life Abacus Time, released quarter third Eastern XXXX its results. results. to call questions allow afternoon's participants This about will our ask

today X-K the listeners Exchange to refers some may Form Before we furnished begin, to Commission uncertainties, filings the if and web as of today can Life risks and presentation the refers the with release, Securities subject which, and the they participants on the with for comments will press Life information statements a affect the to that contain discussion risks results. this materialize, the of be participants page and investor affect such, Investor on Abacus could remind forward-looking the to materially call specifically and SEC business. Abacus for that

risks, information statements, Abacus refer to on more to relating For filings. forward-looking the and please public uncertainties Life's assumptions

During financial the call, we non-GAAP measures. will reference certain

believe these recognized measures Although not including information additional that, under standardized see call not for have GAAP. filings Principles Jackson, over financial comparable financial references turn measures, regarding with our GAAP do Jay measures. And public Chief U.S. I'd to Please to Executive are non-GAAP and measures like meanings our or supplemental we our Chairman Accepted now information they and Accounting performance, the provide to useful Generally Officer. about

Jay Jackson

we'll earnings us After open remarks, you your joining to in to today thank conclude third and and everyone I to up our Bill our call. your Rob, XXXX questions. for welcome Thanks, it Abacus, and quarter prepared interest

to to Florida for immense the I our faced recent the Before recognize due hurricanes. communities challenges here our quarter, I by results want in the discuss

communities. worked for the the thoughts responders of were our for have storms. I'm and Abacus Florida assist who our especially proud communities, team who working first impacted of thankful team. they everyone all tirelessly even entire and prayers incredibly tirelessly restore by also thank We're our I want in when to Our been affected. our for to with are and personally

to positioning market profitable growth Turning further as with quarter results. while a Abacus initiatives, respect strong making and progress our Life another to alternative strategic asset leading delivered our significant maker manager. of We

share. Bill third increase the XXXX, shortly revenue detail. $XX.X year-over-year quarter by adjusted to EBITDA quarter year-over-year adjusted million generating total along growing discuss and of $XX.X in in per XX% recorded income For net million to grew be we adjusted performance to and diluted XX% or will $XX.X earnings, year-over-year our XX% third a by million to further strong $X.XX financial

substantial In offering. quarterly financial in our product made we a key Tech exceptional strengthened new and added partnership addition program, advances and our executive ABL results, announced and bench to our acquisitions

the largest Tech progress significant months the ABL X our our by Tech thrilled also August made signed union one I'm since First, in ABL external ago. year, June. In with United we the in client funds signed this we've April the initiative officially clients announced of in and we States. pension public first live in advancing just pension program went

thus one. in record awaiting RFPs winning are notification outperforming track and in of Out of space. vendors them been are the we outstanding, have key the the Our consistently incumbent RFPs we has the bid on X we remaining and X won far,

price market-leading our received Tech's and off RFPs, showing highest X expect lives quarter million which win evaluation, first by product we one differentiation. proposition score data across of validated company was the the Tech's XXXX. ABL final to all RFP, the fully clear ABL in exceed tracked Assuming security, overall we categories, of value including performance,

in current XX having provided As firm serves others XX with of Tech or clients October XX, commitments either ABL negotiations.

of All this states. XX across

of all, from XXXX, containing in not the with to renewals those X be contracts ranging automatic end quarter X We first pipeline term. the expect of onboarded at to our of if by initial of the years, the officially many, end

XX stages heading clients into our more tremendous proprietary of Tech potential pipeline in services and Looking that leveraging experience in solutions proposals health the pension various longevity pricing ahead, data we discovery, XXXX. of to bespoke financial have decades and and creates value sets, also industries. ABL than and By deliver fund

expect of Tech our growth the long ABL driver become a top significant to We line over term.

Management space, flow-focused X Luxembourg-based investment asset announced $X.X and we will premier SCA an Management, quarter, our third in together management billion strategies the manager Advisors. provider life assets add the manager portfolio. under Advisors, during and Carlisle index in specializing FCF to settlement FCF and Company key approximately addition, a In acquisitions, investment Carlisle cash in free

We deals close end both fourth regulatory subject the to quarter, of by approval. to expect the

We also significantly team X additions. strengthened with our senior key management

record capabilities proven and years strategic and launching executives and NASDAQ, experience, bring Corey our settlement as Markets. growth advancing our similar First, trading, investor of Relations as in significant and knowledge our the in of public deep services as affairs Corey's and board funds over will at business and communities, company of we are strategic McLaren objectives. settlements markets fund supporting expertise funds Corey the in and XX Spearhead including our FDO Rob investment Vice members in in in served leadership goals. In liaison to life years on including XX well October, managing Capital our early with he advancing management invaluable Senior primary strengthening experience Phillips wealth over development track President to thrilled initiatives specifically where welcomed a brokerage financial of business will Managing at brings NYSE. relations, as instrumental capital a markets roles experience and Rob's life Investor Board brings Corporate Affairs. and regulatory at institutional investment capital at Director engagement be industry Rob new we Capital Partners. and as expand our

integrating Lorisco revolutionary health technology partnered combines score a analysis biomarker PREADISAN, risk actuary to and The progress In product offering settlements innovative longevity and prediction also made to solutions Lorisco's new health actuarial initiatives. risks, Abacus' By clients. tailored platform We forecasting. excellent with personalization in mortality for provide prediction able tool. our with be and quarter, highly models assess proteomic to will technology, launch financial AI-driven with the blood-based life we expertise Abacus cutting-edge with

significant us While that actuarial personalized still proteomic this both financial enabling factors and in is offer program consider this longevity-based accurate modern beta a partnership makes services testing, traditional field planning, in more of and the to markers. advancement

the second a quarter, we We position and XX%. On on return on strong the equity balance while of strong. remains successfully of in invested raised $XX the end return capital the maintaining at front, liquidity million sheet deployed of equity our XX% capital capital

as advantage to strong policies become to And debt considering we to of attractive rates financing our We market are our reviewing financing additional more and purchase potentially at other our are support additional capital take continue attractive, and outlook. returns avenues options. very for growth

to and quarter ahead, market continue sustaining and to alternative Abacus us Through our it before firmly solidify profitable pioneering momentum to over Looking opportunities the third to we in and growth. to long-term results Bill global committed vast discuss we now financials. of I'll McCauley, our prudent hand a asset constant CFO, drive maker. With manager and seizing that, product specifics investments execution, are our the innovation thoughtful as

William McCauley

and Thanks, everyone. hello, Jay,

we solid profitability XXXX quarter balance delivered policy Abacus. performance and XX, highly growth to another to $XX.X we compared Jay of key With increase XXXX, sheet. Total revenue policies deployed earnings. our capital $XX.X prior-year capital revenue. the $XX.X was quarter The was our deployment, our platform XXX at of other to in be to management prior-year efficient $XXX.X holds due to our with of million continues XX% million continued we third higher policies million to grew XX% compared quarter a XXX in active Abacus continue origination to XXXX, September as driver grew in the As top period, The by to future by build our while the the to verticals origination compared and line period. In continue $XX.X purchased business million that on value XXX mentioned, prior-year the primarily period. while will million third in the of

compared for EBITDA $X.X $X.X was value which costs, acquisition Total by to in the the an in period. The $X.X in business (sic) ] for support prior-year growth period. marketing to the $XX.X the period, benefit XXXX growth debt our for grew amortization change typically of in million the noncash third to stock million and were million in in of through compared by driven income increased fair compared in prior-year policy the quarter to approximately noncash third million spend acquisition quarter XXX higher to attributable excluding expenses. the a in quarter headcount XXXX XX.X% unrealized increase million the million we from net total expenses, XX% period. On to the value basis, in active XX% Adjusted through quarter in in EBITDA [ of compared $X.X excluding investments quarter quarter third initiatives support liability, million change noncash of adjusted prior-year days. Adjusted the our by marketing $XX.X prior-year $X.X XX.X% prior-year increased was margin GAAP losses net period management the the period. grew the quarter of in to Turning million to $X million to and stockholders grew increase increase and to warrant realizes the realized to prior-year gains compared to for a the fair compared $XX.X company prior-year is our liability profile. for income net of employee SG&A. operating and $XX.X and to to due The loss $XX.X million compensation, XX warrant to period. million within XX% the third XXXX and primarily Notably,

XX%, basis, highly capital balance return Turning profitable business On September invested adjusted adjusted metrics. to return the sheet an ended on model. period X-month annualized was both on for our reflecting XXXX, and XX% was equity XX, our

the equivalents and XX, and million, cash deliver positioned growth summary, our top well are this turn are Jay outstanding long-term our balance continue ahead $XXX.X closing we basis. debt we As with of solid comments. quarter, our as of million on it double-digit to execute for opportunities policy now and and excited September adjusted million. plans. I CEO, sheet XXXX, company long-term well our will very about profitability In had cash on of $XX.X back to the growth We as Jackson, assets our an remain robust on to line $XXX.X of performance pleased

Jay Jackson

market well are share positioned conclusion, we Thanks, XXXX, to the we Bill. the very vast and space. we in opportunity us, our about in as excited and capture of market out close remain In grow front

manager financial is our extensive across on new asset profitable With various X-decade today, alternative track in journey our opportunities appreciate to forward us long-term questions. committed all Our global of Abacus you look we joining well track, enhancing towards success thank growth. Again, for is your creating We're a deliver our becoming sectors, building record longevity data and your prospects. growth on Life. and to interest to we that,

Operator

We'll take from Instructions] with Crispin question first Sandler. our [Operator Piper Love

Crispin Love

the being just Jay, first plan far and you higher a bit year and cetera. quarter in for the fourth believe seasonality the value so fourth people quarter then with as can face about meet advisers, and capital Just little originated past et deployed you've talk ahead broadly? I in the talked off, in about more trends

seeing is this so And this that something So been far this true? year? you've first, is

Jay Jackson

Crispin, thank you. seen we've trend continue. that yes, And

industry For I to potentially the themselves us, think at conclude quarter point now policyholders years. over for in origination the to our been the are this prior view, fourth of transaction historically, policy XX an the looking has as And Abacus from year-end. level,

think numbers continue certainly in so that our QX. in continue could of that also very, origination in strong also that that we've that you But had remain we see we as very things we'll historically, bullish year-over-year when just that up and to origination direction. were, QX. be I a had look we're And think to come. that, stronger optimistic said, to at relationship very another much With indication origination trend I as And

it. QX, So looks seen historically it's like same the it shaping it's up way -- that we've

Crispin Love

helpful. face capital originated but saw was? That's Bill, then, what that the you for the quarter looking originated can in value number. third Great. share just the deployed, value I And just face

William McCauley

In it quarter, third was million. $XXX.X the

Operator

TD from next We'll Instructions] Andrew our [Operator take question Kligerman from Cowen.

Andrew Kligerman

of you over Nice my quarters? around lot see at the that question very, the to management I first out obviously, a mean, Maybe Any X Do next do you did see deploy Because active material? hear your revenue. $XX this very voices. playing color quarter. around you rising capital. billion How strong that? that is pretty

Jay Jackson

Andrew, an And well. question, types are demand And lower great industry there that returns. in continues you in that's a investment when couple driven -- to part into rates to of today. additional these some an announced true in or we cost continue now. traditionally hear like expect point above-market happening had by there of I capital, giving and from thank which the uncorrelated our you decrease and wind by are things investment significant X.XX that of think And that some you our that certainly driven asset for And be part that ours, of backs. acquire and there's foreseeable have of increases Yes. was lowering QX, that assets, of us for things a of we key rates has a to as from point trend at certainly future. are view -- to that is right And

And that so continue XXXX. we active we should coming about for is means see trend us, management, that into to what when that think

well prospects excited capital right we're be to really think and intelligent smart it's for our a we're and time We more positioned, So putting now. work. to incredibly

And a as options at as looking like active so positive QX very to deploying QX that management, relationship capital certainly look capital, successful stated in now. right and and we just all to we things and in QX but what look we're had

Andrew Kligerman

of year-ago line the much about a were items. little smaller a the Could revenue, off talk color and servicing in Portfolio origination you're how and revenue much, both versus numbers maybe you those those each quarter. then around give bit areas? And feeling

Jay Jackson

us for revenue how even with servicing ebb portfolio on and and our The are flow active Sure. own might depending others. we

of policies, servicing kind of you and selling down portfolio cash that. where may that have anyone's or that beyond means as in be up So out they're your revenue enter impacted

to on effectively very those item clients process there servicing successfully, significant market to line one that the selling is portfolio, of that's some One process. some that we're to our as on we down very has about their excited of our our we as from impact the asset Carlisle see of the But winding the perspective, that servicing some think we'll revenue grow that with been the servicing. been we things servicing and we've and management, continue continue continue integrate revenue side into had

Andrew Kligerman

Got right? And the at the that it. closes of end year,

Jay Jackson

anticipating but Well, we're -- anticipating yes, we're I never say for sure one as to date or still we're close. a another, that see to QX --

Andrew Kligerman

And Got it. then revenue? the origination

Jay Jackson

Yes.

to So want It mean directly sheet, and doesn't hold the size capital number initial don't sell take transaction a policy that And fee we we don't like. then on balance might it more there's then third-party to investor. and be. might that might to then we our is policy origination that just that typically, from or why policy have to revenue It sell or reasons origination investor. that there's the don't directly do that if constraint. a of of we an might that efficient that charge basis be It anything a be

versus a so trading it buying holding And than down our them of origination balance them at then, directly policies from investor. would origination course, that, balance originating sense fee to have the as and that on them sheet makes sheet more selling we're our come third-party rather for and fee

trend balance our we So more own this off sheet. deploy is expect would the you capital as of

Operator

our next with Securities. take Northland from Mike Grondahl And question we'll

Mike Grondahl

priorities top for Jay, Any update what 'XX? And maybe on are the X competitive your environment?

Jay Jackson

one addition and of with awareness But our continue our having things of industries our is expand some saw our just of to to what of close might understanding greater for XXXX. through a asset We'll program the outside primary underlying represents. focus And and marketing good a to view, you our education Sure. than in we're number groups industry, our we start a industry what call people was adjacent point of that that, little would different at. acquisition what like taking that bit look be that from

horizontally So that those want revenue at to We're about would starting Tech obviously current providing pension expand include to servicing, services of things and our sources of in we valuation. business looking while see other others. which we're whether that's some to like the excited model and revenue, through continue ABL in the verification things fund mortality division to

Mike Grondahl

bank so with little new how a learned Could you've the the about and bit on-demand far is you talk product going? partner what

Jay Jackson

Mike? What was that, apologize. I

question. missed I think I of that part

Mike Grondahl

was part environment. on second The the competitive just

Jay Jackson

in environment, as I a rises our you Got as hopefully we're tides the industry run pretty in that it. it is competitive to that measure related we a the for gives competitive it's that success, others, still room of industry. industry a stand. I our where continuing think think that, all to have And tight that industry, us and And the and landscapes of lot from

publicly and success our advantage our also relationship the that sources directly story other We're having how today, but I significant that institutions. conveying large talked only only of with sharing are lot message distribution still traded and us we've a in think we're company a our in origination industry to in other in and about. policyholders to capital, We gives not

about of So have we to that. still because And from we how for think XXXX well going where sit, we're competitive continue we'll good feel that we a really and forward. positioned advantage

Operator

return for line remarks. are at this Jay the time. And Jackson any will on closing the no I there further to questions program

Jay Jackson

of key your for we everyone, is your Terrific. Hopefully, growth. in we're proud of to certainly listen Thank one dial time a our evening continuing things that and you, takeaways call. that to are is of of out the very taking that couple our

just in well short for those continue. term, the incredibly to for not in the coming and are positioned we expect long term, but also trends We

EBITDA at almost and growth. deployed our this XX% continued to forward QX, something As we things our look look to at now capital, when margin that in very like we like we're quarter of proud started a

you So we wish as the very everyone speaking into look holidays, holidays, you new we in to the the comes to year. again best forward and

Operator

you earnings disconnect. participation, may conclude and the Life for Thank does call. now you Abacus This your

Abacus Life (ABL) 7 Nov 242024 Q3 Earnings call transcript