Business
The Marketing Alliance Announces Financial Results for Its Fiscal 2017 Fourth Quarter and Year Ended March 31, 2017
The Marketing Alliance Announces Financial Results for Its Fiscal 2017 Fourth Quarter and Year Ended March 31, 2017.
About this update from Marketing Alliance, Inc. (the)
[{"type":"text","content":"\n \n The Marketing Alliance, Inc. (OTC:MAAL) (“TMA”), today announced \n its fiscal 2017 fourth quarter and year ended March 31, 2017 financial \n results.\n \n \n Timothy M. Klusas, TMA’s Chief Executive Officer, commented, “We were \n pleased with our financial performance during the quarter and fiscal \n year. We faced many external challenges, such as an insurance carrier \n ceasing sales of new life insurance and annuity policies and continuing \n weakness in agricultural end markets due to low crop prices that caused \n demand for our services to decline in the second half of the year. \n Despite these factors and increased operating expenses from a new family \n entertainment center, we were able to finish the fiscal year with an \n increase in net income versus the prior year.\n \n \n “Commission revenue in our insurance distribution was affected by \n changes in carriers’ product portfolios, as carriers who have been \n historically significant to our distributors altered their products or \n even ceased selling new policies. For example, Genworth’s decision to \n discontinue the sale of new life insurance annuity policies in March \n 2016 caused us to proactively adjust our deferred first year commission \n estimates for Genworth during the fiscal 2017. For the twelve-month \n period, the impact to operating profit of this adjustment on commission \n revenues as well as distributor bonus and commission expenses was \n approximately $90,000 for each quarter and $360,000 for the 2017 fiscal \n year, as we have stated in prior quarters. As the fiscal year is now \n complete, these adjustments are complete as this is the end of our 2017 \n fourth quarter. While we have initiated new carrier relationships such \n as Pacific Life to attempt to provide additional product alternatives \n for our distributors and their producers, with any new carrier \n relationship there usually has been an adjustment period for our \n distributors as they realign their sales efforts and become informed \n concerning new product offerings. Despite the challenges of replacing a \n long-entrenched carrier relationship, we commend our general agents and \n their flexibility to support new offerings. We have continued to invest \n in our capabilities to offer a multi-carrier digital platform for life \n i...