Reliance Global Group Achieves 82% Increase in Revenue for the First Quarter of 2022
May 16 2022 - 8:00AM
via NewMediaWire –
Reliance Global Group, Inc.
(Nasdaq: RELI; RELIW) (“Reliance”, “we” or the “Company”),
which combines artificial intelligence (AI) and cloud-based
technologies with the personalized experience of a traditional
insurance agency, provided a business update today and reported
financial results for the first quarter ended March 31, 2022.
Ezra Beyman, CEO of Reliance Global Group, commented, “We
continue to execute on our business growth strategy, as evidenced
by an 82% increase in revenue to $4.2 million for the first quarter
of 2022. This growth is a direct result of our successful
acquisition strategy, including J.P. Kush last year and the Medigap
Health Insurance Company in the first quarter of this year, as well
as organic growth within the agencies. Most recently, we
completed the acquisition of Barra & Associates, a recognized
provider of property and casualty, life and health insurance. This
accretive acquisition broadens our national footprint and brings a
network of over 60 agents and agency partners, which we plan to
rapidly grow. In connection with the acquisitions, we have expanded
our senior management team with leading industry talent. We
recently announced the appointment of Grant Barra as Senior Vice
President of Operations, who will be responsible for the build out
of our agency partner network and the launch of new InsurTech
offerings to further accelerate the growth and improve the
operating efficiency of our agent network. We ended the quarter
with $5.9 million of total cash, which should provide sufficient
capital to execute on our strategy and build upon our solid
foundation.”
Financial Results
- Revenue for the three months
ended March 31, 2022 increased 82% to $4.2 million, compared to
$2.3 million for the three months ended March 31, 2021. The $1.9
million increase was primarily due to expanded operations,
including the additional insurance agencies acquired during 2021
and 2022.
- Operating expenses for the three
months ended March 31, 2022 were approximately $6.6 million,
compared to approximately $2.8 million for the three months ended
March 31, 2021. The increase in operating expenses primarily
reflected higher general and administrative and marketing expenses,
reflecting operating expenses of the acquired insurance agencies
during 2021 and 2022, with the former reporting a full year of
expenses as well as increased expenses to support the Company’s
planned growth.
- Net income for three months ended
March 31, 2022 was approximately $9.3 million, compared to a loss
of $614 thousand for the same period last year. Net income
for the three months ended March 31, 2022 includes a gross gain on
the warrant liability of approximately $15.5 million, partially
offset by private placement issuance costs of approximately $3.6
million for a net gain on the warrant liability of approximately
$11.8M.
The Company also reports that it believes it has taken the
necessary steps to regain compliance with the Nasdaq continued
listing requirement and plans to provide further updates
shortly.
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, LLCTel: +1 (212) 671-1020Email:
RELI@crescendo-ir.com
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