Business
The Marketing Alliance Announces Financial Results for Its Fiscal 2016 First Quarter Ended June 30, 2015
The Marketing Alliance Announces Financial Results for Its Fiscal 2016 First Quarter Ended June 30, 2015.
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 2016 first quarter ended June 30, 2015.\n \n \n Mr. Timothy M. Klusas, TMA’s Chief Executive Officer, stated, “Our \n results were affected by several factors that negatively impacted our \n financial results in this quarter. While we were pleased to report \n increases in revenue for our insurance distribution and the family \n entertainment businesses, a very wet spring and summer suppressed land \n improvement (construction) revenues through lost working days. Our \n earnings were impacted negatively by changes in the mix of our customer \n and carrier supplier bases in the insurance distribution business and \n increases in expenses associated with re-establishing our newly acquired \n Florida locations in the Family Entertainment business. Finally, \n suppressed revenues in the land improvement (construction) business due \n to weather could not support expenses levels in the quarter.\n \n \n “Our operating income in the insurance distribution business was also \n affected by certain items that had been previously deferred and expensed \n over the course of the prior year that were determined that for 2015 did \n not benefit future quarters, and were expensed in the current quarter. \n The net effects of these items were approximately $249,000 in the \n quarter by realizing these expenses in this quarter as opposed deferring \n and realizing in a different quarter later in the year. The effects of \n the reconciliations of distributor commissions, which have historically \n occurred at the end of the calendar year, are expected to be reduced as \n a result. ”\n \n \n Mr. Klusas provided additional details below on each of the Company’s \n operations for the first quarter of the fiscal 2016 year:\n \n \n \n Insurance Distribution Business: “Our insurance business was \n affected by changes in the relative competitiveness of our supplier \n carriers and an unfavorable mix of business. For example, carriers \n that have been prominent and had been growing among our distributors \n have rationalized the competitiveness of their product portfolios \n which has had the effect of reducing their sales within our network of \n agencies. As a result, some of these sales went to oth...