Marketing Alliance (PK) (USOTC:MAAL)
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The Marketing Alliance, Inc. (Pink Sheets: MAAL):
-- $2.5 Million of Working Capital and No Long-Term Debt at
December 31, 2005
-- Dividend of $0.15 Paid January 31, 2006
-- Company Relocates Corporate Headquarters to St. Louis
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
third quarter financial results for the three months ended December
31, 2005 (see attached tables). 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 fourth quarter ending March 31, 2006.
Timothy M. Klusas, TMA's President, stated, "We are pleased by our
progress, as evidenced by favorable year-over-year comparisons in
operating results in both the third quarter and for our fiscal
year-to-date. These improvements, despite lower revenues in the
periods, demonstrate our progress in reducing costs and gaining
efficiencies, positioning us to successfully grow the enterprise. We
continue to benefit from initiatives begun more than a year ago,
including economies of scale generated at our Business Services Center
in Omaha. TMA's Business Services Center allows our independent
agencies to allocate more time and resources to growing their
businesses, resulting in cost-efficiencies for our members and TMA."
Revenues for the three-month period ended December 31, 2005 were
$4.3 million versus $4.8 million reported by the Company in the prior
year period. Gross margin improved to $510,470, or 11.9% of revenues,
from $499,038, or 10.4% of revenues, in the same period last year.
Operating expenses for the three-month period ended December 31, 2005
decreased by 5.4% to $811,839 from $855,347 in the same period last
year. Improved gross margin and lower total operating expenses
produced a narrowed operating loss of $301,369 versus $356,309 in the
same period last year. However, lower realized and unrealized gains on
investments, and other expenses produced a net loss of $158,132, or
$0.08 per share, for the third quarter of fiscal 2006 as compared to a
net loss of $3,101, or $0.00 per share, in the same period one year
ago.
FINANCIAL CONDITION
TMA's balance sheet at December 31, 2005 reflected working capital
of $2.5 million and no long-term debt.
COMPANY RELOCATES HEADQUARTERS TO MORE CENTRALIZED MIDWEST
LOCATION
TMA recently announced the relocation of its corporate
headquarters to the St. Louis metro area and the closing of its
business offices in Pittsburgh, PA. This is expected to provide
management with better access to TMA's independent life brokerage and
general agencies, which are spread across the country. The added space
and functionality of this new location should support TMA's
infrastructure development well into the future. The Company does not
expect to incur any material start-up costs related to this
relocation.
Mr. Klusas concluded, "By joining the TMA network, distributors
can access a broad product matrix offered by the industry's most well
respected life and annuity providers, offer their customers a
multitude of carriers and utilize centralized business services. We
feel that our business model is unique and enhances the businesses of
our distributors at all levels."
ABOUT THE MARKETING ALLIANCE, INC.
Headquartered in St. Louis, MO, TMA is one of 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 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.
TMA stock is traded in the "pink sheets" (www.pinksheets.com)
under the symbol "MAAL". These shares may be purchased or sold through
any broker, or through a market-maker in TMA stock, such as Robotti &
Company.
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
9 Months Ended
12/31/2005 12/31/2004 12/31/2005 12/31/2004
Revenues $ 4,303,740 $ 4,808,411 $12,367,057 $12,757,852
------------ ------------ ------------ ------------
Distributor
Related Expenses
Distributor bonus
& commissions
paid $ 3,098,396 3,542,730 7,939,115 8,676,043
Business
processing &
distributor
costs 694,874 766,643 1,968,589 2,234,126
------------ ------------ ------------ ------------
Total 3,793,270 4,309,373 9,907,704 10,910,169
------------ ------------ ------------ ------------
Gross Profit 510,470 499,038 2,459,353 1,847,683
Operating Expenses 811,839 855,347 2,200,164 2,196,065
------------ ------------ ------------ ------------
Operating
Income (Loss) (301,369) (356,309) 259,189 (348,382)
Other Income
(Expense)
Interest &
dividend Income
(net) 40,625 21,140 65,138 41,754
Realized &
unrealized gains
on investments
(net) 55,153 178,325 334,127 38,825
Interest expense (663) (1,008) (4,625) (10,604)
Other income
(expense) (70,878) 55,584 (149,964) (58,415)
------------ ------------ ------------ ------------
Income (Loss)
Before Provision
for Income Tax (277,132) (102,268) 503,865 (336,822)
Benefit
(provision) for
income taxes 119,000 99,167 (220,000) 179,367
------------ ------------ ------------ ------------
Net Income
(Loss) (158,132) (3,101) $ 283,865 $ (157,455)
============ ============ ============ ============
Shares Outstanding 2,036,747 2,036,747 2,036,747 2,036,747
Operating
Income (Loss)
per Share $ (0.15) $ (0.17) $ 0.13 $ (0.17)
Net Income
(Loss) per
Share $ (0.08) $ (0.00) $ 0.14 $ (0.08)
Consolidated Selected Balance Sheet Items As of
Assets 12/31/2005 3/31/2005
Current Assets
Cash $ 153,844 $ 451,228
Receivables 4,734,589 4,776,861
Investments 2,713,067 1,929,600
Other 350,602 287,826
------------ ------------
Total Current
Assets 7,952,102 7,445,515
Other Non Current
Assets 490,566 460,754
------------ ------------
Total Assets $ 8,442,668 $ 7,906,269
============ ============
Liabilities &
Stockholders' Equity
Total Current
Liabilities $ 5,499,521 $ 4,941,478
------------ ------------
Total Liabilities 5,499,521 4,941,478
Stockholders' Equity 2,943,147 2,964,791
------------ ------------
Liabilities & Stockholders'
Equity $ 8,442,668 $ 7,906,269
============ ============
*T