Latest news with #EzraBeyman
Yahoo
8 hours ago
- Business
- Yahoo
Reliance Global Group Signs Letter of Intent to Sell Fortman Insurance for $5 Million in Cash
Transaction highlights strategic execution and unlocks capital for highly accretive Spetner Acquisition LAKEWOOD, NJ, June 17, 2025 (GLOBE NEWSWIRE) -- Reliance Global Group, Inc. (Nasdaq: RELI) ('Reliance,' 'we,' 'us,' 'our' or the 'Company') today announced it has signed a non-binding Letter of Intent (LOI) to sell Fortman Insurance Agency ('Fortman'), a wholly owned subsidiary for $5 million in cash. The contemplated sale price represents a meaningful premium over the original acquisition cost, underscoring the Company's ability to acquire, improve, and opportunistically monetize assets to drive shareholder value. Since acquiring Fortman, Reliance has implemented operational enhancements, upgraded internal systems, and established a strong leadership team. As a result, Fortman has evolved into a well-capitalized, efficiently run agency with a growing customer base and enhanced market presence. Ezra Beyman, CEO of Reliance, commented, 'The potential sale of Fortman demonstrates our disciplined capital allocation strategy and commitment to value creation. We acquired Fortman at a compelling valuation, strengthened its operations, and are now positioned to realize a meaningful return. This contemplated transaction reflects our ability to execute and supports our broader goal of building a highly profitable and focused organization. Not only does the sale price represent a premium to what we paid for Fortman, but it also adds substantial cash to our balance sheet—an especially notable achievement in light of our current market capitalization. We believe that this highlights the substantial underlying value embedded across our broader portfolio.' Proceeds from the sale are expected to support Reliance's planned acquisition of Spetner Associates ('Spetner'), a rapidly growing and synergistic insurance platform. As highlighted in previous announcements, Spetner has experienced robust growth in recent years and is expected to generate strong cash flow at both the subsidiary and parent company levels. The Company believes Spetner will integrate seamlessly into Reliance's operations under the OneFirm strategy. 'By monetizing Fortman at a premium, we are building internal cash reserves that are intended to advance the Spetner acquisition,' added Beyman. 'This strategy reflects our commitment to enhancing shareholder value while pursuing transformative and accretive growth opportunities. We believe replacing our Fortman subsidiary with Spetner aligns with our long-term vision for scale, synergy, and sustained cash flow generation.' The LOI is non-binding and subject to customary due diligence and negotiation of definitive documentation. The Company will provide additional updates as the transaction progresses. About Reliance Global Group, Inc. Reliance Global Group, Inc. (NASDAQ: RELI) is an InsurTech pioneer, leveraging artificial intelligence (AI), and cloud-based technologies, to transform and improve efficiencies in the insurance agency/brokerage industry. The Company's business-to-business InsurTech platform, RELI Exchange, provides independent insurance agencies an entire suite of business development tools, enabling them to effectively compete with large-scale national insurance agencies, whilst reducing back-office cost and burden. The Company's business-to-consumer platform, utilizes AI and data mining, to provide competitive online insurance quotes within minutes to everyday consumers seeking to purchase auto, home, and life insurance. In addition, the Company operates its own portfolio of select retail 'brick and mortar' insurance agencies which are leaders and pioneers in their respective regions throughout the United States, offering a wide variety of insurance products. Further information about the Company can be found at Forward-Looking Statements This press release contains 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by terminology such as 'may,' 'should,' 'could,' 'would,' 'will,' 'expect,' 'anticipate,' 'intend,' 'plan,' 'believe,' 'estimate,' 'continue,' 'potential,' and similar expressions. Forward-looking statements in this press release include, without limitation, statements regarding: Our ability to complete the non-binding Letter of Intent to sell Fortman Insurance Agency for $5 million and to realize the contemplated premium over our original acquisition cost; Our plans to deploy the proceeds from the Fortman sale for the proposed acquisition of Spetner Associates, Inc.; Our expectation that the Spetner acquisition will close on commercially reasonable terms and receive any required regulatory and shareholder approvals; Our objectives to continue acquiring, improving and opportunistically monetizing agency-level assets to drive shareholder value; Our intentions to pursue disciplined, accretive growth opportunities in the InsurTech and insurance agency industries; and Other statements of our plans, objectives, expectations and intentions with respect to future operations, financial results, products and services. These forward-looking statements are based on a number of assumptions, including the assumptions that: the LOI will not be terminated prior to execution of definitive purchase agreements; due diligence and documentation negotiations will proceed without material adverse findings; the Fortman sale and the Spetner acquisition will both close as expected; our revenue and EBITDA projections for Spetner are attainable; integration risks will be managed successfully; and there will be no material adverse changes in market, economic or regulatory conditions affecting our businesses. There can be no assurance that any of these assumptions will prove correct. There are numerous risks and uncertainties that may cause actual results or performance to differ materially from those expressed or implied by these forward-looking statements. These include, among others: the risk that the Fortman buyer may withdraw or renegotiate the terms of the LOI; delays or failure to complete either the Fortman sale or the Spetner acquisition; unanticipated liabilities or integration challenges in connection with Spetner; our inability to realize the projected revenue or EBITDA benefits; competition in the InsurTech and agency brokerage industry; changes in insurance regulation or Nasdaq listing requirements; general economic or financial market conditions; and the other risks and uncertainties described in the 'Risk Factors' section of our Registration Statement on Form S-1 and our periodic reports filed with the Securities and Exchange Commission. You should carefully review our Annual Report on Form 10-K for the year ended December 31, 2024, as amended, and the other reports we have filed or will file with the SEC for a more complete discussion of risks and uncertainties. Except as required by law, Reliance Global Group, Inc. disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Contact:Crescendo Communications, LLCTel: +1 (212) 671-1020Email: RELI@
Yahoo
15-05-2025
- Business
- Yahoo
Q1 2025 Reliance Global Group Inc Earnings Call
Ted Ayvas; Investor Relations; Crescendo Communications Ezra Beyman; Chairman of the Board, Chief Executive Officer; Reliance Global Group Inc Joel Markovits; Chief Financial Officer; Reliance Global Group Inc Operator Good day, everyone. Welcome to the Reliance Global Group first-quarter business update conference call. (Operator Instructions) It is now my pleasure to turn the floor over to your host, Ted Ayvas, Investor Relations. Ted, the floor is yours. Ted Ayvas Thanks, Kelly. Good afternoon, and thank you for joining Reliance Global Group's 2025 First Quarter Financial Results and Business Update Conference Call. On the call with us today are Ezra Beyman, Chairman and Chief Executive Officer of Reliance Global Group, and Joel Markovits, Chief Financial Officer of Reliance. Earlier today, the company announced its operating results for the quarter ended March 31, 2025, and the press release is posted on the company's website, In addition, the company will be filing its quarterly report on Form 10-Q with the U.S. Securities and Exchange Commission today, which can also be accessed on the company's website as well as the SEC's website at If you have any questions after the call or would like any additional information about the company, please contact Crescendo Communications at (212) 671-1020. Before Mr. Beyman reviews the company's operating results for the quarter ended March 31, 2025, we would like to remind everyone that this conference call may contain forward-looking statements. All statements other than statements of historical facts contained in this conference call, including statements regarding our future results of operations and financial position, strategy and plans and our expectations for future operations are forward-looking statements. The words anticipate, estimate, expect, project, plan, seek, intend, believe, may, might, will, should, could, likely, continue, design and the negative of such terms and other words and terms of similar expressions are intended to identify forward-looking statements. These forward-looking statements are based largely on the company's current expectations and projections about future events and trends that it believes may affect its financial condition, results of operations, strategy, short-term and long-term business operations and objectives and financial needs. These forward-looking statements are subject to several risks, uncertainties and assumptions as described in the company's Form 10-K filed with the U.S. Securities and Exchange Commission. Because of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this conference call may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. Although the company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, level of activity, performance or achievements. In addition, neither the company nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. The company disclaims any duty to update any of these forward-looking statements. All forward-looking statements attributable to the company are expressly qualified in their entirety by these cautionary statements as well as others made on this conference call. You should evaluate all forward-looking statements made by the company in the context of these risks and uncertainties. Having said that, I would now like to turn the call over to Ezra Beyman, Chairman and Chief Executive Officer of Reliance Global Group. Ezra? Ezra Beyman Thanks, Ted. Good afternoon, and thank you to everyone for joining us today. I'm pleased to report that we're starting off 2025 on a strong note with improved financial results that build on the solid momentum we've established in 2024. We've seen meaningful growth in our organic revenues, which speaks to the progress we're making in expanding our market share. At the same time, we significantly reduced our net loss and delivered an increase in EBITDA. These gains reflect the continued benefits of our disciplined financial approach, the efficiency we've achieved through our streamlined OneFirm operating model and the absence of impairment charges that impacted last year's results. Altogether, the momentum we're seeing has strengthened our foundation and positioned Reliance Global Group for scalable long-term growth with greater profitability. One of the most exciting developments this quarter is the launch of RELI Auto Leasing, a transformative new service that enables our RELI Exchange agency partners to offer vehicle leasing to clients. Any vehicle delivering to any location in the U.S. are earning commissions on both the lease and the [indiscernible] insurance policy. This service is fully integrated into the agent dashboard requiring no additional training in auto finance. Agents now can guide clients through leasing options during standard policy consultations, whether for new vehicles or replacements after accidents. Clients benefit from competitive pricing, nationwide delivery and advanced insight into how different vehicles may impact their premiums. This integration deepens client relationships and introduces a powerful recurring revenue stream for our partners. Early feedback from agents has been outstanding, and we believe this innovation further distinguishes RELI Exchange as a complete solution for independent agencies. We are also nearing completion of the Spetner's Associates acquisition, a strategic transaction that will expand our market footprint and enhance our agency network. Spetner brings deep experience in personal and commercial lines, along with strong client relationships and a proven team of agents. Their integration will add scale, complement our existing capabilities and create immediate cross-selling opportunities across RELI Exchange offerings, particularly Quote & Bind and RELI Auto Leasing. We expect this acquisition to contribute meaningfully both -- to both revenue growth and margin improvement through synergies, and we view it as a significant step toward our InsurTech growth strategy. With these milestones, RELI Auto Leasing, the continued enhancement of our Quote & Bind platform and the upcoming Spetner Associates integration, we are more confident than ever in our trajectory towards scalable long-term growth. Each initiative adds meaningful dimension to our strategy, expanding services for our agency partners, increasing revenue opportunities, and strengthening our presence across key markets. RELI Auto Leasing introduces a powerful new offering that allows agents to better serve their clients while generating additional income. Our Quote & Bind platform continues to streamline the insurance process through automation and expanded carrier access. Meanwhile, the integration of Spetner Associates is expected to broaden our footprint, complement our capabilities and create valuable cross-selling opportunities across the platform. Together, these efforts reflect our ongoing commitment to innovation, disciplined growth and shareholder value. We look forward to building on this momentum as we move through 2025 and beyond. I would like to now turn the call over to Joel Markovits, our Chief Financial Officer of Reliance Global to review the financial results for the quarter ended March 31, 2025. Joel? Joel Markovits Thank you very much, Ezra, and good afternoon. It will be my pleasure to share with you some of our key financial highlights for the quarter ended March 31, 2025. All figures presented are approximates. Commission income increased by $154,000 or 4% to $4.2 million in Q1 '25 compared to $4.1 million in Q1 '24. The 4% increase reflects encouraging continued organic growth across our insurance distribution channels. Commission expense increased by $200,000 to $1.5 million in Q1 '25 compared to $1.3 million in Q1 '24. Increase reflects higher payouts to agents in line with the increased revenues. Salaries and wages increased by $400,000 to $2.2 million in Q1 '25 compared to $1.8 million in Q1 '24. $400,000 increase is primarily due to non-cash equity awards in the amount of $540,000. And removing the impact of these non-cash equity charges, salaries and wages actually decreased quarter-over-quarter, a testament to cost efficiencies deployed by the company while still being able to grow revenues. General and administrative costs increased by $140,000 to $1.5 million in Q1 '25 compared to $1.4 million in Q1 '24, primarily due to $485,000 of non-cash equity payments to certain of the Company's directors and service providers. And when removing the impact of these non-cash equity charges general and administrative costs show a handsome decrease quarter-over-quarter, a reflection of management's disciplined approach to cost controls and the success of our OneFirm business model. Net loss decreased by $3.6 million or 68% to $1.7 million in Q1 '25 versus $5.3 million in Q1 '24. This substantial 68% improvement is a result of no new asset impairment charges during our current quarter and the company continuing to remain laser focused on streamlining its operations, increasing its revenues and controlling its costs. EBITDA, our adjusted EBITDA metric, a non-GAAP measure by key company performance indicator improved significantly by 300% in Q1 '25 from a loss of $74,000 in Q1 '24 to a gain of $145,000 in Q1 '25, a $220,000 increase. This marks another quarter of AEBITDA gain for the company and demonstrates our continued trend towards sustained and increased profitability. In summary, as mentioned by Ezra, we've gotten off to a very good start in 2025 with exciting organic growth in our revenues, decreasing cash operating costs and increasing net EBITDA gains. With our scalable operating model, focus on innovation and expansion of our market footprint by organic and acquisitive growth, we remain firmly committed to continuously build a highly profitable business enterprise that delivers long-lasting value to our employees, investors and shareholders. We'll now turn the call back to the operator to open the lines for questions, comments and/or feedback. Operator? Operator (Operator Instructions) [Nicole Kaufman], BlackRidge Capital. Congrats on the positive quarter. My first question is related to the Spetner acquisition. So once this is complete, can you share some insights into the key benefits that Spetner will bring to Reliance? Ezra Beyman Yes, sure. That's -- we're excited about that. Well, God willing, it first of all brings us to a very important -- significant increase in EBITDA positivity, profitability. And also doubles our revenue, and that doesn't even take into account the amazing and tremendous cost selling potential. Remember, they service over 85,000 employees. And we have many insurance products that they haven't had access until now. So we really see that as a tremendous potential as well aside from the intrinsic on day one increase in profitability and revenue. But we're really excited about it. And then going into adjusted EBITDA. So congrats on achieving positive adjusted EBITDA again. Obviously, this is an important milestone. What were the key drivers behind the positive adjusted EBITDA in the first quarter? And how do you see it trending moving forward? Ezra Beyman So I think the -- I mean, it's really a multi approach, not just one, focusing, like Joel mentioned, on the OneFirm approach, streamlining expenses when we can across different the different agencies. Also cross-selling and offering more selling abilities to our in-house agents and the downline agents. And bring, of course, focused also on good old-fashioned, not wasting money. Trying to be cost conscious when we know as time goes on, you see where to spend the money and where not to waste the money. So a combination of increasing revenue, like we've actually showned on the reducing expenses. And we look forward actually with today, more and more technology available to -- in all these areas to improve. We look forward to even more exciting increases. Well, I appreciate that insight. If I have another question, I'll hop into the queue. Ezra Beyman Thank you very much. Operator (Operator Instructions) There are no additional questions in queue at this time. I would now like to turn the floor back over to management for any closing remarks. Joel Markovits Thank you. On behalf of Ezra and entire Reliance team, we appreciate your participation in today's business update. We're very enthusiastic about the horizon for Reliance. I'm grateful to you, our valued shareholders and stakeholders for being with us on this onward journey together. Thank you, and all the very best. Operator Thank you, everyone. This does conclude today's conference call. You may disconnect your phone lines at this time, and have a wonderful day. Thank you for your participation. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15-05-2025
- Business
- Yahoo
Reliance Global Group Inc (RELI) Q1 2025 Earnings Call Highlights: Strong Revenue Growth and ...
Commission Income: Increased by $154,000 or 4% to $4.2 million in Q1 '25 compared to $4.1 million in Q1 '24. Commission Expense: Increased by $200,000 to $1.5 million in Q1 '25 compared to $1.3 million in Q1 '24. Salaries and Wages: Increased by $400,000 to $2.2 million in Q1 '25 compared to $1.8 million in Q1 '24, primarily due to non-cash equity awards. General and Administrative Costs: Increased by $140,000 to $1.5 million in Q1 '25 compared to $1.4 million in Q1 '24, primarily due to non-cash equity payments. Net Loss: Decreased by $3.6 million or 68% to $1.7 million in Q1 '25 versus $5.3 million in Q1 '24. AEBITDA: Improved by 300% from a loss of $74,000 in Q1 '24 to a gain of $145,000 in Q1 '25. Warning! GuruFocus has detected 6 Warning Signs with RELI. Release Date: May 14, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Reliance Global Group Inc (NASDAQ:RELI) reported meaningful growth in organic revenues, indicating successful market share expansion. The company significantly reduced its net loss by 68% compared to the previous year, showcasing improved financial management. RELI launched RELI Auto Leasing, a new service that offers vehicle leasing and insurance, creating a new revenue stream and enhancing client relationships. The upcoming acquisition of Spetner Associates is expected to double revenue and enhance cross-selling opportunities, contributing to profitability. Adjusted EBITDA improved by 300%, reflecting the company's focus on cost control and revenue growth, marking another quarter of positive AEBITDA. Commission expenses increased by $200,000, reflecting higher payouts to agents, which could impact profit margins. Salaries and wages rose by $400,000 due to non-cash equity awards, indicating increased operational costs. General and administrative costs increased by $140,000, primarily due to non-cash equity payments, which could affect overall profitability. Despite improvements, the company still reported a net loss of $1.7 million, indicating ongoing financial challenges. The reliance on forward-looking statements introduces risks and uncertainties that could affect future performance. Q: Can you share some insights into the key benefits that the Spetner acquisition will bring to Reliance? A: Ezra Beyman, Chairman and CEO, explained that the Spetner acquisition is expected to significantly increase AEBITDA positivity and profitability, as well as double the company's revenue. The acquisition will also provide tremendous cross-selling potential, as Spetner services over 85,000 employees who will now have access to Reliance's insurance products. Q: What were the key drivers behind the positive adjusted EBITDA in the first quarter, and how do you see it trending moving forward? A: Ezra Beyman highlighted a multi-faceted approach, including the OneFirm strategy, streamlining expenses, cross-selling, and being cost-conscious. The focus on increasing revenue while reducing expenses has been crucial, and with more technology available, further improvements are anticipated. Q: How has the launch of RELI Auto Leasing impacted the company and its agency partners? A: Ezra Beyman noted that RELI Auto Leasing is a transformative service that allows agency partners to offer vehicle leasing, earning commissions on leases and related insurance policies. This service is integrated into the agent dashboard, enhancing client relationships and creating a recurring revenue stream. Early feedback has been outstanding. Q: Can you elaborate on the financial performance improvements in Q1 2025 compared to Q1 2024? A: Joel Markovits, CFO, reported a 4% increase in commission income to $4.2 million, a decrease in net loss by 68% to $1.7 million, and a significant improvement in adjusted EBITDA by 300% to a gain of $145,000. These improvements are attributed to organic growth, cost efficiencies, and the absence of impairment charges. Q: What strategic initiatives are in place to ensure continued growth and profitability? A: Ezra Beyman emphasized the integration of Spetner Associates, the enhancement of the Quote & Bind platform, and the launch of RELI Auto Leasing as key initiatives. These efforts aim to expand services, increase revenue opportunities, and strengthen market presence, supporting scalable long-term growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
