Q1 2024 Reliance Global Group Inc Earnings Cal
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Operator: Greetings. Welcome to the Reliance Global Group first quarter business update conference 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. Please note, this conference is being recorded. We'll now turn the conference over to your host, Ted Havis, Investor Relations. You may begin.
Speaker Change: Greetings and welcome to the reliance Global group first quarter business update conference call. At this time, all participants are in a listen only mode.
Speaker Change: 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. Please note. This conference is being recorded I will now turn the conference over to your host Ted Davis Investor Relations you may begin.
Ted Havis: Thanks, John. Good afternoon, and thank you for joining Reliance Global Group's 2024 First Quarter Financial Results and Business Update Conference Call. On the call with us today are Ezra Baiman, Chairman and Chief Executive Officer of Reliance Global Group, and Joel Markovits, Chief Financial Officer at Reliance. Earlier today, the company announced its operating results for the quarter ended March 31st, 2024. The press release is posted on the company's website, www.relianceglobalgroup.com. In addition, the company filed its quarterly report on Form 10-Q with the U.S. Securities and Exchange Commission today, which can also be accessed on the company's website as well as the SEC's website at www.sec.gov. If you have any questions after the call but would like any additional information about the company, please contact Crescendo Communications at 212-671-1020.
John: Thanks, John.
Speaker Change: Thank you for joining reliance global Gold's, 2021st quarter financial results and business update conference call.
Speaker Change: On the call with US today are regular Diamond Chairman and Chief Executive Officer of Reliance Global Group and Joe Martin Chief Financial Officer at reliance.
Speaker Change: Earlier today, the company announced its operating results for the quarter ended March 31st 2024.
Speaker Change: Press release is posted on the company's website at Www Dot reliance Global group Dot Com. In addition, the company has filed its quarterly report on Form 10-Q, with the U S Securities and Exchange Commission today, which can also be accessed on the company's website as well as the Sec's website at Www Dot FCC Dot Gov.
Speaker Change: Do you have any questions after the call, but like any additional information about the company. Please contact crescendo communications at 2126711020.
Ted Havis: Before Mr. Bayman reviews the company's operating results for the quarter ended March 31st, 2024, we would like to remind everyone that the conference call may contain forward-looking statements. All statements other than statements of historical facts contained in this conference call, including statements regarding our future results of operations and financial position, strategy, and plans, and our expectations for future operations, are forward-looking statements. The words anticipate, estimate, expect, project, plan, seek, intend, believe, may, might, will, should, could, likely, continue, design, and the negative of such terms
Speaker Change: For the bedroom and review the company's operating results for the quarter ended March 31, 2024, we would like to remind everyone that the conference call may contain forward looking statements all statements other than statements of historical facts contained in this conference call, including statements regarding our future results of operations and financial position strategy and plans and our expectations for future.
Ted Havis: In other words, in terms of similar expressions, they are intended to identify forward-looking statements. These forward-looking statements are based largely on the company's current expectations and projections about future events and trends that it believes may affect its financial condition, results of operations, strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to several risks, uncertainties, and assumptions, as described in the company's Form 10-K, filed with the U.S. Securities and Exchange Commission on April 4th, 2024.
Ted Havis: Because of these risks, uncertainties, and assumptions, the forward-looking events and circumstances discussed in this conference call may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statement. You should not rely upon forward-looking statements as predictions of future events. Although the company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, level of activity, performance, or achievements. In addition, neither the company nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements.
Speaker Change: Operations are forward looking statements. The words anticipate estimate expect project plan seek intend believe may might will should could likely continue with design and the negative such terms and other words in terms or similar expressions are intended to identify forward looking statements.
Ted Havis: The company disclaims any duty to update any of these forward-looking statements. All forward-looking statements attributable to the company are expressly qualified in their entirety by these cautionary statements as well as others made in this conference call. You should evaluate all forward-looking statements made by the company in the context of these risks and uncertainties. Having said that, I'd now like to turn the call over to Ezra Baiman, Chairman and Chief Executive Officer of Reliance Global Group. Ezra.
Speaker Change: These forward looking statements are based largely on the Companys current expectations and projections about future events and trends that it believes may affect its financial condition results of operations strategy short term and long term business operations and objectives and financial needs.
Speaker Change: We're looking statements are subject to several risks uncertainties and assumptions.
Speaker Change: Scribed in the company's Form 10-K filed with the U S Securities and Exchange Commission on April four 2024.
Speaker Change: Because of these risks uncertainties and assumptions the forward looking events and circumstances discussed in this call may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward looking statements you should not reply rely upon forward looking statements as predictions of future events, although the company believes that the expectations.
Speaker Change: Selected in the forward looking statements are reasonable it cannot guarantee future results level of activity performance or achievements. In addition, neither the company nor any other person it feels a responsibility for the accuracy and completeness of any of these forward looking statements. The company disclaims any duty to update any of these forward looking statements all forward looking statements attributable.
Speaker Change: To the company are expressly qualified in their entirety by these cautionary statements as well as others made in this conference call you should evaluate all forward looking statements made by the company in the context of these risks and uncertainties, having said that I'd now like to turn the call over to <unk>, Chairman and Chief Executive Officer of reliance global groups address.
Ezra Baiman: Thanks, Ted. Good afternoon, and thank you to everyone for joining us today. This is an exciting time for us to share the significant progress we have made at Reliance Global Group. In early April, we shared insights into our operation, and I'm pleased to report that in the first quarter of 2024, we continued this trend of solid performance, marked by steady organic growth. This quarter, our emphasis was on implementing our new One Firm approach, which integrates our nine owned and operated agencies across the United States into a single unified entity.
Speaker Change: Thanks, Ted good afternoon, and thank you everyone for joining us today.
Speaker Change: This is an exciting time for us to share the significant press, where you have made us realize global group in early April we shared insights into our operations and I'm pleased to report that in the first quarter of 2024. We continued this trend of solid performance marked by steady organic growth this quarter I emphasis without influencing our new one firm.
Speaker Change: Approach, which integrates our nine owned and operated agencies across the United States into a single unified entity.
Ezra Baiman: As these efforts continue to gain traction, we believe that we will experience significant improvement in both our revenue and profitability. As you may know, we recently announced that we have entered into a definitive agreement to acquire Spetner Associates, a well-established benefits and enrollment company. Spetner, through VennManage Benefits Enrollment Company, is a leading provider of voluntary benefits to over 75,000 employees throughout the United States.
Speaker Change: As these efforts continue to gain traction we believe that we will experience significant improvement in both our revenue and profitability.
Speaker Change: As you May know, we recently announced that we have entered into a definitive agreement to acquire spectrum associated well established benefits when enrollment company spent nurse through bad manners benefits enrollment company, they lead leading provider of voluntary benefits to over 75000 employees throughout the United States.
Ezra Baiman: We are confident that this acquisition of Spetner will prove to be the most significant acquisition and a pivotal turning point in the company's history. The strategic move is expected to dramatically enhance our capabilities and position us strongly in the market, setting a new benchmark for our future endeavors. I would like to take this time to delve deeper into the reasons behind this acquisition and what it means for the company's future.
Speaker Change: We are confident that this acquisition of <unk> will prove to be the most significant acquisition and a pivotal turning point in the company's history. The strategic move is expected to dramatically enhance our capabilities and position us strongly in the market setting a new benchmark for our future endeavors.
Speaker Change: I can take this time to delve deeper into the reasons behind this acquisition at what it means for the company in future.
Ezra Baiman: The integration of Spetna's expertise and extensive client base into our operations is expected to significantly enhance our market position, expand our service offerings, and accelerate our growth trajectory. By aligning Spetna's innovative benefits solutions with our strategic goals, we aim to create more value for our stakeholders and strengthen our competitive edge in the industry. This acquisition is not just about growth; it's about setting a new standard in our industry and bringing enhanced services to a broader audience.
Speaker Change: The integration of <unk> expertise and extensive client base into our operations is expected to significantly enhance our market position and expand our service offering and accelerate our growth trajectory by aligning spat of innovative benefit solutions with our strategic goals, we aim to create more value for our stakeholder.
Speaker Change: And strengthen our competitive edge in the industry. This acquisition is not just about growth, it's about setting a new standard in our industry I'm, bringing enhanced services to a broader audience spend has been managed benefits enrollment company and half of HR operations by integrating benefits enrollment and administration with the applicant tracking on.
Ezra Baiman: Sprechner's Ben Manners Benefits Enrollment Company enhances HR operations by integrating benefits enrollment and administration with applicant tracking, onboarding, and payroll systems. This consolidated approach minimizes paperwork and streamlines various HR tasks. Featuring a user-friendly digital interface along with live call center support, BendManage offers a smooth and efficient process for enrolling and managing employee benefits. The platform also improves recruitment efficiency with its one-touch applicant tracking and onboarding system, seamlessly integrating new employees into a company's payroll system. Additionally, it automatically evaluates job applicants for Work Opportunity Tax Credits, facilitating these credits processing without the need for manual input.
Speaker Change: Boarding and payroll systems. This consolidated approach minimizes paperwork and streamlined various HR tasks.
Speaker Change: It's really a user friendly digital interfaces, along with live call Center support Batman, a drop as a smooth and efficient process for enrolling in managing employee benefits. The platform also includes recruitment efficiency, but it's one touch applique applicant tracking and Onboarding system seamlessly integrating new employees into our company.
Speaker Change: Payroll system.
Speaker Change: Really bad.
Speaker Change: Manage automatically evaluate job applicants for work opportunity tax credits facilitating these credits processing without the need for manual input.
Ezra Baiman: Spetner stands out in its sector by deploying advanced technologies that position it ahead of its competitors. This acquisition represents a pivotal moment for Reliance, not merely in terms of size but as a crucial component of our wider strategic vision. The impact of this acquisition is substantial. It is anticipated to more than double our revenue. Specifically, Spetner is expected to bring in over $14 million in revenue for the fiscal year 2024, which would increase Reliance's total revenue to approximately $28 million.
Speaker Change: Stands out and affected by deploying advanced technologies that position is ahead of its competitors. This acquisition represents a pivotal moment moment for reliance not merely in terms of size, but as a crucial component component of a wider strategic vision.
Ezra Baiman: Moreover, Spetner is anticipated to significantly boost Reliance's EBITDA, with projections indicating an additional $4 million in EBITDA for 2024 on a standalone basis, thanks to its high EBITDA to revenue ratio. Spetner's comprehensive range of uniquely voluntary benefits programs combined with its extensive reach presents substantial opportunities for synergy, particularly in enhancing our offerings through cross-selling personal lines of insurance through the Reliance Rel
Speaker Change: The impact of this acquisition is substantial and is anticipated to more than double our revenue. Specifically spent there is expected to bring in over 14 million in revenue for the fiscal year 2024, which would increase reliance is total revenue to approximately 28 million. Moreover, as baton there is anticipated to significantly boost reliance's EBITA with projections, indicating.
Speaker Change: Additionally, and this is a $4 million.
Speaker Change: EBITA for 2024 on a standalone basis, thanks to its high editor to revenue ratio scrapping a comprehensive range of uniquely voluntary benefits program combined with its extensive reach.
Speaker Change: Presents substantial opportunities for synergy, particularly in enhancing our offerings through a cross selling personal lines of insurance through the alliance I rely exchange platform, while it's better than a bad managers already highly profitable on its own its integration into our existing infrastructure is poised to substantially boost capabilities in fact.
Ezra Baiman: While Spetner Bend Manager is already highly profitable on its own, its integration into our existing infrastructure is poised to substantially boost our capabilities. In fact, the strategic union is expected to create a company where the collective value exceeds that of its individual components, establishing a new benchmark in the industry and driving unprecedented growth for Reliance. This acquisition also underscores our dedication to not only enriching our portfolio but also fundamentally transforming the insurance industry.
Speaker Change: The strategic Union is anticipated to create a company where the collective value.
Speaker Change: <unk> that of its individual components.
Speaker Change: Let's say, a new benchmark in the industry and driving unprecedented growth for reliance.
Speaker Change: This acquisition also underscores underscored.
Speaker Change: Our dedication to that only enriching our portfolio, but also defend the mentally transforming the insurance industry by integrating spreading their reliance global is poised to broaden our array of innovative solutions further solidifying our reputation as a leader in leveraging technology to achieve substantial growth and profitability our commitment to operational.
Ezra Baiman: By integrating Sprechner, Reliance Global is poised to broaden our array of innovative solutions, further solidifying our reputation as a leader in leveraging technology to achieve substantial growth and profitability. Our commitment to operational efficiency, technological innovation, and strategic acquisition goes way beyond standard strategy. It embodies our mission to redefine what's possible in the industry. Overall, our objective is to evolve Reliance Global Group into a profitable multi-billion dollar enterprise that delivers substantial returns to our shareholders. We believe this acquisition will unlock significant opportunities that align perfectly with our one firm go-to-market strategy.
Speaker Change: Efficiency technology technological innovation innovation and strategic acquisition, because worthy on Stratton standard strategy get them. It embodies our mission to redefine what's possible in the industry.
Speaker Change: Overall, our objective is to evolve rely a global group into a profitable multibillion dollar enterprise that the.
Speaker Change: Are there for substantial returns to Austria holders. We believe this acquisition will unlock significant opportunities that align perfectly with our one firm and go to market strategy. The strategic integration aims not just to expand our presence within the $436 $1 billion highly fragmented global insurance agency brokerage market.
Ezra Baiman: The strategic integration aims not just to expand our presence within the $436 billion highly fragmented global insurance agency brokerage market but also to position Reliance as a formidable, cutting-edge enterprise that leverages technology to drive sustainable profitability and enhance shareholder value. With our solid foundation and forward-thinking strategies, we are confident that we are well on our way to achieving these ambitious goals. As I reflect on our path forward, I am reminded of the reasons why I embarked on this journey with Reliance, driven by a firm belief in our vision and what we are building together, a residential real estate and amassing a multi-billion-dollar portfolio of multifamily properties underscores my commitment to not just achieving growth but sustainable growth.
Speaker Change: But also to position reliance is a formidable cutting edge enterprise that leverages technology to drive sustainable profitability and enhance shareholder value with our solid foundation and forward thinking strategies. We are confident that we are well on our way to achieving these ambitious goals.
Speaker Change: I reflect on our path forward I am reminded of the reasons why I embarked on this journey with realized driven by a firm belief in our vision and what we are building together my previous experience in creating the third largest mortgage broker of the country.
Speaker Change: Our residential and amassing a multibillion dollar portfolio of multifamily properties underscores my commitment to not just achieving growth, but sustainable growth. This history is a testament to our dedication to not only expand but do it in a manner that ensures long term stability and success as I have stated many times before.
Ezra Baiman: This history is a testament to our dedication to not only expand, but to do it in a manner that ensures long-term stability and success. As I have stated many times before, I'm a true believer in the company, with over $5 million of my own personal capital invested in Reliance. My commitment to building a tech-forward, market-leading organization has never been stronger. Our emphasis on operational efficiency, technological innovation, and strategic acquisitions extends beyond mere strategy.
Speaker Change: I'm a true believer in the company with over $5 million of my own personal capital invested in reliance my commitment to committing I'm sorry, my commitment to building a tech forward market, leading organization has never been stronger our emphasis on operational efficiency technological innovation and strategic acquisitions.
Speaker Change: Extend beyond mere strategy, it's our mission to redefine what's possible in the industry. This dedication is not just about leading it's about transforming the landscape of our industry, ensuring that reliance stays at the forefront of innovation and market dynamics.
Ezra Baiman: It's our mission to redefine what's possible in the industry. This dedication is not just about leading; it's about transforming the landscape of our industry, ensuring that Reliance stays at the forefront of innovation and market dynamics. Thank you for your continued support and belief in our vision. The future is bright and exciting, and together we're going to make this vision a reality. I would now like to turn the call over to Joel Markowitz, Chief Financial Officer of Reliance Global, who will review the financial results for the quarter ended March 31st, 2024.
Speaker Change: Thank you for continued support and believe in our and belief in our vision for the future is bright and exciting and together we're going to make this vision a reality I would now like to turn the call over to Joe <unk>, Chief Financial Officer of Reliance Global who will review the financial results for the quarter ended March 31, 2020 four.
Sure.
Joel Markovits: Thank you very much, Ezra. Good afternoon, everyone. It's great to be here with you all today.
Thank you very much Andrew good afternoon, everyone great to be here with you all today.
Joel Markovits: I'll be happy to share our financial results for the quarter ended March 31st, 2020. However, all figures presented are approximate. Our revenues, commission income, increased by $143,000, or 4% to $4.1 million in Q1 of 2024, compared to $3.9 million in Q1 of 2023. This revenue increase is driven by sustained organic growth. Commission expense increased by $193,000, or 18%, to $1.3 million in Q1 2024 compared to $1.1 million in Q1 2026. This change is driven primarily by the growth in commission income revenues, which have a higher ratio of commission expense in Q1 versus other quarters.
Joe <unk>: Be happy to share our financial results for the quarter ended March 31st 2024, all figures presented are proximate.
Joe <unk>: Our revenues commission income increased by $143000 or 4% and $1 million Q1, 2024 compared to $3 $9 million in Q1 of 2023 revenue increase is driven by sustained organic growth.
Joe <unk>: Commission expense increased by $193000 or 18% to one for $3 million in Q1 2024 compared to a one for $1 million. In Q1 2023 change is driven primarily by the growth in commission income revenues, which have a higher ratio of commission expense in Q1 versus the other quarters.
Joel Markovits: Salaries and wages increased slightly by $76,000, or 4%, in this quarter versus last, with increases pegged to a typical annual inflation-adjusted pace. General and administrative expenses increased by $537,000 to $124 million in the first quarter of 2024 compared to $838,000 in 2023, and the increase is driven by acquisition costs as well as higher regulatory compliance-related costs. The net loss was $5.3 million in Q1 2024 compared to a net loss of $1.8 million in Q1 2020. The increase of $3.5 million is primarily linked to a Q1 2024 intangible asset non-cash impairment charge of $3.9 million.
Joe <unk>: Salaries and wages increased slightly by $76000 or 4% in.
Joe <unk>: In this quarter versus last increase is pegged to typical annual inflation adjustment.
Joe <unk>: General and administrative expenses increased by $537000 to $1 4 million in the first quarter of a <unk> 24 compared to $838000 in 2023.
Joe <unk>: And the increase is driven by acquisition cost as well as higher regulatory compliance related costs.
Joe <unk>: Net loss was $5 $3 million in Q1, 2024 compared to a net loss of $1 million. In Q1 2023 increases of $3 5 million is primarily linked to the Q1 timeframe for intangible asset noncash impairment charge of $3 $9 million.
Joel Markovits: Additionally, EBITDA, our adjusted EBITDA metric, came in at a nominal negative $74,000 for the quarter, and we do expect EBITDA to further improve as we continue throughout the fiscal year, and especially post our anticipated closing on the Spetna M&A transaction, as mentioned by Ashley. With this, we conclude our prepared remarks. We'll be happy to answer any questions or comments participants may have. Operator, kindly open the line. Absolutely. At this time, we will
Joe <unk>: Finally, EBITDA EBITDA, our adjusted EBITDA metric came in at a nominal negative $74000 for the quarter and we do expect neighborhood cause improved has it continued throughout the fiscal year, and especially post our anticipated closing on the Sputnik M&A transaction as mentioned Badger.
Speaker Change: This will conclude our prepared remarks.
Speaker Change: We'll be happy to answer any questions or comments disappoints math okay.
Open the lines.
Operator: Absolutely. At this time, we will be conducting a question and answer session. If you would 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 keys. One moment, please, while we poll for questions. Our first question comes from Jesse Sobelson with EF Hutton. Please proceed.
Speaker Change: Absolutely at this time, we will be conducting a question and answer session. If you would 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 May press star two if you'd like to remove your question from the queue.
Speaker Change: Participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys, one moment, please while we poll for questions.
Speaker Change: Our first question comes from Jesse Olson with E. F. Hutton. Please proceed.
Jesse Sobelson: Hi, everyone. Congratulations on signing this definitive agreement to acquire Spetner. I wanted to focus on my questions here.
Jesse Olson: Hi, everyone. Congrats on signing this definitive agreement to acquire Sutner I wanted to focus my questions here.
Jesse Olson: Firstly just on timing.
Jesse Olson: Signed a definitive agreement when do you expect this deal to close.
Jesse Olson: And given the guidance of the asset generating 14 million in revenue.
Jesse Olson: So maybe $4 million in EBITDA on a go forward basis, how much of that is expected to be contributed to this fiscal year.
Jesse Olson: Given the timing on closing.
Jesse Sobelson: Firstly, just on timing. You did sign a definitive agreement. When do you expect this deal to close? And given the guidance of the asset generating 14 million in revenue, or so maybe 4 million in EBITDA on a go forward basis, how much of that is expected to be contributed to this fiscal year? Given
Speaker Change: The first part of the question, we're looking forward to third quarter to close.
Ezra Baiman: So the first part of the question: we're looking forward to the third quarter to close, and as far as the about, I guess about it, depending on when it is, but about half of that is already, it's already in the run. Another way we've been watching the deal and seeing, as we speak in live time, where the numbers are, and it's, it's right on target. It's the acquisition that we haven' So there's no seasonality. I guess about that. Yeah.
Speaker Change: And as far as the about I guess about it depending when it has been about half of that it's already it's already in the run in other way we have been watching the deals I'm seeing as we speak and lifetime, where the numbers are and it's right on target that's a pretty accurate.
Speaker Change: Acquisition that we haven't voted yet, but we've been watching it.
Speaker Change: It's running the way we expected.
Speaker Change: Great. So there is not really seasonality.
Speaker Change: Yeah.
Jesse Sobelson: Sorry to cut you off. Please go ahead.
Speaker Change: Sorry to cut you off please please go ahead.
Ezra Baiman: So in other words, as far as we hope to close in the third quarter, depending on what time of year, but it should be about half the year. It should give us – if you're ready, it's up and running. It hits the ground running, so to speak.
Speaker Change: In other words as far as since we hope to close in third quarter, depending a lot of time, there, but it should be about half of the year. It's really give okay. Nobody is up and running he hits the ground running so to speak.
Jesse Sobelson: Yeah, on that point, you know, with the guided financials, is this just for the business as a standalone entity, or in order to realize the numbers that you're guiding to, would there need to be any efforts to, you know, realize synergies either on the cost front or the sales front?
Speaker Change: Right, Yeah on that point.
Speaker Change: The guidance financials.
Speaker Change: Is this just for the business as a standalone entity or in order to realize the numbers that you're guiding to would there need to be any any efforts to realize synergies either on the cost front or the sales front.
Ezra Baiman: No, this is on the as-is basis, but that's before we do any of the synergies. As-is, day one, it should be on track for that. It's already in place, what's there. We look forward to lots of gravy with the synergies and the cross-selling, but right now it's just as, you know, turnkey.
Speaker Change: This is on the as is but thats before we do any of the synergies as if they if they want it should be on track for that that's already in place was there. We look forward to lots of gravy, what the synergies on the cross selling and bus right now with fair just as a turnkey.
Jesse Sobelson: Okay, great. And then, just to make sure I understand the numbers here, I just want to make sure I have them right. I think the acquisition was about $13.7 million in consideration, $8 million in cash, and then the remainder in a promissory note. And that translates to, I'd say, roughly 1x forward sales and about 4x forward EBITDA. Is that correct?
Speaker Change: Okay, Great and then just to make sure I understand.
Speaker Change: The numbers I just want to make sure I'm right I think the acquisition was about $13 7 million in consideration of $8 million in.
Ezra Baiman: That's correct, which if you know the industry, those are pretty good, pretty good numbers.
And in cash and then the remainder in a promissory note and that translates to I'd say roughly one times forward sales in and about Forex forward EBITDA is that correct.
Speaker Change: That's correct, which if you know the industry those are pretty good pretty good numbers.
Jesse Sobelson: Pretty good, yeah. And then the last thing that I just wanted to ask is on the balance sheet going forward, can you share what it's going to look like, net debt, shares outstanding, cash flow, and then that would be it for me.
Pretty good Yeah, and then the last thing that I just wanted to ask is on the.
Speaker Change: The balance sheet going forward can you share.
Speaker Change: You know, what it's going to look like net debt.
Speaker Change: <unk> shares outstanding.
Speaker Change: <unk> cash position and then that would be it for me.
Joel Markovits: Here's a Joel question.
Speaker Change: Yes, so Joe a question.
Speaker Change: Okay.
Joel Markovits: Yeah, I think time will tell in terms of post-Spetna deal. Obviously, there's going to be significant receivables that we'll pick up just based on the amount of revenue they have. So, we'll definitely see an uptick in our assets, you know; fixed assets will increase as well. Basically, intangibles we're going to acquire and goodwill. So we'll definitely see all that improve. Cash will be increased substantially because this is a very high-value cash business that they churn through millions of dollars in commercial revenues of cash each year.
Speaker Change: Yeah, I think time will tell in terms of post dispatch an ideal and obviously, there's going to be significant receivables that will pick up.
Speaker Change: Based on the amount of revenue they have and so we'll definitely see an uptick in how assets fixed assets will increase as well as intangibles were going to acquire and goodwill. So we definitely saw that improve cash will be.
Speaker Change: The increased substantially because this is a very high cash.
Speaker Change: And this really shine through.
Speaker Change: Millions.
Speaker Change: Yeah and commission revenues of cash each year. So we definitely expect things to go notably in terms of the asset side liabilities nothing too significant there's going to be the commentary note that was discussed.
Joel Markovits: So we definitely expect, you know, things to go orderly in terms of the asset side. Liability is nothing too significant. There's going to be a promissory note that was discussed, and yeah, but we don't really expect anything except for typical accounts payable, you know, to come on board for any vendor dues that there might be.
Speaker Change: And yeah, but we don't really expect anything except for typical costs payable.
Speaker Change: Common voice and inventor.
Speaker Change: There might be existing.
Speaker Change: That in our books.
Speaker Change: Okay.
Jesse Sobelson: And as a service, that's not expected to be significant. I've got it. It's wonderful. Thank you very much.
Speaker Change: And as a service.
Speaker Change: We expect the unexpected to be significant.
Speaker Change: I don't know what are the wonderful thanks for the detail.
Very much.
Operator: Once again, if you have a question or a comment, please indicate so by pressing star one on your touch-tone phone. The next question comes from Ellen. Forest Capital, please proceed.
Speaker Change: Once again, if you have a question or comment please indicate so by pressing star one on your Touchtone phone. The next question comes from Alan Beck with Forest Capital. Please proceed.
Ellen: Thank you for taking my question. You mentioned on the call that your OneFirm vision is materializing. Can you provide any additional context on the progress you're making with your OneFirm vision?
Alan Beck: Thank you for taking my question you mentioned on the call that your one firm vision is materializing can you provide any additional contest context on the progress you're making with your one from vision.
Ezra Baiman: Of course, great question. I'll be happy to expand on that. So we're currently knee-deep in the exercise of consolidating our carrier contracts, and I've made tremendous headway with property and casualty, and I've begun making strides into the health group and life as well. We're also unifying our agency management systems, where we'll have just two, one for PNC and one for health and group benefits, which is expected to streamline our administrative processes and enhance our reporting capabilities.
Speaker Change: Of course, great question I'll be happy to expand on that so our current knee deep in exercise of consolidating our current contract and have made tremendous headway with property and casualty and have begun making strides with health group life as well.
Speaker Change: So unifying our agency management systems that would have just two one for P&C and once the housing group benefits, which is expected to streamline our administrative processes enhanced our reporting capabilities.
Ezra Baiman: On the expense side, we continue to shave off costs by pooling together what used to be individual vendor contracts into group contracts, which often provide for volume discounts. One firm has also enabled us to roll out certain best-in-class systems across all of our office locations. [inaudible] Thanks again for the question. Hopefully, this provides a good summary of where we're at today.
On the expense side, we continue to shave off in our cost of pulling together, we used to be individual vendor contracts into group contracts, which often provide for volume discounts.
Speaker Change: One time it also enables us to rollout some best in class systems cost all of our office locations.
What's the redesigning our teams and human capital to be more aligned with our revenue streams irrespective of geographical location.
Speaker Change: This is encouraging robust cross collaboration between our offices is enhancing our corporate culture corporate environment and employee satisfaction and will also likely continue to start an additional cross selling revenue generating opportunities.
Speaker Change: Thanks, Ken for the question hopefully this provides a good summary, where we're at today.
Ellen: Yeah, that's very helpful. Thank you so much.
Speaker Change: Yeah, that's very helpful. Thank you so much.
Speaker Change: Yes.
Speaker Change: Okay.
Operator: We have no further questions in queue. I would like to turn the call back to management for a closing remark.
Speaker Change: We have no further questions in queue I would like to turn the call back to management for closing remarks.
Operator: Sure, on behalf of Ezra and the entire Reliance team, thank you for participating in this business update call. We couldn't be more excited about the prospects of the company as we continue our journey forward. Looking forward to next time, and until then, all the very best.
Sure.
Speaker Change: <unk> an entire alliance team. Thank you for your participation in this business update call. We couldnt be more excited about the prospects of the company as we continue our journey forward looking forward to next time and until then all the very best.
Operator: Thank you. This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.
Speaker Change: Thank you. This concludes today's conference and you may disconnect. Your lines at this time. Thank you for your participation.
Speaker Change: Okay.