Abacus Life Reports Third Quarter 2024 Results

- Continued Revenue and Profitability Growth While Implementing Strategic Initiatives -

- Total Revenue for Third Quarter 2024 Increases 33% Year-over-Year to $28.1 Million -

- GAAP Net Loss of $5.1 Million Due to Non-Cash Warrant Liability Increase of $8.7 Million -

- Adjusted Net Income Rises 65% Year-over-Year to $14.9 Million -

- Adjusted EBITDA Grows 54% Year-over-Year to $16.7 Million -

ORLANDO, Fla., Nov. 07, 2024 – Abacus Life, Inc. ("Abacus" or the "Company") (NASDAQ: ABL), a leading alternative asset manager focused on longevity data and actuarial technology, announced its results for the third quarter ending September 30, 2024.

Chief Executive Officer Jay Jackson stated, "We achieved another impressive quarter, showcasing robust growth and profitability while advancing our long-term goals. We are excited about the progress made with our ABL Tech platform, which has acquired over 20 clients within just eight months and has 23 more in discussions. Furthermore, our acquisitions of Carlisle Management and FCF Advisors are on track to complete by the end of Q4, subject to regulatory approvals, which will add approximately $2.6 billion in assets under management. We also partnered with Lorisco to introduce PREADISAN™, a new tool for health prediction and actuarial technology, enhancing our capabilities in personalized longevity forecasting and tailored financial solutions for clients. As we approach the end of 2024, we are positioned for continued growth and value creation for our stakeholders.

Third Quarter 2024 Highlights

• Total revenue in Q3 2024 rose 33% to $28.1 million, up from $21.1 million in the previous year, primarily due to increased active management revenue and direct policy sales.
• In Q3 2024, origination capital deployment was $93.2 million, nearly doubling from $56.4 million in Q3 2023, with policy originations jumping 54% to 278.
• For Q3 2024, GAAP net loss was $5.1 million, compared to a $0.9 million net profit in the prior year, largely due to a non-cash increase in warrant liability by $7.8 million and heightened expenses related to stock compensation and interest.
• Adjusted net income, a non-GAAP measure, for Q3 2024 surged 65% to $14.9 million, in contrast to $9.0 million last year, leading to adjusted diluted earnings per share of $0.20 compared to $0.14.
• Adjusted EBITDA, another non-GAAP measure, increased 54% year-over-year to $16.7 million, with an adjusted EBITDA margin of 59.2%, up from 51.1%.
• Annualized Return on Invested Capital (ROIC) was 21%, and Annualized Return on Equity (ROE) stood at 23% for Q3 2024.

Liquidity and Financial Position

As of September 30, 2024, Abacus reported cash and cash equivalents totaling $19.4 million, with policy assets on the balance sheet amounting to $274.4 million and outstanding long-term debt of $166.5 million.

Webcast and Conference Call

A conference call discussing these results will occur today at 5:00 PM (Eastern Time). An audio webcast will be available on Abacus's investor relations website.

Non-GAAP Measures Explanation

Abacus utilizes adjusted net income and EBITDA to provide a clearer picture of its operational performance by excluding certain non-cash and non-recurring expenses. These metrics allow investors to gauge the core profitability of the business.

Forward-Looking Statements

The company asserts that any statements made concerning future events are forward-looking and rely on assumptions that may not materialize. Specific risks, including market fluctuations and regulatory changes, could significantly impact actual results.

About Abacus

Abacus is at the forefront of alternative asset management, specializing in uncorrelated financial products derived from longevity data. The Company operates with nearly $3 billion in assets under management, focusing on lifespan-driven investment strategies. Abacus continually innovates within its sectors to provide unparalleled financial solutions.

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