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
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