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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 2007 First Quarter Financial Results

24/08/2006 1:30pm

Business Wire


Marketing Alliance (PK) (USOTC:MAAL)
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The Marketing Alliance, Inc. (Pink Sheets: MAAL) ("TMA" or the "Company"), a consortium of independent life insurance brokerage general agencies located throughout the United States, today announced its financial results for its fiscal 2007 first quarter ended June 30, 2006 (see attached tables). FISCAL FIRST QUARTER 2007 REVIEW Timothy M. Klusas, TMA's President, stated, "TMA continues to make considerable progress in streamlining its operations and gaining long-term cost efficiencies, while still operating profitably. As part of this process, the Company relocated its corporate headquarters and its annuity subsidiary, TMA Marketing, Inc. ("TMAM"), to St. Louis earlier this year in an effort to consolidate corporate operations into one centralized location. While in the fiscal first quarter we incurred one-time charges related to the ramp up of these offices, we feel that the long-term cost benefits will begin to materialize going forward." Revenues reported by the Company for the three-month period ended June 30, 2006 remained steady at $3.9 million versus $3.9 million in same period for the prior year, with a slight decrease due in part to the consolidation of certain insurance carriers whose products are sold through TMA. Lower net operating revenue (gross profit) and higher operating expenses resulted in operating income for the fiscal first quarter of 2007 of $228,742, versus $333,918 in the same period for the prior year. This decline is partially due to one-time start-up costs of approximately $60,000 related to the consolidation of its corporate offices and TMAM into a new, centralized headquarters in St. Louis. The Company reported net income of $82,600, or $0.04 per share, for the fiscal first quarter of 2007, versus net income of $222,025, or $0.11 per share, for the first quarter of fiscal 2006. This decrease is primarily due to a realized and unrealized loss in investments of $96,403 during the period, versus gains on investments of $49,501 in the same period for the prior year, a difference of approximately $146,000. COMPANY ADDS ING TO GROWING NUMBER OF INSURANCE CARRIERS The Company has added ING to its battery of insurance carriers, whose products are sold through TMA. ING provides a wide array of insurance products for TMA distributors to offer to their individual customers under a globally-recognized brand name. Mr. Klusas continued, "We are delighted to have a trusted partner with the stature and prestige of ING join our stable of insurance carriers. We expect many synergies to come of this relationship, as TMA's independent insurance agency members will be able to offer a more expansive product matrix to their individual consumers, and ING's products would be distributed at a low cost to a wider customer base. Our goal has always been to provide our agency members with the tools and products needed to remain independent in an increasingly competitive marketplace, and feel that adding a carrier such as ING would serve to enhance their product offering." Mr. Klusas concluded, "We continue to work towards building a foundation for the future, while still providing our independent insurance agency members with the means to compete. We feel that the consolidation of our TMAM subsidiary and corporate headquarters into St. Louis was the right step towards creating an infrastructure to generate future growth. The addition of carriers such as ING will make our services more attractive to new, independent distributors. In the coming months, our goal is to continue adding to this network of respected life and annuity carriers, and work with our independent member agencies to offer new products and expansion opportunities as they grow their businesses. We feel that our unique business model helps to enhance the businesses of our distributors through additional revenue streams and more effective cost reductions, which in turn, fuels TMA's growth." FINANCIAL CONDITION TMA's balance sheet at June 30, 2006 reflected working capital of $3.4 million and no long-term debt. Shareholders' equity at June 30, 2006 increased 2.2% to $3.8 million from $3.7 million at March 31, 2006. 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 6/30/2006 6/30/2005 Revenues $ 3,870,986 $ 3,909,625 ------------- ------------- Distributor Related Expenses Distributor bonus & commissions paid 2,197,138 2,180,641 Distributor benefits & processing 655,239 659,087 ------------- ------------- Total 2,852,377 2,839,728 ------------- ------------- Net Operating Revenue 1,018,609 1,069,897 Operating Expenses 789,867 735,979 ------------- ------------- Operating Income 228,742 333,918 Other Income (Expense) Interest & dividend Income (net) 6,892 11,309 Realized & unrealized gains (losses) on investments (net) (96,403) 49,501 Interest expense (5,631) (2,703) Other - - ------------- ------------- Income Before Provision for Income Tax 133,600 392,025 Provision for income taxes (51,000) (170,000) ------------- ------------- Net Income $ 82,600 $ 222,025 ============= ============= Shares Outstanding 2,036,747 2,036,747 Operating Income per Share $ 0.11 $ 0.16 Net Income per Share $ 0.04 $ 0.11 Consolidated Selected Balance Sheet Items As of Assets 6/30/2006 3/31/2006 Current Assets Cash $ 230,917 $ 89,440 Receivables 4,693,824 4,878,709 Investments 3,057,677 2,963,394 Other 209,323 525,035 ------------- ------------- Total Current Assets 8,191,741 8,456,578 Other Non Current Assets 409,689 462,480 ------------- ------------- Total Assets $ 8,601,430 $ 8,919,058 ============= ============= Liabilities & Stockholders' Equity Total Current Liabilities $ 4,796,308 $ 5,196,537 ------------- ------------- Total Liabilities 4,796,308 5,196,537 Stockholders' Equity 3,805,122 3,722,521 ------------- ------------- Liabilities & Stockholders' Equity $ 8,601,430 $ 8,919,058 ============= ============= *T

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