The Marketing Alliance Announces Fiscal Year 2007 First Quarter Financial Results
24 August 2006 - 10:30PM
Business Wire
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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