SOURCE: Alliance HealthCard, Inc.

July 31, 2008 08:30 ET

Alliance HealthCard Reports Fiscal 2008 Third Quarter Results

Company Reports Record Quarterly Revenues of $5.4 Million With Operating Income Growth of 20%

ATLANTA, GA--(Marketwire - July 31, 2008) - Alliance HealthCard, Inc. (OTCBB: ALHC), a leading provider of health discount and lifestyle benefits, today announced its financial results for the third quarter ended June 30, 2008.

Fiscal 2008 Third Quarter Highlights:

--  Revenue increased 13% to $5.4 million
--  Gross profit up 11% to $2.5 million
--  Operating Income up 20% to $1.3 million

Chief Executive Officer, Danny Wright, commented, "We continue to be pleased with the Company's financial performance as we add new business and see further improvements in our operating profit. We have seen significant increases in sales activity from new accounts added in our second fiscal quarter and expect this trend to continue in future reporting periods." Wright further added, "The weakness in the financial sector has increased the demand for our products, as many institutions are looking for sources of additional fee income through products like ours. In the coming quarter we will initiate direct mail campaigns in partnership with some of the nation's largest banks."

"Implementation of new business and excellent client retention both played a role in the company's increase in revenue for the quarter," stated Brett Wimberley, President. "In addition, we were able to lower our G&A as a percentage of revenue by almost two points. We were particularly pleased by the improvement in operating margin given we had an increase in customer claims for the quarter. These claims appear to be returning to more historical levels. The improvement largely came from our improved cost structure for benefits and fulfillment. All of these had an impact in this third fiscal quarter."

"We are very well positioned to see further revenue increases provide significant contribution to our operating profit," Rita McKeown, CFO, stated. "Due to an increase in our estimate for income tax expense, the company had a higher tax provision for the quarter than in prior quarters, affecting reported net income," McKeown commented. The higher tax provision largely offset the gains the company had in operating profit, resulting in $.04 EPS for the quarter.

Earnings Conference Call

As previously announced, the Company will host a conference call with the investment community on July 31, 2008, during which Alliance HealthCard's Chairman and CEO, Danny Wright, and other members of senior management will discuss the financial results for the third quarter of fiscal year 2008, which ended June 30, 2008.

The call information follows:

--  Date: July 31, 2008
--  Time: 11:00 a.m. Eastern Daylight Time
--  Dial-in number for US/Canada: (877) 388-5282
--  Conference ID: 57901255
--  Individuals unable to participate in the conference call may hear a
    telephonic replay:
--  Dates: from 12:00 p.m. EDT on July 31, 2008 to 11:59 p.m. EDT on
    August 14, 2008
--  Domestic dial-in: (800) 642-1687
--  Pass code: 57901255

About Alliance HealthCard

Alliance HealthCard, Inc. (OTCBB: ALHC) is a leading provider of consumer membership plans offering access to networks which provide discounts to the consumer on a variety of products and services ranging from medical, dental and pharmacy to groceries, restaurants, travel, automotive and a host of others. The company also designs and markets in its consumer package specialty insurance and warranty products on the goods its marketing clients sell to their customers. The Company's plans are sold to consumers primarily through retail, rent to own, financial and consumer finance clients. Alliance HealthCard performs turnkey programs including design and fulfillment of marketing pieces and collateral support material, network support, customer service, regulatory compliance, and billing.

Safe Harbor Statement under the Private Securities Litigation Reform Act:

This press release contains "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, Section 27A of the Securities Act of 1933, as amended and pursuant to the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may relate to financial results and plans for future business activities, and are thus prospective. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are competitive pressures, loss of significant customers, the mix of revenue, changes in pricing policies, delays in revenue recognition, lower-than-expected demand for the Company's products and services, general economic conditions, and the risk factors detailed from time to time in the Company's periodic reports and registration statements filed with the Securities and Exchange Commission. Any forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995 and, as such speak only as of the date made.

                        Alliance HealthCard, Inc.
            Consolidated Condensed Statements of Operations

                         Three Months Ended         Nine Months Ended
                             June 30,                   June 30,
                    --------------------------  --------------------------
                        2008          2007          2008          2007
                    ------------  ------------  ------------  ------------

Net revenues        $  5,366,253  $  4,762,984  $ 15,421,698  $ 12,555,595
Direct costs           2,871,701     2,509,031     8,296,110     7,939,710
                    ------------  ------------  ------------  ------------

Gross Profit           2,494,552     2,253,953     7,125,588     4,615,885

Marketing and sales      306,552       277,955       934,330       675,471
General and
 administrative          755,997       758,479     2,328,592     2,163,767
Depreciation and
 amortization            138,222       138,449       412,502       207,858
                    ------------  ------------  ------------  ------------

Operating income       1,293,781     1,079,070     3,450,164     1,568,789
Other income
   Other income                -             -       529,671             -
   Interest income        19,477        19,592        44,844        51,748
   Interest (expense)    (54,733)      (94,720)     (167,458)     (113,553)
                    ------------  ------------  ------------  ------------
Total other income
 (expense):              (35,256)      (75,128)      407,057       (61,805)
                    ------------  ------------  ------------  ------------

   Income before
    income taxes       1,258,525     1,003,942     3,857,221     1,506,984
Income taxes             728,272       459,000     1,596,493       459,000
                    ------------  ------------  ------------  ------------

Net income               530,253       544,942     2,260,728     1,047,984
Less dividends and
 distributions                 -             -       365,720     6,666,417
                    ------------  ------------  ------------  ------------
Net income (loss)
 available for
 common stock       $    530,253  $    544,942  $  1,895,008  $ (5,618,433)
                    ============  ============  ============  ============
Per share data:
   Basic            $       0.04  $       0.04  $       0.13  $      (0.39)
                    ============  ============  ============  ============

   Diluted          $      0.04   $       0.04  $       0.12  $      (0.39)
                    ============  ============  ============  ============

Basic weighted
 average shares
 outstanding          14,833,127    14,524,263    14,760,056    14,524,263
                    ============  ============  ============  ============

Basic weighted
 diluted average
 shares outstanding   15,123,908    15,437,710    15,250,551    14,524,263
                    ============  ============  ============  ============

Contact Information

  • Contacts:

    Alliance HealthCard
    Tom Kiser
    770-734-9255 ext. 206
    Email Contact