La Rosa Acquires Second Real Estate Brokerage Franchisee with Audited Revenue of $10.8 Million and Positive Net Income in 2022

Rhea-AI Summary

La Rosa Holdings Corp. acquires controlling interest in franchisee Kissimmee Realty, expects to double top-line revenue

Positive

• La Rosa Holdings Corp. has acquired a controlling interest in franchisee Kissimmee Realty, located in Kissimmee, Florida
• Kissimmee generated revenue of $10.8 million and had positive net income in 2022
• The acquisition is part of La Rosa's planned roll-up strategy of acquiring profitable franchisees
• La Rosa expects the acquisition, combined with the previous acquisition of La Rosa Realty Lake Nona, Inc., to double their top-line revenue
• La Rosa has several other acquisitions in the pipeline
• La Rosa's current infrastructure is set up to support five times their current agent count, which is expected to improve both top-line and bottom-line revenue
• La Rosa's brokerage model offers 100% commission and provides support for real estate brokers and sales agents seeking financial independence
• La Rosa offers proprietary technology, training, and support to their agents at a minimal cost

Negative

• None.

Company Continues to Execute on its Planned Roll-Up Strategy

Celebration, FL, Oct. 19, 2023 (GLOBE NEWSWIRE) -- La Rosa Holdings Corp. (NASDAQ: LRHC) (“La Rosa” or the “Company”), a holding company for five agent-centric, technology-integrated, cloud-based, multi-service real estate companies, today announced that it has acquired a controlling interest in the Company’s franchisee - Horeb Kissimmee Realty, LLC (“Kissimmee) located in Kissimmee, Florida.

Kissimmee generated revenue of $10.8 million and had positive net income in 2022. The franchisee provides residential and commercial real estate brokerage services. It also provides coaching and support services to agents on a fee basis.

Joe La Rosa, CEO of the Company, commented, “We are executing on our planned roll-up strategy of acquiring profitable franchisees. We believe that this acquisition when combined with the previous acquisition of La Rosa Realty Lake Nona, Inc., will double our top-line revenue. We have several other acquisitions in the pipeline, and we expect both our top-line and bottom-line revenue to improve considerably as our current infrastructure is set up to support five times our current agent count.  We believe our brokerage model is unique when compared to many of our competitors in our local market. It is agent centric with 100% commission and it also provides real estate brokers and sales agents who are seeking financial independence with a turnkey solution and support in growing their brokerages while they fund their own businesses. This enables us to maintain a low fixed-cost business model with several recurring revenue streams, yielding relatively high margins and cash flow. We also offer proprietary technology, training, and support to our agents at a minimal cost to them which we believe is one of the best packages offered in the industry.”

About La Rosa Holdings Corp.
La Rosa is a holding company for five agent-centric, technology-integrated, cloud-based, multi-service real estate companies. In addition to providing person-to-person residential and commercial real estate brokerage services to the public, the Company cross-sells ancillary technology-based products and services primarily to its sales agents and the sales agents associated with their franchisees. La Rosa’s business is organized based on the services they provide internally to their agents and to the public, which are residential and commercial real estate brokerage, franchising, real estate brokerage education and coaching, and property management. La Rosa has seven La Rosa Realty corporate real estate brokerage offices located in Florida, 26 La Rosa Realty franchised real estate brokerage offices in six states in the United States and Puerto Rico. The Company’s real estate brokerage offices, both corporate and franchised, are staffed with more than 2,380 licensed real estate brokers and sales associates.

For more information, please visit: https://www.larosaholdings.com

Forward-Looking Statements
This press release contains forward-looking statements regarding the Company’s current expectations that are subject to various risks and uncertainties. Such statements include statements regarding the Company’s ability to grow its business and other statements that are not historical facts, including statements which may be accompanied by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including without limitation, the Company's ability to achieve profitable operations, customer acceptance of new services, the demand for the Company’s services and the Company’s customers' economic condition, the impact of competitive services and pricing, general economic conditions and other risk factors detailed in the Company's filings with the United States Securities and Exchange Commission (the "SEC”). You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the headings “Risk Factors” and elsewhere in documents that we file from time to time with the SEC. Forward-looking statements  contained in this press release are made only as of the date of the this press release, and La Rosa does not undertake any responsibility to update any forward-looking statements in this release, except as may be required by applicable law. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release.

For more information, contact: info@larosaholdings.com

Investor Relations Contact:
Crescendo Communications, LLC
David Waldman/Natalya Rudman
Tel: (212) 671-1020
Email:LRHC@crescendo-ir.com

FAQ

What acquisition did La Rosa Holdings Corp. announce?

La Rosa Holdings Corp. announced the acquisition of a controlling interest in franchisee Kissimmee Realty.

Where is Kissimmee Realty located?

Kissimmee Realty is located in Kissimmee, Florida.

What was Kissimmee's revenue and net income in 2022?

Kissimmee generated revenue of $10.8 million and had positive net income in 2022.

What is La Rosa's planned roll-up strategy?

La Rosa's planned roll-up strategy involves acquiring profitable franchisees.

What is the expected impact of the acquisition on La Rosa's revenue?

La Rosa expects the acquisition, combined with the previous acquisition of La Rosa Realty Lake Nona, Inc., to double their top-line revenue.

What does La Rosa offer to their agents?

La Rosa offers 100% commission, support for real estate brokers and sales agents seeking financial independence, proprietary technology, training, and support at a minimal cost.