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