Abacus Life Announces Third Quarter 2024 Financial Results

- Continued Growth in Revenue and Profitability Aligning with Strategic Goals -

- Third Quarter 2024 Total Revenue Increased 33% Year-Over-Year, Reaching $28.1 Million -

- GAAP Net Loss of $5.1 Million Driven by Non-Cash Charge Related to Warrant Liability -

- Adjusted Net Income Up 65% Year-Over-Year at $14.9 Million -

- Adjusted EBITDA Increased 54% Year-Over-Year to $16.7 Million -

ORLANDO, Fla., November 7, 2024 – Abacus Life, Inc. (NASDAQ: ABL), a leading global alternative asset manager known for leveraging longevity data and actuarial technology in providing unique investment opportunities, has published its financial results for the third quarter ended September 30, 2024.

“The third quarter has been another strong one for Abacus as we achieved significant revenue and profitability growth while advancing our long-term strategic initiatives,” said Jay Jackson, Chief Executive Officer of Abacus. “We are especially pleased with the progress made with our ABL Tech platform, which has already attracted over 20 clients, with an additional 23 clients in the pipeline. Additionally, we made substantial headway with our acquisitions of Carlisle Management and FCF Advisors, expected to add around $2.6 billion in assets under management. We anticipate completing these acquisitions by the end of the fourth quarter pending regulatory approval. Furthermore, our collaboration with Lorisco to introduce PREADISAN™, a groundbreaking health prediction and actuarial technology tool, positions us to provide personalized longevity forecasts and customized financial solutions. As we conclude 2024, we are confident in our capacity for continued growth and to create long-term value for our shareholders.”

Third Quarter 2024 Key Performance Metrics

• Abacus reported total revenue for the third quarter of 2024 at $28.1 million, marking a 33% increase from $21.1 million in the same quarter of the previous year. This rise was mainly attributed to a boost in active management revenue, augmented capital deployment, and an increase in policies sold directly to third parties.
• The company deployed $93.2 million in origination capital during the third quarter of 2024, which is up from $56.4 million the previous year. The number of policy originations also surged by 54%, totaling 278 compared to 181 in the same quarter last year.
• GAAP net loss attributable to shareholders was recorded at $5.1 million, a shift from a net income of $0.9 million during the same timeframe last year. This loss was primarily influenced by a non-cash increase of $7.8 million in the loss on the change in fair value of the warrant liability, along with rising expenses linked to employee stock compensation and interest costs.
• Adjusted net income, a non-GAAP measure, climbed 65% to reach $14.9 million, an increase from $9.0 million year-over-year. The adjusted diluted earnings per share for this quarter were $0.20, compared to $0.14 the previous year.
• Adjusted EBITDA surged 54% year-over-year to $16.7 million, up from $10.8 million. The adjusted EBITDA margin also improved to 59.2% from 51.1% in the prior year.
• For the third quarter of 2024, the annualized return on invested capital (ROIC) stood at 21%, while the annualized return on equity (ROE) was recorded at 23%.

Financial Position and Outlook

As of September 30, 2024, Abacus reported cash and cash equivalents of $19.4 million. The company also held balance sheet policy assets of $274.4 million and had outstanding long-term debt amounting to $166.5 million.

Conference Call and Webcast Information

A conference call discussing these results will take place today at 5:00 p.m. (Eastern Time). A live broadcast of the call will be accessible on Abacus’ investor relations website. Participants may join the call using the toll-free number 800-267-6316 or the international number 203-518-9783, entering the Conference ID: ABACUS. Participants are encouraged to dial in ten minutes prior to the scheduled start time. A replay of the call will be available on the investor relations website for one year following the event.

Additional Financial Information

Adjusted Net Income measures net income adjusted for non-controlling interest income, amortization, changes in fair value of warrants, and non-cash stock-based compensation, with corresponding tax effects. Management finds this measure useful as it highlights operating performance specific to business effectiveness. Adjusted EBITDA reflects net income adjusted for non-cash items and other expenses seen as having a significant impact on operational results within the company’s control. Both measures are seen as pivotal for assessing performance beyond standard GAAP metrics.

Forward-Looking Statements

All statements in this press release, except historical facts, are deemed forward-looking within the context of the Securities Exchange Act. These prognostic statements rely on multiple assumptions and are susceptible to uncertainty that could materially influence actual outcomes compared to forecasted performance. This includes various factors such as macroeconomic conditions, regulatory issues, competitive dynamics, and internal operational challenges.

About Abacus Life

Abacus is an innovative global alternative asset manager and market creator focusing on providing uncorrelated financial products. Through proprietary longevity data and advanced actuarial technology, the firm acquires life insurance policies from clients seeking liquidity, thus creating an attractive asset class that is minimally affected by market volatility. With an asset management base nearing $3 billion, including pending acquisitions, Abacus stands out as the sole publicly traded alternative asset manager dedicated to lifespan-based financial products.

By continuously expanding its expertise in longevity and lifespan, Abacus is venturing into various new growth sectors, such as:

• ABL Wealth: This sector utilizes decades of data to create solutions for financial advisors to devise personalized wealth management strategies.
• ABL Tech: This pioneering technology service offers advanced analytics and data tracking capabilities for various financial institutions.

Overall, Abacus is poised to transform asset management and financial planning through longevity-focused innovations.

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