Alliance Distributors Holding Inc. Reports December 31, 2011 Financial Results

NEW YORK, Feb. 13, 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 three and six month periods ended December 31, 2011.

Net sales for the three months ended December 31, 2011 increased 7% to $20.8 million from $19.4 million in the three months ended December 31, 2010.  Net income for the three months ended December 31, 2011 increased to $360,000, compared to $266,000 for the comparable period in 2010.

For the six months ended December 31, 2011, net sales increased 2% to $31.1 million from $30.6 million in the six months ended December 31, 2010.  Net income for the six months ended December 31, 2011 increased to $406,000, compared to $270,000 for the comparable period in 2010.

Jay Gelman, Chairman and Chief Executive Officer, said, "We are very gratified to have achieved revenue and income growth during a period of double digit declines throughout most of the video game industry."

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

(In thousands, except per share amounts)

(unaudited)







Three Months ended


Six Months ended


December 31,


December 31,


2011

2010


2011

2010







NET SALES

$20,828

$19,415


$31,108

$30,626







COST OF GOODS SOLD

18,455

16,982


27,216

26,608







GROSS PROFIT

2,373

2,433


3,892

4,018







OPERATING COSTS AND EXPENSES

1,662

1,831


3,009

3,323







INCOME FROM OPERATIONS

711

602


883

695







Interest expense

110

156


198

245







INCOME BEFORE PROVISION FOR






 INCOME TAXES

601

446


685

450







Provision for income taxes

241

180


279

180







NET INCOME

$   360

$   266


$    406

$    270







Net income per share:






  Basic and diluted

$ 0.01

$ 0.01


$ 0.01

$ 0.01







Weighted average common shares outstanding:






  Basic and Diluted

44,157

52,883


44,157

52,883










ALLIANCE DISTRIBUTORS HOLDING INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED BALANCE SHEETS

December 31, 2011 and 2010

(unaudited, in thousands)



December 31,


2011

2010

ASSETS






CURRENT ASSETS:



   Cash and equivalents

$     478

$     183

   Accounts receivable-net

5,408

5,444

   Inventory

5,985

10,223

   Advances to suppliers

299

286

   Prepaid expenses and other current assets

107

135

   Deferred income taxes

213

287




       Total current assets

12,490

16,558




PROPERTY AND EQUIPMENT – NET

129

212




DEFERRED INCOME TAXES

215

185




OTHER ASSETS

80

80




TOTAL

$12,914

$17,035







LIABILITIES AND STOCKHOLDERS' EQUITY






CURRENT LIABILITIES:



   Notes payable – bank

$  3,610

$  7,925

   Accounts payable

4,276

4,288

   Accrued expenses and other current liabilities

401

288




       Total current liabilities

8,287

12,501




DEFERRED LEASE OBLIGATIONS

-

12







STOCKHOLDERS' EQUITY

4,627

4,522

TOTAL

$12,914

$17,035




COMMON SHARES OUTSTANDING

44,157

52,883









ALLIANCE DISTRIBUTORS HOLDING INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

SIX MONTHS ENDED DECEMBER 31, 2011 AND 2010

(unaudited, in thousands)






 2011

2010

OPERATING ACTIVITIES:



   Net income

$     406

$     270

   Adjustments to reconcile net income to net cash provided by



     operating activities:



   Depreciation and amortization

45

129

   Provision for doubtful accounts

10

10

   Equity compensation  expense

6

18

   Deferred income taxes

70

-

   Other

18

(16)

   Changes in operating assets and liabilities-net

933

(3,908)




       Net cash provided by (used in) operating activities

1,488

(3,497)




INVESTING ACTIVITIES:



   Purchase of property and equipment

(19)

(5)




       Net cash used in investing activities

(19)

(5)




FINANCING ACTIVITIES:



   Proceeds from note payable, net of repayments – bank

-

2,794

   Repayments of note payable, net of proceeds – bank

(1,979)

-

   Payment of long-term obligations

   -

(15)




       Net cash (used in) provided by financing activities

(1,979)

2,779




DECREASE IN CASH AND EQUIVALENTS

(510)

(723)




CASH AND EQUIVALENTS, BEGINNING OF PERIOD

988

906




CASH AND EQUIVALENTS, END OF PERIOD

$    478

$    183







SOURCE Alliance Distributors Holding Inc.



RELATED LINKS
www.alliancedistributors.com

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