Other News Releases in Computer Electronics
ArchAngel Partners Announces the Opening of Sister Company Poway Weapons & Gear
Biophysics and Chemistry Research Honored at Nation's Premier High School Science Competition
InfoLogix Announces Closing of Restructuring of its Outstanding Debt with Hercules; Believes Compliant with NASDAQ's Minimum Stockholders' Equity Threshold
Other News Releases in Earnings
Escalon(R) Reports First Quarter Fiscal 2010 Results
Electronic Game Card, Inc. Files 10-Q for Period Ending September 30, 2009
Wolverine Tube Reports 2009 Third Quarter Results
Journalists and Bloggers
Visit PR Newswire for Journalists for releases, photos, ProfNet experts, and customized feeds just for Media.
View and download archived video content distributed by MultiVu on The Digital Center.
See more news releases in: Computer Electronics, Electronic Gaming, Earnings
Alliance Distributors Holding Inc. Reports 2009 Second Quarter Financial Results
NEW YORK, Aug. 4 /PRNewswire-FirstCall/ -- Alliance Distributors Holding Inc. (Pink Sheets: ADTR.PK), a distributor of interactive video games and gaming products, today announced its financial results for the second quarter ended June 30, 2009.
Net sales for the quarter decreased 38% to $12.7 million from $20.5 million in the second quarter of 2008. Net income was $58,000 in the second quarter of 2009, compared to $253,000 in the second quarter of 2008.
For the six months ended June 30, 2009, net sales decreased 33% to $29.1 million, compared to $43.3 million for the same period in 2008. Net income was $214,000 for the six months ended June 30, 2009 compared to $285,000 for the comparable period in 2008.
Jay Gelman, Chairman and Chief Executive Officer, said, "Our reduced sales level reflects that the challenging times have caught up with our industry. NPD Group, a market research firm, reports that domestic retail sales of video game hardware and software fell 31% in June compared to June 2008. NPD Group further reports that June was the fourth consecutive month of declining year over year sales in our industry.
"Our low margin console sales were particularly hard hit. The company's relative performance was also impacted by the release in the second quarter last year of some of the biggest titles of the year, including Grand Theft Auto IV. No similar major titles were released in the second quarter this year."
Mr. Gelman concluded, "We reacted to the decline in sales by selling a higher margin mix of product and continuing to carefully monitor our expenses. As a result, our gross profit as a percent of sales increased to 14.5% in the second quarter of 2009, from 10.2% in the comparable 2008 period."
Timing of Conference Call with Q&A
Alliance Distributors will conduct an earnings conference call, including a question and answer period, at 3:00 PM ET on August 5, 2009.
The call-in number for the conference call is:
1-888-578-6632 (confirmation code: 6436791)
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.
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," 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, changes in marketing and distribution strategies by manufacturers, continued shortages of new platform systems, difficulty in integrating and deriving synergies from 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.
INCOME STATEMENTS
THREE AND SIX MONTHS ENDED JUNE 30, 2009 AND 2008
(In thousands, except per share amounts)
(Unaudited)
Three Months Six Months
------------ ----------
2009 2008 2009 2008
---- ---- ---- ----
NET SALES $12,702 $20,544 $29,120 $43,361
COST OF GOODS SOLD 10,854 18,447 25,002 39,441
------ ------ ------ ------
GROSS PROFIT 1,848 2,097 4,118 3,920
OPERATING COSTS AND EXPENSES 1,619 1,691 3,501 3,294
----- ----- ----- -----
INCOME FROM OPERATIONS 229 406 617 626
Interest expense 124 133 250 321
--- --- --- ---
INCOME BEFORE PROVISION FOR
INCOME TAXES 105 273 367 305
Provision for income taxes 47 20 153 20
-- -- --- --
NET INCOME $58 $253 $214 $285
=== ==== ==== ====
Net income per share - basic and
diluted $- $- $- $0.01
== == == =====
Weighted average common shares
outstanding -
Basic 52,883 53,883 52,883 53,648
====== ====== ====== ======
Diluted 52,938 54,525 53,026 54,216
====== ====== ====== ======
ALLIANCE DISTRIBUTORS HOLDING INC.
CONDENSED BALANCE SHEETS
(in thousands)
June 30, December 31,
2009 2008
---- ----
Unaudited Derived from
audited
financial
statements
ASSETS
CURRENT ASSETS:
Cash and equivalents $830 $924
Accounts receivable-net 4,656 5,334
Inventory 5,792 7,262
Due from vendors - 342
Prepaid expenses and other current assets 188 215
Deferred income taxes 433 263
--- ---
Total current assets 11,899 14,340
PROPERTY AND EQUIPMENT - NET 402 501
DEFERRED INCOME TAXES 200 178
OTHER ASSETS 82 88
-- --
TOTAL $12,583 $15,107
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Notes payable - bank $4,808 $6,806
Accounts payable 3,755 4,630
Accrued expenses and other current
liabilities 528 425
--- ---
Total current liabilities 9,091 11,861
DEFERRED LEASE OBLIGATIONS 46 50
STOCKHOLDERS' EQUITY 3,446 3,196
----- -----
TOTAL $12,583 $15,107
======= =======
COMMON SHARES OUTSTANDING 52,883 52,883
====== ======
ALLIANCE DISTRIBUTORS HOLDING INC.
CONDENSED STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 2009 AND 2008
(In thousands, Unaudited)
2009 2008
---- ----
OPERATING ACTIVITIES:
Net income $214 $285
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 109 107
Provision for doubtful accounts 100 20
Stock option compensation expense 36 44
Deferred income taxes (192) -
Other 20 37
Changes in operating assets and liabilities-net 1,665 876
----- ---
Net cash provided by operating activities 1,952 1,369
----- -----
INVESTING ACTIVITIES:
Purchase of property and equipment (10) (47)
----- ----
Net cash used in investing activities (10) (47)
----- ----
FINANCING ACTIVITIES:
Repayments of note payable, net of proceeds - bank (1,998) (1,237)
Payment of deferred financing costs (38) (45)
Payment of long-term obligations - (2)
-- ----
Net cash used in financing activities (2,036) (1,284)
-------- --------
(DECREASE) INCREASE IN CASH AND EQUIVALENTS (94) 38
---- --
CASH AND EQUIVALENTS, BEGINNING OF PERIOD 924 320
--- ---
CASH AND EQUIVALENTS, END OF PERIOD $830 $358
==== ====
SOURCE Alliance Distributors Holding Inc.