The Marketing Alliance, Inc. (Pink Sheets: MAAL): BUSINESS
HIGHLIGHTS -- Net income increases 103% to $779,377, or $0.38 per
share, in Q4 FY'06 from $383,927 in Q4 FY'05 -- Third consecutive
quarter of year-over-year operating margin improvement -- Solid
balance sheet with $3.3 million of working capital and no long-term
debt at March 31, 2006 -- Company relocates TMA Marketing, Inc.
subsidiary to corporate headquarters in St. Louis -- Appoints two
seasoned industry veterans to key management positions 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 2006 fourth quarter
and year ended March 31, 2006. Timothy M. Klusas, TMA's President,
stated, "Our focus throughout the past year has been to improve
TMA's operating performance by lowering expenses, gaining
efficiencies within our operations and establishing an
infrastructure to manage the growth and balance of insurance
products through the Company's distributors. We are pleased with
our fourth quarter results, which includes year-over-year
improvements in the Company's operating margin for the third
consecutive quarter, despite slightly lower sales. Throughout this
period, TMA has remained committed to providing our members with a
cost-efficient level of service and support that enhances their
ability to grow more profitably and increase their scale while
maintaining their independence." FISCAL FOURTH QUARTER 2006 REVIEW
Revenues reported by the Company for the three-month period ended
March 31, 2006 were $3.6 million versus the $3.9 million in same
period for the prior year. The decline was in part due to the
consolidation of certain insurance carriers, whose products are
sold through TMA. Improved gross profit and lower total operating
expenses resulted in a 28% increase in operating income to
$993,076. The Company reported a 103% increase in net income of
$779,377, or $0.38 per share, for the fiscal fourth quarter of
2006, versus net income of $383,927, or $0.19 per share, for the
fourth quarter of fiscal 2005. This increase is primarily due to
higher operating income and an improvement of $562,198 in realized
and unrealized gains on investments during the period. In April
2005, the Company reassessed its investment strategy, which
previously consisted of a portfolio largely containing equity
investments in regional banks. TMA has now shifted 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. FISCAL 2006 ANNUAL REVIEW As a result of the factors
listed above, total revenues for fiscal 2006 were $16.0 million, up
from $16.7 million in fiscal 2005. Fiscal 2006 operating income
increased 80% to $1.1 million, or 6.6% of revenues, versus
$587,474, or 3.5% of revenues, in fiscal 2005. TMA reported a 369%
increase in net income of $1.1 million, or $0.52 per share, for
fiscal 2006, versus net income of $226,463, or $0.11 per share, in
fiscal 2005. COMPANY RELOCATES TMA MARKETING TO ST. LOUIS TMA
recently announced the relocation of its subsidiary, TMA Marketing,
Inc. ("TMAM"), to its corporate headquarters in St. Louis, MO. TMAM
represents TMA members in offering non-traditional insurance
products to both existing and new customers, with a focus on
providing distributors a turnkey annuity marketing and support
program from a variety of insurance carriers. TMAM allows the
Company's independent distributors who are not currently marketing
annuity products to do so, thereby establishing a new profit center
for their agency, without incurring significant start-up costs and
capital investment. Mr. Klusas commented, "We relocated our
corporate headquarters to St. Louis earlier this year in an effort
to consolidate these operations into one centralized location. We
felt that moving TMAM to St. Louis was instrumental in this effort
and will help us create further operating efficiencies, while also
positioning TMAM to better provide annuity services to our member
agencies, which are spread throughout the country." COMPANY
APPOINTS TWO INDUSTRY EXECUTIVES TO KEY POSITIONS TMA also
announced two recent executive appointments as part of its
continuing effort to better serve its member agencies and develop
its management depth and intellectual capital. Effective February
1, Alan Protzel, CLU, ChFC, was named Director of Agency
Development. Mr. Protzel has 29 years of industry experience with
insurance companies such as MetLife and General American, and has
spent the last 20 years in independent life insurance distribution.
Mr. Protzel is responsible for all aspects of TMA's life insurance
service business, including the Life Service and Support Center.
The Company also appointed Laura Hahn as Managing Director of
TMAM's Annuity Sales and Service Center. Ms. Hahn brings over 27
years of experience in the insurance and financial services
industries to TMA. Laura's past roles have included operations
management for General American Life Insurance Co., Regional Vice
President for GenAmerica Brokerage and most recently at MetLife as
Director of National Recruiting for Walnut Street Securities, Inc.
Laura is responsible for all aspects of the Company's Annuity
business, including the Annuity Sales and Service Center. Mr.
Klusas commented, "We are fortunate to have two seasoned insurance
executives such as Alan and Laura filling these important
leadership roles. Laura will ensure that TMA continues expand our
independent agencies' market presence through the offering of
annuity products, while Alan will help build upon our success in
cultivating strong relationships with our distributors and
insurance carriers. Both Alan and Laura will be based in our
corporate headquarters in St. Louis, and we have already seen an
immediate impact from their presence." FINANCIAL CONDITION TMA's
balance sheet at March 31, 2006 reflected working capital of $3.3
million and no long-term debt. Shareholders' equity at March 31,
2006 increased 26% to $3.7 million from $3.0 million at March 31,
2005. Mr. Klusas concluded, "TMA continues to progress steadily
towards fulfilling its potential as the premier wholesale source of
life insurance products by companies, distributors, employees,
vendors and shareholders. Our primary objective in the coming year
is to continue the progress we have made in streamlining our
operations, leverage our infrastructure, and concentrate on laying
a foundation conducive for top-line growth. We expect to achieve
this by adding the industry's most well respected life and annuity
carriers to our network, and therein offering our distributors a
broader product matrix. We felt that our improvement on the bottom
line was a strong step, and we look forward to our near and
long-term future with confidence." 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 12 Months Ended 3/31/2006
3/31/2005 3/31/2006 03/31/2005 Revenues $3,625,713 $3,877,316
$15,992,770 $16,675,340 ---------- ---------- -----------
----------- Distributor Related Expenses Distributor bonus &
commissions paid 1,068,023 1,473,294 9,007,138 10,123,773 Business
processing & distributor costs 690,005 698,858 2,658,594
2,925,210 ----------- ----------- ------------ ------------ Total
1,758,028 2,172,152 11,665,732 13,048,983 ---------- ----------
----------- ----------- Net Operating Revenue 1,867,685 1,705,164
4,327,038 3,626,357 Operating Expenses 874,609 930,446 3,270,677
3,038,883 ---------- ---------- ----------- ----------- Operating
Income 993,076 774,718 1,056,361 587,474 Other Income (Expense)
Interest & dividend Income (net) 23,429 9,097 88,567 66,084
Realized & unrealized gains (losses) on investments (net)
338,520 (223,678) 672,647 (179,881) Interest expense (6,690)
(3,059) (11,315) (15,243) Other (30,751) (20,373) 15,508 (125,569)
---------- ---------- ----------- ----------- Income Before Tax
1,317,584 536,705 1,821,768 332,865 Provision for income taxes
(538,207) (152,778) (758,526) (106,402) ---------- ----------
----------- ----------- Net Income $ 779,377 $ 383,927 $ 1,063,242
$ 226,463 ========== ========== =========== =========== Shares
Outstanding 2,036,747 2,036,747 2,036,747 2,036,747 Operating
Income per Share $ 0.49 $ 0.38 $ 0.52 $ 0.29 Net Income per Share $
0.38 $ 0.19 $ 0.52 $ 0.11 Consolidated Selected Balance Sheet Items
As of Assets 3/31/2006 3/31/2005 Current Assets Cash $ 89,440 $
451,228 Receivables 4,878,709 4,776,861 Investments 2,963,394
1,929,600 Other 525,035 287,826 ---------- ---------- Total Current
Assets 8,456,578 7,445,515 Other Non Current Assets 462,480 460,754
---------- ---------- Total Assets $8,919,058 $7,906,269 ==========
========== Liabilities & Stockholders' Equity Total Current
Liabilities $5,196,537 $4,941,478 ---------- ---------- Total
Liabilities 5,196,537 4,941,478 Stockholders' Equity 3,722,521
2,964,791 ---------- ---------- Liabilities & Stockholders'
Equity $8,919,058 $7,906,269 ========== ========== *T
Marketing Alliance (PK) (USOTC:MAAL)
Historical Stock Chart
From Jun 2024 to Jul 2024
Marketing Alliance (PK) (USOTC:MAAL)
Historical Stock Chart
From Jul 2023 to Jul 2024