The Marketing Alliance Announces Financial Results for Fiscal Year Ended March 31, 2026

ST. LOUIS, June 29, 2026 (GLOBE NEWSWIRE) -- The Marketing Alliance, Inc. (OTC: MAAL) (“TMA” or the “Company”), announced its financial results today for its fiscal 2026 year ended March 31, 2026.

FY2026 Financial Key Items (all comparisons to the prior year)

• Operating income from continuing operations of $1,010,017 compared to $730,005 in the prior year, an increase of over 38%  
• Net income was $656,420 or $0.10 per share compared to $465,599 or $0.06 per share in the prior year
• Revenues from operations were $18,933,531 compared to $21,373,673 in the prior fiscal year
• Subsequent to the end of the 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 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 operating income and net income for this fiscal year, compared to the previous fiscal year. We were able to reduce overall general and administrative expenses and utilize those savings by strategically adding marketing staff to the insurance business. We made good progress this year despite less revenue from an adverse business mix in the insurance business and less construction revenue due to our decision not to pursue longer-term jobs while in preparation for the sale of the assets of the construction business.”     

Klusas continued, “As our insurance business evolved over the past year, we added dedicated marketing professionals to grow business with their assigned insurance carriers, replacing our prior structure in which one person led those efforts. With the transition now complete, early results have been encouraging, and both carriers and agencies have responded favorably to the added resources. Throughout the year, we also continued investing in technology to improve communication with our agencies and provide better insights.”

Fiscal Year 2026 Financial Review

• Revenues were $18,933,531 compared to $21,373,673 in the prior year. Revenues were adversely affected by a changing business mix that saw increases in low revenue insurance products and decreases in high revenue insurance products, and the Company’s decision not to pursue long-term construction jobs while preparing to sell the assets related to the construction business.
  
  
• Net operating revenue (gross profit) for the year was $4,237,072 compared to net operating revenue of $4,331,859 in the prior year, a decrease of $94,787. A decrease in net operating revenue in the construction business was partially offset by an increase in the insurance business.   
  
  
• Operating expenses decreased this fiscal year to $3,227,055 from $3,601,854 in the prior fiscal year. The largest cost reductions were in administrative and professional fees, which were partially offset by increases in employee compensation, as the Company hired people that previously served as its outsourced bookkeeping and administrative staff.
  
  
• The Company reported operating income from continuing operations of $1,010,017 compared to $730,005, in the prior fiscal year, with differences due to factors discussed above.
  
  
• Operating EBITDA (excluding investment portfolio income) of $1,205,112 was an increase from the prior year of $1,008,211. 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 $(125,083) as compared with $(138,010) in the previous year.   During this 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 is included in investment gain (loss), net (from non-operating investment portfolio). Subsequent to the end of the fiscal year, the private company repurchased the shares, and the investment was fully liquidated at a loss consistent with the impairment recorded.  
  
  
• Net income was $656,420, or $0.10 per share, compared to $465,599, or $0.06 per share in the previous year.
  
  

Subsequent to the end of the 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 will be included in the Company’s financial statements for the quarter ending June 30, 2026.

Balance Sheet Information

• TMA’s balance sheet on March 31, 2026, reflected cash and cash equivalents of $1.8 million, working capital of $4.8 million, and shareholders’ equity of $5.3 million, compared to cash and cash equivalents of $2.0 million, working capital of $5.1 million, and shareholders’ equity of $5.4 million as of March 31, 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
		2026				2025
Insurance commission and fee revenue	$	18,209,054			$	20,409,278
Construction revenue		724,477				964,395
Total revenues		18,933,531				21,373,673
Insurance distributor related expenses:
Distributor bonuses and commissions		11,707,085				14,103,306
Business processing and distributor costs		2,087,668				1,996,731
Depreciation		3,451				5,521
		13,798,204				16,105,558
Costs of construction:
Direct and indirect costs of construction		726,540				679,380
Depreciation		171,715				256,876
		898,255				936,256
Total costs of revenues		14,696,459				17,041,814
Net operating revenue		4,237,072				4,331,859
Total general and administrative expenses		3,227,055				3,601,854
Operating income from continuing operations		1,010,017				730,005
Other income (expense):
Other		-				4,938
Investment gains (losses), net		(125,083)				(138,010)
Interest		(32,684)				(119,572)
Income from continuing operations before provision		852,250				477,361
for income taxes
Income tax expense		195,830				11,762
Net Income	$	656,420			$	465,599
Average Shares Outstanding		6,828,392				7,397,594
Operating Income from continuing operations per Share	$	0.15			$	0.10
Net Income per Share	$	0.10			$	0.06

CONSOLIDATED BALANCE SHEETS
		2026				2025
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	1,840,206			$	2,043,274
Equity securities		1,780,930				2,630,444
Restricted cash		-				1,623,608
Accounts receivable		7,436,279				8,480,785
Notes receivable		20,000				-
Prepaid expenses and other current assets		279,049				277,880
Total current assets		11,356,464				15,055,991
PROPERTY AND EQUIPMENT, net		570,398				650,875
OTHER ASSETS
Operating lease right-of-use assets		470,851				136,485
Total other assets		470,851				136,485
	$	12,397,713				15,843,351
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses	$	5,969,649			$	6,877,555
Deferred Revenue		365,864				726,606
Current portion of notes payable		101,940				2,173,614
Current portion of finance lease liability		-				103,350
Current portion of operating lease liability		126,629				93,865
Liabilities related to discontinued operations		677				677
Total current liabilities		6,564,759				9,975,667
LONG-TERM LIABILITIES
Notes payable, net of current portion and debt issuance costs		134,127				235,218
Operating lease liability, net of current portion		349,840				46,064
Deferred taxes		60,900				149,200
Total long-term liabilities		544,867				430,482
Total liabilities		7,109,626				10,406,149
COMMITMENTS AND CONTINGENCIES (NOTE 13)
SHAREHOLDERS' EQUITY
Common stock, no par value; 50,000,000 shares authorized,
6,828,392 shares issued and outstanding March 31, 2026
7,397,594 shares issued and outstanding March 31, 2025	$	1,159,285			$	1,114,406
Treasury Stock		(1)				(1)
Retained earnings		4,128,803				4,322,797
Total shareholders' equity		5,288,087				5,437,202
	$	12,397,713			$	15,843,351

Note – Operating EBITDA (excluding investment portfolio income)

EBITDA Calculation		,
		2026			2025
Operating Income from Continuing Operations	$	1,010,017		$	730,005
Add:
Depreciation/Amortization Expense	$	195,095		$	278,206
EBITDA (Excluding Investment Portfolio Income)	$	1,205,112		$	1,008,211

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.

06/29/2026 08:30 -0400

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