ST. LOUIS, Aug. 12, 2025 (GLOBE NEWSWIRE) -- The Marketing Alliance, Inc. (OTC: MAAL) ("TMA" or the "Company"), announced its financial results today for its fiscal 2026 first quarter ended June 30, 2025.
Q1 2026 Financial Key Items (all comparisons to the prior year quarter)
- Revenues from operations were $4,859,890 compared to $4,458,043, an increase of over 9%
- Operating income from continuing operations of $250,266 compared to $48,856 in the prior year quarter
- Net income was $275,624 or $0.04 per share in the quarter compared to ($49,853) or ($0.01) per share in the prior year quarter
- During the quarter on April 2, the Company announced that its Board of Directors had authorized a share repurchase program to repurchase up to 800,000 shares of the Company's issued and outstanding common stock, effective immediately and concluding March 31, 2026. Repurchases under the program may be made through privately negotiated transactions when the Company is contacted directly or open market transactions (please see the Company's April 2, 2025, press release for more information and important disclosures). The press release is available on the Company's website.
Management Comments
Timothy M. Klusas, TMA's Chief Executive Officer, commented, "We were pleased with our start to this fiscal year. We continued to invest in the insurance distribution business and its growth. We pursued many projects in the quarter, and these have the potential to show promise in future quarters.
Further, as our business continues to evolve, in a previous quarter (ending December 2024) we elected to acknowledge the changing nature of our reimbursement and marketing revenues by recognizing them over their respective projected project lives (often the calendar year) instead of when agreed and billed. Historically the company had treated non-refundable reimbursement and marketing fee revenue from carriers as earned when the agreed upon amount was invoiced. We acknowledged any timing differences of these payments as deferred revenue on the balance sheet. We continued to treat reimbursement and marketing revenue as a time-duration item and allocated revenue throughout its respective period.
The construction business benefitted from cost control efforts and discipline in bidding and project selection. Our team felt our results reflected a very disciplined approach to only undertaking jobs that were economically profitable with respect to our capabilities."
First Quarter Fiscal Year 2026 Financial Review
- Revenues were $4,859,890 compared to $4,458,043 in the prior year quarter due to growth in both the insurance distribution business and the construction business.
- Net operating revenue (gross profit) for the quarter was $968,792 compared to net operating revenue of $848,631 in the prior year quarter.
- Operating expenses were less this quarter than the prior year quarter, $718,526 compared to $799,775. An increase in compensation expense was offset by a decrease in office and administrative expense, as the Company hired employees that were previously its outsourced bookkeeping and administrative staff.
- The Company reported operating income from continuing operations of $250,266 compared to $48,856, in the prior year period, with differences due to factors discussed above.
- Operating EBITDA (excluding investment portfolio income) of $296,612 was an increase from the prior year quarter of $123,607. A note reconciling operating EBITDA to operating income can be found at the end of this release.
- Investment gain (loss), net (from non-operating investment portfolio) for the quarter was $102,582 as compared with (37,220) in the previous year quarter.
- Net income was $275,624, or $0.04 per share, compared to ($49,853) or ($0.01) per share in the previous year quarter.
- During the quarter, on April 2, the Company announced that its Board of Directors had authorized a share repurchase program to repurchase up to 800,000 shares of the Company's issued and outstanding common stock, effective immediately and concluding March 31, 2026. As of August 7, the Company had repurchased 200,880 shares under this program. The April 2 announcement follows the successful completion of an 800,000 share repurchase program announced in October 2024 and completed March 2025.
Balance Sheet Information
- TMA's balance sheet on June 30, 2025, reflected cash and cash equivalents of $2.1 million; working capital of $5.2 million; and shareholders' equity of $5.6 million; compared to cash and cash equivalents of $2.1 million, working capital of $4.5 million, and shareholders' equity of $6.3 million as of June 30, 2024.
- As announced in the previous quarterly release, during this quarter the Company repaid a $1,912,882 note (payable) in full at its maturity in June. The proceeds to satisfy the note were previously in restricted cash and cash and cash equivalents.
About The Marketing Alliance, Inc.
Headquartered in St. Louis, MO, TMA provides support to independent insurance brokerage agencies, with a goal of integrating insurance and "insuretech" engagement platforms to provide members value-added services on a more efficient basis than they can achieve individually.
Investor information can be accessed through the shareholder section of TMA's website at:
http://www.themarketingallianceinc.com.
TMA's common stock is quoted on the OTC Markets (http://www.otcmarkets.com) under the symbol "MAAL".
Forward Looking Statement
Investors are cautioned that forward-looking statements involve risks and uncertainties that may affect TMA's business and prospects. Examples of forward-looking statements include, among others, statements we make regarding our expectations of growth based upon our investments in our business, our recently announced stock repurchase program, our plans to reduce expenses, and our ability to undertake more suitable jobs and generate earnings from our construction business. Any forward-looking statements contained in this press release represent our estimates, expectations or intentions only as of the date hereof, or as of such earlier dates as are indicated, and should not be relied upon as representing our views as of any subsequent date. These statements involve a number of risks and uncertainties, including, but not limited to, expectations of the economic environment, material adverse changes in economic conditions in the markets we serve and in the general economy; the ways that insurance carriers may react in their underwriting policies and procedures to the continuing risks they perceive from public health matters; our reliance on a limited number of insurance carriers and any potential termination of those relationships or failure to develop new relationships; privacy and cyber security matters and our ability to protect confidential information; future state and federal regulatory actions and conditions in the states in which we conduct our business; our ability to work with carriers on marketing, distribution and product development; pricing and other payment decisions and policies of the carriers in our insurance distribution business, changes in the public securities markets that affect the value of our investment portfolio; and weather and environmental conditions in the areas served by our construction business. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so.
Contact:
The Marketing Alliance, Inc.
Timothy M. Klusas, President
(314) 275-8713
tklusas@themarketingalliance.com
www.TheMarketingAlliance.com
-OR-
The Equity Group Inc.
Jeremy Hellman, Vice President
(212) 836-9626
jhellman@equityny.com
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
| Three Months Ended | |||||||
| June 30, | |||||||
| 2025 | 2024 | ||||||
| Insurance commission and fee revenue | $ | 4,680,304 | $ | 4,360,591 | |||
| Construction revenue | 179,586 | 97,452 | |||||
| Total revenues | 4,859,890 | 4,458,043 | |||||
| Insurance distributor related expenses: | |||||||
| Distributor bonuses and commissions | 3,190,482 | 3,021,403 | |||||
| Business processing and distributor costs | 519,626 | 391,395 | |||||
| Depreciation | 864 | 2,921 | |||||
| 3,710,972 | 3,415,719 | ||||||
| Costs of construction: | |||||||
| Direct and indirect costs of construction | 139,626 | 131,431 | |||||
| Depreciation | 40,500 | 62,262 | |||||
| 180,126 | 193,693 | ||||||
| Total costs of revenues | 3,891,098 | 3,609,412 | |||||
| Net operating revenue | 968,792 | 848,631 | |||||
| General and administrative expenses: | 718,526 | 799,775 | |||||
| Operating income from continuing operations | 250,266 | 48,856 | |||||
| Other income (expense): | |||||||
| Other | - | 4,938 | |||||
| Investment gains (losses), net | 102,582 | (37,220 | ) | ||||
| Interest | (17,824 | ) | (43,327 | ) | |||
| Income from continuing operations before provision for income taxes | 335,024 | (26,753 | ) | ||||
| Income tax expense | 59,400 | 23,100 | |||||
| Net Income | $ | 275,624 | $ | (49,853 | ) | ||
| Average Shares Outstanding | 7,324,234 | 8,110,266 | |||||
| Operating Income from continuing operations per Share | $ | 0.03 | $ | 0.01 | |||
| Net Income per Share | $ | 0.04 | $ | (0.01 | ) | ||
| CONSOLIDATED BALANCE SHEETS | ||||||
| Three Months Ended June 30, | ||||||
| 2025 | 2024 | |||||
| CURRENT ASSETS | ||||||
| Cash and cash equivalents | $ | 2,063,636 | $ | 2,126,142 | ||
| Equity securities | 2,182,601 | 2,703,556 | ||||
| Restricted cash | - | 573,841 | ||||
| Accounts receivable | 8,438,307 | 6,835,969 | ||||
| Current portion of notes receivable | - | 545,211 | ||||
| Prepaid expenses and other current assets | 222,645 | 250,589 | ||||
| Total current assets | 12,907,188 | 13,035,308 | ||||
| PROPERTY AND EQUIPMENT, net | 607,938 | 758,935 | ||||
| OTHER ASSETS | ||||||
| Notes receivable, net due to the allowance | - | 63,614 | ||||
| Restricted cash | - | 1,524,081 | ||||
| Operating lease right-of-use assets | 571,594 | 143,110 | ||||
| Total other assets | 571,594 | 1,730,805 | ||||
| $ | 14,086,720 | $ | 15,525,048 | |||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
| CURRENT LIABILITIES | ||||||
| Accounts payable and accrued expenses | 6,639,088 | 5,489,269 | ||||
| Deferred Revenue | 773,456 | 117,662 | ||||
| Current portion of notes payable | 115,872 | 2,782,111 | ||||
| Current portion of finance lease liability | - | 26,431 | ||||
| Current portion of operating lease liability | 157,244 | 86,213 | ||||
| Liabilities related to discontinued operations | 677 | 677 | ||||
| Total current liabilities | 7,686,338 | 8,502,363 | ||||
| LONG-TERM LIABILITIES | ||||||
| Notes payable, net of current portion and debt issuance costs | 206,536 | 285,270 | ||||
| Finance lease liability, net of current portion | - | 103,199 | ||||
| Operating lease liability, net of current portion | 419,620 | 53,103 | ||||
| Deferred taxes | 149,200 | 313,000 | ||||
| Total long-term liabilities | 775,356 | 754,572 | ||||
| Total liabilities | 8,461,694 | 9,256,935 | ||||
| COMMITMENTS AND CONTINGENCIES | ||||||
| SHAREHOLDERS' EQUITY | ||||||
| Common stock, no par value; 50,000,000 shares authorized, | ||||||
| 8,110,266 shares issued and outstanding June 30, 2024 | ||||||
| 7,324,234 shares issued and outstanding June 30, 2025 | 1,141,270 | 1,025,341 | ||||
| Treasury Stock | (1 | ) | - | |||
| Retained earnings | 4,483,758 | 5,242,772 | ||||
| Total shareholders' equity | 5,625,027 | 6,268,113 | ||||
| $ | 14,086,720 | $ | 15,525,048 | |||
Note - Operating EBITDA (excluding investment portfolio income)
| Three Months Ended | ||||||
| June 30, | ||||||
| 2025 | 2024 | |||||
| Operating Income from Continuing Operations | $ | 250,266 | $ | 48,856 | ||
| Add: | ||||||
| Depreciation/Amortization Expense | $ | 46,346 | $ | 74,751 | ||
| EBITDA (Excluding Investment Portfolio Income) | $ | 296,612 | $ | 123,607 | ||
The Company elects not to include investment portfolio income because the Company believes it is non-operating in nature.
The Company uses Operating EBITDA as a measure of operating performance. However, Operating EBITDA is not a recognized measurement under U.S. generally accepted accounting principles, or GAAP, and when analyzing its operating performance, investors should use Operating EBITDA in addition to, and not as an alternative for, income as determined in accordance with GAAP. Because not all companies use identical calculations, its presentation of Operating EBITDA may not be comparable to similarly titled measures of other companies and is therefore limited as a comparative measure. Furthermore, as an analytical tool, Operating EBITDA has additional limitations, including that (a) it is not intended to be a measure of free cash flow, as it does not consider certain cash requirements such as tax payments; (b) it does not reflect changes in, or cash requirements for, its working capital needs; and (c) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized often will have to be replaced in the future, and Operating EBITDA does not reflect any cash requirements for such replacements, or future requirements for capital expenditures or contractual commitments. To compensate for these limitations, the Company evaluates its profitability by considering the economic effect of the excluded expense items independently as well as in connection with its analysis of cash flows from operations and through the use of other financial measures.
The Company believes Operating EBITDA is useful to an investor in evaluating its operating performance because it is widely used to measure a company's operating performance without regard to certain non-cash or unrealized expenses (such as depreciation and amortization) and expenses that are not reflective of its core operating results over time. The Company believes Operating EBITDA presents a meaningful measure of corporate performance exclusive of its capital structure, the method by which assets were acquired, and non-cash charges and provides additional useful information to measure performance on a consistent basis, particularly with respect to changes in performance from period to period.
