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