Business
The Marketing Alliance Announces Financial Results for Its Fiscal 2017 Third Quarter and Nine Months Ended December 31, 2016
The Marketing Alliance Announces Financial Results for Its Fiscal 2017 Third Quarter and Nine Months Ended December 31, 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 third quarter and nine months \n ended December 31, 2016.\n \n \n Timothy M. Klusas, TMA’s Chief Executive Officer, commented, “Despite \n lower sales, we were able to exceed operating income this quarter versus \n the same quarter last year by reducing our operating expenses. When \n combined with other non-operating income such as investments, our net \n income exceeded the same quarter last year.\n \n \n “Although our insurance distribution business was again affected by the \n changes in the product portfolios and relative competitiveness of \n insurance carriers, our distributors were able to adjust to losing the \n ability to sell products from carriers such as Genworth and guide their \n producers to some of our newer carrier relationships such as John \n Hancock and One America. We have seen some progress in growth with newer \n carrier relationships and want to again call attention to the \n outstanding job of managing through these changes exhibited by our \n distributors. We believe uncertainty regarding the regulatory rulings, \n such as the Department of Labor’s Fiduciary Rule, also impacted sales \n negatively as well as a general industry reduction in the sales of \n long-term care products. As we have previously stated, we have \n proactively adjusted our deferred first year commission estimates for \n Genworth as this future business will decline as new policies (and \n future commissions) are not generated due to Genworth’s announcement \n last March to cease all new life insurance and annuity product sales. \n Also as previously mentioned, the net effect of this adjustment is \n decreases each month of approximately $30,000 of gross profit, or \n approximately $90,000 this quarter and $270,000 in the first nine months \n of this fiscal year, which are the net effect of adjustments to both \n commission revenues and bonus and commission expenses.\n \n \n “While weakness and the cyclical nature (bottom of the cycle) of the end \n agricultural markets in the construction / land improvement business \n affected our ability to find and complete profitable projects, we were \n able to reduce expenses (direct and indirect costs of construction and \n depreciat...