Alliance Distributors Holding Inc. Reports June 30, 2010 Financial Results and Change in Year End Announces Investor Conference Call

NEW YORK, Aug. 18 /PRNewswire-FirstCall/ -- 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 June 30, 2010.

Net sales for the three months ended June 30, 2010 decreased 18% to $10.4 million from $12.7 million in the months ended June 30, 2009.  Net income for the three months ended June 30, 2010 increased slightly to $62,000, compared to $58,000 for the comparable period in 2009.

For the six months ended June 30, 2010, net sales increased 5% to $30.5 million, compared to $29.1 million for the same period in 2009. Net income increased 39% to $297,000 for the six months ended June 30, 2010 compared to $214,000 for the comparable period in 2009.

The company also announced that it changed its financial year end from December 31 to June 30 to better align its financial reporting year end with its business cycle.

Jay Gelman, Chairman and Chief Executive Officer, said "Our reduced sales level reflects a very challenging time in our industry. NPD Group reports continued double digit year over year software sales declines in the industry; with a 15% decline in June 2010 video game sales across the board.  Despite the sales decline, we maintained profitability in the quarter as our margins continued to be strong."

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 Wednesday, August 25, 2010.

The call-in number for the conference call is:

800-753-0487 (confirmation code:  5054166)

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.
INCOME STATEMENTS
THREE AND SIX MONTHS ENDED JUNE 30, 2010 AND 2009
(In thousands, except per share amounts)







Three Months


Six Months


2010

2009


2010

2009


Unaudited

Unaudited


Derived from
audited financial
statements

Unaudited

















NET SALES

$10,362

$12,702


$  30,514

$  29,120







COST OF GOODS SOLD

  8,605

 10,854


 26,236

 25,002







GROSS PROFIT

1,757

1,848


4,278

4,118







OPERATING COSTS AND EXPENSES

  1,568

  1,619


  3,569

  3,501







INCOME FROM OPERATIONS

189

229


709

617







Interest expense

     108

    124


    228

    250







INCOME BEFORE PROVISION FOR






 INCOME TAXES

81

105


481

367







Provision for income taxes

      19

      47


     184

    153







NET INCOME

$     62

$     58


$    297

$   214







Net income per share – basic and diluted

$        -

$        -


$   0.01

$       -







Weighted average common shares outstanding –






   Basic

52,883

52,883


52,883

52,883

   Diluted

52,883

52,938


52,883

53,026
















ALLIANCE DISTRIBUTORS HOLDING INC.
CONDENSED BALANCE SHEETS
JUNE 30, 2010 AND 2009
(in thousands)






JUNE 30,


2010

2009


Derived from
audited financial
statements

Unaudited








ASSETS






CURRENT ASSETS:



 Cash and equivalents

$    906

$     830

 Accounts receivable-net

3,909

4,656

 Inventory

5,849

5,792

 Due from vendors

257

-

 Prepaid expenses and other current assets

236

188

 Deferred income taxes

      277

      433




      Total current assets

11,434

11,899




PROPERTY AND EQUIPMENT – NET

318

402




DEFERRED INCOME TAXES

185

200




OTHER ASSETS

        98

        82




TOTAL

$12,035

$12,583




LIABILITIES AND STOCKHOLDERS' EQUITY






CURRENT LIABILITIES:



 Notes payable – bank

$ 5,131

$  4,808

 Accounts payable

2,289

3,755

 Accrued expenses and other current liabilities

     353

     528




      Total current liabilities

7,773

9,091




LONG-TERM OBLIGATIONS

28

46




STOCKHOLDERS' EQUITY

   4,234

   3,446




TOTAL

$12,035

$12,583




COMMON SHARES OUTSTANDING

 52,883

 52,883




ALLIANCE DISTRIBUTORS HOLDING INC.
CONDENSED STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 2010 AND 2009
(In thousands)






2010

2009


Derived from
audited financial
statements

Unaudited





OPERATING ACTIVITIES:



   Net income

$    297

$    214

   Adjustments to reconcile net income to net cash provided by operating activities:



       Depreciation and amortization

125

109

       Provision for doubtful accounts

50

100

       Stock option compensation  expense

19

36

       Deferred income taxes

(21)

(192)

       Other

10

20

       Changes in operating assets and liabilities-net

       (9)

  1,665




           Net cash provided by operating activities

    471

  1,952




INVESTING ACTIVITIES:



   Purchase of property and equipment

     (73)

     (10)




            Net cash used in investing activities

     (73)

     (10)




FINANCING ACTIVITIES:



   Repayments of note payable, net of proceeds – bank

   (446)

(1,998)

   Payment of deferred financing costs

(38)

(38)

   Payment of long-term obligations

     (10)

         -




           Net cash used in financing activities

   (494)

(2,036)




DECREASE IN CASH AND EQUIVALENTS

     (96)

     (94)




CASH AND EQUIVALENTS, BEGINNING OF PERIOD

 1,002

    924




CASH AND EQUIVALENTS, END OF PERIOD

$   906

$   830







SOURCE Alliance Distributors Holding Inc.



RELATED LINKS
http://www.alliancedistributors.com

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