Exhibit 99.1

ABACUS LIFE REPORTS SECOND QUARTER 2023 RESULTS

- Revenue Grew 30% Year-over-Year to $18.3 Million -

- Increased Originations Capital Deployment by 88% Year-over-Year to $59.7 Million -

- Net Income Increased 40% Year-over-Year to $6.4 Million -

- Adjusted EBITDA Grew 33% Year-over-Year to $8.8 Million -

ORLANDO, Fla. – August 14, 2023 – Abacus Life, Inc. (“Abacus” or the “Company”) (NASDAQ: ABL), a leading buyer of life insurance policies and vertically integrated alternative asset manager specializing in specialty insurance products, today reported results for the second quarter ended June 30, 2023.

“Our strong second quarter results continue to validate Abacus’ differentiated business model and further contribute to our long track record of sustainable and profitable growth,” said Jay Jackson, Chief Executive Officer of Abacus Life. “In addition to our continued progress, we were very pleased to successfully complete our public listing post-quarter end, a milestone for our long-term growth ambitions. Our proven business model, expert team, and our wealth of data and innovative technology positions us well to execute on our strategic initiatives, take advantage of the many exciting opportunities that lie ahead, and ultimately create long-term value for our shareholders.”

Second Quarter 2023 Highlights

 

•

Total revenue grew 30% to $18.3 million, compared to $14.1 million in the prior-year period

 

•

Originations capital deployment increased 88% to $59.7 million, compared to $31.9 million in the prior-year period; number of policy originations grew 4% to 141, compared to 135 in the prior-year period

 

•

Total operating expenses (excluding unrealized gains and losses and change in fair value) were $4.3 million, compared to $4.6 million in the prior-year period

 

•

Net income increased 40% to $6.4 million, compared to $4.6 million in the prior-year period

 

•

Adjusted EBITDA grew 33% to $8.8 million, compared to $6.6 million in the prior-year period

 

•

Adjusted EBITDA margin of 48.4%, compared to 47.0% in the prior-year period

 

•

Annualized Return on invested capital (ROIC) for the quarter ended June 30, 2023 of 28.5%

 

•

Annualized Return on equity (ROE) for the quarter ended June 30, 2023 of 16.0%

Second Quarter 2023 Results

 

•

Active management revenue increased 38% to $11.0 million, compared to $8.0 million in the prior-year period. The increase was primarily attributable to maturities of policies accounted for under the investment method.

•

Total revenue from portfolio servicing segment was $0.4 million, roughly comparable to the prior-year period.

 

•

Originations revenue at Abacus Settlements nearly quadrupled to $2.7 million, compared to $0.7 million in the prior-year period. The increase was primarily attributable to higher pricing on the sale of broker policies which led to higher commission fees.

 

•

Related party revenue at Abacus Settlements was $4.1 million, compared to $4.9 million in the prior-year period. The decrease was mainly due to a decrease in Nova Origination sales and transaction fee reimbursements, partially offset by increased LMA Originations services.

 

•

Net income increased 40% to $6.4 million, compared to $4.6 million in the prior-year period, driven by strong top-line performance and managing costs efficiently.

 

•

Adjusted EBITDA for the quarter grew 33% to $8.8 million, compared to $6.6 million in the prior-year period. The increase was primarily attributable to strong revenue growth, partially offset by higher operating expenses. Adjusted EBITDA margin remained strong at 48.4% for the quarter, compared to 47.0% in the prior-year period.

Liquidity and Capital

As of June 30, 2023, the Company had cash and cash equivalents of $20.6 million, balance sheet policy assets of $66.5 million and outstanding long-term debt at fair value of $66.2 million.

Webcast and Conference Call

A webcast and conference call to discuss the Company’s results will be held today beginning at 9:00 a.m. (Eastern Time). A live webcast of the conference call will be available on Abacus Life’s investor relations website at ir.abacuslifesettlements.com. The dial-in number for the conference call is (877) 407-9716 (toll-free) or (201) 493-6779 (international). Please dial the number 10 minutes prior to the scheduled start time.

A webcast replay of the call will be available at ir.abacuslifesettlements.com for one year following the call.

Safe Harbor Statement

Statements made in this press release that are not historical facts, including statements accompanied by words such as “will,” “believe,” “estimate,” “expect,” “intend,” “anticipate,” “goals,” “prospects,” or similar words, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the Company’s plans and performance. These statements are based on management’s estimates, assumptions and projections as of the date of this release and are not guarantees of future performance. Actual results may differ materially from the results expressed or implied in these statements as the result of risks, uncertainties and other factors including, but not limited to: the fact that our loss reserves are bases on estimates and may be inadequate to cover our actual losses; the failure to properly price our insurance policies; the geographic concentration of our business; the cyclical nature of our industry; the impact of regulation on our business; the effects of competition; failing to sustain our relationships with independent agencies; the failure to meet our investment objectives; the inability to acquire additional capital on favorable terms; the effects of acts of terrorism and the factors set forth in the Company’s filings with the Securities and Exchange Commission (the “SEC”), including the Annual Report on Form 10-K and Quarterly Report on Form 10-Q and subsequent periodic reports. The Company cautions you not to place undue reliance on the forward-looking statements contained in this release. Any forward –looking statements speak only as of their dates. The Company does not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the date of this release.

About Abacus

Abacus is a leading vertically integrated alternative asset manager specializing in life insurance products. Since 2004, the Company has purchased life insurance policies from consumers seeking liquidity and has actively managed those policies over time (via trading, holding, and/or servicing). With over $2.9 billion in face value of policies purchased, Abacus has helped thousands of clients maximize the value of their life insurance.

Over the past 19 years, the Company has built an institutionalized origination and portfolio management process that is supported by an 84-person team, long-term relationships with 78 institutional partners and 30,000 financial advisors, and the ability to operate in 49 states. The Company has serviced approximately $950 million in policies and has managed assets for large asset managers and third-party investment funds.

Abacus’ leadership team averages 20+ years of experience and consists of innovators since the life settlements industry’s inception in the mid-90s.

The Company is a proud member of the Life Insurance Settlements Association (LISA) and complies with HIPAA and privacy laws to maintain and protect confidentiality of financial, health, and medical information. Abacus is also proud to be a BBB Accredited Business with an A+ rating.

www.Abacuslife.com

Contact:

Abacus Life Investor Relations

investors@abacuslife.com

Abacus Life Public Relations

press@abacuslife.com

ABACUS LIFE, INC.

Condensed Consolidated Balance Sheets

 

		June 30, 2023 (unaudited)				December 31, 2022
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	20,611,122			$	30,052,823
Accounts receivable			192,595				10,448
Related party receivable			78,310				198,364
Due from affiliates			10,473,748				2,904,646
Other receivables			21,252				—
Prepaid expenses and other current assets			829,595				116,646
Total current assets			32,206,622				33,282,927
Property and equipment, net			177,931				18,617
Intangible assets, net			32,900,000				—
Goodwill			140,287,000				—
Operating right-of-use assets			240,816				77,011
Life settlement policies, at cost			9,889,610				8,716,111
Life settlement policies, at fair value			56,685,617				13,809,352
Available for sale securities, at fair value			1,000,000				1,000,000
Other investments			1,600,000				1,300,000
Due from members and affiliates			75,582				—
State security deposit			206,873				—
Certificate of deposit			262,500				—
Other assets, at fair value			1,801,886				890,829
TOTAL ASSETS		$	277,334,437			$	59,094,847
LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)
CURRENT LIABILITIES:
Accrued expenses		$	524,400			$	—
Accounts payable			401,500				40,014
Operating lease liabilities - current portion			227,561				48,127
Due to members and affiliates			10,415,154				263,785
Due to owners			717,429				—
Contract liabilities - deposits on pending settlements			981,217				—
Accrued transaction costs			182,571				908,256
Other current liabilities			258,759				42,227
Income taxes payable			185,831				—
Total current liabilities			13,894,422				1,302,409

Abacus Life, Inc.

Condensed Consolidated Balance Sheets

 

SPV purchase and sale note			25,000,000				—
Long-term debt, at fair value			66,165,396				28,249,653
Operating lease liabilities - noncurrent portion			16,864				29,268
Deferred tax liability			9,320,240				1,363,820
Warrant liability			2,438,600				—
TOTAL LIABILITIES			116,835,522				30,945,150
COMMITMENTS AND CONTINGENCIES (11)
SHAREHOLDERS’ EQUITY (DEFICIT)
Class A common stock, $0.0001 par value; 200,000,000 authorized shares; 62,961,688 shares issued and outstanding			6,296				—
LMA members’ capital			—				50,000
Additional paid-in capital			188,641,886				660,000
Retained earnings/(accumulated deficit)			(29,382,362	)			25,487,323
Accumulated other comprehensive income			877,306				1,052,836
Non-controlling interest			355,789				899,538
Total shareholders’ equity (deficit)			160,498,915				28,149,697
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)		$	277,334,437			$	59,094,847

The accompanying notes are an integral part of these interim condensed consolidated financial statements.

Abacus Life, Inc.

Condensed Consolidated Statement of Operations

 

		Three Months Ended June 30,
		2023				2022
REVENUES:
Portfolio servicing revenue
Related party servicing revenue		$	329,629			$	419,253
Portfolio Servicing revenue			24,737				169
Total portfolio servicing revenue Active management revenue			354,366				419,422
Investment Income from life insurance policies held using investment method			8,263,499				5,965,466
Change in fair value of life insurance policies (policies held using fair value method)			2,760,900				2,014,013
Total active management revenue			11,024,399				7,979,479
Total revenues			11,378,765				8,398,901
COST OF REVENUES (Excluding depreciation stated below)
Cost of revenue			973,400				666,119
Total cost of revenue			973,400				666,119
Gross Profit			10,405,365				7,732,782
OPERATING EXPENSES:
Sales and marketing			683,841				1,019,498
General and administrative expenses			577,539				5,499
Loss on change in fair value of debt			1,445,229				333,879
Unrealized loss (gain) on investments			(672,936	)			1,039,022
Depreciation			1,098				1,098
Total operating expenses			2,034,771				2,398,996
Operating Income		$	8,370,594			$	5,333,786
OTHER INCOME (EXPENSE)
Interest (expense)			(584,075	)			—
Interest income			—				—
Other income (expense)			121,601				(127,455	)
Total other income (expense)			(462,474	)			(127,455	)
Net income before provision for income taxes			7,908,120				5,206,331
(Provision for)/Benefit from income taxes			(1,184,571	)			(120,132	)
NET INCOME			6,723,549				5,086,199
LESS: NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTEREST			(26,596	)			406,641
NET INCOME ATTRIBUTABLE TO SHAREHOLDERS			6,750,145				4,679,558

ABACUS SETTLEMENTS, LLC

Condensed Consolidated Statement to Operations

 

		Three Months Ended June 30
		2023				2022
Origination revenue		$	2,745,339			$	743,388
Related party revenue			4,139,351				4,948,528
Total revenue			6,884,690				5,691,916
Cost of revenue			2,407,021				956,625
Related party cost of revenue			2,490,959				2,615,307
Total cost of revenue			4,897,980				3,571,932
Gross Profit			1,986,710				2,119,984
OPERATING EXPENSES:
General and administrative expenses			2,297,577				2,208,051
Depreciation			2,561				3,048
Total operating expenses			2,300,138				2,211,099
Income (Loss) from operations			(313,428	)			(91,115	)
OTHER INCOME (EXPENSE)
Interest income			1,193				599
Interest (expense)			(5,863	)			—
Other income			—				273
Total other income (expense)			(4,670	)			872
Income (Loss) before income taxes			(318,098	)			(90,243	)
Provision for income taxes			—				—
NET INCOME (LOSS) AND COMPREHENSIVE		$	(318,098	)		$	(90,243	)
WEIGHTED-AVERAGE UNITS USED IN COMPUTING NET INCOME (LOSS) PER UNIT:
Basic		$	400				400
Diluted		$	400				400
NET INCOME/(LOSS) PER UNIT:
Basic earnings per unit		$	(795.25	)		$	(225.61	)
Diluted earnings per unit		$	(795.25	)		$	(225.61	)

See accompanying notes to interim condensed consolidated financial statement

PROFORMA COMBINED (ABACUS LIFE, INC. AND ABACUS SETTLEMENTS, LLC)

Condensed Consolidated Statement of Operations

 

		Q2 2023				Q2 2022				Increase				% Increase
Revenue
Origination Revenue			6,884,690				5,691,916				1,192,774				21	%
Portfolio & Servicing Revenue			354,366				419,422				(65,056	)			(16	%)
Active Management Revenue			11,024,399				7,979,479				3,044,920				38	%
Total Revenue			18,263,455				14,090,817				4,172,638				30	%
Cost of Revenue
Origination Cost of Revenue			4,897,980				3,571,932				1,326,048				37	%
Portfolio & Servicing Cost of Revenue			973,400				666,119				307,281				46	%
Total Cost of Revenue			5,871,380				4,238,051				1,633,329				39	%
Gross Profit			12,392,075				9,852,766				2,539,309				26	%
Expenses
Operating Expenses (Abacus & LMA)			4,334,909				4,610,095				(275,186	)			(6	%)
Other (Income)/Expense			467,144				126,583				340,561				269	%
Income Tax Provision / (Benefit)			1,184,571				120,132				1,064,439				886	%
Non-Controlling Interest Income / (Loss)			(26,596	)			406,641				(433,237	)			(107	%)
Net Income			6,432,047				4,589,315				1,842,732				40	%
EBITDA			8,833,118				6,619,991				2,213,127				33	%
Capital Deployed through Abacus			59,764,389				31,809,025				27,955,364				88	%
3rd Party Capital Deployed through LMA			20,638,467				46,274,631				(25,636,164	)			(55	%)
Total Capital Deployed			80,402,856				78,083,657				2,319,199				3	%