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The Marketing Alliance Announces Financial Results for Its Fiscal 2018 Fourth Quarter and Year Ended March 31, 2018The Marketing Alliance, Inc. (OTC: MAAL) ("TMA"), today announced financial results for its fiscal 2018 fourth quarter and year ended March 31, 2018. Timothy M. Klusas, TMA's Chief Executive Officer, commented, "We were pleased with our financial results for the fiscal year as the construction and insurance distribution businesses recorded notable increases in revenues. The addition of new carriers and adoption of new digital processes has helped to drive revenue growth for the insurance distribution business. We have received a positive response from our distributors with the addition of our newest carrier, Pacific Life, a relationship that was initiated in the prior fiscal year. The continued adoption of digital applications by our distributors has also contributed to the increase in revenue for our insurance business, as more producers began using our digital platform to submit applications. Revenues more than doubled in our construction business from the prior fiscal year, as TMA realigned its focus on new uses for the Company's equipment. We began providing drainage for roadway projects as part of larger jobs managed by larger general contractors. This allowed TMA to undertake and complete several projects during the year in new areas of business, as opposed to being limited exclusively to agricultural projects prior to the planting season or after the harvest season, as was the case in prior years. Finally, in the family entertainment business, although we recorded a 4% increase in revenue for the three months ended March 31, 2018, we have undertaken steps to change the business to grow revenues at a higher rate. During the fiscal year, we assessed our pricing strategy at each of our Monkey Joe facilities in an effort to find the ideal balance of offering a superior family entertainment experience at a value to our customers, while capturing more revenues for our business. While we believe that during the previous quarter we started to see some of the benefits of our new pricing model, our expense level relative to sales was identified as needing further improvement, and the execution of that plan was expected to continue forward." Fiscal 2018 Fourth Quarter Financial Review
Fiscal 2018 Financial Review
Balance Sheet Information
About The Marketing Alliance, Inc. Headquartered in St. Louis, MO, TMA operates three businesses. TMA provides support to independent insurance brokerage agencies, with a goal of providing members value-added services on a more efficient basis than they can achieve individually. The Company also owns an earth moving and excavating business and nine children's play and party facilities. Investor information can be accessed through the shareholder section of TMA's website at: http://www.themarketingalliance.com/shareholder-information. TMA's common stock is quoted on the OTC Markets (http://www.otcmarkets.com) under the symbol "MAAL". Forward Looking Statement Investors are cautioned that forward-looking statements involve risks and uncertainties that may affect TMA's business and prospects. Examples of forward-looking statements include, among others, statements we make regarding our expectations for our performance during fiscal 2018 and future periods and the production of favorable returns to shareholders, our ability to obtain industry acceptance and competitive advantages of a multi-carrier digital platform for life insurance applications, our expectations with respect to the distribution of new life insurance products, the effects of ongoing uncertainty regarding the Department of Labor's Fiduciary Rule in our annuity business, our ability to diversify our earth moving and excavating business and our ability to increase revenue and reduce costs from our family entertainment business. Any forward-looking statements contained in this press release represent our estimates, expectations or intentions only as of the date hereof, or as of such earlier dates as are indicated, and should not be relied upon as representing our views as of any subsequent date. These statements involve a number of risks and uncertainties, including, but not limited to, expectations of the economic environment; material adverse changes in economic conditions in the markets we serve and in the general economy; future regulatory actions and conditions in the states in which we conduct our business; our ability to work with carriers on marketing, distribution and product development; pricing and other payment decisions and policies of the carriers in our insurance distribution business, weather and environmental conditions in the areas served by our earth moving and excavation business, the integration of our operations with those of businesses or assets we have acquired or may acquire in the future and the failure to realize the expected benefits of such acquisition and integration. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so.
Note - Operating EBITDA (excluding investment portfolio income) Q4FY2018 Operating EBITDA (excluding investment portfolio income) was determined by adding Q4FY 2018 Operating Income of $670,120 and Depreciation and Amortization Expense of $201,018 for a total of $871,138. Q4FY2017 Operating EBITDA (excluding investment portfolio income) was determined by adding Q4FY 2017 Operating Income of $838,688 and Depreciation and Amortization Expense of $205,460 for a total of $1,044,148. The Company elects not to include investment portfolio income because the Company believes it is non-operating in nature. Fiscal 2018 year-end Operating EBITDA (excluding investment portfolio income) was determined by adding FY2018 year-end Operating Income of $917,877 and Depreciation and Amortization Expense of $773,827 for a sum of $1,691,704. FY2017 year-end Operating EBITDA (excluding investment portfolio income) was determined by adding Operating Income of $516,592 and Depreciation and Amortization Expense of $967,550 for a sum of $1,484,142. The Company elects not to include investment portfolio income because the Company believes it is non-operating in nature. The Company uses Operating EBITDA as a measure of operating performance. However, Operating EBITDA is not a recognized measurement under U.S. generally accepted accounting principles, or GAAP, and when analyzing its operating performance, investors should use Operating EBITDA in addition to, and not as an alternative for, income as determined in accordance with GAAP. Because not all companies use identical calculations, its presentation of Operating EBITDA may not be comparable to similarly titled measures of other companies and is therefore limited as a comparative measure. Furthermore, as an analytical tool, Operating EBITDA has additional limitations, including that (a) it is not intended to be a measure of free cash flow, as it does not consider certain cash requirements such as tax payments; (b) it does not reflect changes in, or cash requirements for, its working capital needs; and (c) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized often will have to be replaced in the future, and Operating EBITDA does not reflect any cash requirements for such replacements, or future requirements for capital expenditures or contractual commitments. To compensate for these limitations, the Company evaluates its profitability by considering the economic effect of the excluded expense items independently as well as in connection with its analysis of cash flows from operations and through the use of other financial measures. The Company believes Operating EBITDA is useful to an investor in evaluating its operating performance because it is widely used to measure a company's operating performance without regard to certain non-cash or unrealized expenses (such as depreciation and amortization) and expenses that are not reflective of its core operating results over time. The Company believes Operating EBITDA presents a meaningful measure of corporate performance exclusive of its capital structure, the method by which assets were acquired and non-cash charges, and provides additional useful information to measure performance on a consistent basis, particularly with respect to changes in performance from period to period.
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