SOURCE: Alliance HealthCard

February 12, 2009 10:31 ET

Alliance HealthCard Reports 19% Revenue Growth, 50% Increase in Net Income and Earnings per Share of $.06 for Quarter

NORMAN, OK--(Marketwire - February 12, 2009) - Alliance HealthCard, Inc. (OTCBB: ALHC), a leading provider of health discount and lifestyle benefits, today announced its financial results for the first quarter ended December 31, 2008.

Fiscal 2009 First Quarter Highlights:

--  Revenue increased 19% to $5.7 million
--  Gross profit up 14% to $2.6 million
--  Operating Income up 13% to $1.2
--  Net income up 50% to $955,000
--  EPS of $.06 versus $.04

Chief Executive Officer Danny Wright commented, "The revenue and profit growth for the quarter reflects our focus on client retention and management of cost controls during this period. Given the current economic conditions, we are very pleased with our operating results. However, the economic environment has also led to higher than normal claims incidents related to the unemployment component included in many of our offerings and therefore impacting gross profit. Despite these increased costs, we were able to still post growth in our gross profit and operating income."

"The past quarter we have spent significant efforts focusing on the integration plan of Access Plans (AUSA)," stated Brett Wimberley, President. "We anticipate closing the Access Plans acquisition toward the end of this fiscal quarter, ending March 31. The Access Plans acquisition will more than double our revenue, diversify our client base and increase the markets where our products are offered. In addition, their America's Health Care Plan Agency (AHCP) is the nation's leading independent marketing organization serving the individual health insurance market and thus provides us a foray into this important market," Wimberley further added.

Rita McKeown, CFO for Alliance HealthCard, stated, "Our operating profit has allowed us to further pay down existing promissory notes. The balance has been reduced to $2.7 million from the original $7.2 million in March 2007. Also, during the last 12 months, our shareholder's equity has increased 250% from $1.2 million to $4.2 million." Mrs. McKeown further commented, "Due to a tax credit for an investment in an economic development entity, the company had a lower tax provision for the quarter than in the prior quarter that resulted in an effective increase of $.01 EPS for the quarter."

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
                                                 December 31,
                                             2008           2007
                                          (Unaudited)    (Unaudited)
                                         -------------  -------------
Net revenues                             $   5,668,541  $   4,763,633
Direct costs                                 3,087,413      2,489,547
                                         -------------  -------------

Gross profit                                 2,581,128      2,274,086

Marketing and sales expenses                   312,316        264,493
Depreciation and amortization
 expenses                                      138,204        135,875
General and administrative
 expenses                                      903,117        788,435
                                         -------------  -------------

Operating income                             1,227,491      1,085,283
Other income (expense):
  Interest income                                4,355         15,353
  Interest (expense)                           (47,132)       (57,990)
                                         -------------  -------------
Total other income (expense):                  (42,777)       (42,637)
                                         -------------  -------------

Net income before income taxes               1,184,714      1,042,646
Provision for income taxes
  Current                                      404,264        406,750
  Deferred tax (benefit)                      (175,000)             -
                                         -------------  -------------
Total provision for income taxes               229,264        406,750
                                         -------------  -------------

Net income                               $     955,450  $     635,896
                                         =============  =============

Per share data:
  Basic                                  $        0.06  $        0.04
                                         =============  =============

  Diluted                                $        0.06  $        0.04
                                         =============  =============

Basic weighted average
 shares outstanding                         14,833,127     14,688,986
                                         =============  =============

Basic weighted diluted
 average shares outstanding                 14,838,649     15,405,213
                                         =============  =============

                           Alliance HealthCard, Inc.
                     Consolidated Condensed Balance Sheets

                                                             September 30,
                                              December 31,    (Derived
                                                 2008        From Audited
                                              (Unaudited)    Statements)
                                            --------------  --------------

Current assets:
  Cash and cash equivalents                 $    3,198,389  $    3,012,683
  Restricted cash                                  156,935         156,935
  Accounts receivable, net                       2,678,641       2,486,938
  Prepaid expenses                                  34,556          31,372
                                            --------------  --------------
Total current assets                             6,068,521       5,687,928
Furniture and equipment, net                       166,451         165,020
Goodwill                                         2,534,152       2,534,152
Intangibles-Customer lists, net                  1,583,326       1,708,883
Investment in LLC, pledged                         100,000               -
Deferred income taxes and other                    564,692         427,604
                                            --------------  --------------
Total assets                                $   11,017,142  $   10,523,587
                                            ==============  ==============

Liabilities and stockholders' equity

Current liabilities:
  Accounts payable                          $    1,043,302  $      927,101
  Accrued salaries and benefits                    141,581         161,732
  Claims liability                                 508,000         462,596
  Deferred revenue                                 722,440         843,868
  Current portion of notes payable to
   related parties                               2,289,663       2,289,663
  Accrued income taxes                             309,778               -
  Liability for unrecognized tax benefit           166,000         166,000
  Other accrued liabilities                      1,210,424       1,468,349
                                            --------------  --------------
  Total current liabilities                      6,391,188       6,319,309
Long term liabilities:
  Notes payable to related parties, net
   of discount and current portion shown
   above                                           397,807         931,581
                                            --------------  --------------
Total liabilities                                6,788,995       7,250,890
                                            --------------  --------------

Stockholders' equity:
  Common stock, $.001 par value; 100,000,000
   shares authorized; 14,833,127 shares issued
   and outstanding at December 31, 2008
   and September 30, 2008, respectively             14,833          14,833
  Additional paid-in-capital                     6,808,721       6,808,721
  Retained deficit                              (2,595,407)     (3,550,857)
                                            --------------  --------------
  Total stockholders' equity                     4,228,147       3,272,697
                                            --------------  --------------
Total liabilities and stockholders' equity  $   11,017,142  $   10,523,587
                                            ==============  ==============

Contact Information

  • Contacts:

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