Core Insights - Abacus Life, Inc. has completed the acquisition of Carlisle Management Company S.C.A., enhancing its position in the life settlement space with over $2 billion in assets under management [1][3] - The acquisition aligns with Abacus's strategy to drive long-term growth and diversify its alternative asset management offerings [1][3] - Jose Garcia, CEO of Carlisle, joins the Abacus Executive Leadership Team, indicating a commitment to leveraging synergies between the two companies [2][3] Company Overview - Abacus is a pioneering global alternative asset manager specializing in uncorrelated financial products, utilizing longevity data and actuarial technology to create high-return asset classes [4][5] - The company manages nearly $3 billion in assets, making it the only publicly traded global alternative asset manager focused on lifespan-based financial products [5] - Abacus is expanding its expertise into new growth areas, including ABL Wealth and ABL Tech, which focus on longevity-based wealth management and advanced data tracking services [6][7] Carlisle Management Company - Established in 2008, Carlisle is a leading global investment management firm licensed as an Alternative Investment Fund Manager in Luxembourg [8][10] - The firm is recognized for its transparent transactions and integrity in the life settlement industry, backed by over 60 years of combined investment experience [9][10] - Carlisle's management emphasizes maximizing investor returns and maintaining transparency within a regulated framework [10]

Core Viewpoint - Abacus Life, Inc. has received regulatory nonobjection from the Luxembourg CSSF for the acquisition of Carlisle Management Company, which will significantly enhance its asset management capabilities in the life settlement space [1][2]. Company Overview - Abacus Life is a pioneering global alternative asset manager specializing in uncorrelated financial products, leveraging longevity data and actuarial technology to create high-return investment opportunities [3][4]. - The company currently manages nearly $3 billion in assets, including pending acquisitions, and is the only publicly traded firm focused on lifespan-based financial products [4]. Acquisition Details - The acquisition of Carlisle Management Company is expected to add approximately $2.0 billion in assets under management to Abacus's ABL Wealth division [2]. - Carlisle has been a leader in the life settlement industry since 2008, known for its transparent transactions and integrity, and is licensed as an Alternative Investment Fund Manager under the CSSF [2][7]. Strategic Growth Areas - Abacus is expanding its expertise in longevity and lifespan into new growth areas, including: - ABL Wealth, which offers longevity-based wealth management platforms for financial advisors [5]. - ABL Tech, a technology service providing advanced real-time data tracking and analysis for various financial entities [5][6]. Industry Position - The acquisition of Carlisle is viewed as a major milestone for Abacus in expanding its global alternative asset management footprint, enhancing its position in the life settlement market [2].

Core Points - Abacus Life, Inc. has successfully closed an oversubscribed public offering of 12,500,000 shares at a price of $8.00 per share, raising approximately $100 million in gross proceeds [1] - The offering consisted of 10,000,000 shares sold by the Company and 2,500,000 shares sold by certain stockholders, with the Company raising about $80 million from the primary offering [1][2] - The net proceeds will be utilized for operations, including the purchase of life settlement policies, working capital, and potential acquisitions [2] Company Overview - Abacus is a pioneering alternative asset manager specializing in longevity and actuarial technology, focusing on uncorrelated financial products [6] - The Company manages nearly $3 billion in assets, making it the only publicly traded global alternative asset manager dedicated to lifespan-based financial products [7] Underwriting and Regulatory Information - The offering was managed by Piper Sandler & Co., TD Securities (USA) LLC, KKR Capital Markets LLC, B. Riley Securities, Inc., and SG Americas Securities, LLC [3] - The registration statements for the offering were declared effective by the SEC on November 14, 2024, with final prospectus supplements filed on November 25, 2024 [4]

Core Viewpoint - Abacus Life, Inc. is positioned as a unique player in the life insurance market, focusing on acquiring and managing undervalued life insurance policies, thereby creating investment opportunities for investors while educating consumers on the value of their policies [1][2][3]. Industry Overview - The life insurance industry is a $13 trillion market, presenting significant investment opportunities due to market inefficiencies, with 90% of policies not paying claims to beneficiaries [3][4]. - Many policyholders are unaware of the cash value in their policies, leading to lapses and forfeiture of financial resources, which Abacus Life capitalizes on by purchasing these undervalued policies [4]. Company Strategy - Abacus Life employs a data-driven approach to assess the market value of life insurance policies, utilizing proprietary actuarial technology and lifespan data [5][6]. - The company is the only publicly traded entity in its industry, providing transparency and investment opportunities for stakeholders [7]. - ABL Tech, Abacus Life's proprietary technology platform, enhances its service offerings by providing data-driven financial planning to institutions, creating additional revenue streams [8]. Financial Performance - Abacus Life has shown consistent growth with mid-teen year-over-year growth rates, a return on equity exceeding 18%, and profit margins over 50% [9][10]. - In Q3 FY2024, the company reported earnings per share of $0.20, surpassing estimates, and revenue of $28.15 million, exceeding expectations [10]. Market Outlook - The long-term growth prospects for Abacus Life are strong, driven by the large life insurance market and increasing awareness of life insurance as a liquid asset [12]. - The company's pro-consumer business model aligns with regulatory objectives, enhancing its market position [12]. - Abacus Life's focus on improving the quality of life for seniors adds a social impact dimension to its investment appeal [13].

Core Viewpoint - Abacus Life, Inc. (ABL) shows potential for significant upside, with a mean price target of $14.13 indicating a 59.5% increase from the current trading price of $8.86 [1] Price Targets and Analyst Estimates - The mean estimate consists of four short-term price targets with a standard deviation of $1.31, suggesting variability in analyst predictions [2] - The lowest estimate of $13 indicates a 46.7% increase, while the highest estimate suggests an 80.6% surge to $16 [2] - Analysts' price targets can be misleading, as they may not accurately reflect future stock prices [5][6] - A low standard deviation among price targets indicates strong agreement among analysts regarding the stock's price movement [7] Earnings Estimates and Analyst Sentiment - There is increasing optimism among analysts about ABL's earnings prospects, supported by a positive trend in earnings estimate revisions [9] - The Zacks Consensus Estimate for the current year has increased by 9% over the past month, with two estimates rising and no negative revisions [10] - ABL holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [11] Conclusion on Price Movement - While consensus price targets may not be reliable for predicting the extent of ABL's gains, they can provide a directional guide for potential price movement [12]

Financial Data and Key Metrics Changes - Total revenue for Q3 2024 increased by 33% year-over-year to $28.1 million, up from $21.1 million in the prior-year period [8][22] - Adjusted EBITDA grew by 54% year-over-year to $16.7 million, with an adjusted EBITDA margin of 59.2%, compared to 51.1% in the prior-year period [24] - Adjusted net income rose by 65% year-over-year to $14.9 million, or $0.20 per diluted share, compared to $9 million in the prior-year period [8][26] - GAAP net loss attributable to stockholders was $5.1 million, compared to net income of $0.9 million in the prior-year period, primarily due to a noncash increase in warrant liability [25] Business Line Data and Key Metrics Changes - Capital deployed in Q3 2024 was $93.2 million, compared to $56.4 million in the prior-year period, with policies purchased increasing by 53% to 278 from 181 [21][22] - ABL Tech initiative has signed 21 clients and is expected to onboard many more by the end of Q1 2025, with a potential to exceed one million lives tracked [12][13] Market Data and Key Metrics Changes - The company holds 532 policies valued at $274.4 million as of September 30, 2024 [22][28] - The active management revenue reached $27 billion in Q3 2024, indicating strong demand for asset acquisition [36] Company Strategy and Development Direction - The company aims to solidify its position as a leading market maker and alternative asset manager, focusing on product innovation and strategic acquisitions [8][20] - Key acquisitions announced include Carlisle Management Company SCA and FCF Advisors, expected to add approximately $2.6 billion in assets under management [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the fourth quarter, noting historical trends of higher origination and capital deployment during this period [32] - The company is well-positioned to capture market opportunities and expects continued growth driven by its ABL Tech initiative and strategic acquisitions [29][38] Other Important Information - The company has strengthened its management team with key hires, including Corey McLaren as Managing Director of Capital Markets and Rob Phillips as Senior Vice President of Investor Relations [15][16] - A partnership with Lorisco to launch PREADISAN, a health prediction tool, is expected to enhance service offerings in longevity-based financial planning [17][18] Q&A Session Summary Question: Trends in the fourth quarter and seasonality - Management confirmed that historical trends show stronger origination in Q4, and they are optimistic about continuing this trend based on Q3 performance [32] Question: Originated face value in Q3 - The originated face value in Q3 was reported at $471.6 million [34] Question: Active management revenue outlook - Management expects significant demand for asset acquisition to continue, driven by lower capital costs and favorable market conditions [37][38] Question: Competitive environment and priorities for 2025 - Management highlighted the competitive advantage of being the only publicly traded company in the industry and emphasized the focus on expanding education and awareness programs [44][46]

Group 1: Earnings Performance - Abacus Life, Inc. reported quarterly earnings of $0.20 per share, exceeding the Zacks Consensus Estimate of $0.14 per share, and showing a significant increase from $0.01 per share a year ago, representing an earnings surprise of 42.86% [1] - The company posted revenues of $28.15 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 7.93%, compared to $21.12 million in the same quarter last year [2] Group 2: Market Performance - Abacus Life, Inc. shares have declined approximately 10% since the beginning of the year, while the S&P 500 has gained 24.3% [3] - The company's current Zacks Rank is 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Group 3: Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.15 on revenues of $30.31 million, and for the current fiscal year, it is $0.57 on revenues of $104.13 million [7] - The outlook for the Insurance - Life Insurance industry is positive, currently ranking in the top 20% of over 250 Zacks industries, suggesting that companies in this sector are likely to outperform those in the bottom 50% [8]

Revenue Growth - Total revenues for the three months ended September 30, 2024, were $28,148,491, an increase from $21,120,930 for the same period in 2023, representing a growth of approximately 33%[11] - Active management revenue increased significantly to $26,967,575 for the three months ended September 30, 2024, compared to $18,926,144 in the prior year, marking a growth of about 42%[11] - Gross profit for the three months ended September 30, 2024, was $25,960,510, up from $17,755,973 in the same period of 2023, reflecting a growth of approximately 46%[11] - Total revenue for the three months ended September 30, 2024, was $28,148,491, an increase of 33.5% compared to $21,120,930 for the same period in 2023[40] - Active management revenue for the three months ended September 30, 2024, was $26,967,575, representing a 42.5% increase from $18,926,144 in the prior year[40] - Total active management revenue for the nine months ended September 30, 2024, was $73,778,331, an increase of $33,857,270, or 84.8%, compared to the same period in 2023[181] Financial Position - Total current assets decreased slightly to $30,796,677 as of September 30, 2024, from $31,776,834 at December 31, 2023[5] - Total liabilities increased to $219,369,540 as of September 30, 2024, compared to $167,755,991 at December 31, 2023, indicating a rise of about 31%[7] - Long-term debt at fair value increased to $96,358,740 as of September 30, 2024, from $55,318,923 at December 31, 2023, representing a significant rise of about 74%[7] - The accumulated deficit as of September 30, 2024, was $39,639,373, compared to $34,726,135 at December 31, 2023, indicating an increase in losses[7] - Total stockholders' equity increased to $257,939,628 as of September 30, 2024, from $164,070,076 at December 31, 2023, reflecting a growth of about 57%[7] - The total accumulated deficit as of September 30, 2024, increased to $(39,639,373) from $(34,514,318) as of June 30, 2024, indicating a worsening financial position[16] Net Loss and Earnings - For the three months ended September 30, 2024, the net loss attributable to common stockholders was $5,125,055, compared to a net income of $903,361 for the same period in 2023, representing a significant decline[14] - The loss per share for the three months ended September 30, 2024, was ($0.07), compared to earnings per share of $0.01 for the same period in 2023[14] - The comprehensive loss attributable to common stockholders for the three months ended September 30, 2024, was $5,156,658, compared to a comprehensive income of $126,230 for the same period in 2023[14] - The company reported a net loss of $(5,284,811) for the three months ended September 30, 2024, compared to a net income of $1,050,972 for the same period in 2023[14] - The net loss attributable to non-controlling interests for the three months ended September 30, 2024, was $(170,730), compared to $(91,292) for the same period in 2023[14] Cash and Cash Equivalents - The company’s cash and cash equivalents decreased to $19,409,615 as of September 30, 2024, from $25,588,668 at December 31, 2023, a decline of approximately 24%[5] - Cash and cash equivalents at the end of the period were $19,409,615, down from $36,649,190 at the end of September 30, 2022[23] Stock and Equity - The weighted-average shares outstanding for the three months ended September 30, 2024, were 74,694,319, an increase from 63,349,823 for the same period in 2023[14] - The total stockholders' equity as of September 30, 2024, was $257,939,628, reflecting a decrease from $256,849,488 as of June 30, 2024[16] - The Company has 8,900,000 Private Placement Warrants outstanding, exercisable for one share of Class A common stock at a price of $11.50 per share[84] - As of September 30, 2024, the Company had 75,756,439 shares of common stock issued, with 74,708,213 outstanding and 1,048,226 held as treasury stock[107] Expenses and Costs - General and administrative expenses increased by $30,282,964, or 272.5%, to $41,396,346 for the nine months ended September 30, 2024, compared to $11,113,382 for the same period in 2023, primarily due to non-cash stock-based compensation[196] - Sales and marketing expenses increased by $3,534,943, or 113.4%, to $6,651,942 for the nine months ended September 30, 2024, compared to $3,116,999 for the same period in 2023, mainly due to higher advertising costs[194] - The Company incurred total lease costs of $438,838 for the three months ended September 30, 2024, compared to $90,444 for the same period in 2023, indicating a significant increase[132] Acquisitions and Strategic Moves - The company plans to acquire Carlisle Management Company for approximately $200 million, with payment in common stock and senior unsecured notes[37] - The acquisition of Abacus was completed on June 30, 2023, with a business enterprise value of $165,361,332, resulting in recognized goodwill of $139,930,190[31][32] - Abacus Settlements, LLC was acquired by LMA on June 30, 2023, indicating a strategic move for market expansion[152] Tax and Compliance - The effective tax rate for the three months ended September 30, 2024, was 4.5%, significantly lower than the 61.9% effective rate for the same period in 2023, primarily due to stock-based compensation expense deductions[126] - The Company recognized a provision for income taxes of $(250,368) for the three months ended September 30, 2024, compared to $1,710,315 for the same period in 2023[126] Life Settlement Policies - The company held 532 life settlement policies as of September 30, 2024, with an aggregate face value of $976,761,831 and a corresponding fair value of $273,249,493[43] - Life settlement policies at fair value totaled $273,249,493 as of September 30, 2024, with a weighted average discount rate of 20%[74][78] - The average realized gain on policies sold under the investment method was 43.2% for the three months ended September 30, 2024, compared to 29.2% for the same period in 2023[180]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________ FORM 8-K __________________ CURRENT REPORT Pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): October 22, 2024 __________________ Abacus Life, Inc. (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation or organization) 001-39403 (Commission File Number) 85-1210472 (I.R.S. Employer Ident ...

- Delivered Continued Revenue and Profitability Growth While Executing on Strategic Initiatives - - Third Quarter 2024 Total Revenue Grows 33% Year-over-Year to $28.1 Million - - Due to Non-Cash Increase in Warrant Liability of $8.7M; GAAP Net Loss of $5.1M - - Adjusted Net Income Grows 65% Year-over-Year to $14.9 Million - - Adjusted EBITDA Grows 54% Year-over-Year to $16.7 Million - ORLANDO, Fla., Nov. 07, 2024 (GLOBE NEWSWIRE) -- Abacus Life, Inc. (“Abacus” or the “Company”) (NASDAQ: ABL), a pioneering g ...