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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