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ST. LOUIS, June 30, 2025 (GLOBE NEWSWIRE) -- The Marketing Alliance, Inc. (OTC: MAAL) ("TMA” or the "Company”), announced its financial results today for its fiscal 2025 year ended March 31, 2025.
FY 2025 Financial Key Items (all comparisons to the prior year period)
Revenues from operations were $21,373,673 compared to $19,585,772. The 9% increase was primarily due to 12% revenue growth in the insurance distribution business that was offset by a decline in construction revenueOperating income from continuing operations of $730,005 compared to $1,099,267 in the prior year Net income was $465,599 or $0.06 per share compared to $1,043,214 or $0.13 per share in the prior yearThe Company completed its share repurchase program announced October 2024, to repurchase up to 800,000 shares of issued and outstanding common stock
Management Comments
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Timothy M. Klusas, TMA’s Chief Executive Officer, commented, "We were pleased with our performance in the final quarter to finish this fiscal year, as some of the projects we initiated and key roles we created on our leadership team started to gain traction. We realized double-digit revenue gains in the insurance business and now turn to finding ways to streamline operations and improve operating efficiency.
Further, as our business continues to evolve, in the previous quarter 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 has treated non-refundable reimbursement and marketing fee revenue from carriers as earned when the agreed upon amount has been invoiced. We will now acknowledge any timing differences of these payments as deferred revenue on the balance sheet. Starting with the quarter that just ended, the company treated reimbursement and marketing revenue as a time-duration item and allocated revenue throughout its respective period.
The construction business was difficult this year as we saw expected work get cancelled or postponed, which affected revenues adversely throughout the year. This year we did not have a multi-year job of the same size as previous years. Unfortunately, we were not able to reduce costs proportionately, which translated to adverse performance on the bottom line. We continued to maintain a very disciplined approach to only undertaking jobs that were economically profitable with respect to our capabilities.”
Fiscal Year 2025 Financial Review
Revenues were $21,373,673 compared to $19,585,772, due to 12% growth in the insurance distribution business that was offset by a decrease in the construction business.
Net operating revenue (gross profit) for the year was $4,259,504, compared to net operating revenue of $4,655,172 in the prior year. While Net operating revenue was less in both insurance distribution and construction, the decrease was substantially in the construction business versus the prior year.
Although operating expenses were relatively flat at $3,529,499 compared to $3,555,905 for the prior year, the Company hosted two annual conferences during the fiscal year (April 2024 and March 2025) which increased travel and meeting expenses by approximately $150,000. This increase was offset by a decrease in compensation expense.
The Company reported operating income from continuing operations of $730,005 compared to $1,099,267 in the prior year period, with differences due to factors discussed above.
Operating EBITDA (excluding investment portfolio income) of $1,008,211 was less than the prior year EBITDA of $1,388,524. 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 year was ($138,010) as compared with $493,334 the previous year. Unrealized (losses) gains on investments, net were ($267,988) in the current fiscal year and $401,886 in the previous fiscal year.
Net income was $465,599, or $0.06 per share, compared to $1,043,214 or $0.13 per share.
Subsequent to the end of the fiscal year, 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 June 26, the Company had repurchased 103,360 shares under this program.
Balance Sheet Information
TMA’s balance sheet on March 31, 2025, reflected cash and cash equivalents of $2.0 million; working capital of $5.1 million; and shareholders’ equity of $5.4 million; compared to cash and cash equivalents of $2.9 million, working capital of $7.7 million, and shareholders’ equity of $6.7 million as of March 31, 2024.
Subsequent to the end of the fiscal year, 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 ability of our construction business to be engaged for projects and for those projects to commence on the anticipated timetable and with the anticipated profitability; 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.-OR- The Equity Group Inc.Timothy M. Klusas, President Jeremy Hellman, Vice President(314) 275-8713 (212) [email protected]
www.TheMarketingAlliance.com
CONSOLIDATED STATEMENTS OF OPERATIONS Twelve Months
Ended March 31, 2025 2024 Insurance commission and fee revenue and related $ 20,409,278 $18,301,751 Construction revenue 964,395 1,284,021 Total revenues 21,373,673 19,585,772 Insurance distributor related expenses: Distributor bonuses and commissions 14,110,303 12,137,471 Business processing and distributor costs 1,996,731 1,780,758 Depreciation 5,521 9,382 16,112,555 13,927,611 Costs of construction: Direct and indirect costs of construction 744,738 757,064 Depreciation 256,876 245,925 1,001,614 1,002,989 Total costs of revenues 17,114,169 14,930,600 Net operating revenue 4,259,504 4,655,172 Total General and administrative expenses 3,529,499 3,555,905 Operating income 730,005 1,099,267 Other income (expense): Other 4,938 (67,390)Investment (losses) gains, net (138,010) 493,334 Interest (119,572) (196,620) Income before provision for income taxes 477,361 1,328,591 Income tax expense 11,762 285,377 Net income $ 465,599 $1,043,214 Average Shares Outstanding 7,397,594 8,081,266 Net Income per Share$ 0.06 $0.13
CONSOLIDATED BALANCE SHEETS March 31, 2025 2024ASSETS CURRENT ASSETS Cash and cash equivalents$2,043,274 $2,949,323Equity securities 2,630,444 2,837,506Restricted cash 1,623,608 573,841Accounts receivable, net 8,480,785 7,492,812Current portion of notes receivable - 548,552Prepaid expenses and other current assets 277,880 506,456 Total current assets 15,055,991 14,908,490 PROPERTY AND EQUIPMENT, net 650,875 829,680 OTHER ASSETS Notes receivable, net of allowance and current portion - 63,614Restricted cash - 1,523,812Operating lease right-of-use assets 136,485 179,218 Total other assets 136,485 1,766,644 15,843,351 17,504,814 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable and accrued expenses$6,877,555 $6,151,797Deferred revenue 726,606 30,000Current portion of notes payable 2,173,614 938,068Current portion of finance lease liability 103,350 36,174Current portion of operating lease liability 93,865 95,305Liabilities related to discontinued operations 677 677 Total current liabilities 9,975,667 7,252,021 LONG-TERM LIABILITIES Lines of credit payable - 675,000Notes payable, net of current portion and debt issuance costs 235,218 2,359,132
