via NewMediaWire --
Reliance Global Group, Inc. (Nasdaq:
RELI; RELIW) (“Reliance” or the “Company”), which combines
artificial intelligence (AI) and cloud-based technologies with the
personalized experience of a traditional insurance agency, today
provided a business update and reported financial results for the
third quarter ended September 30, 2021.
Ezra Beyman, CEO of Reliance Global Group, commented, “We
continue to generate strong growth, as evidenced by a 54% increase
in revenue to $2.6 million for the third quarter of 2021 versus
$1.7 million for the same period last year, reflecting the solid
performance of our insurance agencies. Given the performance of our
agencies, I’m pleased to report we reduced our consolidated EBITDA*
loss by 88% to approximately $87,000 for the third quarter of 2021,
versus $747,000 for the same period last year, despite our ongoing
investments in the 5MinuteInsure.com platform. The improved
profitability reflects our continued revenue growth and scalability
of the business model. On a standalone basis, these agencies
collectively generated significant cash flow from operations for
both the three and nine months ended September 30, 2021. At the
same time, we continue to explore opportunistic acquisitions of
additional cash flow positive agencies at attractive multiples, to
further expand our national footprint and enhance operating
efficiency. We ended the quarter with over $6.1 million of cash and
restricted cash, which provides us a solid balance sheet to execute
on our near and long-term growth objectives.”
“We are also making progress with the nationwide
rollout of our new 5MinuteInsure.com platform, as evidenced by its
successful launch in the first four states: Ohio, Indiana, Michigan
and Arizona. The goal of this platform is to tap into the growing
number of online shoppers by providing them a seamless one-stop
solution to compare insurance quotes from multiple carriers and
instantly bind a policy. We’ve rolled out a robust and
comprehensive marketing campaign in the aforementioned states and
have witnessed a noticeable increase in daily quote requests.
Further, we’re on track to commercially launch the platform in a
number of additional states in the coming weeks, as we now have
regulatory approval in 46 states and continue to add new insurance
carriers to our network.”
Financial Results
For the three months ended September 30, 2021 as
compared to September 30, 2020, respectively, the Company achieved
revenues of $2,581,636 vs. $1,680,043, commission expense of
$660,708 vs. $399,322 and general and administrative expenses of
$755,130 vs. $1,116,907. Loss from operations for the same periods
respectively was $475,208 vs. $1,092,170 and net loss was $595,233,
or ($0.05) per share, vs. $1,231,567, or ($0.30).
For the nine months ended September 30, 2021 as
compared to September 30, 2020, respectively, the Company had
revenues of $7,096,213 vs. $5,326,375, commission expense of
$1,748,451 vs. $1,178,806 and general and administrative expenses
of $2,961,881 vs. $3,320,779. Loss from operations for the same
periods respectively was $2,064,853 vs. $2,925,131 and net loss was
$2,486,045, or ($0.25) per share vs. to $3,349,778, or ($0.80).
*EBITDA Reconciliation
The Company defines EBITDA as earnings before
interest, taxes, depreciation and amortization. EBITDA is not a
measure of performance calculated in accordance with Generally
Accepted Accounting Principles in the United States of America
(GAAP), and should not be considered in isolation of, or as a
substitute for, earnings as an indicator of operating performance
or cash flows from operating activities as a measure of liquidity.
The Company believes the presentation of EBITDA is relevant and
useful by enhancing the readers’ ability to understand the
Company’s operating performance. The Company’s management utilizes
EBITDA as a means to measure performance. The Company’s
measurements of EBITDA may not be comparable to similar titled
measures reported by other companies. The table below reconciles
EBITDA for income from continuing operations for the three and nine
months ended September 30, 2021 and 2020.
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
(Unaudited) |
|
|
Three months ended September 30, |
|
Nine months ended September 30, |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
|
|
|
|
|
|
|
Loss from
operations |
$ (475,208) |
|
$ (1,092,170) |
|
$ (2,064,853) |
|
$ (2,925,131) |
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
Depreciation and amortization |
387,729 |
|
344,888 |
|
1,090,183 |
|
1,003,070 |
|
|
|
|
|
|
|
|
|
EBIDTA |
$
(87,479) |
|
$
(747,282) |
|
$
(974,670) |
|
$ (1,922,061) |
The complete financial results will be available
in the Company’s Form 10-Q, which is expected to be filed with
the U.S. Securities & Exchange Commission later
today.
About Reliance Global Group, Inc.
Reliance Global Group, Inc. (NASDAQ: RELI, RELIW)
is combining advanced technologies, with the personalized
experience of a traditional insurance agency model. Reliance Global
Group’s growth strategy includes both an organic expansion,
including through 5minuteinsure.com, as well as acquiring well
managed, undervalued and cash flow positive insurance agencies.
Additional information about the Company is available
at https://www.relianceglobalgroup.com/.
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of the "safe harbor" provisions of
the Private Securities Litigation Reform Act of 1995. Statements
other than statements of historical facts included in this press
release may constitute forward-looking statements and are not
guarantees of future performance, condition or results and involve
a number of risks and uncertainties. Actual results may differ
materially from those in the forward-looking statements as a result
of a number of factors, including those described from time to time
in our filings with the Securities and Exchange Commission and
elsewhere. The Company undertakes no duty to update any
forward-looking statement made herein. All forward-looking
statements speak only as of the date of this press release.
Contact:
Crescendo Communications, LLC Tel: +1 (212)
671-1020 Email: RELI@crescendo-ir.com
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