In late 2004, Amacore Group acquired another company, LBI Brokerage, a managing general agency for group health and life insurance products (products that are synergistic with Amacore Groups vision plan). A managing general agency is an agency appointed by an insurance company for the express purpose of distributing its products to downline general agents and in turn market its product line (including Amacore Groups vision plan) downline to its agents and producers. LBI has been appointed the managing general agency for Transamerica, which is a part of the AEGON Insurance Group, one of the top 50 largest public financial companies in the world, ranked by assets. LBI is rapidly developing its distribution system and expects to contribute to Amacore Groups bottom line in 2005 and to increase its contribution level in subsequent years.
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For the six months ended June 30, 2005, Amacore Groups gross income of $198,755 was approximately $119,000 more than Amacore Groups gross income recorded in the same timeframe in 2004 of $79,823. Approximately $44,000 of this increase resulted from commission income earned by LBI during the first six months of 2005. The remaining $64,000 increase in revenue, derived from the sales of memberships, resulted from Amacore Group shifting its emphasis, as discussed above, from retail marketing of memberships to the wholesale marketing of its memberships and to the development of a more diversified and expanded wholesale customer base; one which will include Amacore Groups program as a premium benefit under the wholesale customers label. Approximately $55,000 of the increase was attributable to the recognition of revenues received in late 2004 from a wholesale customer but partially earned during the first six months of 2005.
Again, let me know if you see something bad I should know about before I plunge.
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I looked at their income statement. Most of the income was from a negitive selling and general admin and "other" income. How to you have a negative selling and administrative expence? Do they charge their salesmen to work there? What was the "other" income from?
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I don't think you understand my point. Most of last quarter earnings are not from their normal busness operations. Until you find out more about the where they came from you wont know what the stock is worth. My point about the salesmen was a joke. Their income statment reported a negitive expence under selling. A negitive expense is income. Just like having a negitive balance on your credit card means the Credit card company owes you money. I don't understand what it means to have a negitive expense.
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