The Marketing Alliance Announces Financial Results for the Fiscal 2009 Fourth Quarter and Year Ended March 31, 2009
05 Agosto 2009 - 8:00AM
Business Wire
The Marketing Alliance, Inc. (Pink Sheets: MAAL) (“TMA”),
a provider of services and distributor of products to independent
insurance agencies throughout the United States, today announced
financial results for its fiscal fourth quarter and for the fiscal
year ended March 31, 2009.
Timothy M. Klusas, TMA’s President, stated, “We are pleased to
report TMA’s results for the quarter and year ended March 31, 2009.
I first want to compliment our distributors who have successfully
operated their businesses in a tough and ever-changing economic
environment. In the past year, TMA was fortunate to have many
seasoned business owners and forward-thinking carriers (suppliers)
in our distribution network who have continued to navigate through
unprecedented market conditions. We believe that our efforts to
establish new platforms and cultivate new and existing
relationships with our carriers (suppliers) were rewarded.”
Mr. Klusas concluded, “Our focus in providing greater value for
our distributors by offering many different products and services
gave our distributors more ways to increase their revenue and
reduce expenses. In a difficult economic environment, we feel this
was a significant advantage for our members by providing them the
tools to position themselves best to thrive in an otherwise adverse
economy. As examples, our turn-key Annuity Center, our centralized
Business Service Center, and our Competition Desk distinguished
themselves as valuable additions for our distributors.”
Fiscal 2009 Fourth Quarter Financial Review
- Total revenues for the fiscal
2009 fourth quarter ended March 31, 2009 increased 35% to $5.8
million from $4.3 million for the prior year period. Some factors
that led to the increase were TMA members taking further advantage
of TMA’s incentive programs which rewarded them for growing their
sales with TMA and utilizing the Company’s growing distribution of
annuity products.
- Distributor bonus and
commissions increased to $2.7 million in the fiscal 2009 fourth
quarter from $1.5 million in the same period last year, due again
to a greater utilization of distributor incentive programs.
Benefits and processing expenses decreased to $634,000 from
$707,000, largely due to efficiencies at the Company’s centralized
Business Service Center.
- Net operating revenue (gross
profit) increased 21% to $2.4 million in the fiscal 2009 fourth
quarter from $881,000 in the comparable fiscal 2008 period. The
Company’s gross profit margins declined to 42% from 47% in the
prior year period, largely due to higher bonus payments as
distributors benefitted from TMA’s incentive structures.
- Operating income rose 17% to
$1.6 million in the fiscal 2009 fourth quarter, or 28% of revenues,
from operating income of $1.4 million, or 32% of revenues, for the
prior year period.
- Realized and unrealized losses
on investments during the fiscal 2009 fourth quarter totaled
$45,000, compared to realized and unrealized losses of $602,000 for
the prior year period. Over the past year, the Company has moved
over half of its investment portfolio into US Treasuries and money
market accounts. Management continues to closely monitor the
remaining portion of its equity positions, and reiterates these
non-operating losses have not meaningfully affected TMA’s ability
to execute any of its strategic initiatives.
- The Company reported a 152%
increase in net income for the fiscal 2009 fourth quarter to $1.2
million, or $0.64 per share, as compared to net income of $489,000,
or $0.25 per share, for the prior year period.
Fiscal 2009 Year Ended Financial Review
Total revenues for fiscal 2009 were $22.7 million, up 37% from
$16.6 million for fiscal 2008.
- Distributor bonus and
commissions for fiscal 2009 increased to $14.5 million from $9.3
million in fiscal 2008, while benefits and processing expenses
increased to $2.6 million from $2.5 million in the prior year.
- Net operating revenues, or gross
profit, for fiscal 2009 increased 18% to $5.6 million, or 25% of
revenues, from $4.8 million, or 29% of revenues, for the prior
year.
- Operating income increased 33%
to $2.7 million from $2.1 million for the prior year.
- Realized and unrealized losses
on investments for fiscal 2009 was $819,000, compared to realized
and unrealized losses of $1.3 million for the prior year.
- The Company reported net income
for fiscal 2009 of $1.2 million, or $0.63 per share, as compared to
net income of $522,000, or $0.27 per share, in the prior year.
Balance Sheet Information
TMA’s balance sheet at March 31, 2009 reflected cash and cash
equivalents of $3.7 million, working capital of $4.5 million and no
long-term debt. Shareholders’ equity at March 31, 2009 totaled $4.8
million, versus $4.1 million at March 31, 2008.
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.
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 3 Months
Ended 12 Months Ended 3/31/09
3/31/08 3/31/09 3/31/08
Revenues $ 5,796,771 $
4,278,750 $ 22,694,490 $
16,592,849 Distributor Related Expenses
Bonus & commissions 2,718,345 1,548,931 14,453,962 9,306,398
Benefits & processing 634,446 706,686
2,632,263 2,523,122
Total
3,352,791 2,255,617
17,086,225 11,829,520
Net Operating Revenue 2,443,980
2,023,133 5,608,265 4,763,329
Operating Expenses 811,549 636,159
2,866,881 2,699,519
Operating Income 1,632,431 1,386,974
2,741,384 2,063,810 Other Income
(Expense) Interest & dividend income [net] 21,750 31,341
93,769 103,800
Realized & unrealized [losses]
on investments (net)
(45,434 ) (601,815 ) (819,167 ) (1,295,397 ) Other income 53,375
53,375 Interest expense (1,259 ) (5,466 )
(7,199 ) (7,529 )
Income Before Provision for
Income Tax 1,660,863 811,034 2,062,162
864,684 Provision for income taxes (429,558 )
(322,244 ) (856,558 ) (342,244 )
Net
Income 1,231,305 $ 488,790
$ 1,205,604 $ 522,440
Average Shares Outstanding 1,917,724
1,945,702 1,917,724 1,945,702
Operating Income per Share $ 0.85 $
0.71 $ 1.43 $ 1.06 Net Income
per Share $ 0.64 $ 0.25 $
0.63 $ 0.27 Consolidated Selected
Balance Sheet Items As of
Assets 3/31/09 3/31/08 Current Assets
Cash & Equivalents $
3,692,773
$
1,709,172
Receivables 5,890,665 4,529,119 Investments 1,599,412 2,256,120
Other 562,721 421,698
Total Current
Assets 11,745,571 8,916,109 Other Non
Current Assets 235,626
289,792 Total Assets $
11,981,197 $ 9,205,901
Liabilities & Stockholders' Equity Total
Current Liabilities $ 7,213,667 $ 5,084,543
Total Liabilities 7,213,667 5,084,543
Stockholders' Equity 4,767,530
4,121,358 Liabilities &
Stockholders' Equity $ 11,981,197 $
9,205,901
Marketing Alliance (PK) (USOTC:MAAL)
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