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Alliance Distributors Holding Inc. Reports March 31, 2012 Financial Results

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NEW YORK, May 3, 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 nine month periods ended March 31, 2012.

Net sales for the three months ended March 31, 2012 decreased 4% to $15.3 million from $16.0 million in the three months ended March 31, 2011.  Net income for the three months ended March 31, 2012 increased to $77,000, compared to $7,000 for the comparable period in 2011.

For the nine months ended March 31, 2012, net sales were $46.4 million, essentially flat with the comparable period in 2011.  Net income for the nine months ended March 31, 2012 increased to $483,000, compared to $277,000 for the nine months ended March 31, 2011.

Jay Gelman, Chairman and Chief Executive Officer, said, "Net income grew year over year despite a slight decline in revenue in the third quarter compared to last year's third quarter. The video game industry continues to experience double digit revenue declines in 2012.

"Our Metaversal Studio unit continues to work towards profitability by developing new games and improving on our existing offerings, including the release during the quarter of a Tattoo Kit for our popular Shave me!® app."

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


Nine Months ended


March 31,


March 31,


2012

2011


2012

2011







NET SALES

$15,332

$15,968


$46,440

$46,594







COST OF GOODS SOLD

13,566

14,075


40,782

40,683







GROSS PROFIT

1,766

1,893


5,658

5,911







OPERATING COSTS AND EXPENSES

1,545

1,747


4,554

5,070







INCOME FROM OPERATIONS

221

146


1,104

841







Interest expense

100

140


298

385







INCOME BEFORE PROVISION FOR






  INCOME TAXES

121

6


806

456







Provision for (benefit from) income taxes

44

(1)


323

179







NET INCOME

$    77

$     7


$    483

$    277







Net income per share:






   Basic and diluted

$      -

$      -


$ 0.01

$ 0.01







Weighted average common shares outstanding:






   Basic and Diluted

44,157

52,883


44,157

52,883







Certain 2011 amounts have been reclassified to conform to the 2012 presentation

 

 

ALLIANCE DISTRIBUTORS HOLDING INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED BALANCE SHEETS

March 31, 2012 and 2011

(unaudited, in thousands)




March 31,


2012

2011

ASSETS






CURRENT ASSETS:



  Cash and equivalents

$     333

$     516

  Accounts receivable-net

6,664

8,115

  Inventory

8,175

8,735

  Advances to suppliers

191

171

  Prepaid expenses and other current assets

61

177

  Deferred income taxes

225

291




                Total current assets

15,649

18,005




PROPERTY AND EQUIPMENT – NET

110

187




DEFERRED INCOME TAXES

213

231




OTHER ASSETS

76

71




TOTAL

$16,048

$18,494







LIABILITIES AND STOCKHOLDERS' EQUITY






CURRENT LIABILITIES:



  Notes payable – bank

$  6,102

$  9,236

  Accounts payable

4,920

4,364

  Accrued expenses and other current liabilities

315

351




                Total current liabilities

11,337

13,951




DEFERRED LEASE OBLIGATIONS

-

5







STOCKHOLDERS' EQUITY

4,711

4,538




TOTAL

$16,048

$18,494




COMMON SHARES OUTSTANDING

44,157

52,883

 

 

ALLIANCE DISTRIBUTORS HOLDING INC. AND SUBSIDIARY



CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS



NINE MONTHS ENDED MARCH 31, 2012 AND 2011



(unaudited, in thousands)







2012

2011

OPERATING ACTIVITIES:



    Net income

$    483

$    277

    Adjustments to reconcile net income to net cash used in



        operating activities:



        Depreciation and amortization

67

180

       Provision for doubtful accounts

10

15

        Equity compensation  expense

13

27

        Deferred income taxes

60

(60)

       Other

28

5

        Changes in operating assets and liabilities-net

(1,809)

(4,887)




                Net cash used in operating activities

(1,148)

(4,443)




INVESTING ACTIVITIES:



    Purchase of property and equipment

(20)

(37)




               Net cash used in investing activities

(20)

(37)




FINANCING ACTIVITIES:



    Proceeds from note payable, net of repayments – bank

513

4,105

    Payment of long-term obligations

-

(15)




                Net cash provided by financing activities

513

4,090




DECREASE IN CASH AND EQUIVALENTS

(655)

(390)




CASH AND EQUIVALENTS, BEGINNING OF PERIOD

988

906




CASH AND EQUIVALENTS, END OF PERIOD

$   333

$   516




 

SOURCE Alliance Distributors Holding Inc.



RELATED LINKS
http://www.alliancedistributors.com

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