Rapidly adding new states to nationwide rollout of 5MinuteInsure.com platform
LAKEWOOD, N.J., Nov. 10, 2021 (GLOBE NEWSWIRE) — 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.”
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 ($0.80).
The Company defines EBITDA as earnings before interest, taxes, depreciation and amortization. EBITDA is not a measure of performance calculated in accordance with Generally Accepted Accounting Principles in the United States of America (GAAP), and should not be considered in isolation of, or as a substitute for, earnings as an indicator of operating performance or cash flows from operating activities as a measure of liquidity. The Company believes the presentation of EBITDA is relevant and useful by enhancing the readers’ ability to understand the Company’s operating performance. The Company’s management utilizes EBITDA as a means to measure performance. The Company’s measurements of EBITDA may not be comparable to similar titled measures reported by other companies. The table below reconciles EBITDA for income from continuing operations for the three and nine months ended September 30, 2021 and 2020.
|Three months ended September 30,||Nine months ended September 30,|
|Loss from operations||$ (475,208)||$ (1,092,170)||$ (2,064,853)||$ (2,925,131)|
|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/.
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.
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