Access Plans Inc. (APNC.OB) Reports Q1 2010 Results, Positively Impacted by Access Plans USA Acquisition

QualityStocks would like to highlight Access Plans Inc. (OTCBB: APNC). Access Plans is a leading membership and insurance marketing company with three complementary distribution channels offering multiple opportunities for growth. The Wholesale Plans Division specializes in turnkey, private label membership benefit plans offered through retail outlets including rent-to-own centers.

In the company’s news yesterday,

Access Plans Inc. posted its first-quarter results for the period ended December 31, 2009. The quarterly results reflect the company’s April 2009 acquisition of Access Plans USA.

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.

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Forward-Looking Statement:

This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Risks and uncertainties applicable to the company and its business could cause the company's actual results to differ materially from those indicated in any forward-looking statements.