Reliance Global Group, Inc. Price & Performance (RELI)

At this time, all participants are in a listen only mode.

And a question and answer session will follow the formal presentation. Reliance note, this conference is being recorded. I will now turn the conference over to your host, Ted Avas of Cremant Crescendo Communications. Sir, you may begin.

Thank you. Good afternoon and thank you for joining Reliance Global Group's twenty twenty four year end financial results and business update conference call. On the call with us today are Ezra Behman, Chairman and Chief Executive Officer of Reliance Global Group and Joe Markovid, Chief Financial Officer of Reliance.

Earlier today, the company announced its operating results for the year ended December 31, 2024, and the press release is posted on the company's website www.relianceglobalgroup.com Reliance. Addition, the company will be filing its annual report on Form 10 ks 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 www.sec.gov. If you have any questions after the call and would like any additional information about the company, 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 plan, 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, the negative of such terms and other words and terms of similar expressions are intended 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 need.

These forward looking statements are subject to several risks, uncertainties and assumptions, as described in the company's Form 10 ks filed with the U. S. Securities and Exchange Commission on 03/06/2025. 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 turn the call over to Ezra Bayman, Chairman and Chief Executive Officer of Reliance Global Group.

Ezra? Thanks, Ted. Good afternoon, and thank you for everyone for joining us today. We are excited to share that 2024 has been a year of continued revenue growth and solid operational performance for Reliance. This transformative year was fueled by our disciplined fiscal management strategic investments in technology and well targeted acquisitions. One Firm strategy played a crucial role by seamlessly integrating tech driven platform. This approach not only boosted efficiency and cut cost, but also strengthened our net operating results. These efforts have greatly improved our profitability and we believe positions us for long term scalable growth in the ever evolving insurtech landscape. In addition, we believe that the planned acquisition of Spentner Associates which I am pleased to report, is now in the final stages and expected to close in the near future and the ongoing expansion of Reliance AI powered quote unquote platform are set to create substantial value for both the company and its shareholders. Our Quote and Buy platform has transformed the insurance purchasing experience enabling agents to generate competitive quotes and buying policies instantly. By harnessing the power of AI, automation and advanced data analytics, we are boosting efficiency, enhancing underwriting accuracy and providing exceptional service to our agents and their clients.

We have made substantial enhancements to Relay Exchange Quote and Buy platform, reinforcing our position as a leader in the insurer tech space. [indiscernible] its initial beta launch in September, the platform has rapidly expanded the feature a greater number of carriers and a wider selection of insurance Designed to simplify workflows for agents, it enables them to generate quotes and buying policies Instantly, significantly boosting efficiency and speeding up the policy issuance [indiscernible] Leveraging AI driven automation, the platform enhances underwriting accuracy while providing access to top tier carriers, helps ensure competitive pricing a diverse range of coverage options. At Reliance, we are committed in transforming the insurance industry through the strategic use of technology and automation. By continuously expanding our quote and buying platform, we are equipping agents with advanced tools improve efficiency, close deals more quickly and drive profitability. This initiative is a key part of our strategy establish Reliant Exchange as the most competitive and insurance friendly insured tech solution in the market. We cannot be more excited about the future of Reliance Global Group with our disciplined expansion strategy, cutting edge technology and well planned acquisitions we are in a strong position to seize new opportunities in the rapidly evolving insurtech space.

The expected completion of the Spretner acquisition and the ongoing enhancements to our co done buying platform just the start of what we believe will be a period of unprecedented growth are committed to innovation, operational excellence and delivering exceptional service to our agents and customers. By staying true to our vision, we are confident that we can build Reliance to a multibillion dollar company highly profitable that creates sustainable long term value for our shareholders. The momentum we have built in 2024 is just the beginning. Are truly excited about what's in store for 2025 and beyond. I would now like to turn the call over to Joel Markowitz, our Chief Financial Officer of Greenlines Global to review the financial results for the year ended December 31, 2024. [indiscernible] Thank you, Ezra, and good afternoon. It's my pleasure to share some key financial highlights for the year ended 12/31/2024.

All figures presented are approximate.

As Elio mentioned, 2024 has been another year of sustained revenue growth and solid operational performance. Year over year for the year ended 12/31/2024, 2023 revenues increased by $300,000 or 2% to $14,100,000 compared to $13,700,000 This upward trend is attributed to sustained organic growth of our current in place operations.

Commission expense increased by $500,000 or 12¢ primarily driven by swings in the company's commission income revenue mix and organic revenue growth. Salaries and wages decreased by 4% or $200,000 demonstrating the company's ability to effectively and efficiently utilize its human capital and still continue to organically grow revenues and operations. General and administrative expenses expense increased nominally by $100,000 3% driven in part by general inflation, acquisition related costs, however, offset by OneFem cost efficiency enhancement. Total operating expenses decreased by 21% or $5,900,000 This resulted in positive movements and our loss from operations, which improved at 45% or $6,200,000 Balance sheet. Decreasing or eliminating previous encumbrances resulting from certain high value contingent and warrant liabilities where those positions were liquidated or substantially reduced during 2024 thus minimizing adverse impacts from fair value swings affecting the company's profitability. Turning to EBITDA. Our adjusted EBITDA metric a non GAAP measure but key company performance indicator, APAC improved significantly during 2024 by 39 percent $200,000 from a loss from $500,000 to a loss of $300,000 brought about through the implementation of our one firm strategy, which drives disciplined fiscal management and exciting organic operational growth. The 39% EBITDA improvement demonstrate the company's continued trend towards sustained EBITDA profitability.

Hopefully, these financial highlights were helpful. And to close out our formal remarks, I want to reiterate Ezra's comments that we're excited to nearing a closing on the StepNath M and A deal. And we remain laser focused on continuing to build a highly profitable business enterprise through expansion and innovation. Strengthening our market share and providing substantial returns long lasting value to our shareholders. Let me now turn the call back over to the operator to open the lines for questions comments or feedback. Operator? Thank you. Ladies and gentlemen, at this time, we will be conducting our question and answer session. Thank you. We have a question from Nicole Kauffman with Blackridge Capital. Your line is live.

For taking my question. So the step acquisition seems to be on track, but can you provide any additional color or elaborate further on status?

So we technically can't tell you that much about it. Could tell you, we're very excited. We're getting close. Some of the finishing touches are being done, whatever had to be done. And we're excited as ever because we're going to have great communication with Jonathan Bettner The numbers that we're seeing it and our royalties are seeing it. Phenomenal. The growth has been beautiful. And we're so excited about not only its business, how it meshes, with our business, the cross selling abilities, the recognition it gives us, the exposure to, as we said in our announcement, over 85,000 employees We couldn't be more excited. It's really and it's really heading in the right direction. We look forward to suing soon making that beautiful announcement.

Well, thank you for answering the question. Thank you again. Thank you. Thank you, Nicole.

Thank you. As we have no further questions on the lines at this time, I would like to hand it back over to management for any closing remarks they may have. Thank you. On behalf of Ezra and the entire Reliance team, Thank you all for your participation in this business update. We are excited and energized by the company's future. And are incredibly happy to be sharing this possible journey with you our valued shareholders and other interested parties. Until next time, wish you all the very best. Thank you.

Thank you. This does conclude today's conference. You may disconnect your lines at this time and we thank you for your participation.