Business
The Marketing Alliance Announces Financial Results for Its Fiscal 2014 Fourth Quarter and Year Ended March 31, 2014
The Marketing Alliance Announces Financial Results for Its Fiscal 2014 Fourth Quarter and Year Ended March 31, 2014.
About this update from Marketing Alliance, Inc. (the)
[{"type":"text","content":"\n \n The Marketing Alliance, Inc. (OTC:MAAL) (“TMA”) today announced \n financial results for its fiscal 2014 fourth quarter and year ended \n March 31, 2014.\n \n \n Mr. Timothy M. Klusas, TMA’s Chief Executive Officer, stated, “Our \n business was affected by several external factors that negatively \n impacted operations during the year. These factors generated headwinds \n for revenue growth in our insurance distribution business and also in \n our earth moving and excavation business. Because our insurance \n distribution business requires annual reconciliations of deferred \n first-year commissions, and these reconciliations occur during our \n fiscal fourth quarter, the completion of these calculations affects \n quarterly results although they were likely the result of business \n conditions that extended beyond the quarter or even our fiscal year. \n Accordingly, we encourage followers of our Company to consider 12-month \n periods more heavily than individual quarters. Despite our businesses \n not meeting expectations this year, we remain focused on generating \n operating profits in each of our businesses, while seeking additional \n methods of utilizing the capital on our balance sheet to produce \n favorable returns for shareholders.\n \n \n Insurance Distribution Business: “We continued to work closely \n with our distributors and carriers during what has been a difficult time \n for the life insurance business. The prolonged low interest rate \n environment and industry changes have affected our business through \n supplier dislocations, product discontinuance and in-force 'repricings,' \n and anecdotally, general distraction as agents had less time to develop \n life insurance sales given other demands from their customers for other \n lines of insurance, such as health care.\n \n \n “It typically takes TMA at least three years to bring on and establish a \n new supplier (carrier) relationship. Additionally, many of TMA’s carrier \n relationships have been fostered and built over many years. When a \n carrier finds itself having to change the focus of its products due to \n external changes such as reserving rules, capital constraints or \n interest rate projections, TMA must adjust to that carrier’s product \n changes to maintain the value in that relationship or...