NEW YORK, Sept. 6, 2012 /PRNewswire/ -- Alliance
Distributors Holding Inc. (Pink Sheets: ADTR), a distributor
of interactive video games and gaming products, today announced its
financial results for the fourth quarter and fiscal year ended
June 30, 2012.
Net sales for the three months ended June
30, 2012 were $10.3 million,
compared to $10.4 million for the
three months ended June 30, 2011. The
company incurred a loss of $55,000
for the three months ended June 30,
2012, compared with net income of $8,000 for the three months ended June 30, 2011. The loss for the 2012 period
included approximately $111,000 of
expenses in connection with the closing of the Company's new credit
facility with PNC Bank.
For the fiscal year ended June 30,
2012, net sales were $57
million, essentially flat with the year ended June 30, 2011. Net income increased to
$428,000 for the year ended
June 30, 2012 compared to
$285,000 for the comparable 2011
period.
Jay Gelman, Chairman and Chief
Executive Officer, said "We achieved stable results in an industry
that contracted almost every month during the 12 months ended
June 30, 2012, for a total industry
contraction for the fiscal year of slightly over 20%. We proceeded
into our new fiscal year on July 1
with the advantages that our new financing agreement gives us in
lower financing costs and flexible terms."
About Alliance Distributors Holding Inc.
Alliance Distributors Holding Inc.
(www.alliancedistributors.com), which does business as Alliance
Distributors, is a full-service wholesale videogame distributor,
specializing in gaming products and accessories for all key
manufacturers and 3rd party publishers. Alliance Distributors
offers support on: PS3, PSP, PS2, X-Box 360, Wii, DS and GBA SP,
peripherals and software titles. Alliance develops downloadable and
social content video games through Metaversal Studios
(www.metaversalstudios.com), which it wholly-owns.
Safe Harbor
Certain statements contained in this press release contain
forward-looking statements including without limitation, statements
concerning our operations, economic performance, and financial
condition. The words "estimate," "believe," "expect,"
"should" and "anticipate" and other similar expressions generally
identify forward-looking statements, which speak only as of their
dates.
Investors are cautioned that all forward-looking statements,
which are based largely on our current expectations, involve risks
and uncertainty. Actual results, events and circumstances
(including future performance, results and trends) could differ
materially from those set forth in such statements due to various
factors, risks and uncertainties, including without limitation,
risks associated with technological change, competitive factors and
general economic conditions, including the related impact on
discretionary consumer spending, changes in marketing and
distribution strategies by manufacturers, continued shortages of
new platform systems, timely development and release of video game
products we produce, potential cost overruns in our development of
video games, ability to protect our intellectual property rights,
potential claims that we have infringed the intellectual property
rights of others, market acceptance of games we develop, ability to
realize anticipated benefits of acquisitions, potential
undiscovered liabilities of companies that we acquire, changes in
our business or growth strategy, the emergence of new or growing
competitors, various other competitive and technological factors.
There can be no assurance that the results referred to in the
forward-looking statements contained in this release will occur.
The Company has no duty and undertakes no obligation to update any
forward-looking information, whether as a result of new
information, future developments or otherwise.
ALLIANCE DISTRIBUTORS HOLDING INC.
AND SUBSIDIARY
CONSOLIDATED INCOME STATEMENTS
THREE MONTHS AND YEARS ENDED JUNE
30, 2012 AND 2011
(In thousands, except per share amounts)
|
|
|
|
|
Three
Months
|
|
Year
|
|
2012
|
2011
|
|
2012
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
SALES
|
$10,333
|
$10,410
|
|
$
56,773
|
$
57,004
|
|
|
|
|
|
|
|
COST OF
SALES
|
8,720
|
8,781
|
|
49,502
|
49,464
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
1,613
|
1,629
|
|
7,271
|
7,540
|
|
|
|
|
|
|
|
OPERATING COSTS AND EXPENSES
|
1,610
|
1,474
|
|
6,164
|
6,544
|
|
|
|
|
|
|
|
INCOME
FROM OPERATIONS
|
3
|
155
|
|
1,107
|
996
|
|
|
|
|
|
|
|
Interest
expense
|
92
|
147
|
|
390
|
532
|
|
|
|
|
|
|
|
INCOME
(LOSS) BEFORE (BENEFIT FROM)
|
|
|
|
|
|
|
PROVISION FOR INCOME TAXES
|
(89)
|
8
|
|
717
|
464
|
|
|
|
|
|
|
|
Provision
for (benefit from) income taxes
|
(34)
|
-
|
|
289
|
179
|
|
|
|
|
|
|
|
NET
INCOME (LOSS)
|
$ (55)
|
$ 8
|
|
$ 428
|
$ 285
|
|
|
|
|
|
|
|
Net
income per share – basic and diluted
|
$ -
|
$ -
|
|
$ 0.01
|
$ 0.01
|
|
|
|
|
|
|
|
Weighted average common shares outstanding
–
|
|
|
|
|
|
|
Basic
|
44,157
|
46,746
|
|
44,157
|
51,353
|
|
Diluted
|
44,157
|
46,746
|
|
44,161
|
51,353
|
|
|
|
|
|
|
|
|
|
|
|
|
ALLIANCE DISTRIBUTORS HOLDING INC.
AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
JUNE 30, 2012 AND 2011
(in thousands)
|
|
|
|
JUNE
30,
|
|
2012
|
2011
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
Cash and equivalents
|
$
581
|
$
988
|
|
Accounts receivable-net
|
4,127
|
3,457
|
|
Inventory
|
5,531
|
6,581
|
|
Advances to suppliers
|
99
|
153
|
|
Prepaid expenses and other current assets
|
275
|
145
|
|
Deferred income taxes
|
196
|
268
|
|
|
|
|
Total current assets
|
10,809
|
11,592
|
|
|
|
|
PROPERTY AND EQUIPMENT – NET
|
106
|
153
|
|
|
|
|
DEFERRED INCOME TAXES
|
221
|
230
|
|
|
|
|
OTHER
ASSETS
|
75
|
81
|
|
|
|
|
TOTAL
|
$11,211
|
$12,056
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
Asset based revolving loan – bank
|
$
2,912
|
$
-
|
|
Notes payable – bank
|
-
|
5,589
|
|
Current portion of long-term debt
|
500
|
-
|
|
Accounts payable
|
1,811
|
2,012
|
|
Accrued expenses and other current liabilities
|
332
|
240
|
|
|
|
|
Total current liabilities
|
5,555
|
7,841
|
|
|
|
|
LONG-TERM DEBT
|
1,000
|
-
|
|
|
|
|
STOCKHOLDERS' EQUITY
|
4,656
|
4,215
|
|
|
|
|
TOTAL
|
$11,211
|
$12,056
|
|
|
|
|
COMMON
SHARES ISSUED AND OUTSTANDING
|
44,157
|
44,157
|
ALLIANCE DISTRIBUTORS HOLDING INC.
AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED JUNE 30, 2012
AND 2011
(in thousands)
|
|
|
|
2012
|
2011
|
|
|
|
|
OPERATING ACTIVITIES:
|
|
|
|
Net income
|
$
428
|
$
285
|
|
Adjustments to reconcile net
income to net cash provided by
|
|
|
|
operating
activities:
|
|
|
|
Depreciation and
amortization
|
92
|
223
|
|
Provision for
doubtful accounts
|
10
|
15
|
|
Stock-based
compensation expense
|
13
|
31
|
|
Deferred income
taxes
|
81
|
(36)
|
|
Other
|
36
|
10
|
|
Changes in
operating assets and liabilities-net
|
201
|
(472)
|
|
|
|
|
Net cash provided by operating activities
|
861
|
56
|
|
|
|
|
INVESTING ACTIVITIES:
|
|
|
|
Purchase of property and
equipment
|
(41)
|
(44)
|
|
|
|
|
Net cash used in investing activities
|
(41)
|
(44)
|
|
|
|
|
FINANCING ACTIVITIES:
|
|
|
|
Proceeds from asset based
revolving loan – bank, net of repayments
|
2,912
|
-
|
|
Payment of note payable-bank, net
of proceeds
|
(5,589)
|
-
|
|
Proceeds from note payable – bank,
net of repayments
|
-
|
458
|
|
Proceeds from long-term
debt
|
1,500
|
|
|
Purchase and retirement of common
stock
|
-
|
(335)
|
|
Payment of deferred financing
costs
|
(50)
|
(38)
|
|
Payment of long-term
obligations
|
-
|
(15)
|
|
|
|
|
Net cash (used in) provided by financing activities
|
(1,227)
|
70
|
|
|
|
|
(DECREASE) INCREASE IN CASH AND
EQUIVALENTS
|
(407)
|
82
|
|
|
|
|
CASH
AND EQUIVALENTS, BEGINNING OF YEAR
|
988
|
906
|
|
|
|
|
CASH
AND EQUIVALENTS, END OF YEAR
|
$ 581
|
$ 988
|
|
|
|
SOURCE Alliance Distributors Holding Inc.
