Rapid addition of new states to national rollout of 5MinuteInsure.com platform
LAKEWOOD, NJ, Nov 10, 2021 (GLOBE NEWSWIRE) – via NewMediaWire – Reliance Global Group, Inc. (Nasdaq: RELI; RELIW) (â€œRelianceâ€ or the â€œCompanyâ€), which combines artificial intelligence (AI) and cloud-based technologies with the personalized experience of a traditional insurance agency, today provided an update business and released financial results for the third quarter ended September 30, 2021.
Ezra Beyman, CEO of Reliance Global Group, commented: â€œWe continue to generate strong growth as evidenced by a 54% increase in revenue to $ 2.6 million for the third quarter of 2021 from 1.7 million. million dollars for the same period last year, reflecting the strong performance of our insurance agencies. Considering the performance of our agencies, I am pleased to report that we reduced our consolidated EBITDA * loss by 88% to approximately $ 87,000 for the third quarter of 2021, compared to $ 747,000 for the same period. last year, despite our continued investments in 5MinuteInsure. com platform. The improved profitability reflects the continued growth in our revenues and the scalability of the business model. On a stand-alone basis, these agencies collectively generated significant operating cash flow for the three and nine months ended September 30, 2021. At the same time, we continue to explore opportunistic acquisitions of additional agencies with cash flow. positive cash flow at attractive multiples, in order to continue to expand our national presence and improve operational efficiency. We ended the quarter with over $ 6.1 million in cash and restricted cash, which gives us a strong balance sheet to meet our short and long term growth objectives.
â€œWe are also making progress in 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 the growing number of online buyers by providing them with a single, seamless solution to compare insurance quotes from multiple carriers and instantly link a policy. We have deployed a strong and comprehensive marketing campaign in the aforementioned states and have seen a noticeable increase in daily quote requests. Additionally, we are 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 insurers to the platform. our network.
For the three months ended September 30, 2021 compared to September 30, 2020, respectively, the Company realized revenues of $ 2,581,636 versus $ 1,680,043, commission fees of $ 660,708 versus $ 399,322 and fees. general and administrative costs of $ 755,130 compared to $ 1,116,907. The operating loss for the same periods was respectively $ 475,208 versus $ 1,092,170 and the net loss was $ 595,233, or ($ 0.05) per share, versus $ 1,231,567, or (0, $ 30).
For the nine months ended September 30, 2021 compared to September 30, 2020, respectively, the Company realized revenues of $ 7,096,213 versus $ 5,326,375, commission fees of $ 1,748,451 versus $ 1,178,806 and general and administrative expenses of $ 2,961,881 compared to $ 3,320,779. The operating loss for the same periods was respectively $ 2,064,853 versus $ 2,925,131 and the net loss was $ 2,486,045, or ($ 0.25) per share versus $ 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 accounting principles generally accepted in the United States of America (GAAP), and should not be viewed in isolation or as a substitute for earnings as a performance indicator. ‘operating or cash flow. operating activities as a measure of liquidity. The Company believes that the presentation of EBITDA is relevant and useful in improving the ability of readers to understand the operational performance of the Company. Management of the Company uses EBITDA as a means of measuring performance. The Company’s EBITDA measures may not be comparable to measures of similar securities presented by other companies. The table below reconciles EBITDA from profit 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,|
|Operating loss||$ (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)|
Full financial results will be available on the company’s Form 10-Q, which is expected to be filed with the United States Securities & Exchange Commission later today.
About Reliance Global Group, Inc.
Reliance Global Group, Inc. (NASDAQ: RELI, RELIW) combines cutting-edge technologies with the personalized experience of a traditional insurance agency model. Reliance Global Group’s growth strategy includes both organic expansion, notably through 5minuteinsure.com, as well as the acquisition of well-run, undervalued insurance agencies with positive cash flow. Additional information about the Company is available at https://www.dependglobalgroup.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 fact included in this press release may constitute forward-looking statements and are not guarantees of future performance, conditions or results and involve a number of risks and uncertainties. Actual results may differ materially from forward-looking statements due to a number of factors, including those described from time to time in our documents filed with the Securities and Exchange Commission and elsewhere. The Company assumes no obligation to update any forward-looking statements contained in this document. All forward-looking statements speak only as of the date of this press release.
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