The Advertising and marketing Alliance Proclaims Monetary Outcomes for Quarter Ended June 30, 2022

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ST. LOUIS–(BUSINESS WIRE)–The Advertising and marketing Alliance, Inc. (OTC: MAAL) (“TMA” or the “Firm”), right this moment introduced monetary outcomes for its fiscal 2023 first quarter ended June 30, 2022.

FY 2023 First Quarter Monetary Key Objects (all comparisons to the prior yr interval)

  • Working earnings from persevering with operations of $383,810 in comparison with $381,465 within the prior yr interval, regardless of a discount in income of 32% to $4,382,845
  • Working EBITDA (excluding funding earnings) was $446,480 in comparison with $439,249 within the prior yr quarter
  • Internet earnings (loss) from persevering with operations was $(257,992) or $(.03) per share in comparison with $546,898 or $.07 per share

Administration Feedback

Timothy M. Klusas, TMA’s Chief Government Officer, commented, “Whereas our outcomes replicate constant working revenue and efficiency, this quarter was affected by a tough financial local weather and variations in timing on tasks. The insurance coverage distribution enterprise carried out effectively regardless of a discount in income from a altering mixture of carriers from earlier quarters. Whereas the change in enterprise combine decreased income, these elements additionally correspond to decreased bills, and resulted in comparable ranges of profitability. We additionally felt {that a} tough and altering financial setting punctuated by fast will increase in charges of inflation affected shopper selections. Whereas this phenomenon might proceed, we really feel now we have merchandise and options for our businesses and brokers to help customers in weathering this era. We continued to imagine our no-contact enterprise options supply important worth within the market as insurance coverage carriers and brokers have an elevated appreciation for these technological instruments that permit them to keep up robust relationships with their prospects. Our platform allows our insurance coverage service companions to fill an necessary hole of their distribution in an economical method.”

Mr. Klusas added, “Final yr our development enterprise accomplished its largest job of the yr within the prior yr quarter. As a result of timing this yr, now we have an analogous job, however it’s scheduled within the subsequent quarter, making a tough comparability to final yr by means of just one quarter. The truth is, the outcomes from this previous quarter signify a number of the buildup in supplies and mobilization of sources from an analogous job with out the corresponding income. This uneven timing of the mission between years ought to offset, at which level our efficiency can be extra akin to the earlier yr.”

Mr. Klusas continued, “We’ve got been centered on lowering bills the place attainable. Moreover, our internet earnings from persevering with operations was affected by adversarial efficiency in our non-operating funding earnings versus the prior yr, mirrored in a usually much less strong efficiency of the fairness portion of our funding portfolio. The tough financial setting additionally factored into our resolution to declare a $.05 dividend in comparison with a $.07 dividend within the earlier quarter, as our choice can be to err in being prudent too shortly over being sluggish and vulnerable to panic ought to difficult financial situations proceed and use that prudence to proceed to enhance our stability sheet.”

Fiscal 2023 First Quarter Monetary Evaluation

  • Whole revenues for the three-month interval ended June 30, 2022, had been $4,382,845, in comparison with $6,490,443 within the prior yr quarter. The lower was as a consequence of a shift of the enterprise and service combine within the insurance coverage distribution enterprise. Building income decreased to $205,661 in comparison with $490,147 within the first quarter of FY2022, which was due primarily to the timing of a big mission final yr versus this yr.
  • Internet working income (gross revenue) for the quarter was $1,262,026, in comparison with internet working income of $1,385,126 within the prior-year fiscal interval as a consequence of elevated gross revenue margins within the insurance coverage enterprise.
  • Working bills decreased to $878,216 in comparison with $1,003,661 for a similar interval of the prior yr as the corporate continued to deal with value discount efforts.
  • The Firm reported working earnings from persevering with operations of $383,810, in comparison with working earnings of $381,465 within the prior-year interval, as a consequence of constant efficiency within the insurance coverage enterprise offset by adversarial timing within the development enterprise.
  • Working EBITDA (excluding funding portfolio earnings) was $446,480, in comparison with $439,249 within the prior yr quarter. A be aware reconciling working EBITDA to working earnings could be discovered on the finish of this launch.
  • Funding loss, internet (from non-operating funding portfolio) for the quarter was $(670,618), as in comparison with an funding achieve, internet (from non-operating funding portfolio) of $221,146 for a similar quarter of the earlier fiscal yr as the worth of the Firm’s fairness portfolio declined. Whereas the Firm had realized and unrealized losses in its non-operating funding portfolio, many of the losses had been unrealized losses.
  • Internet loss for the fiscal 2023 first quarter was ($243,574), or ($0.03) per share, as in comparison with internet earnings of $657,230, or $0.08 per share, within the prior yr interval. This lower was largely because of the decline in internet funding earnings.

Steadiness Sheet Info

  • TMA’s stability sheet on June 30, 2022, mirrored money and money equivalents of $2.5 million; working capital of $6.9 million; and shareholders’ fairness of $6.9 million; in comparison with money and money equivalents of $1.6 million, working capital of $8.0 million, and shareholders’ fairness of $7.5 million as of June 30, 2021.

About The Advertising and marketing Alliance, Inc.

Headquartered in St. Louis, MO, TMA gives help to impartial insurance coverage brokerage businesses, with a purpose of integrating insurance coverage and “insuretech” engagement platforms to supply members value-added companies on a extra environment friendly foundation than they’ll obtain individually.

Investor data could be accessed by means of the shareholder part of TMA’s web site at: http://www.themarketingalliance.com/shareholder-information.

TMA’s widespread inventory is quoted on the OTC Markets (http://www.otcmarkets.com) below the image “MAAL”.

Ahead Wanting Assertion

Traders are cautioned that forward-looking statements contain dangers and uncertainties that will have an effect on TMA’s enterprise and prospects. Examples of forward-looking statements embrace, amongst others, statements we make relating to our expectations for our efficiency in future intervals, our potential to acquire trade acceptance and aggressive benefits of a multi-carrier digital platform for all times insurance coverage functions, our expectations with respect to the relative permanence of no-contact enterprise options, and the distribution of latest life insurance coverage merchandise. Any forward-looking statements contained on this press launch signify our estimates, expectations or intentions solely as of the date hereof, or as of such earlier dates as are indicated, and shouldn’t be relied upon as representing our views as of any subsequent date. These statements contain quite a lot of dangers and uncertainties, together with, however not restricted to, the impact of the COVID-19 pandemic on our enterprise, monetary situation and outcomes of operations, in addition to the pandemic’s impact of heightening different dangers inside our enterprise and ways in which insurance coverage carriers could react to them of their underwriting insurance policies; privateness and cyber safety rules; expectations of the financial setting, materials adversarial modifications in financial situations within the markets we serve and within the normal economic system; future state and federal regulatory actions and situations within the states during which we conduct our enterprise; our potential to work with carriers on advertising and marketing, distribution and product improvement; pricing and different fee selections and insurance policies of the carriers in our insurance coverage distribution enterprise, modifications within the public securities markets that have an effect on the worth of our funding portfolio, climate and environmental situations within the areas served by our earth transferring and excavation enterprise, the mixing of our operations with these of companies or belongings now we have acquired or could purchase sooner or later and the failure to comprehend the anticipated advantages of such acquisition and integration. Whereas we could elect to replace forward-looking statements in some unspecified time in the future sooner or later, we particularly disclaim any obligation to take action.

 

CONSOLIDATED STATEMENTS OF OPERATIONS

Unaudited

 

Three Months Ended

June 30,

2022

2021

 

Insurance coverage fee and price income

$

4,002,084

 

$

5,920,296

 

Building income

205,661

 

490,147

 

Different insurance coverage income

175,100

 

80,000

 

Whole revenues

4,382,845

 

6,490,443

 

Insurance coverage distributor associated bills:

Distributor bonuses and commissions

2,318,794

 

4,273,268

 

Enterprise processing and distributor prices

456,511

 

513,549

 

Depreciation

2,958

 

3,900

 

2,778,263

 

4,790,717

 

Prices of development:

Direct and oblique prices of development

297,352

 

270,800

 

Depreciation

45,204

 

43,800

 

342,556

 

314,600

 

Whole prices of revenues

3,120,819

 

5,105,317

 

Internet working income

1,262,026

 

1,385,126

 

Whole normal and administrative bills

878,216

 

1,003,661

 

Working earnings from persevering with operations

383,810

 

381,465

 

Different earnings (expense):

Funding achieve, internet

(670,618

)

221,146

 

Curiosity expense

(52,884

)

(54,138

)

Paycheck safety program forgiveness

24,500

 

128,525

 

Achieve on sale of kit

0

 

0

 

Revenue from persevering with operations earlier than provision for earnings taxes

(315,192

)

676,998

 

Revenue tax expense

(57,200

)

130,100

 

Revenue (loss) from persevering with operations

(257,992

)

546,898

 

Discontinued operations:

Revenue from discontinued operations, internet of earnings taxes

14,418

 

110,332

 

Internet earnings from discontinued operations

14,418

 

110,332

 

Internet Revenue (Loss)

$

(243,574

)

$

657,230

 

 
 

Common Shares Excellent

8,081,266

 

8,081,266

 

Working Revenue from persevering with operations per Share

$

0.05

 

$

0.05

 

Internet Revenue per Share

$

(0.03

)

$

0.08

 

 

CONSOLIDATED BALANCE SHEETS

Unaudited

 

June 30, 2022

March 31, 2022

ASSETS

CURRENT ASSETS

Money and money equivalents

$

2,461,956

$

1,561,037

Fairness securities

3,904,217

6,037,254

Restricted money

536,212

522,800

Accounts receivable

9,710,905

11,188,833

Stock

7,534

1,140

Present portion of notes receivable

146,645

185,473

Pay as you go bills

189,036

164,068

Belongings associated to discontinued operations

6,822

22,126

Whole present belongings

16,963,327

19,682,731

PROPERTY AND EQUIPMENT, internet

817,945

969,512

OTHER ASSETS

Notes receivable, internet because of the allowance

586,435

674,633

Restricted money

2,369,036

2,922,347

Working lease right-of-use belongings

402,534

55,161

Different belongings associated to discontinued operations

0

0

Whole different belongings

3,358,005

3,652,141

$

21,139,277

$

24,304,384

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

CURRENT LIABILITIES

Accounts payable and accrued bills

7,930,566

9,769,064

Dividends payable

566,949

0

Line of credit score payable

400,000

350,000

Present portion of notes payable

811,223

784,170

Present portion of finance lease legal responsibility

67,276

70,781

Present portion of working lease legal responsibility

131,851

55,161

Liabilities associated to discontinued operations

87,194

636,681

Whole present liabilities

9,995,059

11,665,857

LONG-TERM LIABILITIES

Notes payable, internet of present portion and debt issuance prices

3,529,616

4,601,703

Finance lease legal responsibility, internet of present portion

165,191

238,460

Working lease legal responsibility, internet of present portion

276,497

0

Deferred taxes

200,000

275,400

Whole long-term liabilities

4,171,304

5,115,563

Whole liabilities

14,166,363

16,781,420

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS’ EQUITY

Frequent inventory, no par worth; 50,000,000 shares licensed,

8,081,266 shares issued and excellent June 30, 2021

8,081,266 shares issued and excellent June 30, 2022

1,025,341

1,025,341

Retained earnings

5,947,573

6,497,623

Whole shareholders’ fairness

6,972,914

7,522,964

$

21,139,277

$

24,304,384

Word – Working EBITDA (excluding funding portfolio earnings)

   

Three Months Ended

   

EBITDA Calculation

June 30,

   

2022

2021

   

Working Revenue/(Loss) from Persevering with Operations

$

383,810

$

381,465

   

Add:

   

Depreciation/Amortization

62,670

57,784

   

EBITDA

$

446,480

$

439,249

The Firm elects to not embrace funding portfolio earnings as a result of the Firm believes it’s non-operating in nature.

The Firm makes use of Working EBITDA as a measure of working efficiency. Nonetheless, Working EBITDA is just not a acknowledged measurement below U.S. usually accepted accounting rules, or GAAP, and when analyzing its working efficiency, buyers ought to use Working EBITDA along with, and never as a substitute for, earnings as decided in accordance with GAAP. As a result of not all corporations use an identical calculations, its presentation of Working EBITDA will not be akin to equally titled measures of different corporations and is due to this fact restricted as a comparative measure. Moreover, as an analytical instrument, Working EBITDA has further limitations, together with that (a) it isn’t supposed to be a measure of free money move, because it doesn’t contemplate sure money necessities akin to tax funds; (b) it doesn’t replicate modifications in, or money necessities for, its working capital wants; and (c) though depreciation and amortization are non-cash prices, the belongings being depreciated and amortized usually must get replaced sooner or later, and Working EBITDA doesn’t replicate any money necessities for such replacements, or future necessities for capital expenditures or contractual commitments. To compensate for these limitations, the Firm evaluates its profitability by contemplating the financial impact of the excluded expense objects independently in addition to in reference to its evaluation of money flows from operations and thru using different monetary measures.

The Firm believes Working EBITDA is helpful to an investor in evaluating its working efficiency as a result of it’s extensively used to measure an organization’s working efficiency with out regard to sure non-cash or unrealized bills (akin to depreciation and amortization) and bills that aren’t reflective of its core working outcomes over time. The Firm believes Working EBITDA presents a significant measure of company efficiency unique of its capital construction, the strategy by which belongings had been acquired and non-cash prices and gives further helpful data to measure efficiency on a constant foundation, notably with respect to modifications in efficiency from interval to interval.

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