SOURCE: Alliance HealthCard, Inc.

May 06, 2008 08:30 ET

Alliance HealthCard Reports Fiscal 2008 Second Quarter Results

Company Reports Record Revenues With Operating Income Growth of 268%

ATLANTA, GA--(Marketwire - May 6, 2008) - Alliance HealthCard, Inc. (OTCBB: ALHC), a leading provider of health discount and lifestyle benefits, today reported record revenue, gross profit and net income, for the second quarter, which ended March 31, 2008.

Fiscal 2008 Second Quarter Highlights:

--  Revenue increased 28% to $5.3 million
--  Gross profit up 76% to $2.4 million
--  Net Income was $729,000 or $0.05 per share.
    

Chief Executive Officer, Danny Wright, commented, "This quarter, our company continued to hit some new milestones within key benchmarks. We set records for the quarter in revenue, gross profit, operating income and earnings per share. In addition, we have made strides in improving our balance sheet. Our cash flow from operations has allowed us to continue reducing our long term notes related to our merger with Benefit Marketing Solutions last year. This helped improve our stockholders' equity by more than 300%, from $433,000 to $1.9 million in just the first six months of our fiscal year."

Wright further continued, "By all benchmarks, the first six months have been outstanding, and we expect this trend to continue. This was gratifying as several key accounts which we have under contract have not hit final implementation, and did not have an impact on this quarter. These operational and financial milestones are significant in the wake of an economy that has impacted many. They further validate our strong recurring revenue stream and non-cyclical business model."

High client retention, implementation of two new accounts, and improved member acceptance within existing accounts all played a role in the company's organic growth. Brett Wimberley, President, stated, "As we have seen our gross profit margins improve and general and administrative expenses stabilize, the increased top line is beginning to show marked effects on our overall operating margin. All of these had an impact in this second fiscal quarter."

Earnings Conference Call

As previously announced, the Company will host a conference call with the investment community on May 6, 2008, during which Alliance HealthCard's Chairman and CEO, Danny Wright and other members of senior management will discuss the financial results for the second quarter of fiscal year 2008, which ended March 31, 2008.

The call information follows:

--  Date: May 06, 2008
--  Time: 11:00 a.m. Eastern Daylight
--  Dial-in number for US/Canada: (877) 388-5282
--  Conference ID: 45705017
    

Individuals unable to participate in the conference call may hear a telephonic replay:

--  Dates: from 1:00 p.m. EDT on May 6, 2008 to 12:59 p.m. EDT on May 20,
    2008
--  Domestic dial-in: (800) 642-1687
--  Pass code: 45705017
    

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
                                  (Unaudited)



                        Three Months Ended          Six Months Ended,
                             March 31,                  March 31,
                     -------------------------  --------------------------
                        2008          2007          2008          2007
                     -----------  ------------  ------------  ------------
Net revenues         $ 5,291,812  $  4,137,161  $ 10,055,445  $  7,792,611
Direct costs           2,934,862     2,797,247     5,424,409     5,430,679
                     -----------  ------------  ------------  ------------
Gross Profit           2,356,950     1,339,914     4,631,036     2,361,932
                     -----------  ------------  ------------  ------------
Operating expenses:
  Sales and
   marketing             363,285       206,552       627,778       397,516
  Depreciation and
   amortization          138,405        52,134       274,280        69,409
  General and
   administrative        784,160       790,194     1,572,595     1,405,288
                     -----------  ------------  ------------  ------------
Total operating
 expenses              1,285,850     1,048,880     2,474,653     1,872,213
                     -----------  ------------  ------------  ------------
Operating income       1,071,100       291,034     2,156,383       489,719
                     -----------  ------------  ------------  ------------
Other income
 (expense):
   Other income          529,671             -       529,671             -
   Interest income        10,014        12,781        25,367        32,156
   Interest
    (expense)            (54,735)      (15,305)     (112,725)      (18,833)
                     -----------  ------------  ------------  ------------
Total other income
 (expense):              484,950        (2,524)      442,313        13,323
                     -----------  ------------  ------------  ------------
Income before income
 taxes                 1,556,050       288,510     2,598,696       503,042
Income taxes             461,471             -       868,221             -
                     -----------  ------------  ------------  ------------
Net income             1,094,579       288,510     1,730,475       503,042
Less dividends and
 distributions           365,720     6,666,417       365,720     6,666,417
                     -----------  ------------  ------------  ------------
Net income (loss)
 available for
 common stock        $   728,859  $ (6,377,907) $  1,364,755  $ (6,163,375)
                     ===========  ============  ============  ============
Per share data:
  Basic              $      0.05  $      (0.44) $       0.09  $      (0.42)
                     ===========  ============  ============  ============
  Diluted            $      0.05  $      (0.44) $       0.09  $      (0.42)
                     ===========  ============  ============  ============

Basic weighted
 average shares
 outstanding          14,688,986    14,524,263    14,722,908    14,524,263
                     ===========  ============  ============  ============

Basic weighted
 diluted average
 shares outstanding   15,405,213    14,524,263    15,287,632    14,524,263
                     ===========  ============  ============  ============

Contact Information

  • Contacts:

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

    Investor Relations
    James Kautz or Todd Atenhan
    404-806-1393