Core Insights - The Marketing Alliance, Inc. reported a 9% increase in revenues for fiscal year 2025, totaling $21,373,673, driven primarily by a 12% growth in the insurance distribution business, despite a decline in construction revenue [7][8] - The company experienced a decrease in net income, reporting $465,599 or $0.06 per share, compared to $1,043,214 or $0.13 per share in the previous year [7][8] - The company has shifted its revenue recognition policy for reimbursement and marketing revenues to align with the projected project lives, impacting how revenue is reported on the balance sheet [4][5] Financial Performance - Revenues from operations increased to $21,373,673 from $19,585,772, with the insurance distribution business contributing significantly to this growth [7][8] - Operating income from continuing operations decreased to $730,005 from $1,099,267 in the prior year, reflecting challenges in the construction segment [7][8] - Net operating revenue (gross profit) fell to $4,259,504 from $4,655,172, with a notable decline in the construction business [8] Operational Challenges - The construction business faced difficulties, with expected projects being canceled or postponed, adversely affecting revenues [5] - The company maintained a disciplined approach to project selection, focusing on economically profitable jobs [5] - Operating expenses remained relatively flat, but increased travel and meeting expenses due to hosting two annual conferences added approximately $150,000 to costs [8] Balance Sheet Overview - As of March 31, 2025, the company reported cash and cash equivalents of $2.0 million, down from $2.9 million the previous year [13] - Working capital decreased to $5.1 million from $7.7 million, and shareholders' equity fell to $5.4 million from $6.7 million [13] - The company repaid a $1,912,882 note in full at its maturity in June 2025, utilizing previously restricted cash [13] Share Repurchase Program - The company completed its share repurchase program, which was announced in October 2024, repurchasing up to 800,000 shares of common stock [7][13] - As of June 26, 2025, the company had repurchased 103,360 shares under this program [13]
The Marketing Alliance Announces Financial Results for Fiscal Year Ended March 31, 2025
Globenewswire·2025-06-30 13:07