Business
The Marketing Alliance Announces Financial Results for its Fiscal 2022 Third Quarter Ended December 31, 2021
The Marketing Alliance Announces Financial Results for its Fiscal 2022 Third Quarter Ended December 31, 2021.
About this update from Marketing Alliance, Inc. (the)
[{"type":"text","content":"\nThe Marketing Alliance, Inc. (OTC: MAAL) (“TMA” or the “Company”), today announced financial results for its fiscal 2022 third quarter ended December 31, 2021.\n\nFY 2022 Third Quarter Financial Highlights (all comparisons to the prior year period)\n\n\nOperating income increased to $1,121,784 compared to $581,519 in the prior year period despite a 29% decrease in revenue to $5,694,085\n\n\nOperating income (from continuing operations) increased in the quarter due in part to an Employee Retention Credit of $657,099 which reduced payroll and compensation expenses\n\n\nNet income from continuing operations for the quarter was $1,078,508, or $0.13 per share, as compared to net income of $941,389, or $0.12 per share, for the quarter in the previous year\n\n\nManagement Comments\n\nTimothy M. Klusas, TMA’s Chief Executive Officer, commented, “We were pleased with our progress this quarter which resembled our performance in the previous one, where despite the reduction in revenue versus the prior year period, our insurance distribution business was relatively consistent in terms of gross profit and saw an increase in gross profit as a percentage of revenue. The calculation of revenue in our insurance business is a function of sales activity with carriers that pay us different commission levels for equal volumes of sales, agencies that receive different commission levels for equal levels of sales depending on their mixture of products which at times may reduce our revenue, and individual products that may have different commission levels despite equal sales levels, all of which contribute to the difficulty in making meaningful comparisons between quarters on the basis of revenue alone, due to the fact that these factors are rarely the same quarter-to-quarter. We prefer to call attention to gross profit as a means to compare, and on that basis, we performed at a relatively consistent level to the prior year quarter. As we have noted in previous quarters, carriers and agents have continued to adjust to underwriting clients among the presence of COVID restrictions and agencies have also adjusted to the new challenges of simulating in-person client meetings and physical exams, many of which still remain more complicated than prior to the emergence of COVID. It is also helpful to remember that during th...