EX-99 3 ex99_1pressrls.txt EX. 99.1 - PRESS RELEASE Exhibit 99.1 FOR IMMEDIATE RELEASE June 24, 2002 Market America, Inc. Contact: 1302 Pleasant Ridge Road Martin L. Weissman Greensboro, NC 27409-9326 Executive Vice President Phone: (336) 605-0040 Fax: (336) 605-0041 (336) 478-4051 www.marketamerica.com MARKET AMERICA, INC. BOARD ANNOUNCES FOURTH QUARTER EARNINGS AND SETS DATE FOR SHAREHOLDERS TO CONSIDER MANAGEMENT BUYOUT Greensboro, NC -- Market America, Inc. (OTC Bulletin Board: MARK), an innovative product brokerage and Internet marketing company specializing in One-to-One Marketing and Mass Customization, announced today the results for the fiscal year and fiscal quarter ended April 30, 2002, as discussed below. Market America also announced today that it had set July 22, 2002 as the date for a shareholders' meeting to consider a previously announced management buyout transaction. The record date for that meeting, to be held at the company's offices in Greensboro, North Carolina, is June 4, 2002. Sales revenue increased for the ninth consecutive year. For the years ended April 30, 2002 and 2001, sales were $159.3 and $138.5 million, respectively. This represents a $20.8 million (15.0%) sales growth from 2001 to 2002. The 15-percent sales growth in the year ended April 30, 2002 can be attributed to sales of both new and continuing products in the nutritional supplement category. Salary expense was $11.1 million in the year ended April 30, 2002, compared to $8.5 million in the year ended April 30, 2001. As a percentage of sales, salary expense was 7.0% and 6.2% for the years ended April 30, 2002 and 2001. The increase in the year ended April 30, 2002 has been a result of a commitment by management to improve human resources within Market America to better serve the needs of Market America's distributors. Bonus expense for the year ended April 30, 2002 was approximately $700,000 higher than for the previous year due to the accrual of bonuses for the 2002 calendar year under the new calendar-year based bonus plan established in the fourth quarter of the year ended April 30, 2002. Market America's effective income tax rate was 39.0% in the year ended April 30, 2002 compared to 31.1% in the year ended April 30, 2001. The effective income tax rate was lower for the year ended April 30, 2001 as a result of the amendment of prior years' state income tax returns. In 2001, Market America amended the returns due to a change in its multi-state income allocation methodology and claimed refunds totaling $3,477,237. The following table presents Market America's financial statement data for the year ended April 30, 2002 alongside Market America's financial statement data for the year ended April 30, 2001.

Market America's sales continued to grow during the three month periods ended April 30, 2002. Net sales increased 19.2% to $44.2 million from $37.1 million for the quarter ended April 30, 2002 compared to the same period in 2001. Net sales increased by 15.0% to $159.3 million from $138.5 million for the year ended April 30, 2002 compared to 2001. The company reported net income of $5.1 million for the fourth quarter of 2002 compared to $6.6 million for the fourth quarter of 2001, a decrease of 22.0%. Earnings per share were $0.27 in the fourth quarter of 2002 compared to $0.34 in the fourth quarter of 2001. The decrease in net income and earnings per share was primarily due to a lower effective income tax rate during the fiscal 2001 period as a result of the amendment of several prior year state income tax returns claiming refunds due to a change in Market America's multi-state income allocation methodology. The following table summarizes Market America's financial statement data for the three month period ended April 30, 2002 alongside Market America's financial statement data for the three month period ended April 30, 2001.

The following table presents Market America's summary balance sheet at April 30, 2002 alongside Market America's summary balance sheet at April 30, 2001.

------------------- (1) Net Income divided by average shareholders' equity Market America markets a wide range of consumer-oriented products and services through a network of over 85,000 Independent Distributors and UnFranchise(R) Owners in the United States, Canada, Puerto Rico, Guam and the Bahamas, with current expansion into Australia. These Independent Distributors build personalized customer relations through One-to-One Marketing and manage a portfolio of Preferred Customers that purchase products and supply data used to create mass customized products. Through their Custom Web Portal, Distributors service their customers and provide a conduit to market-driven products. Market America is changing the face of business, one customer at a time. ###

MARKET AMERICA INC 8-K