Alliance Distributors Holding Inc. Reports September 30, 2012
Financial Results
NEW YORK, Nov. 29, 2012 /PRNewswire/ -- Alliance
Distributors Holding Inc. (Pink Sheets: ADTR), a distributor
of interactive video games and gaming products, today announced its
financial results for its first quarter ended September 30, 2012.
Net sales for the first quarter in 2012 were $12.3 million, up 19% from the comparable 2011
period. Net income for the first quarter in 2012 declined to
$16,000 from $46,000 in the first quarter of 2011. The
decrease in net income reflects in part $125,000 in severance and related charges in
connection with the previously announced outsourcing by the Company
of its warehousing and fulfillment operations.
Jay Gelman, Chairman and Chief
Executive Officer, said, "Year-over-year video game industry
revenue continues to show a decline. We have been able to avoid
significant downturns in our revenues by investing in value
software and pursuing opportunities in key frontline software
titles, and operations should increasingly benefit from the
outsourcing we completed in the October. However, our results in
the current quarter ending December 31,
2012 will be negatively impacted by business disruption from
recent Hurricane Sandy.
"The first quarter also saw progress in our branching out into
the publishing aspect of the video game business. Alliance
Metaversal Studio LLC, our content development arm, signed
publishing license agreements with Microsoft, Sony Computer
Entertainment of America, and Nintendo of America. The addition of
these rights to our iOS, Android, and Steam publishing rights gives
Metaversal Studios platforms to publish offerings that may be made
available to us from a wide variety of developers."
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®, PlayStation®Vita, PSP®, PS2®, Xbox 360®
video game and entertainment system from Microsoft, Wii U, Wii, 3DS
and DS, 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.
Xbox, Xbox 360 and Xbox LIVE are either registered trademarks or
trademarks of the Microsoft group of companies.
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ALLIANCE DISTRIBUTORS HOLDING INC. AND
SUBSIDIARIES
|
|
INCOME
STATEMENTS
|
|
THREE
MONTHS ENDED SEPTEMBER 30, 2012 AND 2011
|
|
(Unaudited; in thousands)
|
|
|
|
|
2012
|
2011
|
|
|
|
|
NET
SALES
|
$12,264
|
$10,280
|
|
|
|
|
COST OF
GOODS SOLD
|
10,527
|
8,761
|
|
|
|
|
GROSS
PROFIT
|
1,737
|
1,519
|
|
|
|
|
OPERATING COSTS AND EXPENSES
|
1,539
|
1,347
|
|
|
|
|
INCOME
FROM OPERATIONS BEFORE
|
|
|
|
SPECIAL CHARGES
|
198
|
172
|
|
|
|
|
Special
Charges – warehouse closure
|
125
|
-
|
|
|
|
|
INCOME
FROM OPERATIONS
|
73
|
172
|
|
|
|
|
Interest
expense
|
47
|
88
|
|
|
|
|
INCOME
BEFORE PROVISION FOR INCOME TAXES
|
26
|
84
|
|
|
|
|
Provision
for income taxes
|
10
|
38
|
|
|
|
|
NET
INCOME
|
$ 16
|
$ 46
|
|
|
|
|
|
|
|
Net income
per share:
|
|
|
|
Basic and diluted
|
$ -
|
$ -
|
|
|
|
|
Weighted
average common shares outstanding:
|
|
|
|
|
|
|
Basic and diluted
|
44,157
|
44,157
|
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ALLIANCE DISTRIBUTORS HOLDING INC. AND
SUBSIDIARIES
|
|
CONDENSED BALANCE SHEETS
|
|
(Unaudited, in thousands)
|
|
|
|
|
|
September,
|
September,
|
|
2012
|
2011
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
Cash and equivalents
|
$
351
|
$
362
|
|
Accounts receivable-net
|
6,228
|
4,060
|
|
Inventory
|
6,021
|
7,780
|
|
Advances to suppliers
|
120
|
677
|
|
Prepaid expenses and other current assets
|
197
|
155
|
|
Deferred income taxes
|
308
|
268
|
|
|
|
|
Total current assets
|
13,225
|
13,302
|
|
|
|
|
PROPERTY AND EQUIPMENT – NET
|
113
|
140
|
|
|
|
|
DEFERRED INCOME TAXES
|
215
|
230
|
|
|
|
|
OTHER
ASSETS
|
98
|
77
|
|
|
|
|
TOTAL
|
$13,651
|
$13,749
|
|
|
|
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LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
Asset-based revolving loan – bank
|
$
2,423
|
$
-
|
|
Notes payable – bank
|
-
|
5,388
|
|
Current portion of long-term debt
|
500
|
-
|
|
Accounts payable
|
4,746
|
3,795
|
|
Accrued expenses and other current liabilities
|
422
|
299
|
|
|
|
|
Total current liabilities
|
8,091
|
9,482
|
|
|
|
|
LONG-TERM DEBT
|
886
|
-
|
|
|
|
|
STOCKHOLDERS' EQUITY
|
4,674
|
4,267
|
|
|
|
|
TOTAL
|
$13,651
|
$13,749
|
|
|
|
|
COMMON
SHARES OUTSTANDING
|
44,157
|
44,157
|
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ALLIANCE DISTRIBUTORS HOLDING INC. AND
SUBSIDIARIES
|
|
CONDENSED STATEMENTS OF CASH FLOWS
|
|
THREE
MONTHS ENDED SEPTEMBER 30, 2012 AND 2011
|
|
(Unaudited, in thousands)
|
|
|
|
|
2012
|
2011
|
|
OPERATING ACTIVITIES:
|
|
|
|
Net income
|
$
16
|
$
46
|
|
Adjustments to reconcile net
income to net cash provided by
|
|
|
|
operating
activities:
|
|
|
|
Depreciation and amortization
|
17
|
24
|
|
Deferred
income taxes
|
(106)
|
-
|
|
Other
|
6
|
20
|
|
Changes in
operating assets and liabilities-net
|
506
|
(506)
|
|
|
|
|
Net cash provided by (used in) operating activities
|
439
|
(416)
|
|
|
|
|
INVESTING ACTIVITIES:
|
|
|
|
Security deposit
|
(42)
|
-
|
|
Purchase of property and
equipment
|
(24)
|
(9)
|
|
|
|
|
Net cash used in investing activities
|
(66)
|
(9)
|
|
|
|
|
FINANCING ACTIVITIES:
|
|
|
|
Repayments of asset-based
revolving loan – bank, net of proceeds
|
(489)
|
-
|
|
Repayments of note payable, net of
proceeds – bank
|
-
|
(201)
|
|
Payment of long-term
debt
|
(114)
|
-
|
|
|
|
|
Net cash used in financing activities
|
(603)
|
(201)
|
|
|
|
|
DECREASE IN CASH AND EQUIVALENTS
|
(230)
|
(626)
|
|
|
|
|
CASH
AND EQUIVALENTS, BEGINNING OF PERIOD
|
581
|
988
|
|
|
|
|
CASH
AND EQUIVALENTS, END OF PERIOD
|
$ 351
|
$ 362
|
SOURCE Alliance Distributors Holding Inc.
