Reliance Global Group Achieves 82% Increase in Revenue for the First Quarter of 2022
Continues Successful Execution of Growth Strategy through Key Acquisitions
and Senior Management Appointments
LAKEWOOD, NJ, May 16, 2022 (GLOBE NEWSWIRE) -- 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.
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