Alliance Distributors Holding Inc. Reports September 30, 2011 Financial Results

NEW YORK, Dec. 1, 2011 /PRNewswire/ -- Alliance Distributors Holding Inc. (Pink Sheets:  ADTR), a distributor of interactive video games and gaming products, today announced its financial results for its first quarter ended September 30, 2011.

Net sales for the first quarter were $10.3 million, down 8 percent from the comparable 2010 period.  Net income for the quarter increased to $46,000, compared to $4,000 for the comparable period in 2010.

Jay Gelman, Chairman and Chief Executive Officer, said, "A disappointing release schedule of front line software by the industry led to reduced consumer spending during the quarter. Operating profits from our distribution business were nevertheless sufficient to fund the creative efforts of our Metaversal subsidiary in video game development.

"In our distribution business we continue to focus on higher margin value software sales and to a lesser extent on front-line software. We are deemphasizing lower margin hardware sales."

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, Xbox 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

THREE MONTHS ENDED SEPTEMBER 30, 2011 AND 2010

(Unaudited; in thousands)

 

 

 

 

 

 

2011

2010

 

 

 

 

NET SALES

 

$10,280

$11,211

 

 

 

 

COST OF GOODS SOLD

 

8,761

9,626

 

 

 

 

GROSS PROFIT

 

1,519

1,585

 

 

 

 

OPERATING COSTS AND EXPENSES

 

1,347

1,492

 

 

 

 

INCOME FROM OPERATIONS

 

172

93

 

 

 

 

Interest expense

 

88

89

 

 

 

 

INCOME BEFORE PROVISION FOR INCOME TAXES

 

84

4

 

 

 

 

Provision for income taxes

 

38

  -

 

 

 

 

NET INCOME

 

$    46

$     4

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

   Basic and diluted

 

$      -

$       -

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

   Basic and diluted

 

44,157

52,883

Certain 2010 amounts have been reclassified to conform to the 2011 presentation

 

 

ALLIANCE DISTRIBUTORS HOLDING INC. AND SUBSIDIARY

CONSOLIDATED CONDENSED BALANCE SHEETS

 (Unaudited, in thousands)

 

 

 

 

 

September,

September,

 

2011

2010

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

CURRENT ASSETS:

 

 

  Cash and equivalents

$     362

$     326

  Accounts receivable-net

4,060

4,666

  Inventory

7,780

6,531

  Advances to suppliers

677

1,440

  Prepaid expenses and other current assets

155

296

  Deferred income taxes

268

277

 

 

 

                Total current assets

13,302

13,536

 

 

 

PROPERTY AND EQUIPMENT – NET

140

264

 

 

 

DEFERRED INCOME TAXES

230

185

 

 

 

OTHER ASSETS

77

89

 

 

 

TOTAL

$13,749

$14,074

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

CURRENT LIABILITIES:

 

 

  Notes payable – bank

$ 5,388

$ 6,733

  Accounts payable

3,795

2,726

  Accrued expenses and other current liabilities

299

349

 

 

 

                Total current liabilities

9,482

9,808

 

 

 

LONG-TERM OBLIGATIONS

-

20

 

 

 

STOCKHOLDERS' EQUITY

4,267

4,246

 

 

 

TOTAL

$13,749

$14,074

 

 

 

COMMON SHARES OUTSTANDING

44,157

52,883

 

 

ALLIANCE DISTRIBUTORS HOLDING INC. AND SUBSIDIARY

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

THREE MONTHS ENDED SEPTEMBER 30, 2011 AND 2010

(Unaudited, in thousands)

 

 

 

 

 

2011

2010

OPERATING ACTIVITIES:

 

 

    Net income

$      46

$      4

    Adjustments to reconcile net income to net cash provided by

 

 

        operating activities:

 

 

        Depreciation and amortization

24

64

       Other

20

-

        Changes in operating assets and liabilities-net

(506)

(2,244)

 

 

 

                Net cash used in operating activities

(416)

(2,176)

 

 

 

INVESTING ACTIVITIES:

 

 

    Purchase of property and equipment

(9)

(1)

 

 

 

               Net cash used in investing activities

(9)

(1)

 

 

 

FINANCING ACTIVITIES:

 

 

    Proceeds from note payable, net of repayments – bank

-

1,602

    Repayments of note payable, net of proceeds – bank

(201)

-

    Payment of long-term obligations

  -

(5)

 

 

 

                Net cash (used in) provided by financing activities

(201)

1,597

 

 

 

DECREASE IN CASH AND EQUIVALENTS

(626)

(580)

 

 

 

CASH AND EQUIVALENTS, BEGINNING OF PERIOD

988

906

 

 

 

CASH AND EQUIVALENTS, END OF PERIOD

$  362

$  326

 

 

 

SOURCE Alliance Distributors Holding Inc.



RELATED LINKS
http://www.alliancedistributors.com

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