Alliance Distributors Holding Inc. Reports September 30, 2013 Financial Results Also Reports Agreement with FarSight Studios to Publish a Video Game for PlayStation®4

NEW YORK, Nov. 7, 2013 /PRNewswire/ -- Alliance Distributors Holding Inc. (Pink Sheets:  ADTR), a distributor, developer and publisher of interactive video games and gaming products, today announced its financial results for the first quarter ended September 30, 2013.

Net sales for the quarter ended September 30, 2013 increased 52% to $18.7 million from $12.3 million for the quarter ended September 30, 2012. Net income for the 2013 quarter increased to $431,000 from $16,000 in the corresponding period in 2012.  Net income for the quarter ended September 30, 2012 takes into account approximately $125,000 in severance and related expenses for the outsourcing of warehousing and fulfillment operations.

The Company also reported that it signed an agreement with FarSight Studios to publish The Pinball Arcade, a video game developed by FarSight Studios for the new PlayStation®4.  The game has been submitted to Sony Corporation Entertainment America LLC for final approval.

Jay Gelman, Chairman and Chief Executive Officer, said, "The release in November of Microsoft's Xbox One and Sony's PlayStation®4 may negatively impact our results starting in the fourth quarter by reducing revenues from prior generation consoles and games."

Gelman continued, "FarSight Studios is a respected developer in our industry and we are delighted to enter into the publishing arena with them on a great family oriented title that utilizes the best features of the PS4™ console. Subject to Sony's final approval we are aiming to release the title later this month, which would put us in the PS4™ launch window."

About Alliance Distributors Holding Inc.

Alliance Distributors Holding Inc. and subsidiaries (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, and publishes videogames as Alliance Digital Media™.

About FarSight Studios

FarSight Studios (www.farsightstudios.com) is a videogame developer located in Big Bear Lake, California.  As experienced developers, FarSight Studios has been creating videogames continuously since 1989. They have developed games for every major console from the original Nintendo Entertainment System to the PlayStation®4. FarSight's games have been awarded Editor's Choice awards, Toy of the Year nominations, and Greatest Hits designations on multiple platforms.

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, 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 and / or publish, 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 One, Xbox, Xbox 360 and Xbox LIVE are either registered trademarks or trademarks of the Microsoft group of companies.



ALLIANCE DISTRIBUTORS HOLDING INC. AND SUBSIDIARIES

INCOME STATEMENTS

THREE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012

(Unaudited; in thousands)







2013

2012





NET SALES


$18,655

$12,264





COST OF GOODS SOLD


16,200

10,527





GROSS PROFIT


2,455

1,737





OPERATING COSTS AND EXPENSES


1,631

1,539





INCOME FROM OPERATIONS BEFORE




  SPECIAL CHARGES


824

198





Special charges – warehouse closure


-

125





INCOME FROM OPERATIONS


824

73





Interest expense


93

47





INCOME BEFORE PROVISION FOR INCOME TAXES


731

26





Provision for income taxes


300

10





NET INCOME


$   431

$    16









Net income per share:




   Basic and diluted


$    .01

$      -





Weighted average common shares outstanding:








   Basic


44,157

44,157

   Diluted


44,519

44,157

 

 

 


ALLIANCE DISTRIBUTORS HOLDING INC. AND SUBSIDIARIES

CONDENSED BALANCE SHEETS

(Unaudited, in thousands)






September,

September,


2013

2012










ASSETS






CURRENT ASSETS:



  Cash and equivalents

$    115

$     351

  Accounts receivable-net

6,197

6,228

  Inventory

16,375

6,021

  Advances to suppliers

280

120

  Prepaid expenses and other current assets

435

197

  Deferred income taxes

409

308




                Total current assets

23,811

13,225




PROPERTY AND EQUIPMENT – NET

153

113




DEFERRED INCOME TAXES

80

215




OTHER ASSETS

60

98




TOTAL

$24,104

$13,651




LIABILITIES AND STOCKHOLDERS' EQUITY






CURRENT LIABILITIES:



  Asset-based revolving loan – bank

$10,428

$ 2,423

  Current portion of long-term debt

761

500

  Accounts payable

5,958

4,746

  Accrued expenses and other current liabilities

496

422




                Total current liabilities

17,643

8,091




LONG-TERM DEBT

114

875




DEFERRED RENT

22

11




STOCKHOLDERS' EQUITY:



   Common Stock, 44,157 shares issued and outstanding

44

44

  Additional paid in capital

3,483

3,466

  Retained earnings

2,798

1,164




                Total stockholders' equity

6,325

4,674




TOTAL

$24,104

$13,651




 

ALLIANCE DISTRIBUTORS HOLDING INC. AND SUBSIDIARIES

CONDENSED STATEMENTS OF CASH FLOWS

THREE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012

(Unaudited, in thousands)






2013

2012

OPERATING ACTIVITIES:



    Net income

$    431

$     16

    Adjustments to reconcile net income to net cash (used in)



        provided by operating activities:



        Depreciation and amortization

19

17

        Deferred income taxes

(66)

(106)

        Other

21

17

        Changes in operating assets and liabilities-net

(583)

506




                Net cash (used in) provided by operating activities

(178)

450




INVESTING ACTIVITIES:



    Security deposit

-

(42)

    Purchase of property and equipment

(5)

(24)




               Net cash used in investing activities

(5)

(66)




FINANCING ACTIVITIES:



    Repayments of asset-based revolving loan – bank, net of proceeds

-

(489)

    Proceeds from asset-based revolving loan – bank, net of payments

107

-

    Payment of deferred financing costs

(25)


    Payment of long-term debt

(125)

(125)




                Net cash used in financing activities

(43)

(614)




DECREASE IN CASH AND EQUIVALENTS

(226)

(230)




CASH AND EQUIVALENTS, BEGINNING OF PERIOD

341

581




CASH AND EQUIVALENTS, END OF PERIOD

$  115

$  351

 

 

 




 

SOURCE Alliance Distributors Holding Inc.



RELATED LINKS
http://www.alliancedistributors.com

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