Alliance Distributors Holding Inc. Reports Fourth Quarter And Year End Financial Results Also Announces Credit Facility Increase with PNC Bank

NEW YORK, Aug. 27, 2013 /PRNewswire/ -- Alliance Distributors Holding Inc. (Pink Sheets:  ADTR), a distributor and developer of interactive video games and gaming products, today announced its financial results for the fourth quarter and fiscal year ended June 30, 2013.

Net sales for the three months ended June 30, 2013 increased 80% to $18.6 million from $10.3 million for the three months ended June 30, 2012. Net income for the three months ended June 30, 2013 increased to $488,000 compared to a net loss of $55,000 for the three months ended June 30, 2012.  The loss for the 2012 period included approximately $111,000 of expenses in connection with the closing of the company's credit facility with PNC Bank.

For the fiscal year ended June 30, 2013, net sales increased 20% to $68.3 million from $56.8 million for the year ended June 30, 2012. Net income increased to $1.2 million for the year ended June 30, 2013 compared to $428,000 for the comparable 2012 period and reflects approximately $192,000 in costs for outsourcing the company's warehouse operations and relocating its principal office to New York City. The income for the year ended June 30, 2012 period included approximately $111,000 of expenses in connection with the closing of the company's credit facility with PNC Bank.

In August 2013, PNC Bank increased its revolving credit line to the company from $15 million to $25 million.

Jay Gelman, Chairman and Chief Executive Officer, said "In the quarter and year ended June 30, 2013 we continued to grow our business significantly despite ongoing weakness in the overall video game industry. We also strengthened our infrastructure by outsourcing our warehouse and fulfillment operations and relocating our headquarters. These efforts will be augmented starting in August 2013 with the expansion of our credit line to $25 million."

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.

ALLIANCE DISTRIBUTORS HOLDING INC. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
THREE MONTHS AND YEARS ENDED JUNE 30, 2013 AND 2012
(In thousands, except per share amounts)






Three Months


Year


2013

2012


2013

2012













NET SALES

$18,630

$10,333


$68,293

$56,773







COST OF SALES

16,143

8,720


59,295

49,502







GROSS PROFIT

2,487

1,613


8,998

7,271







OPERATING COSTS AND EXPENSES

1,595

1,499


6,536

6,053







INCOME FROM OPERATIONS BEFORE






  SPECIAL CHARGES

892

114


2,462

1,218







Special Charges

-

111


192

111







INCOME FROM OPERATIONS

892

3


2,270

1,107







Interest expense

100

92


267

390







INCOME (LOSS) BEFORE PROVISION FOR






  (BENEFIT FROM) INCOME TAXES

792

(89)


2,003

717







Provision for (benefit from) income taxes

304

(34)


784

289







NET INCOME (LOSS)

$  488

$  (55)


$ 1,219

$   428







Net income per share – basic and diluted

$  0.01

$       -


$   0.03

$  0.01







Weighted average common shares outstanding –






    Basic

44,157

44,157


44,157

44,157

    Diluted

44,385

44,157


44,187

44,161













 

ALLIANCE DISTRIBUTORS HOLDING INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
JUNE 30, 2013 AND 2012
(in thousands)





JUNE 30,


2013

2012




ASSETS






CURRENT ASSETS:



  Cash and equivalents

$     341

$     581

  Accounts receivable-net

7,207

4,127

  Inventory

13,950

5,531

  Advances to suppliers

645

99

  Prepaid expenses and other current assets

403

275

  Deferred income taxes

351

196




                Total current assets

22,897

10,809




PROPERTY AND EQUIPMENT – NET

167

106




DEFERRED INCOME TAXES

72

221




OTHER ASSETS

59

75




TOTAL

$23,195

$11,211




LIABILITIES AND STOCKHOLDERS' EQUITY






CURRENT LIABILITIES:



  Asset based revolving loan – bank

$ 10,321

$ 2,912

  Current portion of long-term debt

761

500

  Accounts payable

5,535

1,811

  Accrued expenses and other current liabilities

438

332




                Total current liabilities

17,055

5,555




LONG-TERM DEBT

239

1,000




DEFERRED RENT

11

-




STOCKHOLDERS' EQUITY



    Common Stock, 44,157 shares issued and outstanding

44

44

    Additional paid in capital

3,479

3,464

    Retained earnings

2,367

1,148




                Total stockholders' equity

5,890

4,656







TOTAL

$23,195

$11,211




 

ALLIANCE DISTRIBUTORS HOLDING INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED JUNE 30, 2013 AND 2012
(in thousands)





2013

2012




OPERATING ACTIVITIES:



    Net income

$   1,219

$    428

    Adjustments to reconcile net income to net cash



        provided by operating activities:



        Depreciation and amortization

73

92

       Provision for doubtful accounts

56

10

        Stock-based compensation  expense

15

13

        Deferred income taxes

(6)

81

       Other

60

36

        Changes in operating assets and liabilities, net

(8,378)

201




                Net cash (used in) provided by operating activities

(6,961)

861




INVESTING ACTIVITIES:



    Security deposits

(43)

-

    Purchase of property and equipment

(145)

(41)




                Net cash used in investing activities

(188)

(41)




FINANCING ACTIVITIES:



    Proceeds from asset based revolving loan – bank, net of repayments

7,409

2,912

    Payment of note payable-bank, net of proceeds

-

(5,589)

    Proceeds from long-term debt

-

1,500

    Payment of deferred financing costs

-

(50)

    Payment of long-term debt

(500)

-




                Net cash provided by (used in) financing activities

6,909

(1,227)




DECREASE IN CASH AND EQUIVALENTS

(240)

(407)




CASH AND EQUIVALENTS, BEGINNING OF YEAR

581

988




CASH AND EQUIVALENTS, END OF YEAR

$   341

$   581




 

 

 

 

SOURCE Alliance Distributors Holding Inc.



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www.alliancedistributors.com

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