Business
The Marketing Alliance Announces Financial Results for Its Fiscal 2017 First Quarter Ended June 30, 2016
The Marketing Alliance Announces Financial Results for Its Fiscal 2017 First Quarter Ended June 30, 2016.
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 2017 first quarter ended June 30, 2016.\n \n \n Mr. Timothy M. Klusas, TMA’s Chief Executive Officer, stated, “We were \n pleased with the increases in net income and EBITDA reported over the \n prior year. Although we experienced decreases in construction and \n commission revenue, we were pleased with the performance of our \n insurance and family entertainment businesses, and remain focused on the \n fiscal year ahead. Similar to previous communications, we encourage \n investors to look at our business in no less than four-quarter \n increments due to the uneven timing of revenues in the insurance \n business and the seasonality of the land improvement and family \n entertainment businesses.\n \n \n Insurance Distribution business: “Despite the decrease in \n commission revenue, we were pleased overall with our insurance business. \n We anticipated a decrease in revenue as a potential outcome of the \n volatility in product offerings among our insurance carriers. As we \n mentioned in previous communications, when a major historical supplier \n like Genworth announces that it will cease to sell new life insurance \n and annuity policies as it did in February, there is dislocation in the \n marketplace as our distributors seek to find new suppliers to serve \n their clients and agents. While we were able to help our distributors \n adjust to most of the turbulence in the life and annuity business, we \n had a broad and well-entrenched historical relationship with Genworth \n that takes time to recreate with other carriers. We have proactively \n adjusted our deferred first year commission estimates for Genworth as we \n believe this future business should decline as new policies (and future \n commissions) are not generated due to no new sales at Genworth. The net \n effect of this adjustment is a decrease of approximately $30,000 each \n month of gross profit. Another detractor to our performance was \n declining sales in long-term care insurance as this product line has \n seen in-force premium rate increases, which we understand has reduced \n the attractiveness of the product for a consumer seeking long-term \n guaranteed pricing. While we continue to learn more about potential \n change...