The Marketing Alliance Announces Financial Results for First Quarter Ended June 30, 2026
Rhea-AI Summary
The Marketing Alliance (OTC: MAAL) reported fiscal Q1 2027 results for the quarter ended June 30, 2026. Insurance commissions and fee revenue were $4.75 million, up about 2% year over year, while net operating revenue (gross profit) rose over 10% to $1.07 million.
Operating income from continuing operations increased to $400,249 from $340,174, and Operating EBITDA (excluding investment portfolio income) grew to $404,710 from $344,635. Net income rose to $966,511, or $0.14 per share, versus $275,624, or $0.04 per share, mainly due to higher income from continuing operations and a one-time $660,042 after-tax gain on disposal of discontinued Empire Construction operations.
At June 30, 2026, cash and cash equivalents were $3.9 million, working capital was $6.2 million, and shareholders’ equity stood at $6.3 million, compared with $2.0 million, $5.2 million, and $5.6 million, respectively, a year earlier. The Empire Construction business is now classified as discontinued operations.
Positive
- Operating income from continuing operations up ~18% to $400,249
- Net operating revenue (gross profit) up over 10% to $1.07 million
- Net income increased to $966,511, or $0.14 per share, from $275,624
- Operating EBITDA rose to $404,710 from $344,635
- Cash and cash equivalents grew to $3.9 million from $2.0 million year over year
- Shareholders’ equity increased to $6.3 million from $5.6 million
Negative
- Insurance commissions and fee revenue grew only about 2% year over year
- Operating expenses increased to $669,715 from $631,557
- Loss from discontinued operations widened to $97,581 from $72,609
- Total assets declined to $13.38 million from $14.09 million year over year
AI-generated analysis. How Rhea-AI works. Not financial advice.
ST. LOUIS, Aug. 11, 2026 (GLOBE NEWSWIRE) -- The Marketing Alliance, Inc. (OTC: MAAL) (“TMA” or the “Company”), announced its financial results today for its fiscal 2027 first quarter ended June 30, 2026.
Q1 2027 Financial Key Items (all comparisons to the prior year quarter)
- Operating income from continuing operations of
$400,249 compared to$340,174 in the prior year quarter, an increase of approximately18% - Net income was
$966,511 or$0.14 per share compared to$275,624 or$0.04 per share in the prior year quarter - During the quarter the Company announced it had sold to an unaffiliated purchaser substantially all of the equipment assets of its construction business, Empire Construction, Inc., and all of the real property associated with the Empire Construction business
Management Comments
Timothy M. Klusas, TMA’s Chief Executive Officer, commented, “We were pleased to post increases in insurance distribution revenue, operating income and net income for this quarter compared to the same quarter in the previous fiscal year. As we stated in prior comments after financial results, we strategically added marketing staff to the insurance business to address our effort to grow our business, and the last vacant role was filled during the quarter. With the transition now complete, early results have been encouraging, and both carriers and agencies have responded favorably to the added resources.”
Klusas continued, “We made the decision to sell the assets of the Empire Construction business after we recognized it may perform better combined with another construction business, where the larger combined entity could pursue more opportunities for larger jobs and use its equipment more cost-efficiently. The effect of the transaction is included in our financial results for the quarter, and the construction business is identified as discontinued operations in the financial results.”
Q1 2027 First Quarter Financial Review
- Insurance commissions and fee revenue were
$4,753,975 compared to$4,680,304 in the prior year quarter, an increase of almost2% . - Net operating revenue (gross profit) for the quarter was
$1,069,964 compared to net operating revenue (gross profit) of$971,731 in the prior year quarter, an increase of over10% . - Operating expenses increased slightly this quarter to
$669,715 from$631,557 in the prior year quarter. - The Company reported operating income from continuing operations of
$400,249 compared to$340,174 , in the prior fiscal year quarter, due to the factors noted above. - Operating EBITDA (excluding investment portfolio income) of
$404,710 was an increase from the prior year quarter of$344,635 . 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
$130,501 as compared with$102,573 in the previous year quarter. During the previous fiscal year the Company recognized an impairment loss of$700,000 on its holdings in the common stock of a private company. The impairment loss was included in the Company’s annual financial statements for the year ended March 31, 2026 in investment gain (loss), net (from non-operating investment portfolio). During this fiscal quarter, the private company repurchased the shares, and the investment was fully liquidated at a loss consistent with the impairment recorded. - Net income was
$966,511 , or$0.14 per share, compared to$275 , 624, or$0.04 per share in the previous year quarter. The increase was due to higher Income from continuing operations and a one-time Gain on disposal of discontinued operations, net of income taxes of$660,042 , in this quarter.
On May 15, 2026, the Company announced it had sold to an unaffiliated purchaser substantially all of the equipment assets of its construction business, Empire Construction, Inc. and all the real property associated with the Empire Construction business. The effect of the transaction was a one-time Gain of
Balance Sheet Information
- TMA’s balance sheet on June 30, 2026, reflected cash and cash equivalents of
$3.9 million , working capital of$6.2 million , and shareholders’ equity of$6.3 million , compared to cash and cash equivalents of$2.0 million , working capital of$5.2 million , and shareholders’ equity of$5.6 million as of June 30, 2025.
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 Statements
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, including adding personnel, in our insurance business, and our plans to reduce expenses. 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 (including the effects of inflation) 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, and changes in the public securities markets that affect the value of our investment portfolio. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so.
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| Contact: | ||
| The Marketing Alliance, Inc. | -OR- | The Equity Group Inc. |
| Timothy M. Klusas, President | Jeremy Hellman, Vice President | |
| (314) 275-8713 | (212) 836-9626 | |
| tklusas@themarketingalliance.com www.TheMarketingAllianceinc.com | jhellman@equityny.com |
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
| Three Months Ended | |||||||
| June 30, | |||||||
| 2026 | 2025 | ||||||
| Insurance commission and fee revenue | $ | 4,753,975 | $ | 4,680,304 | |||
| Insurance distributor related expenses: | |||||||
| Distributor bonuses and commissions | 3,120,319 | 3,188,083 | |||||
| Business processing and distributor costs | 562,828 | 519,626 | |||||
| Depreciation | 864 | 864 | |||||
| Total costs of revenues | 3,684,011 | 3,708,573 | |||||
| Net operating revenue | 1,069,964 | 971,731 | |||||
| Total General and administrative expenses: | 669,715 | 631,557 | |||||
| Operating income from continuing operations | 400,249 | 340,174 | |||||
| Other income (expense): | |||||||
| Investment gains (losses), net | 130,501 | 102,573 | |||||
| Interest | - | (12,214 | ) | ||||
| Income from continuing operations before provision | 530,750 | 430,533 | |||||
| for income taxes | |||||||
| Income tax expense | 126,700 | 82,300 | |||||
| Income from continuing operations | 404,050 | 348,233 | |||||
| Discontinued operations: | |||||||
| Loss from discontinued operations, net of income taxes | (97,581 | ) | (72,609 | ) | |||
| Gain on disposal of discontinued operations, net of income taxes | 660,042 | - | |||||
| Net gain (loss) from discontinued operations | 562,461 | (72,609 | ) | ||||
| Net Income | $ | 966,511 | $ | 275,624 | |||
| Average Shares Outstanding | 6,868,392 | 7,324,234 | |||||
| Operating Income from continuing operations per Share | $ | 0.06 | $ | 0.05 | |||
| Net Income per Share | $ | 0.14 | $ | 0.04 | |||
| CONSOLIDATED BALANCE SHEETS | |||||||
| 2026 | 2025 | ||||||
| ASSETS | |||||||
| CURRENT ASSETS | |||||||
| Cash and cash equivalents | $ | 3,873,787 | $ | 2,035,843 | |||
| Equity securities | 1,535,395 | 2,174,547 | |||||
| Accounts receivable | 7,160,276 | 8,060,491 | |||||
| Notes receivable | 20,000 | - | |||||
| Prepaid expenses and other current assets | 222,309 | 166,520 | |||||
| Assets related to discontinued operations | 25,330 | 469,786 | |||||
| Total current assets | 12,837,097 | 12,907,187 | |||||
| PROPERTY AND EQUIPMENT, net | 92,626 | 38,876 | |||||
| OTHER ASSETS | |||||||
| Operating lease right-of-use assets | 450,214 | 571,594 | |||||
| Other assets related to discontinued operations | - | 569,063 | |||||
| Total other assets | 450,214 | 1,140,657 | |||||
| $ | 13,379,937 | $ | 14,086,720 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
| CURRENT LIABILITIES | |||||||
| Accounts payable and accrued expenses | $ | 6,003,244 | $ | 6,570,111 | |||
| Deferred Revenue | 516,700 | 547,797 | |||||
| Current portion of operating lease liability | 119,140 | 157,244 | |||||
| Liabilities related to discontinued operations | 24,958 | 411,186 | |||||
| Total current liabilities | 6,664,042 | 7,686,338 | |||||
| LONG-TERM LIABILITIES | |||||||
| Operating lease liability, net of current portion | 337,112 | 419,620 | |||||
| Other liabilities related to discontinued operations | - | 206,535 | |||||
| Deferred taxes | 56,300 | 149,200 | |||||
| Total long-term liabilities | 393,412 | 775,355 | |||||
| Total liabilities | 7,057,454 | 8,461,693 | |||||
| COMMITMENTS AND CONTINGENCIES (NOTE 13) | |||||||
| SHAREHOLDERS' EQUITY | |||||||
| Common stock, no par value; 50,000,000 shares authorized, | |||||||
| 6,868,392 shares issued and outstanding June 30, 2026 | |||||||
| 7,324,234 shares issued and outstanding June 30, 2025 | $ | 1,227,170 | $ | 1,141,270 | |||
| Treasury Stock | (1 | ) | (1 | ) | |||
| Retained earnings | 5,095,314 | 4,483,758 | |||||
| Total shareholders' equity | 6,322,483 | 5,625,027 | |||||
| $ | 13,379,937 | $ | 14,086,720 | ||||
Note – Operating EBITDA (excluding investment portfolio income)
| Three months Ended | |||||
| EBITDA Calculation | June 30, | ||||
| 2026 | 2025 | ||||
| Operating Income from Continuing Operations | $ | 400,249 | $ | 340,174 | |
| Add: | |||||
| Depreciation/Amortization Expense | $ | 4,461 | $ | 4,461 | |
| EBITDA (Excluding Investment Portfolio Income) | $ | 404,710 | $ | 344,635 | |
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.
