Financial Data and Key Metrics Changes - Total revenue for Q2 2024 more than doubled year-over-year to $29.1 million from $11.4 million [16] - Adjusted EBITDA grew 83% year-over-year to $16.7 million, with an adjusted EBITDA margin of 57.5% compared to 80.4% in the prior year [18] - Adjusted net income increased 75% year-over-year to $11.8 million or $0.18 per diluted share [8][18] - Total operating expenses for Q2 2024 were approximately $18.9 million, significantly higher than $1.3 million in the prior year period, influenced by non-cash stock compensation and public company expenses [17] Business Line Data and Key Metrics Changes - Origination capital deployed was $104.7 million, up from $59.8 million in the prior year [15] - Policies purchased increased by 95% to 275 compared to 141 in the prior year period [15] - The company held 458 policies as of June 30, 2024, with 452 accounted for under the fair value method [16] Market Data and Key Metrics Changes - The company established a national distribution relationship with Amcor, enhancing its ability to offer protection and retirement solutions [12] - The acquisition of Carlisle Management Company will add approximately $2 billion in assets under management, while FCF Advisors will add about $600 million [9][11] Company Strategy and Development Direction - The company aims to solidify its position as a leading market maker and global alternative asset manager, targeting nearly $3 billion in assets under management post-acquisitions [7] - Focus on expanding complementary lifespan-based financial products alongside the core business of acquiring life insurance policies [8] - The company is committed to constant innovation through its wealth of longevity and actuarial data [13] Management's Comments on Operating Environment and Future Outlook - Management expressed excitement about the growth opportunities ahead, leveraging their successful business model and proprietary data [13] - The company anticipates deploying the majority of the raised capital before year-end, potentially as early as Q3 [24] - Management remains optimistic about maintaining strong performance in the second half of the year, despite managing expectations [26] Other Important Information - The company successfully closed an oversubscribed public offering of 11.5 million shares, raising over $90 million [11] - Total originated face value for the quarter was $447 million, with opportunities to acquire policies from other asset managers [31] Q&A Session Summary Question: Can you discuss deployment and capacity for the raised capital? - Management expects to deploy the majority of the raised capital before year-end, potentially as early as Q3, capitalizing on increased policy flow [24] Question: What are the expectations for adjusted EBITDA for the full year? - Management indicated that while Q2 was strong, they want to manage expectations for Q3 and Q4, but overall numbers look positive [26] Question: What was the originated face value in the quarter? - The total originated face value for the quarter was $447 million, with opportunities to acquire policies outside of their origination platform contributing to the high volume [31] Question: How do you see active management revenue trending? - Management believes the active management revenue is sustainable and profitable, with a strong return on equity [32] Question: What is the outlook for M&A activity? - Management will continue to be opportunistic with M&A, focusing on integrating acquired companies successfully [38] Question: What progress has been made on the Abacus Tech front? - ABL Tech continues to grow, adding new clients and providing recurring fee earnings [41] Question: What are the current market opportunities? - Management sees significant market opportunities, with pent-up demand and a broader set of policies available for purchase at better rates [47]
Abacus Life(ABL) - 2024 Q2 - Earnings Call Transcript