Business
The Marketing Alliance Announces Financial Results for Quarter and Year Ended March 31, 2023
The Marketing Alliance Announces Financial Results for Quarter and Year Ended March 31, 2023.
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 2023 fourth quarter and year ended March 31, 2023.\n\n\nFY 2023 Financial Key Items (all comparisons to the prior year period)\n\n\n\nRevenues were $17,940,089 compared to $23,691,799, the decrease due primarily to changes in carrier and product mix in the insurance distribution business and an increase in construction revenue\n\n\n\nOperating income from continuing operations of $1,217,844 compared to $2,703,570 in the prior year period. Operating income in the prior year period benefited from an employee retention tax credit of $875,635, which reduced payroll and compensation expenses. The tax credit, which was part of the federal government’s coronavirus relief program, was not available this year\n\n\n\nNet income from continuing operations was $574,930 or $0.07 per share compared to $2,540,398 or $0.31 per share\n\n\n\nManagement Comments\n\n\nTimothy M. Klusas, TMA’s Chief Executive Officer, commented, “As we report our fiscal year end results, the comparison to the previous year was particularly difficult due to the benefit of the employee retention credit last year, which was not available this year. In addition, the fluctuation among carriers and agencies in our insurance distribution business produced a deferred first year commission reconciliation of ($468,000) in this fiscal year. Despite these two factors, this year saw positive momentum generated in our construction business and we felt our insurance distribution business performed well in a difficult time for the industry with increasing interest rates and increasing inflation weighing on consumers.”\n\n\nMr. Klusas added, “In our insurance business, as we have discussed in prior quarters the revenue could fluctuate due to different commission levels among carriers. Most of the time, we were able to offset these differences by adjusting the amounts we in turn pay out to our distributors, and the net effect of both of these is reflected in the gross profit. In some cases, we were not able to find suitable replacements for agents when carriers either exited our market or chose to reduce sales by changing to the attributes to make their products less competitive relative to alternatives. In additio...