Reliance Global Group, Inc. Q2 FY2024 earnings call

• Consistent and sustained revenue levels achieved for the first three months and six months of 2024 with growth from prior year periods.
• Achieved 13% efficiency improvement in operating expenses in the second quarter of 2024.
• Net loss from continuing operations for the second quarter improved by 62% from the same period last year.
• EBITDA showed a nominal loss in the second quarter and six-month period.
• Emphasized the OneFirm strategy integrating nine owned and operated agencies, enabling access to higher commission tiers and cross-selling opportunities.
• Spetner acquisition progressing smoothly, with coverage of over 85,000 employees and expected to close by end of 2024, anticipated to double annual revenues and boost EBITDA.
• Launched a new real estate division with Abe Miller to acquire multifamily and commercial real estate properties, with Abe compensated on a success-based model.
• Simplified capital structure by exercising all outstanding Series B and Series G warrants.

For the year ended June 30, 2024, revenues were $3.2 million for the second quarter and $7.3 million for the year-to-date period, representing 1% and 3% growth from the same periods in the prior year, respectively. Operating expenses were reduced by 13% in the second quarter of 2024. The net loss from continuing operations for the second quarter improved by 62% from the same period last year. EBITDA showed a nominal loss of $178,000 in the second quarter of 2024, which was just under 6% of revenues. For the six-month period ended June 30, 2024, EBITDA loss was $252,000, around 3% of six-month revenues.

• Expect EBITDA to continuously improve as the fiscal year progresses, especially post-Spetner acquisition and onboarding.
• Real estate division set to launch following the closing of the Spetner acquisition.
• Acquisition of Spetner Associates is projected to double annual revenues to approximately $28 million and significantly boost EBITDA.

• Forward-looking statements subject to risks, uncertainties, and assumptions as described in the company’s Form 10-K, including risks related to acquisitions, market dynamics, and integration of acquired entities.

Q: Could you provide some more color on the new real estate division that you’re launching?

A: The new real estate division is focused on multifamily properties, an area with experience, and Abe Miller will head it. The last several years in real estate present opportunities to pick up good value, and Abe has a strong track record. We need to first take care of the Spetner acquisition but look forward to positive excitement in real estate.

Q: The Spetner acquisition, could you share additional details on progress, status, and other developments?

A: Due diligence is behind us, focusing on closing the acquisition which is getting closer. The business of Spetner is growing by the day, going from servicing 45,000 employees to over 85,000, it's a strong fourth-generational business with a great team, and we're excited about the progress