Alliance Media Holdings Inc. Reports Financial Results For The Three And Six Months Ended December 31, 2015

Feb 04, 2016, 09:00 ET from Alliance Distributors Holding Inc.

NEW YORK, Feb. 4, 2016 /PRNewswire/ -- Alliance Media Holdings Inc. (Pink Sheets:  ADTR), a distributor, developer and publisher of interactive video games and gaming products, today announced its financial results for the three and six months ended December 31, 2015.

Net sales for the three months ended December 31, 2015 increased 21% to $18.2 million from $15.0 million in the three months ended December 31, 2014.  Net income for the three months ended December 31, 2015 increased to $282,000 from $14,000 for the comparable period in 2014.

For the six months ended December 31, 2015 net sales increased 10% to $30.8 million from $28.2 million in the six months ended December 31, 2014.  Net income for the six months ended December 31, 2015 increased to $288,000 from $229,000 for the comparable period in 2014. 

Jay Gelman, Chairman and Chief Executive Officer, said, "The upswing in the past quarter reflects ordinary business fluctuations – underlying industry conditions remain the same as reported previously. The availability of value products for the older hardware platforms; Sony's PS3, and Microsoft's Xbox 360, and Nintendo's WiiU, DS, and 3DS current platforms, continues at reduced levels. Further, we have not yet seen significant quantities of value product offerings for the new PS4 and Xbox One systems."

About Alliance

Alliance Media Holdings Inc., formerly Alliance Distributors Holding Inc., (www.alliancemediaholdings.com) is a vertically integrated video game company. Its Alliance Distributors operating division is a full-service wholesale distributor of video games, hardware and accessories, with a special concentration in value video games.  Alliance is a licensed publisher for Sony Computer Entertainment of America, Microsoft and Nintendo, and as Alliance Digital Media® publishes both originally created and third party licensed games in console, mobile, and PC/Mac formats.  Alliance develops both original and third-party video games as Alliance Game Studios (formerly Metaversal Studios).

Xbox One, Xbox, Xbox 360 and Xbox LIVE are either registered trademarks or trademarks of the Microsoft group of companies. Other Company and product names may be trademarks of their respective owners.

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.

 

ALLIANCE MEDIA HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED INCOME STATEMENTS

(In thousands, except per share amounts)

(unaudited)




Three Months ended


Six Months ended


December 31,


December 31,


2015


2014


2015


2014









NET SALES

$18,196


$14,980


$30,844


$28,160









COST OF GOODS SOLD

15,778


13,266


26,970


24,669









GROSS PROFIT

2,418


1,714


3,874


3,491









OPERATING COSTS AND EXPENSES

1,870


1,614


3,250


2,966









INCOME FROM OPERATIONS

548


100


624


525









Interest expense

89


74


159


151









INCOME BEFORE PROVISION FOR








  INCOME TAXES

459


26


465


374









Provision for income taxes

177


12


177


145









NET INCOME

$    282


$    14


$    288


$    229









Net income per share:








   Basic and diluted

$   0.01


$       -


$  0.01


$    0.01









Weighted average common shares outstanding:








   Basic

44,157


44,157


44,157


44,157

   Diluted

44,608


44,611


44,655


44,621

 

 

ALLIANCE MEDIA HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

December 31, 2015 and 2014

(unaudited, in thousands)




December 31,


2015


2014

ASSETS








CURRENT ASSETS:




  Cash and equivalents

$     1,413


$     244

  Accounts receivable-net

6,472


5,034

  Inventory

11,721


10,660

  Advances to suppliers

-


160

  Prepaid expenses and other current assets

281


107

  Prepaid income taxes

125


183

  Deferred income taxes

601


561





                Total current assets

20,613


16,949





PROPERTY AND EQUIPMENT – NET

76


110





DEFERRED INCOME TAXES

141


164





OTHER ASSETS

61


63





TOTAL

$20,891


$17,286









LIABILITIES AND STOCKHOLDERS' EQUITY








CURRENT LIABILITIES:




  Asset-based revolving loan – bank

$  9,338


$  6,840

  Accounts payable

2,701


2,514

  Accrued expenses and other current liabilities

816


414





                Total current liabilities

12,855


9,768





DEFERRED RENT

14


29





STOCKHOLDERS' EQUITY:




  Common Stock, 44,157 shares issued and outstanding

44


44

  Additional paid in capital

3,758


3,610

  Retained earnings

4,220


3,835





                Total stockholders' equity

8,022


7,489





TOTAL

$20,891


$17,286

 

 

ALLIANCE MEDIA HOLDINGS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

SIX MONTHS ENDED DECEMBER 31, 2015 AND 2014

(unaudited, in thousands)




2015


2014

OPERATING ACTIVITIES:




    Net income

$   288


$   229

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




        operating activities:




        Depreciation and amortization

30


31

        Loss on disposition of assets

-


-

        Deferred income taxes

(20)


(55)

        Stock-based compensation expense

74


61

        Other

(5)


11

        Changes in operating assets and liabilities-net

(2,147)


868





                Net cash (used in) provided by operating activities

(1,780)


1,145





INVESTING ACTIVITIES:




    Security deposit

-


-

    Purchase of property and equipment

(4)


(23)





               Net cash used in investing activities

(4)


(23)





FINANCING ACTIVITIES:




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

-


(794)

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

2,850


-

    Payment of long-term debt

-


(239)





                Net cash provided by (used) in financing activities

2,850


(1,033)





INCREASE IN CASH AND EQUIVALENTS

1,066


89





CASH AND EQUIVALENTS, BEGINNING OF PERIOD

347


155





CASH AND EQUIVALENTS, END OF PERIOD

$ 1,413


$  244

 

 

SOURCE Alliance Distributors Holding Inc.



RELATED LINKS

http://alliancemediaholdings.com