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Over the past several quarters, Alliance HealthCard’s consistent execution of its organic growth and acquisition strategy has been validated by top line growth near 20 percent, along with strong gross margin and bottom line performances.
Its March 2007 acquisition of Benefit Marketing Solutions (BMS) has made Alliance the leader in the burgeoning market for membership savings programs, and the Company has realized substantial direct cost reductions resulting from the economies of scale. The acquisition of AccessPlansUSA further validated management’s execution as it more than doubled the revenue of the company and opened new markets with new products in the insurance industry.
The Company has enjoyed consistent EBITDA and earnings growth, and an attractive P/E compared with its peer group. With the acquisition costs now behind them, those factors should become more apparent to investors in upcoming quarters...
Additionally, organic growth should be bolstered by recently signed contracts, commencing this year, with several large national companies. Alliance also is stepping up its marketing efforts targeting some of the world’s largest banking and finance institutions. With Alliance’s share price currently hovering below a dollar, it seems likely that these factors have not yet been recognized by the investment community, making Alliance HealthCard (ALHC) both a value and a growth opportunity.
Alliance HealthCard, Inc. (the “Company”) develops and distributes consumer membership plans and consumer driven healthcare programs.
The Company’s operations are currently organized under three business segments:
• Wholesale Plans — plan offerings are customized membership marketing plans primarily offered at rent-to-own retail stores. $5.0 million, (36% of total revenue) and $14.7 million, (58% of total revenue) during the three and nine months ended June 30, 2009
• Retail Plans — plan offerings are primarily healthcare savings plans. These plans are not insurance, but allow members access to a variety of healthcare networks to obtain discounts from usual and customary fees. Revenue attributable to retail plans was approximately $4.5 million, (32% of total revenue) and $8.7 million, (34% of total revenue) during the three and nine months ended June 30, 2009
• Insurance Marketing Division — markets individual major medical health insurance and other insurance products through a national network of independent agents. Revenue of $5.7 million for 3rd Q, the new segment from the acquisition of Access Plans
Interesting poinst CEO made during 3rd Q conference call.
He said of its 3700 agents for America's Heath Care Plans only 10% were active and they were going to make an effort to incentivise into selling. That is a lot of potential sales just waiting to be made.
Also he hinted at possiblity they might sell insurance or the membership cards to customers of the Rent to Own stores which they sell payment insurance to now. That is over 3,000 stores which could mean huge revenue.
This new PelosiCare being pushed is also great for ALHC.
Even though I am against all of this, ALHC benfits greatly from mandated insurance.
Their insurance marketing business brought in over $5million last Q, if we see 40+ million people be forced to get insurance they stand to do well.
4th Q and Fiscal 2009 numbers should be out very soon!
This Q will be telling in how well they are cutting overhead from Access merger.
Hoping for .15 to .18 earnings per share for 2009.
This is going to break a $1 and stay.
The only people who have shares are employees and they are being paid nice salaries. Can't wait to see who they buy up next!
How ALHC benefits from Baucus Healthcare bill. That one is easy, they have the Insurance marketing division.
When 40 million+ people flood the market looking for free insurance, the Americas Health Care Plan business will do some serious revenue. It will also be a great complement to the monthly discount cards they sell. High deductible plans go well with a cheap monthly membership.
The site
http://www.ahcpsales.com/
This statment right here is why we deserves a much higher PE. With $4,000,000 in cash, ALHC has alot of working room for another merger that doubles size of company.
Mr. Wright concluded, "With the integration of the Access Plan USA operations largely complete, we will focus on driving top-line growth and margin expansion through several organic initiatives that leverage our existing assets including our installed client base and distribution capabilities. We will also look to further our successful track record of acquiring complementary businesses that meet our stringent criteria."
More institutional/insider buying, got about 7,000 at around a $1 per share.
Looks like someone let for a aboout 10k, gonna pick up all I can in the .75 range.
A company with $4 million in bank and bringing in profit of $3 million deserves a much higher PE ratio.
Another form 4, more Institutional buying by a directors fund.
Most buying in last two weeks has been from his funds and me.
Just a matter of time before this runs to a few bucks.
That was interesting, just saw about 4,000 shares get bought, took out a huge range.
Sitting at .99 x 1.50
BID uptick
If anyone wants a sizeable amount of shares they are going have have to hit the ASK
Nice institutional buying last week.
Small ammounts, if they want anymore they will pay much higher prices.
This thing has almost no float.
Huge spread, if I can get some interest this think gets some big up movement.
Notice on friday, only 7,000 shares took down .65
And another 5,000 took us all the way to .70
If there is any volume this thing easily goes over a dollar.
With over $4 million in cash, acquisitions are possible.
Alliance HealthCard Reports Fiscal 2009 Third Quarter Results
Successfully Integrates Acquired Access Plans USA Operations
NORMAN, OK -- (Marketwire) -- 08/13/09 -- Alliance HealthCard, Inc. (OTCBB: ALHC), a leading membership and insurance marketing company, today announced financial results for its fiscal third quarter ended June 30, 2009. The Company's acquisition of Access Plans USA, completed on April 1, 2009, was a positive contributor to operating income in the fiscal 2009 third quarter.
As a result of the acquisition and the Company's significantly larger base of operations, Alliance HealthCard will now segment its reporting along three divisions: Wholesale Plans, Retail Plans, and Insurance Marketing.
For the fiscal 2009 third quarter, revenues increased to $14.0 million compared to $5.4 million in the prior-year period primarily as a result of the acquired Access Plans USA operations. Operating income was unchanged versus the prior-year at $1.3 million which reflected the impact of the acquired Access Plans USA operations, higher claims expense in Wholesale Plans, and a one-time $350,000 benefit related to a non-recurring transaction in April 2009. During the quarter, the Company made significant progress in the integration of the acquired operations including elimination of redundant costs, consolidation of back-office operations, and improved network purchasing economies, which is expected to benefit operating performance in future periods. Net income for the fiscal 2009 third quarter was $862,000, or $0.04 per diluted share, compared to net income in the prior-year period of $530,000, or $0.04 per diluted share. As a result of the Access Plans USA acquisition, Alliance HealthCard had 21.6 million shares outstanding at June 30, 2009, versus 14.8 million shares outstanding at the end of last year's third quarter.
"In the third quarter, we made significant progress integrating the acquired Access Plans businesses with our operations," commented Danny Wright, Chief Executive Officer. "As a result, we turned a previously unprofitable business into a positive contributor to our operating performance. We expect to further improve operating performance in the acquired operations which should favorably impact our Retail and Insurance Marketing Divisions. In addition, we plan to expand Wholesale Plans into additional markets and further develop relationships with new and existing clients in our Retail Plans."
Mr. Wright continued, "We believe that, regardless of the outcome, the current national debate on healthcare reform will provide us with ample markets for membership programs and insurance marketing of both standard health insurance and supplemental insurance plans."
Wholesale Plans
In the fiscal 2009 third quarter, revenues for the Wholesale Plans Division increased 7.9% to $5.0 million, or 36% of total revenues, compared to $4.7 million in the prior-year period. The revenue increase was attributable to growth of an existing client relationship and the addition of new rent-to-own locations which represent the division's primary distribution channel. Profitability for the division was impacted by higher claims expense on certain product protection programs related primarily to increases in the national unemployment rate. As a result, operating income for the division declined to $508,000 from $1.1 million in the prior-year period.
Retail Plans
Revenues for the Retail Plans Division more than doubled to $4.5 million, or 32%, of total revenues, prior to inter-company eliminations, versus $1.9 million in the prior-year period. The increase was attributable primarily to the acquired Access Plans USA operations which expanded the Company's discount health membership offerings. Operating income for the division increased to $860,000 compared to $417,000 in the prior-year period.
Insurance Marketing
Insurance Marketing Division revenues were $5.7 million, or 41% of total revenues. Operating income was $114,000. The Insurance Marketing Division comprises the America's Health Care Plans (AHCP) operations acquired as part of the Access Plans USA acquisition. As a result, there are no comparable results from the prior-year period.
Mr. Wright concluded, "With the integration of the Access Plan USA operations largely complete, we will focus on driving top-line growth and margin expansion through several organic initiatives that leverage our existing assets including our installed client base and distribution capabilities. We will also look to further our successful track record of acquiring complementary businesses that meet our stringent criteria."
This is a steal at .65
They doubled the size of company this year with merger.
$2,147,803 NET income for 9 months ended June 30th 2009
You are talking they could make .14 cents per share net profit for fiscal year.
A 4 X PE for a company that just doubled revenue. There is a ton of room for growth still in all the revenue streams.
.6328 X .88
This is going to jump if anyone looks at their numbers and realized we are way undervalued.
With such a low float I really have a hard time there are any sellers at .63
Alliance has arrangement w/ Rent a Center(NASDAQ:RCII) a multibillion dollar company with over 3,000 location in America.
From latest Q report:
"Of the locations at June 30, 2009, 2,900 locations were operated or franchised by Rent-A-Center under the brands “Rent-A-Center”, “Get It Now,” and “ColorTyme,” Rent-A-Center, Inc., a Nasdaq (symbol RCII) traded company, is the largest rent-to-own company in the United States, Puerto Rico and Canada. Our revenue attributable to the contractual arrangements with Rent-A-Center was approximately $2.9 million"
Having a partner like that is a good thing.
Here is my pitch
Look at cash on hand, about $4 million. This is not a penny pump play. It is a real company, which just acquired Access Plans USA, a Nasdaq traded company. Only $2 mill in debt too.
Their three areas of business are all ripe for growth. The Retail Plans area will get a huge boost from the new Insurnace and Marketing that came with Access Plans. They will be good no matter what the Healthcare Reform bill looks like.
Also they are sitting about a 4 PE ratio. The float is very low since they only recently issued 8 million of the 21 million OS to Access Plans shareholders. Any buying that comes in and we will see a nice move.
The discount card business they are in is rapidly growing and there are many possible takeover candidates for ALHC. They are continueing to improve margins, and with $13 mil in revenue for the Quarter their is plenty of room for more profit.
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Cash and cash equivalents and restricted cash totaled $5.2 million at March 31st 2010
Feb 03, 2010 Access Plans Reports Fiscal 2010 First Quarter Results | |
Jan 29, 2010 Access Plans, Inc. Schedules Fiscal 2010 First Quarter Conference Call | |
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Dec 11, 2009 Access Plans Reports Fiscal 2009 Fourth Quarter and Year-End Results | |
Dec 07, 2009 Alliance HealthCard, Inc. Changes Corporate Name to Access Plans, Inc.; Stock Symbol to Change | |
Nov 05, 2009 Alliance HealthCard, Inc. Announces Officer Promotions | |
Aug 18, 2009 Alliance HealthCard, Inc. Names Michael Shiomos President of AHCP, Its Insurance Marketing Division | |
Aug 13, 2009 Alliance HealthCard Reports Fiscal 2009 Third Quarter Results | |
May 14, 2009 Alliance HealthCard Reports Results for Second Fiscal Quarter 2009 | |
Apr 01, 2009 |
Feb 12, 2009 Alliance HealthCard Reports 19% Revenue Growth, 50% Increase in Net Income and Earnings per Share of $.06 for Quarter | |
Dec 30, 2008 Alliance HealthCard Reports 2008 Fourth Quarter and Year-End Financial Results | |
Nov 14, 2008 Alliance HealthCard, Inc. Announces Acquisition of Access Plans USA, Inc. | |
Aug 28, 2008 Susan Matthews, Alliance HealthCard EVP of Sales and Marketing Named Association of Progressive Rental Organizations' 2008 Vendor of the Year | |
Aug 27, 2008 Alliance HealthCard Announces the Move of Its Headquarters to Norman, Oklahoma | |
Aug 25, 2008 DentalPlans.com Adds Alliance HealthCard to Its Extensive Selection | |
Jul 31, 2008 Alliance HealthCard Reports Fiscal 2008 Third Quarter Results | |
May 06, 2008 Alliance HealthCard Reports Fiscal 2008 Second Quarter Results Company Reports Record Revenues with Operating Income Growth of 268% | |
Apr 28, 2008 ALLIANCE HEALTHCARD ANNOUNCES MAY 6, 2008 CONFERENCE CALL TO DISCUSS RESULTS FOR SECOND QUARTER FY 2008 | |
Feb 13, 2008 Alliance HealthCard Reports Fiscal 2008 First Quarter Results Gross Profit Increased 123% With Revenue 30% Higher Compared to Prior Year | |
Jan 22, 2008 Alliance HealthCard to Present in New York City at Friedland Investment Undiscovered Equities Conference | |
Jan 15, 2008 Alliance HealthCard Reports 2007 Fourth Qtr. and Year-End Financial Results | |
Nov 06, 2007 Alliance HealthCard Signs Agreement for Acquisition of HealthExtras Supplemental Benefits Business Unit | |
Aug 01, 2007 Alliance HealthCard Reports First Combined Operating Results with Benefit Marketing Solutions (BMS) | |
May 16, 2007 Alliance HealthCard 2Q Profit Rises 57 Percent | |
Mar 01, 2007 Alliance HealthCard Completes Merger with Benefit Marketing Solutions |
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