Abacus Life Provides Preliminary Second Quarter 2024 Results
Abacus Life (NASDAQ: ABL) has released preliminary Q2 2024 results, showing strong growth. The company expects:
- Total Revenue between $28.0-$30.0 million (146-163% YoY growth)
- Net Income between $0.0-$1.0 million
- Adjusted EBITDA between $15.0-$17.0 million (64-86% YoY growth)
CEO Jay Jackson highlighted key achievements, including a successful public offering raising over $90 million and a new distribution partnership with AIMCOR. Abacus also announced an agreement to acquire Carlisle Management Company SCA. The company will release full Q2 2024 results on August 12, 2024.
- Total Revenue expected to grow 146-163% year-over-year
- Adjusted EBITDA projected to increase 64-86% year-over-year
- Successful public offering raised over $90 million in net proceeds
- New national distribution partnership established with AIMCOR
- Agreement to acquire Carlisle Management Company SCA
- Net Income expected to be between $0.0 and $1.0 million, potentially indicating low profitability
Insights
Abacus Life's preliminary second-quarter financial results show significant growth, indicating a strong performance period. The expected
The Adjusted EBITDA projection of
However, investors should remain cautious until the final results are published as these are preliminary figures. The recent public offering raising over
Overall, while the revenue and EBITDA projections are promising, the low net income range and pending final results warrant a balanced view.
Abacus Life's recent financial forecast shows remarkable growth in revenue, a key indicator of market demand and successful business strategies. The significant year-over-year revenue growth of
The net income forecast, however, is relatively flat, indicating that despite high revenue growth, profitability at the net income level is constrained. This could be due to high investment in growth initiatives, marketing, or other operational costs that are expected to pay off in the longer term.
Particularly noteworthy is the strategic relationship with AIMCOR and the forthcoming acquisition of Carlisle Management Company SCA. Such partnerships and acquisitions can be double-edged swords. They often provide new revenue streams and market expansion opportunities but also come with integration challenges and associated costs.
Retail investors should watch for the upcoming detailed financial release on August 12, which will provide a fuller picture of the company's financial health and strategic execution. Investors should be aware that these preliminary results could change, which adds an element of uncertainty to the current optimism.
The announcement mentions an acquisition and a new distribution relationship, both of which have significant legal implications. The acquisition of Carlisle Management Company SCA, if executed successfully, could offer Abacus Life advantages in market positioning and resource consolidation. However, acquisitions often come with risks such as integration hurdles, potential liabilities and cultural mismatches, which could affect operational efficiency and profitability if not managed well.
The new national distribution relationship with AIMCOR implies that Abacus will become a preferred partner for life settlement solutions. This agreement could significantly enhance revenue streams and market reach. However, the terms of such partnerships should be scrutinized to understand any exclusivity clauses, long-term commitments, or performance obligations that Abacus must adhere to. These legal frameworks will directly impact the company's flexibility and long-term strategies.
Investors should be mindful of these legal dynamics as they could influence the company's strategic flexibility and operational risk profile. Detailed terms of these agreements, once disclosed, would provide more clarity on potential benefits and constraints.
- Expects Total Revenue Between
- Expects Net Income Between
- Expects Adjusted EBITDA Between
- Schedules Second Quarter 2024 Earnings Release and Conference Call for Monday, August 12, 2024 -
ORLANDO, Fla., July 18, 2024 (GLOBE NEWSWIRE) -- Abacus Life, Inc. (“Abacus” or the “Company”) (NASDAQ: ABL), a pioneering alternative asset manager specializing in longevity and actuarial technology, today announced preliminary unaudited financial results for the second quarter ended June 30, 2024.
Preliminary Financial Results - Second Quarter 2024
Based upon management's current expectations, the Company anticipates Total Revenue, Net Income, and Adjusted EBITDA, for the second quarter as follows:
| 2Q24 | |
| Total Revenue | Between |
| Net Income | Between |
| Adjusted EBITDA | Between |
“We are thrilled to deliver another strong quarter of growth and profitability as we remain well on track to achieve all of our goals for 2024,” said Jay Jackson, Chief Executive Officer of Abacus. “Our momentum continues to accelerate as we execute on our key strategies to drive long-term growth. During the quarter, we successfully completed a public offering that generated over
Earnings Release and Conference Call
Abacus Life, Inc. will release its Second Quarter 2024 financial results before the market opens on Monday, August 12, 2024. Management will hold a conference call to discuss the financial results at 9:00 am Eastern Time on August 12, 2024. A live webcast of the conference call will be available on Abacus’ investor relations website at ir.abacuslife.com. The dial-in number for the conference call is (877) 407-9716 (toll-free) or (201) 493-6779 (international). Please dial the number 10 minutes prior to the scheduled start time.
Preliminary Information
The unaudited financial and operational information presented in this press release is preliminary and may change. Abacus’ financial closing procedures with respect to the estimated financial information provided in this press release are not yet complete, and as a result, the Company's final results may vary materially from the preliminary results included in this press release. Abacus undertakes no obligation to update or supplement the information provided in this press release until the Company releases its financial statements for the three months ended June 30, 2024. The preliminary financial information included in this press release reflects the Company's current estimates based on information available as of the date of this press release and has been prepared by Company management. This preliminary financial and operational information should not be viewed as a substitute for full financial statements prepared in accordance with GAAP and is not necessarily indicative of the results to be achieved for any future periods. This preliminary financial information could be impacted by the effects of financial closing procedures, final adjustments, and other developments.
Non-GAAP Financial Information
Adjusted EBITDA, a non-GAAP measure, is defined as net income (loss) attributable to Abacus adjusted for depreciation expense, amortization, interest expense, income tax and other non-cash and certain non-recurring items that in our judgement significantly impact the period-over-period assessment of performance and operating results that do not directly relate to business performance within Abacus’ control. A reconciliation of Adjusted EBITDA to Net income attributable to Abacus Life, the most directly comparable GAAP measure, appears below.
Forward-Looking Statements
All statements in this press release (and oral statements made regarding the subjects of this press release) other than historical facts are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and factors that could cause actual results to differ materially from such statements, many of which are outside the control of Abacus. Forward-looking information includes but is not limited to statements regarding: Abacus’s financial and operational outlook; Abacus’s operational and financial strategies, including planned growth initiatives and the benefits thereof, Abacus’s ability to successfully effect those strategies, and the expected results therefrom. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “expect,” “intend,” “anticipate,” “goals,” “prospects,” “will,” “would,” “will continue,” “will likely result,” and similar expressions (including the negative versions of such words or expressions).
While Abacus believes that the assumptions concerning future events are reasonable, it cautions that there are inherent difficulties in predicting certain important factors that could impact the future performance or results of its business. The factors that could cause results to differ materially from those indicated by such forward-looking statements include, but are not limited to: the fact that Abacus’s loss reserves are based on estimates and may be inadequate to cover its actual losses; the failure to properly price Abacus’s insurance policies; the geographic concentration of Abacus’s business; the cyclical nature of Abacus’s industry; the impact of regulation on Abacus’s business; the effects of competition on Abacus’s business; the failure of Abacus’s relationships with independent agencies; the failure to meet Abacus’s investment objectives; the inability to raise capital on favorable terms or at all; the effects of acts of terrorism; and the effectiveness of Abacus’s control environment, including the identification of control deficiencies.
These forward-looking statements are also affected by the risk factors, forward-looking statements and challenges and uncertainties set forth in documents filed by Abacus with the U.S. Securities and Exchange Commission from time to time, including the Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and subsequent periodic reports. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Abacus cautions you not to place undue reliance on the forward-looking statements contained in this press release. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Abacus assumes no obligation and, except as required by law, does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Abacus does not give any assurance that it will achieve its expectations.
About Abacus
Abacus is a leading vertically integrated alternative asset manager and market maker, specializing in longevity and actuarial technology. The company is democratizing the life insurance space through three groundbreaking new channels: ABL Tech, ABL Wealth, and ABL Longevity Growth & Income Funds. Since 2004, Abacus has purchased life insurance policies from consumers seeking liquidity and has actively managed those policies over time (via trading, holding, and/or servicing). With over
Over the past 20 years, the company has built an institutionalized origination and portfolio management process that is supported by a 100+ person team, long-term relationships with 78 institutional partners and 30,000 financial advisors, and the ability to operate in 49 states. The Company complies with HIPAA and privacy laws to maintain and protect confidentiality of financial, health, and medical information. Abacus is also proud to be a BBB Accredited Business with an A+ rating.
Contact:
Abacus Life Investor Relations
investors@abacuslife.com
Abacus Life Public Relations
press@abacuslife.com
ABACUS LIFE, INC. Adjusted EBITDA
| Three Months Ended | Three Months Ended | ||||||||||
| June 30, 2024 | June 30, 2023 | ||||||||||
| Low | High | Actual | |||||||||
| Net income attributable to Abacus Life, Inc. | $ | - | $ | 1,000,000 | $ | 6,723,549 | |||||
| Net income | - | 1,000,000 | 6,723,549 | ||||||||
| Depreciation and amortization expense | 1,650,000 | 1,750,000 | 1,098 | ||||||||
| Income tax | 1,400,000 | 1,800,000 | 1,184,571 | ||||||||
| Stock compensation | 6,100,000 | 6,200,000 | - | ||||||||
| Due Diligence related to acquisitions | 1,200,000 | 1,400,000 | |||||||||
| Other (expense) | (200,000 | ) | (400,000 | ) | (121,601 | ) | |||||
| Interest expense | 4,450,000 | 4,600,000 | 584,075 | ||||||||
| Interest income | (600,000 | ) | (650,000 | ) | - | ||||||
| Loss on change in fair value of debt | 1,000,000 | 1,250,000 | 1,445,229 | ||||||||
| Change in fair value of warrant liability | 550,000 | 650,000 | - | ||||||||
| Realized & Unrealized (gain) on investments | (550,000 | ) | (600,000 | ) | (672,936 | ) | |||||
| Adjusted EBITDA | $ | 15,000,000 | $ | 17,000,000 | $ | 9,143,985 | |||||
FAQ
What is Abacus Life's (ABL) expected Total Revenue for Q2 2024?
What is the projected Adjusted EBITDA for Abacus Life (ABL) in Q2 2024?
When will Abacus Life (ABL) release its full Q2 2024 financial results?
What major achievements did Abacus Life (ABL) report in its Q2 2024 preliminary results?
