The Marketing Alliance, Inc. (Pink Sheets: MAAL) (�TMA�), a
consortium of independent life insurance brokerage general agencies
located throughout the United States, today announced financial
results for its fiscal third quarter ended December 31, 2007.
Timothy M. Klusas, TMA�s President, stated, �We think that our
Company is focusing on the right things. I thought it might be an
appropriate time to outline some of the recent progress we have
made, and the direction that we are headed. In an effort to
describe our business in general, we are a distribution company and
the products we distribute are insurance and annuity products, from
insurance carriers to independent insurance agencies. We believe
this is a business that requires a streamlined, cost-efficient
infrastructure to operate most profitably. When we consolidated our
sales and marketing offices into one centralized facility in 2006,
the goal was to begin to centralize our operations and create a
platform on which to handle incremental business growth without
significant increases in fixed costs. This was a difficult and
lengthy process that involved a substantial restructuring, but one
that we feel we have made good progress upon. We remained focused
on improving margins and operating profitably throughout this
period, and plan to continue to take advantage of increased
efficiencies.� Mr. Klusas continued, �With an infrastructure in
place, we have turned our attention to growth initiatives -
building on a wide array of different life and annuity products to
offer our agencies from a deeper network of carriers. Our operating
results during the fiscal third quarter are attributable to a
number of these initiatives, and we were pleased to achieve a 6%
increase in revenues for the period. This increase is attributed to
growth in our wholly-owned annuity business, TMA Marketing, Inc.
(�TMAM�), as well as benefits from additions to our carrier
network. I would like to specifically address the benefits and
impact of these initiatives: Our wholly-owned �turnkey� annuity
business, TMAM, which was previously only targeted at distributors
new to the annuity business, now functions on multiple levels as a
result of a new incentive plan launched in March 2007. Previously,
TMAM engaged agencies looking to enter the annuity business and
build their product offerings and back office processing from the
ground up. While we achieved success offering this to our
distributors, we found that many of our members who already had
existing annuity businesses in place wanted to take advantage of an
expanded offering of services and products to suit their customers�
needs. With our flexibility, we are now attracting these agencies,
providing them with value added services from sales support to
business placement, and have nurtured a new revenue stream for our
Company. We are hopeful that as we expand our annuity business, we
will be able to continue to offer a wider variety of offerings for
our distributors, while at the same time contributing to our
top-line with minimal incremental operating cost. We are also now
recognizing more revenue from the additions of new carriers and a
wider product offering to our network, most specifically ING,
MetLife, and Aviva. We expect to see revenues continue to trend
higher during the next 12-24 months, as these carriers are more
fully integrated into our sales network, and consider new additions
to our network as a catalyst for future growth.� Mr. Klusas
concluded, �Although our operations are in a strong position, our
net earnings for the period were negatively impacted by a loss on
investments. These holdings are managed in part by third parties
and consist largely of equities. We continue to monitor our
holdings and will adjust as necessary for the changing economic
climate. We are confident in our investment management providers
based on their track records. We are supported by a strong balance
sheet, and feel that the strides made by the Company in the past
three years have placed TMA in a better position to achieve growth
through a wider variety of channels. We look forward to keeping all
of our shareholders apprised of our progress in the coming months.�
FISCAL 2008 THIRD QUARTER REVIEW Total revenues for the three-month
period ended December 31, 2007 increased 6% to $4.5 million from
$4.2 million for the three-month period ended December 31, 2006.
The increase in revenues was due to increased volume at TMA�s
wholly-owned subsidiary, TMA Marketing as well as higher revenues
from the addition of ING, MetLife and Aviva to its carrier network.
As a result of higher revenues, TMA�s net operating revenue (gross
profit) grew from the comparable fiscal 2007 period. Operating
income for the fiscal third quarter increased to $311,088, or 6.9%
of revenues, from $179,107, or 4.2% of revenues in the prior third
quarter. Operating expenses for the period decreased to $590,337,
or 13.1% of revenues, from $655,410, or 15.5% of revenues, in the
third quarter of fiscal 2007. The decrease in operating expenses is
due to the aforementioned centralization in the Company�s business
and increasing economies of scale. For the fiscal 2008 third
quarter, TMA reported a net loss of ($274,163), or ($0.14) per
share, based on 1,977,675 shares outstanding, versus a net income
of $156,957, or $0.08 per share, based on 2,036,747 shares
outstanding, for the fiscal 2007 third quarter. The net loss for
the period is primarily due to a realized and unrealized loss on
investments of ($814,330), compared to a gain of $72,778 for the
prior year period. The decrease in shares outstanding is due to the
Company�s execution of its share repurchase program. FISCAL 2007
NINE MONTH REVIEW Total revenues for the first nine months of
fiscal 2008 were $12.3 million, an increase of 4% versus $11.8
million for the same period in fiscal 2007. Fiscal 2007 nine month
operating income increased 122% to $903,229 from $407,251 for the
first nine months of fiscal 2007. TMA reported net income of
$180,643, or $0.09 per share, for the nine-month period ended
December 31, 2007, versus net income of $251,452 or $0.12 per
share, in the prior year period. FINANCIAL CONDITION TMA�s balance
sheet at December 31, 2007 reflected working capital of $3.6
million and no long-term debt. Shareholders� equity at December 31,
2007 totaled $3.9 million. 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 quoted
in the �pink sheets� (www.pinksheets.com) under the symbol �MAAL�.
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. CONSOLIDATED STATEMENT OF OPERATIONS � � �
� � Quarter Ended Year to Date 9 Months Ended 12/31/2007 12/31/2006
12/31/2007 12/31/2006 � Revenues $ 4,490,143 � $ 4,237,426 � $
12,314,099 � $ 11,802,741 � � Distributor Related Expenses
Distributor bonus & commissions paid $ 3,063,631 2,731,741
7,732,901 7,273,794 Distributor benefits & processing � 525,087
� � 671,168 � � 1,820,978 � � 2,068,503 � Total � 3,588,718 � �
3,402,909 � � 9,553,879 � � 9,342,297 � � Net Operating Revenue
901,425 834,517 2,760,220 2,460,444 � � Operating Expenses �
590,337 � � 655,410 � � 1,856,991 � � 2,053,193 � � Operating
Income 311,088 179,107 903,229 407,251 � � Other Income (Expense)
Interest & dividend income [net] 25,517 14,400 72,459 30,138
Realized & unrealized gains [losses] on investments (net)
(814,330 ) 72,778 (693,582 ) (5,529 ) � Interest expense � (38 ) �
(5,328 ) � (2,063 ) � (14,408 ) � Income (Loss) Before Provision
for Income Tax (477,763 ) 260,957 280,043 417,452 � Benefit
(Provision) for income taxes � 203,600 � � (104,000 ) � (99,400 ) �
(166,000 ) � Net Income (Loss) $ (274,163 ) $ 156,957 � $ 180,643 �
$ 251,452 � � Average Shares Outstanding 1,977,675 2,036,747
2,006,961 2,036,747 � Operating Income per Share $ 0.16 $ 0.09 $
0.45 $ 0.20 Net Income (Loss) per Share $ (0.14 ) $ 0.08 $ 0.09 $
0.12 CONSOLIDATED SELECTED BALANCE SHEET ITEMS � � As of � Assets
12/31/2007 3/31/2007 Current Assets Cash $ 843,020 $ 1,283,240
Receivables 4,444,534 4,497,987 Investments 3,523,123 2,715,997
Other � 193,107 � 32,105 Total Current Assets 9,003,784 8,529,329 �
Other Non Current Assets � 289,214 � 367,571 � Total Assets $
9,292,998 $ 8,896,900 � Liabilities & Stockholders' Equity �
Total Current Liabilities $ 5,385,549 $ 4,707,409 � Total
Liabilities 5,385,549 4,707,409 � Stockholders' Equity � 3,907,449
� 4,189,491 � Liabilities & Stockholders' Equity $ 9,292,998 $
8,896,900
Marketing Alliance (PK) (USOTC:MAAL)
Historical Stock Chart
From Jul 2024 to Aug 2024
Marketing Alliance (PK) (USOTC:MAAL)
Historical Stock Chart
From Aug 2023 to Aug 2024