Marketing Alliance Inc (OTC:MAAL)

Mr. Timothy M. Klusas, TMA’s Chief Executive Officer, stated, “We were pleased with our performance for the quarter despite two major detractors to our financial results. As we have previously stated, we proactively adjusted our deferred first year commission estimates for Genworth as this future business will decline as new policies (and future commissions) are not generated due to Genworth’s announcement last March to cease all new life insurance and annuity product sales. Also as previously mentioned, the net effect of this adjustment is decreases each month of approximately $30,000 each month of gross profit, or approximately $90,000 this quarter and $180,000 in the first six months of this fiscal year which are the net effect of adjustments to both commission revenues and bonus and commission expenses. Second, the weakness and cyclical nature (bottom of the cycle) of the end agricultural markets in the construction / land improvement business affected our ability to find and complete profitable projects, especially compared to prior year periods and prior years. The difference in gross profit for the construction business was a decrease of approximately $254,000 for the six month period versus the prior year, of which approximately $210,000 was in this quarter versus the prior year period. We have continued to seek new end markets and ways to improve the operating efficiency for each part of the Company, given the operating environment of each respective business, and we remain committed to growing each of line of our business.”