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Abacus Life(ABL) - 2024 4 - Earnings Call Transcript
ABLAbacus Life(ABL)2025-03-27 21:00

Financial Data and Key Metrics Changes - For Q4 2024, total revenue increased by 40% year-over-year to 33.2million,withadjustednetincomegrowingby12633.2 million, with adjusted net income growing by 126% to 13.4 million and adjusted EBITDA rising by 51% to 16.6million[10][28][29]−Forthefullyear2024,totalrevenueroseby6916.6 million [10][28][29] - For the full year 2024, total revenue rose by 69% to 111.9 million, adjusted net income increased by 58% to 46.5million,andadjustedEBITDAgrewby5746.5 million, and adjusted EBITDA grew by 57% to 61.6 million [11][26][29] Business Line Data and Key Metrics Changes - Policy originations increased by 63% to 1,034 in 2024, with capital deployed exceeding 344million[12]−Activemanagementrevenuewasasignificantdriverofrevenuegrowth,attributedtoincreasedcapitaldeploymentandmorepoliciessolddirectlytothirdparties[26][27]MarketDataandKeyMetricsChanges−Thecompanysuccessfullycompletedacquisitionsthataddedapproximately344 million [12] - Active management revenue was a significant driver of revenue growth, attributed to increased capital deployment and more policies sold directly to third parties [26][27] Market Data and Key Metrics Changes - The company successfully completed acquisitions that added approximately 2.6 billion in assets under management, enhancing its market reach and capabilities [14][15] - The company reported a strong liquidity position with cash and cash equivalents of 128.8millionasofDecember31,2024[31]CompanyStrategyandDevelopmentDirection−Thecompanyaimstorevolutionizefinancialservicesthroughexpertassetmanagementandadvancedtechnology,focusingonprovidingtailoredfinancialsolutions[18][17]−TherebrandingtoAbacusGlobalManagementreflectsthecompany′sevolutionandglobalmarketpresence,withacommitmenttomaintainingmomentuminthealternativeassetmanagementspace[17][22]Management′sCommentsonOperatingEnvironmentandFutureOutlook−Managementexpressedconfidenceinachievingafull−year2025adjustednetincomebetween128.8 million as of December 31, 2024 [31] Company Strategy and Development Direction - The company aims to revolutionize financial services through expert asset management and advanced technology, focusing on providing tailored financial solutions [18][17] - The rebranding to Abacus Global Management reflects the company's evolution and global market presence, with a commitment to maintaining momentum in the alternative asset management space [17][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a full-year 2025 adjusted net income between 70 million and 78million,indicatinggrowthof5178 million, indicating growth of 51% to 68% compared to 2024 [13][32] - The management highlighted the positive impact of market volatility on origination interest, as individuals seek liquidity and investors look for unique assets [68][71] Other Important Information - The company announced management fee reductions across all ETFs and an 18-month fee waiver on four ETFs to enhance competitiveness [17] - The company has initiated a strategy to simplify its capital structure, including private warrant exchange agreements [22] Q&A Session Summary Question: Key swing factors and assumptions for guidance range - Management clarified that the guidance range does not depend on the full draw of the 50 million revolver, emphasizing strong origination as a key driver [38] Question: Update on direct channel metrics post-advertising adjustments - Management confirmed that advertising was not paused but targeted to non-swing states, resulting in positive impacts on policy origination [42][43] Question: Deployment of capital from recent equity and debt offerings - Management indicated that a significant amount of capital was deployed successfully, with a strong cash position remaining at year-end [48] Question: Strategy for holding policies on the balance sheet - Management stated that policies on the balance sheet are expected to hover around 370millionto370 million to 450 million as policies are bought and sold [56] Question: Update on the carrier buyback program - Management reported continued expansion of the carrier buyback program, anticipating growth in 2025 [62] Question: Changes in behavior of individuals life-settling policies - Management noted that market volatility tends to increase interest in liquidity options, positively impacting origination [68][71] Question: Year-end AUM at Carlisle and FCF - Management expressed optimism about the growth of AUM from the acquisitions, with significant interest in new offerings [76][78]