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MAAL Marketing Alliance Inc (PK)

1.74
-0.01 (-0.57%)
18 Jul 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type
Marketing Alliance Inc (PK) USOTC:MAAL OTCMarkets Common Stock
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -0.01 -0.57% 1.74 1.70 1.80 1.75 1.73 1.73 3,002 21:00:00

The Marketing Alliance Announces Fiscal Year 2006 Second Quarter Financial Results

15/11/2005 1:55pm

Business Wire


Marketing Alliance (PK) (USOTC:MAAL)
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The Marketing Alliance, Inc. (Pink Sheets: MAAL): Highlights for the three-month period ended September 30, 2005 -- Revenues increase 6.6% to $4.2 million -- Net income increases to $220,000, or $0.11 per share versus loss of $221,000 -- Balance sheet remains solid with $3.0 million of working capital and no long-term debt. -- Company authorizes purchase of up to 100,000 shares until December 31, 2006 The Marketing Alliance, Inc. (Pink Sheets: MAAL) ("TMA"), a consortium of independent life insurance brokerage general agencies located throughout the United States, today announced its fiscal 2006 second quarter financial results for the three months ended September 30, 2005. As previously announced, TMA's Board of Directors approved a change in the Company's fiscal year to the twelve months ending March 31st from a calendar year ending on December 31st. The next quarterly period the Company will report will be its fiscal 2006 third quarter ending December 31, 2005. Timothy M. Klusas, TMA's President, stated, "We continue to make strides in improving all aspects of TMA's operational execution while growing our top-line. We attribute our financial and operational improvements to creating efficiencies throughout the Company. For instance, TMA's Business Services Center in Omaha is beginning to realize economies of scale as our independent agencies are able to allocate more time and resources to growing their businesses." Revenues for the three-month period ended September 30, 2005 increased 6.6% to $4.2 million from $3.9 million in the same period last year, partially due to cross-selling opportunities such as the Annuity Center. Operating revenue, or gross profit, for the three-month period ended September 30, 2005 increased 329% to $879,000, compared to $205,000 reported in the same period last year. Operating expenses for the three-month period ended September 30, 2005 rose slightly to $669,000 from $666,000 in the same period last year, less than the relative increase in revenue. These factors resulted in TMA's reported operating income of $210,000 in the three-month period ended September 30, 2005, an improvement of $671,000 compared to an operating loss of $461,000 in the comparable prior year period. The Company reported net income of $220,000, or $0.11 per share, in the three month period ended September 30, 2005, versus a net loss of $221,000, or $0.11 per share, for the same period last year. The primary reasons for this increase were operating income of $210,000 and greater realized and unrealized gains on investments. As previously announced, the Company reassessed its investment strategy in April 2005, which previously consisted of a portfolio largely containing equity investments in regional banks. TMA is now beginning to benefit from a shift of a large majority of its investment portfolio to third-party financial managers, with a focus on steady, long-term growth consistent with TMA's working capital needs. TMA's balance sheet at September 30, 2005 reflected working capital of $3.0 million and no long-term debt. Mr. Klusas concluded, "We continue to work towards our goal of providing our members with the means to compete, which include leveraging pooled production, centralized processing, shared services and outsourcing. With the growth of our Business Center and our Annuity Center, we feel that TMA can continue to attract new agencies to our network as well as help our existing agencies grow with our core carriers." Board of Directors Authorizes Company to Purchase Up to 100,000 Shares As previously announced, in August 2005, TMA's Board of Directors authorized a program allowing the Company to repurchase up to 100,000 shares of TMA common stock until December 31, 2006. The shares may be purchased from time to time in open market transactions depending on price and availability, however there are no assurances that purchases will be made. ABOUT THE MARKETING ALLIANCE, INC. Headquartered in Pittsburgh, PA, TMA is one the largest organizations providing support to independent insurance brokerage agencies, with a goal of providing members value-added services on a more efficient basis than they can achieve individually. TMA's network is comprised of approximately 150 independent life brokerage and general agencies in 43 states. Investor information can be accessed through the shareholder section of TMA's website at http://www.themarketingalliance.com/si_who.cfm. FORWARD LOOKING STATEMENT Investors are cautioned that forward-looking statements involve risks and uncertainties that may affect TMA's business and prospects. Any forward-looking statements contained in this press release represent our estimates only as of the date hereof, or as of such earlier dates as are indicated, and should not be relied upon as representing our estimates as of any subsequent date. These statements involve a number of risks and uncertainties, including, but not limited to, general changes in economic conditions. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so. -0- *T Consolidated Statement of Operations Quarter Ended Year to Date 6 Months Ended 9/30/2005 9/30/2004 9/30/2005 9/30/2004 Revenues $ 4,153,692 $ 3,895,911 $ 8,063,317 $ 7,949,441 ------------ ------------ ------------ ------------ Distributor Related Expenses Distributor bonus & commissions paid 2,660,078 3,002,571 4,840,719 5,133,313 Distributor benefits & processing 614,628 688,122 1,273,715 1,467,483 ------------ ------------ ------------ ------------ Total 3,274,706 3,690,693 6,114,434 6,600,796 ------------ ------------ ------------ ------------ Net Operating Revenue 878,986 205,218 1,948,883 1,348,645 Operating Expenses 668,722 665,925 1,388,325 1,340,718 ------------ ------------ ------------ ------------ Operating Income (Loss) 210,264 (460,707) 560,558 7,927 Other Income (Expense) Interest & dividend Income (net) 13,204 9,162 24,513 20,614 Realized & unrealized gains (losses) on investments (net) 229,473 127,200 278,974 (139,500) Interest expense (1,259) (3,133) (3,962) (9,596) Other (62,710) (64,752) (79,086) (113,999) ------------ ------------ ------------ ------------ Income (Loss) Before Provision for Income Tax 388,972 (392,230) 780,997 (234,554) Benefit (Provision) for income taxes (169,000) 171,200 (339,000) 80,200 ------------ ------------ ------------ ------------ Net Income (Loss) $ 219,972 $ (221,030) $ 441,997 $ (154,354) ============ ============ ============ ============ Shares Outstanding 2,036,747 2,036,747 2,036,747 2,036,747 Operating Income (Loss) per Share $ 0.10 $ (0.23) $ 0.28 $ 0.00 Net Income (Loss) per Share $ 0.11 $ (0.11) $ 0.22 $ (0.08) Consolidated Selected Balance Sheet Items As of Assets 9/30/2005 3/31/2005 Current Assets Cash $ 526,256 $ 451,228 Receivables 4,582,795 4,776,861 Investments 2,384,511 1,929,600 Other 279,606 287,826 ------------ ------------ Total Current Assets 7,773,168 7,445,515 Other Non Current Assets 434,326 460,754 ------------ ------------ Total Assets $ 8,207,494 $ 7,906,269 ============ ============ Liabilities & Stockholders' Equity Total Current Liabilities $ 4,800,702 $ 4,941,478 ------------ ------------ Total Liabilities 4,800,702 4,941,478 Stockholders' Equity 3,406,792 2,964,791 ------------ ------------ Liabilities & Stockholders' Equity $ 8,207,494 $ 7,906,269 ============ ============ *T

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