Alliance Distributors Holding Inc. Reports 2010 First Quarter Financial Results and Investor Conference Call

NEW YORK, April 22 /PRNewswire-FirstCall/ -- Alliance Distributors Holding Inc. (Pink Sheets:  ADTR), a distributor of interactive video games and gaming products, announced its financial results for the first quarter ended March 31, 2010.

Net sales for the quarter increased 23% to $20.2 million in the first quarter of 2010, compared to $16.4 million in the first quarter of 2009.  Net income increased $79,000 to $235,000 in the first quarter of 2010, compared to $156,000 in the first quarter of 2009.

Jay Gelman, Chairman and Chief Executive Officer, said, "We achieved a 23% increase in revenue in the first quarter of 2010 compared to the same period last year. Profit margins continued to be strong as we executed on our strategy of delivering value offerings to our customer base.  Still, the video game business remained challenging in the quarter. Hardware was relatively scarce and there was no consistent release of blockbuster titles."

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 Monday, April 26, 2010.

The call-in number for the conference call is:

888-801-6497 (confirmation code:  9734014)

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

INCOME STATEMENTS

THREE MONTHS ENDED MARCH 31, 2010 AND 2009

(Unaudited; in thousands)





2010

2009




NET SALES

$20,152

$16,418




COST OF GOODS SOLD

17,631

14,148




GROSS PROFIT

2,521

2,270




OPERATING COSTS AND EXPENSES

2,001

1,882




INCOME FROM OPERATIONS

520

388




Interest expense

120

126




INCOME BEFORE PROVISION FOR INCOME TAXES

400

262




Provision for income taxes

165

106




NET INCOME

$    235

$    156







Net income per share:



  Basic and diluted

$       -

$       -




Weighted average common shares outstanding:






  Basic

52,883

52,883

  Diluted

52,883

53,098




ALLIANCE DISTRIBUTORS HOLDING INC. AND SUBSIDIARY

CONDENSED BALANCE SHEETS

(in thousands)






March 31,

December 31,


2010

2009


Unaudited

Derived from



audited financial



statements

ASSETS



CURRENT ASSETS:



 Cash and equivalents

$     732

$   1,002

 Accounts receivable-net

7,118

7,007

 Inventory

6,696

6,154

 Due from vendors

128

366

 Prepaid expenses and other current assets

180

221

 Deferred income taxes

300

260




      Total current assets

15,154

15,010




PROPERTY AND EQUIPMENT – NET

339

352




DEFERRED INCOME TAXES

181

181




OTHER ASSETS

107

119




TOTAL

$15,781

$15,662




LIABILITIES AND STOCKHOLDERS' EQUITY






CURRENT LIABILITIES:



 Notes payable – bank

$ 6,176

$  5,577

 Accounts payable

4,711

5,364

 Accrued expenses and other current liabilities

695

761




      Total current liabilities

11,582

11,702




LONG-TERM OBLIGATIONS

34

42




STOCKHOLDERS' EQUITY

4,165

3,918




TOTAL

$15,781

$15,662




COMMON SHARES OUTSTANDING

52,883

52,883




ALLIANCE DISTRIBUTORS HOLDING INC. AND SUBSIDIARY

CONDENSED STATEMENTS OF CASH FLOWS

THREE MONTHS ENDED MARCH 31, 2010 AND 2009

(Unaudited, in thousands)






2010

2009

OPERATING ACTIVITIES:



 Net income

$    235

$     156

 Adjustments to reconcile net income to net cash provided by



  operating activities:



  Depreciation and amortization

62

55

  Provision for doubtful accounts

35

70

  Stock option compensation  expense

12

23

  Deferred income taxes

(40)

(139)

  Other

4

11

  Changes in operating assets and liabilities-net

(1,134)

(1,489)




      Net cash used in operating activities

(826)

(1,313)




INVESTING ACTIVITIES:



 Purchase of property and equipment

(40)

(24)




              Net cash used in investing activities

(40)

(24)




FINANCING ACTIVITIES:



 Proceeds from note payable, net of repayments – bank

599

494

 Payment of long-term obligations

(3)

-




      Net cash provided by financing activities

596

494




DECREASE IN CASH AND EQUIVALENTS

(270)

(843)




CASH AND EQUIVALENTS, BEGINNING OF PERIOD

1,002

924




CASH AND EQUIVALENTS, END OF PERIOD

$  732

$     81







SOURCE Alliance Distributors Holding Inc.



RELATED LINKS
www.alliancedistributors.com

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.