Q1 2024 Abacus Life Inc Earnings Call
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Operator: Greetings, and welcome to the Abacus Life First Quarter 2024 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Garrett Edson, Managing Director of ICR. Thank you. You may begin.
Speaker Change: Greetings and welcome to the Abacus lifes first quarter 2024 earnings call. At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation.
Speaker Change: If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.
Speaker Change: As a reminder, this conference is being recorded I would now like to turn the conference over to your host.
Speaker Change: Our Edson managing director at ICR. Thank you you may begin.
Garrett Edson: Good day, ladies and gentlemen. Thank you for standing by.
Edson: Ladies and gentlemen, thank you for standing by Abacus life first participants on this call to the Investor webpage, Www Dot abacus life Dot com slash investors, but the press release, the investor information and filings with the SEC for a discussion of the risks that can affect the business advocates like specifically refers participants to the presentation furnished today on form 8-K with the securities mix.
Garrett Edson: Abacus Life refers participants on this call to the investor web page www.abacuslife.com slash investors for the press release, the investor information, and filings with the SEC for a discussion of the risks that can affect the business. Abacus Life specifically refers participants to the presentation furnished today on form 8k with the Securities and Exchange Commission and to remind listeners that some of the comments today may contain forward-looking statements and, as such, will be subject to risks and uncertainties which, if they materialize, could materially affect results.
Edson: Strange Commission and to remind listeners that some of the comments today may contain forward looking statements and as such will be subject to risks and uncertainties, which if they materialize could materially affect results.
Garrett Edson: Reference is made to the section title Forward-Looking Statements in the company's earnings press release for the first quarter of 2024, which is incorporated herein by reference. We know forward-looking statements, whether written or oral, include but are not limited to Abacus Life's expectation or prediction of financial and business performance and conditions as well as its competitive and industry outlook. Forward-looking statements are subject to risks and uncertainties and assumptions, including the risk factors set forth in item 1a of our most recent 10k, which, if they materialize, could materially affect results; such forward-looking statements do not guarantee performance, and Abacus Life gives no such assurances.
Edson: It's made to the section titled forward looking statements in the company's earnings press release for the first quarter of 2024, which is incorporated herein by reference forward looking statements, whether written or oral include but not limited to epic's flights expectations or predictions of financial and business performance and conditions as well as its competitive industry outlook forward looking statements are subject to risk.
Edson: Uncertainties and assumptions, including the risk factors set forth in item one a of our most recent 10-K, which if they materialize could materially affect results in such forward looking statements do not guarantee performance of advocates wife kids no such assurance that looks like is under no obligation and expressly disclaims any obligation to update alter or otherwise revise any forward looking statements whether as a <unk>.
Garrett Edson: Abacus Life is under no obligation and expressly disclaims any obligation to update, alter, or otherwise revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. In addition, historical data pertaining to the operating results and other performance indicators applicable to Abacus Life are not necessarily indicative of results to be achieved in succeeding periods. I will now turn the call over to Jay Jackson, chief executive officer of Abacus Life.
Edson: The new information future events or otherwise, except as required by law. In addition historical data pertaining to the operating results and other performance indicators applicable to abacus life are not necessarily indicative of results to be achieved in succeeding periods I will now turn the call over to Jay Jackson, Chief Executive Officer of advocates like.
Jay Jackson: Thank you to everyone listening today for your interest in Abacus, and welcome to our 2024 first quarter earnings call. With me today is our Chief Financial Officer, Bill McCauley, and after our remarks, we'll open it up to your questions.
Jay Jackson: Thank you to everyone listening today for your interest in Abacus and welcome to our 2024 first quarter earnings call with me today is our Chief Financial Officer, Bill Mcauley and after our remarks, we'll open it up to your questions.
Jay Jackson: We kept the momentum rolling in the first quarter of 2024, delivering another strong quarter of positive results and profitable growth while further strengthening our balance sheet. Our relentless execution continues to validate our differentiated business model as a leading market maker and alternative asset manager. For the first quarter of 2024, more than doubling total revenues year over year to $21.5 million, and delivered another quarter of strong earnings, growing adjusted EBITDA by 38% to $11.6 million and generating adjusted net income of $6.7 million.
Jay Jackson: We kept the momentum rolling in the first quarter of 2020 for delivering another strong quarter of positive results and profitable growth, while further strengthening our balance sheet. Our relentless execution continues to validate our differentiated business model has a leading market maker and alternative asset manager.
Jay Jackson: For the first quarter of 2024 more than doubling total revenues year over year to $21 5 million and delivered another quarter of strong earnings growing adjusted EBITDA by 38%.
Jay Jackson: To $11.6 million and generating adjusted net income of $6 7 million Bill.
Jay Jackson: Bill will be along shortly to discuss our first quarter financial performance in further detail. On prior calls, we've highlighted our more enhanced sales and marketing spend, as we saw clear opportunities to expand our share of the market and noted that we would begin to see results approximately one quarter later. That's exactly what happened in the first quarter, as our investments in marketing helped drive a 59% year-over-year increase in direct-to-consumer originations.
Jay Jackson: Bill will be along shortly to discuss more of our first quarter financial performance in further detail.
Bill Mcauley: On prior calls we've highlighted our more enhanced sales and marketing spend as we saw clear opportunities to expand our share of the market and noted that we would begin to see the results approximately one quarter later.
Bill Mcauley: Exactly what happened in the first quarter as our investments in marketing helped drive a 59% year over year increase in direct to consumer originations as part of our strategy. We intend to continue investing thoughtfully and our marketing, which we believe is an excellent use of capital to drive our growth over the long term.
Jay Jackson: As part of our strategy, we intend to continue investing thoughtfully in our marketing, which we believe is an excellent use of capital to drive our growth over the long term. We are also particularly pleased with our adjusted EBITDA performance, which was driven by higher originations along with an increase in our carrier buyback program. As we've noted on prior calls, our continued growth in both revenue and adjusted EBITDA is a testament to the partnerships we've cultivated with our carriers and reinsurers over the years. Also, in the quarter, we successfully raised an additional $25 million of capital via our 9.75% notes and repurchased over $11 million of our shares since the Stock Repurchase Program's inception in December 2023.
Bill Mcauley: We are also particularly pleased with our adjusted EBITDA performance, which was driven by higher originations along with an increase in our carrier buyback program.
Bill Mcauley: As we've noted on prior calls our continued growth in both revenue and adjusted EBITDA is a testament to the partnerships, we've cultivated with our carriers and reinsurers over the years.
Bill Mcauley: Also in the quarter, we successfully raised an additional $25 million of capital via our 9.8, 75% notes and repurchased over $11 million of our shares since the stock repurchase program's inception in December 2023.
Jay Jackson: Since the end of the first quarter, we have also significantly strengthened our senior management team with two key additions. First, we are thrilled to bring on board Elena Plesko as our new chief capital officer. Elena brings to Abacus a wealth of investment experience and joins us after serving as the co-head of specialty finance at KKR, where she invested throughout multiple asset classes. At Abacus, she will oversee our capital management initiatives, further optimize our financial structure, and help facilitate our national and ultimately international expansion. We've known Elena for years, and she is a perfect complementary fit for Abacus as we progress in enhancing our investment management services. Welcome, Elena.
Bill Mcauley: Since the end of the first quarter, we also significantly strengthened our senior management team with two key additions first we are thrilled to bring onboard a lineup wesco as our new Chief Capital Officer, Elena brings to advocates a wealth of investment experience and joins us after serving as the co head of specialty finance at KKR.
Bill Mcauley: Where she invested throughout multiple asset classes.
Bill Mcauley: Advocates she will oversee our capital management initiatives further optimize our financial structure and help facilitate our national and ultimately international expansion.
Bill Mcauley: We've known Alina for years, and she has a perfect complementary fit for abacus as we progress in enhancing our investment management services welcome Elena.
Jay Jackson: And a few weeks ago, we are excited to add Fei Xue as vice president of ABL Wealth. Faye comes to us from Dynasty Financial Partners, where she served as a strategic advisor to some of the largest and most successful registered investment advisors in the country, particularly with respect to alternative assets. With nearly two decades of experience in asset and wealth management, she is the ideal person to oversee the ongoing build-out at AVL Wealth and to bring our unique customized offerings, including lifespan-based financial solutions, to our clients in the broader RIA community. Bay has already hit the ground running, and we couldn't be happier to have her on board.
Bill Mcauley: And a few weeks ago, we are excited to add Fei <unk> as vice president of a B L. B.
Bill Mcauley: He comes to US from dynasty financial partners, where she served as a strategic advisor to some of the largest and most successful registered investment advisors in the country, particularly with respect to alternative assets with nearly two decades of experience in asset and wealth management.
She is the ideal person to oversee the ongoing buildout, a b L well and to bring our unique customized offerings, including lifespan based financial solutions to our clients and the broader or a community.
Bill Mcauley: He has already hit the ground running and we couldnt be happier to have her on board.
Jay Jackson: We also continue to make strides in enhancing ABL tech in recent months as the use of our proprietary technology in the wealth of longevity data to create bespoke solutions for the pension fund and financial services industries is finding an audience. We continue to expect to see top line contributions from both ABL wealth and ABL tech later this year. Before turning the car over to Bill, I wanted to highlight our upcoming Investor Day and Longevity Summit, taking place on June 13th.
Bill Mcauley: We also continued to make strides in enhancing ABL tack in recent months as the use of our proprietary technology in wealth of longevity data to create bespoke solutions for the pension fund and financial services industries is finding an audience. We continue to expect to see top line contributions from both a b L well and.
Bill Mcauley: A b L. Tac later this year.
Bill Mcauley: Before turning the call over to Bill I wanted to highlight our upcoming Investor day in longevity summit, taking place on June 13th there's some.
Jay Jackson: The summit is a one-day event focused on how lifespan data can be applied to financial products. And we will also take investors on a deeper dive into our business model, our products, and the exciting future of Abacus. We are thrilled to have gathered some of the top professionals in the field of longevity and lifespan, and they will be at the summit to share their outlook on lifespan and how it will impact the future of financial planning. Our panelists include Dr. Peter Atiyah, author of the number one New York Best Seller, Outlive! The Science and Art of Longevity
Bill Mcauley: That is a one day event focused on how lifespan data that can be applied to financial products and we will also take investors on a deeper dive into our business model, our products and the exciting future of abacus.
Jay Jackson: Tina Al-Rasad, a professor at Northeastern University and an expert in lifespan-based data science and AI. Dr. Joseph Coughlin, he's the head of the MIT H-Lab. Steve Grasso, CNBC market analyst. James Morrow, the CEO of Caledon Capital. And Cheryl Pinney, president and CEO of Dynasty Financial Partners.
Bill Mcauley: We are thrilled to have gathered some of the top professionals in the field of longevity and lifespan and they will be at the summit to shared their outlook on life span and how it will impact the future of financial planning. Our panelists include Dr. Peter <unk> author of the number one New York Best time seller outlets.
Bill Mcauley: Science and art of longevity.
Bill Mcauley: Tina Oliver side, a professor at northeastern University, and an expert in lifespan based data science and AI.
Bill Mcauley: Dr. Joseph Kaufman, he's the head of the M. I T H lab, Steve Grasso CNBC market analyst James Morrow, the CEO of Caledon capital and Cheryl Penny President and CEO of dynasty financial partners.
Jay Jackson: If you are interested in attending or joining the live stream, please email our investor relations department at investors at abacuslife.com to receive an invitation. To sum up, we remain confident in our business, the opportunities within our 230 billion plus total addressable core market, and in the incredible stability of our asset class. We are continuing to educate policyholders about the value of their policies through our network of over 30,000 financial professionals and through television and digital campaigns for our growing direct-to-consumer channel.
Bill Mcauley: If you are interested in attending or joining the livestream. Please email our investor Relations Department at investors at Abacus life Dot com to receive an invitation.
Bill Mcauley: To sum up we remain confident in our business the opportunities within our 230 billion plus total addressable core market and in the incredible stability of our asset class.
Bill Mcauley: We are continuing to educate policyholders about the value of their policies through our network of over 30000 financial professionals and through TV and digital campaigns for our growing direct to consumer channel.
Jay Jackson: Meanwhile, our expanded verticals and deep data and technology advantages are helping us grow our vertically integrated alternative asset manager with multiple revenue and profit streams. With our proven business model, first-class expert team, and our trove of proprietary data and technology, we remain well-positioned for sustainable and profitable growth and ultimately to create long-term value for our shareholders. With that, I will now hand it over to our CFO, Bill McCauley, to discuss the specifics of our Q1 results and financials.
Bill Mcauley: Meanwhile, our expanded verticals and deep data and technology advantages are helping us grow our vertically integrated alternative asset manager with multiple revenue and profit streams.
Bill Mcauley: With our proven business model first class expert team and our trove of proprietary data and technology, we remain well positioned for sustainable and profitable growth and ultimately create long term value for our shareholders.
Bill Mcauley: With that I will now hand, it over to our CFO Bill Mcauley to discuss the specifics on our Q1 results and financials. Thanks.
Bill McCauley: Thanks Jay, and hello everyone. As Jay mentioned, we delivered another strong quarter of top-line growth and profitability across our business. The key driver of our business performance continues to be our highly efficient origination platform. In the first quarter of 2024, origination capital deployed was $33.3 million compared to $34.4 million in the prior year period, while we grew policy origination 6% to $119 compared to $112 in the prior year period. Total revenue in the first quarter of 2024 more than doubled to $21.5 million compared to $10.3 million in the prior year period. The increase was primarily due to strong performance across all segments.
Bill Mcauley: Thanks, Jay and Hello, everyone as Jay mentioned, we delivered another strong quarter of topline growth and profitability across our business.
Bill Mcauley: The key driver of our business performance continues to be our highly efficient origination platform.
Bill Mcauley: In the first quarter 2024 origination capital deployed was $33 3 million compared to $34 4 million in the prior year period, while we grew policy origination 6% to 119 compared to 112 in the prior year period.
Total revenue in the first quarter 2024, and more than doubled to $21 5 million compared to $10 3 million in the prior year period.
Bill Mcauley: The increase was primarily due to strong performance across all segments.
Bill McCauley: As of March 31st, 2024, Abacus held 322 policies, of which 314 are accounted for under the fair value method, and eight are accounted for using the investment method, which is cost plus premiums paid. As a reminder, for all policies purchased after June 30, 2023, the company has elected to account for those under the fair value method going forward. For policies purchased before June 30, 2023, the company elected to use either the fair value method or the investment method.
Bill Mcauley: As of March 31, 2020 for Abacus held 322 policies of which 314 are accounted for under the fair value method and eight are accounted for using using the investment method, which is cost plus premiums paid.
Bill Mcauley: As a reminder for all policies purchased after June 32023, the company has elected to account for those under the fair value method going forward for <unk>.
Bill Mcauley: Policies purchased before June 32023, the company elected to use either the fair value method or the investment method.
Bill McCauley: Revenue from our portfolio servicing segment in the first quarter of 2024 was 0.2 million compared to 0.3 million in the prior year period. Turning to expenses, total operating expenses, excluding unrealized gains and losses and the change in fair value of debt, for the first quarter of 2024 were approximately $15 million compared to $1.4 million in the prior year period. We would note that the first quarter of 2024 total operating expenses included $5.8 million of non-cash stock compensation expense and $800,000 of public company-related expenses, both of which did not occur in the prior year period.
Bill Mcauley: Revenue from our portfolio of servicing segment in the first quarter of 2024 was <unk> 2 million compared to <unk> 3 million in the prior year period.
Bill Mcauley: Turning to expenses total operating expenses, excluding unrealized gains.
Bill Mcauley: And losses and the change in fair value of debt for.
Bill Mcauley: For the first quarter 2024 were approximately $15 million compared to $1 4 million in the prior year period.
Bill Mcauley: We would note that the first quarter 2024 total operating expenses included $5 8 million of noncash stock compensation expense and 800000 of public company related expenses.
Bill Mcauley: Both of which did not occur in the prior year period.
Bill McCauley: We also increased sales and marketing expense by approximately $1.2 million compared to the prior year period, which assisted in accelerating our growth profile. The company typically realizes the benefit of marketing spend within 90 to 120 days.
Bill Mcauley: We also increased sales and marketing expense by approximately $1 2 million compared to the prior year period, which assisted in accelerating our growth profile.
Bill Mcauley: Typically realizes the benefit of marketing spend within 90 to 120 days.
Bill McCauley: Consistent with our last few quarters, total operating expenses in the second quarter of 2024 will be elevated from the prior year period by non-cash equity compensation expenses, as well as ongoing public company expenses that did not occur in the second quarter of 2023. We will begin to anniversary non-cash equity compensation and public company expenses in the third quarter of 2024. Adjusted EBITDA for the quarter grew 38% to $11.6 million compared to $8.4 million in the prior year period. The adjusted EBITDA margin was 54% for the quarter compared to 81% in the prior year period.
Bill Mcauley: Consistent with our last few quarters total operating expenses in the second quarter of 2024 will be elevated from the prior year period by noncash equity compensation expenses as well as ongoing public company expenses that did not occur in the second quarter of 2023.
Bill Mcauley: We will begin to anniversary noncash equity compensation and public company expenses in the third quarter of 2024.
Bill Mcauley: Adjusted EBITDA for the quarter grew 38% to $11 6 million compared to $8 4 million in the prior year period.
Bill Mcauley: Adjusted EBITDA margin was 54% for the quarter compared to 81% in the prior year period.
Bill McCauley: Gap net loss attributable to stockholders for the quarter was 1.3 million compared to gap net income attributable to stockholders of 8.1 million in the prior year period, on an adjusted basis excluding non-cash stock compensation, amortization, and change in fair value of warrant liability.
Bill Mcauley: GAAP net loss attributable to stockholders for the quarter was $1 3 million compared to GAAP net income attributable to stockholders of $8 1 million in the prior year period.
Bill Mcauley: On an adjusted basis, excluding noncash stock compensation amortization and change in fair value of warrant liability net income for the first quarter of 2024 was $6 7 million compared to $7 6 million in the prior year period.
Bill McCauley: Net income for the first quarter of 2024 was $6.7 million compared to $7.6 million in the prior year period. Now turning to our balance sheet metrics, on an annualized basis, adjusted return on equity and adjusted return on invested capital for the three-month period ended March 31st, 2024, were 16% and 15%, respectively, reflecting our highly profitable business model. As of March 31st, 2024, the company had cash and cash equivalents of 65.4 million, balance sheet policy assets of 126.9 million, and outstanding long-term debt at fair value of 131.4 million.
Bill Mcauley: Now turning to our balance sheet metrics on an annualized basis adjusted return on equity and adjusted return on invested capital for the three month period ended March 31, 2024 were 16% and 15% respectively, reflecting our highly profitable business model as of March 31 2024.
Bill Mcauley: For the company had cash and cash equivalents of $65 4 million balance sheet policy assets of $126 9 million and outstanding long term debt at fair value of $131 4 million. During the first quarter. We were pleased to successfully raised an additional 25 million through our 9.8 75.
Bill McCauley: During the first quarter, we were pleased to successfully raise an additional $25 million through our 9.875% fixed rate senior notes, while also repurchasing shares through our Buy Back program. As of May 6, 2024, we had repurchased approximately 966,000 shares at an average share price of $11.41. There is $4 million of availability remaining under the program. In summary, we are pleased with our strong results, delivering a quarter of triple-digit growth on our top line, as well as solid profitability on an adjusted basis. We remain very excited about the growth opportunities ahead and are well-positioned to execute on our long-term plans. I will now turn it back to our CEO, Jay Jackson, for his closing comments.
Percent fixed rate senior notes, while also repurchasing shares through our buyback program.
Bill Mcauley: As of May six 2024, we had repurchased approximately 966000 shares at an average share price of $11 41.
Bill Mcauley: There is $4 million of availability remaining under the program.
Bill Mcauley: In summary, we are pleased with our strong results delivering a quarter of triple digit growth on our top line as well as solid profitability on an adjusted basis. We remain very excited about the growth opportunities ahead and are well positioned to execute on our long term plans I will now turn it back to our CEO J Jackson for closing comments.
Jay Jackson: Thanks, Bill. To sum up, we believe Abacus Life is well positioned to capitalize on a large market opportunity within a dynamic sector today. Very few other business models offer 20 years of consistent net income, a $230 billion-plus growing target market, and new growth opportunities such as ABL Wealth and ABL Tech. We are proud to be a growth company that has generated consistent, long-term profitability. I'd like to thank you all for joining us today, and we appreciate your interest in Abacus Life. We will now field any questions.
J Jackson: Thanks, Bill to sum up we believe advocates life is well positioned to capitalize on our large market opportunity within a dynamic sector today.
J Jackson: Very few other business models offer 20 years of consistent net income, a 230 billion plus and growing target market and new growth opportunities such as ABL and ABL Tac. We are proud to be a growth company that has generated consistent long term profitability.
Speaker Change: I'd like to thank you all for joining us today and we appreciate your interest and advocates life, we will now field any questions.
Operator: Thank you. At this time, we'll be conducting a question and answer session. If you'd like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star key. Our first question comes from the line of Wilma Burtis with Raymond James. Please proceed with your question.
Speaker Change: Thank you at this time, we'll be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue you.
Speaker Change: You May press star two if you'd like to remove your question from the queue.
Speaker Change: Disciplined using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.
Speaker Change: Our first question comes from the line of Paloma burden with Raymond James. Please proceed with your question.
Wilma Burtis: Hey, good morning, everyone. Could you talk a little bit about how much you currently buy back under your primary carrier relationship? Thank you.
Paloma Burden: Hey, good morning, everyone could you talk a little bit about how much you're currently bought back under your primary carrier relationship. Thank you.
Jay Jackson: Thank you, Woma. Hey, great to hear from you.
Speaker Change: Thank you all might say a great day.
Speaker Change: Great to hear from you.
Jay Jackson: You know, the specifics on the dollar amount that we're working with on the carrier buyback program are not an actual figure that we're putting out publicly at this point due to confidentiality in relationship to their reported earnings as well. So what I can tell you is that it's ongoing. It's been increasing, and we look forward to continuing to grow that relationship with many more.
You know the specifics on the dollar amount that we're working with on the carrier buyback program.
Speaker Change: <unk> is not an actual figure that we're that we're putting out publicly at this point just due to.
Speaker Change: Confidentiality in relationship.
Speaker Change: Two two there.
Speaker Change: Reported earnings as well so what I can tell you is that it is that it's ongoing.
Speaker Change: It's been increasing.
Speaker Change: And we look forward to continuing to grow that relationship and many more.
Speaker Change: Okay. Thank you and then could you talk a little bit about the IRR is of the business you booked in <unk> 24, and the volumes you could've generated at various IRR levels. Thank you.
Wilma Burtis: Okay, thank you. Emily, could you talk a little bit about the IRRs of the business you booked in 1224 and the volumes you could have generated at various IRR levels? Thank you.
Jay Jackson: Thank you, Wilma. The IRRs that we're typically generating, the way that I like to look at it is I go right to our ROE. So if you look at our return on equity in Q1, it was 16 percent. I think ROIC was around 15, which is in line with where we're forecasting when we price and purchase any of these policies. That's very much in line with where we price them at.
Speaker Change: Thank you Omar the IRR that we are typically generating I the way that I like to look at it as I go right to our ROE.
Speaker Change: So if you look at our return on equity in Q1. It was at 16% I think ROIC was around 15, which is in line with where we are forecasting when we price and purchase any of these policies. That's very much in line with where we price them at.
Jay Jackson: So, you know, we haven't seen any significant degradation in returns relative to any of the policies that we're purchasing at this point. I think that, from our position, the opportunity continues to grow. We're seeing more policies come through our platform than we have capital to purchase. So, you know, we're always continuing to seek and look for, you know, stronger sources of capital so that we can continue to purchase all of the policies that our platform is generating versus sending those directly to third parties.
Speaker Change: So we haven't seen any significant degradation in returns relative to any of the policies that were purchasing at this point I think that from our position the opportunity continues to grow we're seeing more policies come through our platform. Then we have the capital to purchase so we're always.
Wilma Burtis: Thank you, and one last one, and then I'll re-cue, but could you provide an update on the mutual fund one?
Speaker Change: Continuing to seek and look for.
Speaker Change: Stronger sources of capital so that we can.
Speaker Change: To purchase all of the policies that our platform is generating versus sending those directly to third parties.
Speaker Change: Thank you and one last one and then I'll re queue, but could you provide an update on the mutual fund months. Thanks.
Speaker Change: Sure.
Jay Jackson: Sure, we have filed for a 40-act mutual fund, an interval fund. That process is still ongoing.
We have filed for a 40 Act mutual fund an interval fund.
Speaker Change: That process is still happening, we're making significant progress in educating the SEC on our industry and our asset this would be the first type of bond that the SEC is approved in this specific asset for that particular structure. So we're we're very confident based upon the progress.
Jay Jackson: We're making significant progress in educating the SEC on our industry and our asset. This would be the first type of fund that the SEC has approved for this specific asset for that particular structure. So we're very confident based upon the progress that we're currently making, and we fully expect that product to be out in 2024. But in the meantime, we're also having a lot of success with our GPLP products, which we continue to raise capital for on a monthly basis. And that is a yield-based product, and you can see that reflected in the balance sheet.
Speaker Change: <unk> that we're currently making and we fully expect that product to be out in 2024, but.
Speaker Change: But in the meantime, we're also having a lot of success with our GP LP products that we continue to raise capital capital for.
Speaker Change: On a monthly basis and that is a yield based product and you can see that reflected inside the balance sheet.
Operator: Thank you. As a reminder, if you'd like to join the question queue, please press star one on your telephone keypad. Our next question comes from the line of Andrew Kligerman with TD Securities. Please proceed with your question.
Speaker Change: Thank you.
Speaker Change: As a reminder, if you'd like to join the question queue. Please press star one on your telephone keypad. Our next question comes from the line of Andrew <unk> with TD Securities. Please proceed with your question.
Andrew Kligerman: Hey, good morning. The first question is around origination capital deployed $33.3 million, and I think Jay, it's probably like the low seasonal quarter is one queue, it kind of picks up in the second half of the year, but the question is around the pipeline, like could you put a lot more than that to work? And how much growth do you see in putting origination capital to work?
Andrew: Hey, good morning.
Andrew: First question is around origination capital deployed.
Andrew: $3 3 million and I think Jay it's probably like the low.
Seasonal quarter as <unk> picks up in the second half of the year, but Tom <unk>.
Andrew: <unk> is around the pipeline like could you put to work.
Andrew: A lot more than that how much growth do you see in putting origination capital to work.
Jay Jackson: Sure, thank you, Andrew. It's great to hear from you.
Tom: Sure. Thank you Andy great to hear from you.
The pipeline for US is quite strong following in line with historical.
Tom: And I think you're very astute to pick up from if you look at 2023 and the numbers that we had put out and start to see this progression.
Tom: As the calendar year.
Jay Jackson: The pipeline for us is quite strong, falling in line with historical, and I think you're very astute to pick up on that. If you look at 2023 and the numbers that we had put out, you start to see this progression as the calendar year progresses. And so we feel that when we look at the second quarter and where we are in the origination position, I think one indicator is that the number of policies that we put out, even though you saw that the origination capital deployed was relatively flat, the number of policies was up.
Tom: Progresses, and so we.
Tom: We feel that when we look at the second quarter and where we are in origination position I think one indicator is that the number that we put out.
Tom: Even though you saw that the origination capital deployed was relatively flat the number of policies was up and in addition to that we saw a significant increase in our direct to consumer channel up nearly 59%.
Jay Jackson: And in addition to that, we saw a significant increase in our direct-to-consumer channel, up nearly 59%, which is, to me, an indication of the work that we're putting into our advertising. As we said in the fourth quarter, we increased our advertising spending in the fourth quarter of 2023 by almost $2 million. And we're starting to see some of the results of that, certainly in the first quarter, and we believe that it'll continue into the second and throughout the year.
Tom: Which is to me an indication of the work that we're putting into our advertising as.
Tom: As we said in the fourth quarter.
Tom: We increased our advertising spending in the fourth quarter.
2023 by almost $2 million and we're starting to see some of the results of that certainly in the first quarter and we believe that will continue into the second and throughout the year.
Jay Jackson: I see, so it sounds like there's kind of a growing emphasis on direct-to-consumer. Would that be right?
Speaker Change: I see so so it sounds like there's kind of a growing emphasis on direct to consumer would that be right.
Jay Jackson: I think there's a growing emphasis on education across the board, right, focusing on consumers. And what we refer to there is that, you know, we're advertising on channels that would include both policy holders as well as financial professionals. A big target of our advertising is on stations like CNBC and Fox Business, where traditionally you'll see financial professionals be the primary audience. And then with core news media outlets in the afternoon and evening, I think that it's starting to have a significant impact across the board because, first and foremost, most people still aren't aware that this financial option even exists for them. And in that advertising effort, we're able to actually help improve those numbers, and you're starting to see some of the results of that.
Speaker Change: I think it's a growing emphasis on education across the board right.
Speaker Change: Focusing on consumers and what we referenced areas where advertising on channels that would include both.
Speaker Change: Policyholders as well as financial professionals, a big target of our advertising arent stations like CNBC Fox business.
Speaker Change: Traditionally you'll see our financial provides financial professionals be the primary audience and then with core news media outlets in the afternoon and evening I think it's starting to have a significant impact across the board the.
Speaker Change: First and foremost most people still aren't aware that this financial option even exists for them and in that advertising effort, we're able to actually help improve those numbers and youre starting to see some of the results of that.
Speaker Change: Okay, and if I could sneak one or two more quick quick questions and just general and admin at 11 3 million.
Andrew Kligerman: I wonder if I could sneak one or two more quick questions in. Just general and admin at $11.3 million. I guess if I took out the stock-based comp, which could kind of be a little bit lumpy, and then maybe the $800,000 of public company expenses. Seems like that's going to be normal, but what's a good run rate for general and admin expenses, you know, in terms of trying to model that.
Speaker Change: Yes, if I took out the stock based comp, which could kind of be a little bit lumpy.
Speaker Change: And then maybe the 800000 of public company expense.
Speaker Change: It seems like thats going to be normal, but well, what's a good run rate for general and admin.
Speaker Change: Fences.
Speaker Change: Terms of trying to model that.
Bill McCauley: Hi Andrew. It's Bill. Thanks for the question. I think To your point, if you were to take out the stock-based compensation, which is running through the total operating expense is about $5.8 million, and then if you take out the depreciation and amortization as well, I think when you remove those two large items, that gives you a good run rate of what you would expect. I guess the one caveat I would put in there is that as we continue to see, or if we continue to see pipeline and origination growth throughout the year, we will increase staffing in order to accommodate that.
Speaker Change: Hi, Andrew its bill Thanks for the question I think.
Andrew: To your point, if you were to take out the stock based compensation, which.
Bill Mcauley: What's running through the operated total operating expenses of about $5 8 million and then if you take out the depreciation and amortization as well I think when you when you remove those two large items that gives you a good run rate of what you would expect I guess, the one caveat I would put in there is that as we continue to.
Bill Mcauley: C.
Bill Mcauley: Or if we continue to see pipeline and origination growth throughout the year.
Bill Mcauley: Increased staffing in order to accommodate that.
Speaker Change: I see.
Andrew Kligerman: See, and do you envision that? Staffing will grow significantly over the year...
Speaker Change: And do you envision that.
Speaker Change: Staffing will grow significantly.
The year.
Speaker Change: Progresses.
Bill McCauley: Not significantly, but I would expect that as originations increase and the carrier buyback program continues to increase as well, we would add some staffing, but not significantly.
Not significantly, but I would expect that.
Speaker Change: As originations increase and the investor by the carrier buyback program continues to.
Speaker Change: Increase as well that we would we would add some staffing but not not significantly.
Andrew Kligerman: Got it. Thanks so much.
Speaker Change: Got it thanks, so much.
Speaker Change: Thank you.
Operator: Our next question comes from the line of Matthew Howlett with B. Riley Securities. Please proceed with your question.
Speaker Change: Thank you. Our next question comes from the line of Matthew Howlett with B Riley Securities. Please proceed with your question.
Matthew Howlett: So hey, Jay Hey, Bill.
Matthew Howlett: Hey, Matt.
Matthew Howlett: Hey, guys, thanks for taking my question. Hey, look, I mean, congratulations on a terrific quarter. The active management revenue was just very strong again this quarter, very consistent with last quarter. Just diving a little deeper into it. Was there anything, in terms of the policies you sold to third parties or what you held, just different in the quarter? Any update on margins? And I want to ask you about holding these things clearly having much better long-term IRRs than just flipping them. So talk to me about what you're finding in value, how many you want to hold, and so forth. But just a little update on margins, what you sold in the quarter, and so forth.
Matthew Howlett: Hey, guys. Thanks for taking my question, Hey, look I mean, congratulations on a terrific quarter. The active management revenue I was just very strong again this quarter very consistent with last quarter, just diving a little deeper into it was there anything in terms of the policies you sold to third parties or the or that what do you held anything just.
Matthew Howlett: Different in the quarter any update on margins and I wanted to ask you about holdings in these things clearly have.
Matthew Howlett: Long term much better IRR and just flipping them. So talk to me about what youre finding in value how many you want to hold.
Matthew Howlett: And so forth, but just a little update on margins what you sold.
Matthew Howlett: In the quarter and so forth.
Jay Jackson: Sure, I'll start. I'll probably have Bill weigh in a little bit too. Thanks for the question, Matt. On a margin basis, there wasn't anything really out of the ordinary, with the exception that we did have some larger trading specifically back to some of our carriers, and as we saw that increase occur, that certainly improved margins. But what it also does is it goes to your other question, which is in relation to how much we would hold.
Speaker Change: Sure I'll start bill probably weigh in a little bit too. Thanks for the question Matt.
Speaker Change: On a margin basis, there wasn't anything really out of the ordinary with the exception that we did have some larger trading specifically back to.
Speaker Change: Some of our carriers in the end.
Speaker Change: As we saw that increase occur.
Speaker Change: That certainly improves margins, but what it also does is that it goes to your other question, which is in relationship to how much we would hold so if we're selling back to let's say a carrier, where we're going to sell that paper and not going to hold that on our balance sheet, while the other ones we might hold on our balance sheet for a little bit longer I think the way to think about our business on a go forward.
Jay Jackson: So if we're selling back to, let's say, a carrier, we're going to sell that paper and not go to hold that on our balance sheet, while the other ones we might hold on our balance sheet for a little bit longer. I think the way to think about our business on a going forward basis is that our intent is to remain balance sheet light and keep a larger percentage of those policies. What I would say is active management, meaning that they're in motion and realizing those returns with some of what we would deem our best ideas to let those mature a little bit longer rather than sticking to where we are today on an average hold of under 6 months to potentially being something much longer around a year or 2 on some of those better ideas.
Basis as our intent is to remain balance sheet light.
And keep a larger percentage of those policies what I would say is in active management, meaning that they are in motion and realizing those returns with some of what we would deem our best ideas to let those mature a little bit longer rather than sticking to where we are today on an average hold of under.
Speaker Change: Under six months to potentially being something much longer.
Around a year or two on some of those better ideas on it and I think as we see more capital recycled on the balance sheet youll start to see that increase.
Jay Jackson: And I think as we see more capital recycled on the balance sheet, you'll start to see that increase as the percentage of policies that we hold beyond 6 months increases to where they are today. Bill, if you want to add anything to that,
Speaker Change: As a percentage of policies that we hold beyond six months would increase to where they are today or bill do you want to add anything to that.
Bill McCauley: No, I have nothing to add. I'm just echoing Jay's comments.
Bill Mcauley: No nothing to add just echoing jay's comments.
Matthew Howlett: In other words, if you can find policies that you can hold a bit longer, that they can just really appreciate, then you can turn around and sell them at a much more attractive value. I mean, it's just sort of a way of optimizing capital. Is that how you think about it?
Speaker Change: In other words, if we can if you can find policies that you can hold a bit longer.
Speaker Change: They can just really appreciate it and then you can turn around and sell them at a much attractive that you might just sort of a way of optimizing.
Speaker Change: Capital is that how to think about it.
Jay Jackson: It is. And in addition to that, within the first one to three years of any distribution curve, you're going to have some experiences where you have a few of these policies mature, and those would lead to significant multiples and returns on the balance sheet. And we think that in some cases, we should be taking advantage of that versus trading those right away. So when we think about how these policies mature a little bit, maybe letting them age and season a little bit longer gives us a better opportunity to pick up some of the front end of that distribution curve. But in addition to that, having them accelerate potentially at a better rate of return versus what we would potentially trade them at today.
Speaker Change: It is in addition to that.
Speaker Change: Within the first one to three years of any distribution curve.
Speaker Change: Youre going to have some experiences where you have a few of these policies mature and those would lead to significant multiples and returns ultimately on the balance sheet and we think that on some cases, we should be taking advantage of that versus trading those right away. So when we think about how we all these policies mature a little bit maybe letting them agent season, a little bit longer it gives us.
Speaker Change: A better opportunity to pick up some of the front end of that distribution curve, but in addition to that.
Having them accelerate potentially in a better rate of return versus what we would potentially traded at today.
Matthew Howlett: All else being equal, the returns of the company, the ROEs, should improve if that continues to manifest itself. That's right. Terrific. And then, you know, look, I think you have added a little bit more to that baby bond you have out there. The question is, you know, given how fast you turn over capital and you can trade these things, you know, as fast as you want, what's the appetite to, you know, take on some more leverage over time?
Speaker Change: All else being equal the returns of the company the ROE should improve I mean that continues to manifest itself.
Speaker Change: That's correct.
Speaker Change: Terrific and then you'll look.
Speaker Change: Added on to let more to that to that that baby bond you have out there.
Speaker Change: The question is what to what.
Speaker Change: Quickly.
Speaker Change: Given how fast you turn over to capital.
Speaker Change: And you can trade these things.
Speaker Change: SaaS as you want what's the appetite to take on some more leverage over time.
Matthew Howlett: I mean, given your unlevered IRRs are at least mid-teens here, I mean, it's clearly very attractive to shareholders that you continue to raise, you know, debt capital, especially at 9%, maybe below 9%, right? Can you just comment on how you see the balance sheet shaping up? I mean, how much capacity can you just issue debt?
Speaker Change: Given your Unlevered.
Speaker Change: Irr's are mid at least mid teens here I mean, it's fairly very accretive to shareholders that you continue to raise.
Speaker Change: Debt capital.
Speaker Change: Specially at a nine maybe below 9% rate can you just comment on when you look at Jay.
How you see the balance sheet shaping up.
Speaker Change: How much capacity can you just issued debt.
Jay Jackson: Yeah, you touched on two issues here: what is our excess capacity, and then what's the best way to finance that excess capacity? The excess capacity that we see on a monthly basis being generated from our platform is as much as 30 to 40% more than what we're currently spending, which means that we have a significant amount of room to deploy more capital. Now the question is, how do you best finance that opportunity?
Speaker Change: Yeah.
Speaker Change: You touched on two issues here is that whats our excess capacity and then what's the best way to finance that excess capacity.
Speaker Change: Capacity that we see on a monthly basis being generated from our platform is as much as 30% to 40% more than what we're currently spending.
Speaker Change: Which means that we have a significant amount of room to deploy more capital now. The question is how do you best finance that opportunity is it done with that Leverages interesting, we're certainly not taking anything off the table, but potentially there could be the opportunity where we use some equity financing, where we don't have the interest carry but at Ro <unk> and.
Jay Jackson: Is it done with debt? We're certainly not taking anything off the table, but potentially, there could be an opportunity where we use some equity financing, where we don't have the interest carry, but at ROEs in the mid-teens and higher, depending on the period, equity financing is also a very appealing option, which also addresses more specifically our float and liquidity of the stock. So I think everyone saw on Friday that there was a public filing where we're considering and looking at that option now.
Speaker Change: The mid teens and higher something depending on the period equity.
Speaker Change: Equity financing is also a very appealing option, which also addresses more specifically our float and liquidity of the stock so.
Speaker Change: I think everyone saw on Friday, there was a there was a public filing where we're where we're considering and looking at that option now.
Matthew Howlett: Some of those warrants could get exercised; that could be capital into the company, and so forth. It makes total sense, and we look forward to more capital and more growth in the company.
Speaker Change: And some of those warrants get exercised so that could be capital into the company and so forth.
Speaker Change: It makes total sense and we look forward to.
Speaker Change: For more capital and more growth in the company.
Speaker Change: Just one final question, maybe I missed it I loved the radio ads I see on T V J S. How much clearly.
Jay Jackson: I love the radio ads; I see you on TVJS. Clearly, the marketing is having an impact. Anything to earmark in terms of what we can expect this year to spend? Because, clearly, it's having an impact.
Speaker Change: The marketing is have any impact anything to earmark in terms of what we can expect this year to spend because clearly it's having an impact.
Jay Jackson: Yeah, right now, our intent is to continue to increase our spend and do the marketing in a smart and thoughtful way. We are doing things a little bit differently in the sense of adding to that marketing through an open investor day and a longevity summit where we're bringing in some of the top professionals in the space of lifespan and longevity to really drive that education home that you should be placing a value on your lifespan and how that value then correlates to the value of the underlying financial products such as your life insurance policy or other financial services that you might have.
Speaker Change: Yes, right now our intent is to continue to increase our spend and do the marking and continue the marketing in a smart and.
Speaker Change: And thoughtful way.
Speaker Change: We are doing things like a little bit different in the sense of adding to that marketing through making an open investor day, and longevity summit, where we're bringing in some of the top professionals in the space of lifespan and longevity to really drive that education home that you should be placing a value on your lifespan and how that value then correlates to.
Speaker Change: The value of the underlying financial products, such as your life insurance policy or other financial services that you might have you've heard me talk frequently about in the last two calls about what's happening in our ABL wealth as we added say and and what's also going to be happening within our ABL Tech division utilizing that.
Jay Jackson: You've heard me talk frequently on the last two calls about what's happening in our ABL wealth as we added Faye and what's also going to be happening within our ABL tech division utilizing that lifespan data and mortality verification data to help optimize pension funds and endowments. I think it's going to continue to be a growing sector with what we do. So our advertising in general is certainly becoming more broad, and right now, as we look at our cost of acquisition per customer per lead, we have not gotten to that point where we're starting to see that cost change significantly.
Speaker Change: Lifespan data and mortality verification data to help optimize pension funds endowments I think he is going to continue to be a growing sector.
Speaker Change: With what we do so our advertising in general is certainly becoming more broad.
Speaker Change: And right now as we look at our cost of acquisition per customer per lead we have not gotten to that point, where we're starting to see that cost change significantly what that means is is that there's a lot of run room here still to do in advertising and we're still seeing effectively dollar for dollar on the amount of money that we spend in advertising.
Jay Jackson: What that means is that there's a lot of room here still to do in advertising, and we're still seeing effectively dollar for dollar on the amount of money that we spend on advertising compared to the success that we have in acquiring new policies but also potentially gathering new clients within our ABL wealth channel.
Two the success that we have in acquiring new policies, but also.
Speaker Change: Potentially gathering new clients within our ABL wealth channel.
Matthew Howlett: Terrific. I'm sorry, what was the date of that summit or that investor day? You have that out already, correct?
Speaker Change: Terrific and I'm, sorry, what was it anyway that summit or that Investor day, you had that out already correct.
Jay Jackson: June 13th. So we made that announcement on the call here today. It's going to be here in Orlando. We've got again some of the top speakers and professionals. We'd love to have you come, Matt, and for those on the call. And, you know, that'll be a live event. In addition to that, we'll have a live stream. So, very exciting and, again, broadening this message. We expect to have media sources there as well. And, you know, it's the type of event that we don't have sponsors.
June June 13th so do we.
We made that announcement on the call here today, it's going to be here in Orlando, We've got some again some of the top speakers and professionals would love to have you come Matt and for those on the call.
Speaker Change: And that'll.
Speaker Change: That'll be a live event. In addition to that we'll have a live stream. So a very exciting and again broadening this message we expect to have media sources, there as well.
Speaker Change: And you know it's the type of event that we don't have sponsors. It's just out of case and we're talking about abacus as exciting future as the Investor Day, and then were talking about how all of this lifespan lifespan data can be utilized in educating consumers and financial professionals across the country.
Jay Jackson: It's just Abacus, and we're talking about Abacus's exciting future as Investor Day, and then we're talking about how all of this lifespan data can be utilized in educating consumers and financial professionals across the country.
Matthew Howlett: Great! I look forward to attending.
Speaker Change: Great I look forward to attending.
Jay Jackson: Awesome. We look forward to seeing you.
Speaker Change: So we look forward to seeing it.
Operator: Thank you. Our next question is a follow-up from the line of Wilma Burtis with Raymond James. Please proceed with your question.
Speaker Change: Thank you. Our next question is a follow up from the line of Wilma Bartus with Raymond James. Please proceed with your question.
Wilma Burtis: Hey, good morning. Thanks. Thanks for taking my follow up. Nice hires in the quarter. Are there any other areas of management you expect to build out going forward? Thanks.
Wilma Bartus: Hey, good morning, Thanks for taking my follow ups.
Wilma Bartus: Hires in the quarter are there any other areas of management, you expect to build out going forward.
Jay Jackson: Thanks, Wilma. Thank you, and yes, we are very proud of the new hires we have. Both very successful people who had outstanding careers in other firms, and we're honestly grateful to have them join our team. As we continue to expand, we anticipate adding very strategic personnel, particularly in the AVL wealth channel. When it comes to the life insurance division, where we're acquiring policies, as Bill highlighted, we do plan on continuing to expand the underwriting in that division as those relationships go.
Thanks Shlomo.
Speaker Change: Thank you and yes, we are very proud of the new hires we have.
Speaker Change: Both very successful people, who had outstanding careers.
Shlomo: In other firms and honestly, we are grateful to have him join our team.
We continue to expand we anticipate adding very strategic personnel, particularly in the ABL wealth channel when it comes to the life insurance Division, where we're acquiring policies as bill highlighted we do plan on continuing to expand the underwriting in that division as those relationships goes we saw.
Jay Jackson: We have, we've solved it an algorithm that helps us understand how much labor we need to meet the increased demand for policy origination as well. So you know, we do expand that, and then on the AVL tech side, we're continuing to add coders and other data type folks to that division as well. So the thing to think about when we're looking at labor in general is that we add it based upon need for potential future growth.
The an.
Shlomo: An algorithm that helps us understand what how much labor we need to meet the increased demand of policy origination as well. So we do expand that and then in the ABL Tech side, where we're continuing to add coders and other data type folks to that division as well so.
Shlomo: The thing to think about when we're looking at labor in general is that we add it based upon need and potential future growth. So it makes sense to us that we would add Atlanta and our capital markets is we're really taking a look at things like what are some of the strategic partnerships that we could have on a go forward basis, either through partnership or through acquisition and then you have bayh who's really.
Jay Jackson: So it makes sense to us that we would add Elena and our capital markets as we're really taking a look at things like, you know, what are some of the strategic partnerships that we could have on a go-forward basis either through partnership or through acquisition, and then you have Faye who's really taking the lead in our AVL wealth channel working with RAs and advisors, educating them on everything that we do, including our financial products.
Wilma Burtis: Okay. Thank you. And then last one for me.
Shlomo: Taken the lead in our ABL wealth channel working with <unk> and advisors educating them on everything that we do including our financial products.
Speaker Change: Okay. Thank you and then last one for me.
Jay Jackson: Have there been any additional opportunities to deploy Abacus Tech that you've identified early in the year? And could you talk a little bit about the pipeline going forward for Abacus Tech as well? Sure, within Abacus Tacker.
Speaker Change: Have there been any additional opportunities to deploy advocacy tech that you've identified early in the year and could you talk a little bit about the pipeline going forward for advocate tech as well thanks.
Jay Jackson: Sure, within Abacus Tech or ABL Tech, we are in several what they call test runs with large pension funds as well as very large reinsurers and others as we're you know entering that asset they want to have more confirmation of the data and those have been very very successful in some of those initial tests so you know we're starting to see that now where we're moving towards full-time signups of those of those companies so as this moves we expect that between now and the end of the year the ABL Tech revenue could ultimately end up being quite material over the next you know 12 to 18 months and so we're very excited about the progression there and the overall market feedback in that division.
Speaker Change: Sure.
Speaker Change: Within advocacy tack, our ABL tax we are in several what they call test runs with.
Speaker Change: Large pension funds as well as very large reinsurers and others as we're entering that asset they want to have more confirmation of the data and those have been very very successful in some of those initial pass. So we're starting to see that now where we're moving towards full time sign ups of those of those companies. So.
Speaker Change: As this moves we expect that between now and the end of the year. The ABL Tac revenue could ultimately end up being quite material over the next 12 to 18 months and so we're very excited about the progression there and the overall market feedback in that division.
Speaker Change: Okay. Thank you.
Speaker Change: Thank you.
Operator: Thank you. Ladies and gentlemen, that concludes our question and answer session. I'll turn the floor back to Mr. Jackson for any final questions.
Speaker Change: Thank you, ladies and gentlemen that concludes our question and answer session I'll turn the floor back to Mr. Jackson for any final comments.
Jay Jackson: Thank you to everyone. We could not be more thrilled and excited about the opportunity and the direction of Abacus and the future of Abacus, highlighted by a strong first quarter and what we expect to be a sustainable and consistent model. We look forward to speaking to you on our next call. And for those who might have any additional questions, please feel free to reach out. Have a great day.
Jackson: Great. Thank you to everyone.
Jackson: We could not be again more thrilled and excited about the opportunity in the direction of abacus.
Jackson: And the future of abacus highlighted by a strong first quarter.
Mr. Jackson: And what we expect to be a sustainable and consistent model.
We look forward to speaking to you on our next call and for those who might have any additional questions. Please feel free to reach out have a great day.
Operator: Thank you. This concludes today's conference call. You may disconnect your lines at this time. Thank you for your participation.
Thank you. This concludes today's conference call you may disconnect. Your lines at this time. Thank you for your participation.