The company reported revenues for the first quarter of fiscal 2010 at $13.3 million, up from $5.7 million reported for the first quarter of last year. Operating income was $1.6 million compared to $1.2 million for the same period the year prior. The increase in revenues and operating income reflect Access Plans USA operations.
“With most of the immediate cost savings realized from the acquired Access Plans operations, we shifted our emphasis in the quarter to positioning our businesses for sustainable, long-term growth,” commented Danny Wright, Access Plans’ CEO.
Access Plans has three complementary distribution channels offering multiple opportunities for growth: Wholesale Plans, Retail Plans and Marketing.
Wright said the Wholesale Plans Division benefited from moderating unemployment, giving the company the opportunity to boost its customer base and to introduce new products and services.
The Wholesale Plans Division realized revenues of $5.3 million, or 39 percent of total revenue, compared to $4.8 million the first quarter of last year.
Revenues for the Retail Plans Division for the quarter increased to $3.9 million, comprising 29 percent of total revenues, prior to inter-company eliminations, versus $2.1 million in the prior-year period. The company secured two new contracts in the first quarter, both of which are active and expected generate significant contributions to segment revenue in the second half of fiscal 2010.
“Within our Retail Plans Division, recent wins and solid execution are expected to drive top-line performance while an anticipated reduction in network costs resulting from a change in provider should enhance segment profitability,” Wright stated.
The Insurance Marketing Division realized profitability under Access Plans’ ownership, creating a growth platform to deliver the company’s products and services to the “most compelling geographic markets.”
Access Plans’ Insurance Marketing Division posted revenues for the first quarter at $5.5 million, or 41 percent of total revenues, versus $5.8 million in the fourth quarter of fiscal 2009. Since the division comprises the America’s Health Care Plans (AHCP) operations acquired as part of the Access Plans USA acquisition, there are no comparable quarterly results for the first quarter of fiscal 2009.