Alliance Media Holdings Inc. Reports September 30, 2015 Financial Results

12 Nov, 2015, 16:42 ET from Alliance Media Holdings Inc.

NEW YORK, Nov. 12, 2015 /PRNewswire/ -- Alliance Media Holdings Inc. (Pink Sheets:  ADTR), a distributor, developer and publisher of interactive video games and gaming products, announced today its financial results for the first quarter ended September 30, 2015.

Net sales for the quarter ended September 30, 2015 decreased 4% to $12.6 million from $13.2 million for the quarter ended September 30, 2014. Net income for the 2015 quarter decreased to $6,000 from $215,000 in the corresponding period in 2014.

Jay Gelman, Chairman and Chief Executive Officer, said "The decline in net income in the first quarter from the corresponding quarter of last year reflects a reduction in the availability of value product for the older PS3, Xbox 360, Wii, WiiU, and DS platforms. We anticipate that there will be opportunities to purchase significant quantities of value product for the new PS4 and Xbox One if hardware units for these platforms continue to sell at their current rate."

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

THREE MONTHS ENDED SEPTEMBER 30, 2015 AND 2014

(In thousands, except per share amounts)







2015

2014







NET SALES

$12,648

$13,180




COST OF SALES

11,192

11,403




GROSS PROFIT

1,456

1,777




OPERATING COSTS AND EXPENSES

1,380

1,352




INCOME FROM OPERATIONS

76

425




Interest expense

70

77




INCOME BEFORE PROVISION FOR



  INCOME TAXES

6

348




Provision for income taxes

-

133




NET INCOME

$     6

$  215




Net income per share – basic and diluted

$      -

$      -




Weighted average common shares outstanding –



    Basic

44,157

44,157

    Diluted

45,184

44,620







 

 


ALLIANCE MEDIA HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

SEPTEMBER 30, 2015 AND 2014

(Unaudited, in thousands)








September 30,


2015

2014




ASSETS






CURRENT ASSETS:



  Cash and equivalents

$     117

$     218

  Accounts receivable-net

3,837

5,869

  Inventory

15,192

12,160

  Advances to suppliers

289

724

  Prepaid expenses and other current assets

487

257

  Deferred income taxes

601

580




                Total current assets

20,523

19,808




PROPERTY AND EQUIPMENT – NET

88

123




DEFERRED INCOME TAXES

141

144




OTHER ASSETS

64

62




TOTAL

$20,816

$20,137




LIABILITIES AND STOCKHOLDERS' EQUITY






CURRENT LIABILITIES:



  Asset based revolving loan – bank

$9,674

$7,881

  Accounts payable

3,006

4,385

  Accrued expenses and other current liabilities

414

404




                Total current liabilities

13,094

12,670




DEFERRED RENT

19

32




STOCKHOLDERS' EQUITY



  Common Stock, 44,157 shares issued and outstanding

44

44

  Additional paid in capital

3,721

3,570

  Retained earnings

 

3,938

3,821




                Total stockholders' equity

7,703

7,435




TOTAL

$20,816

$20,137




 

 

ALLIANCE MEDIA HOLDINGS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

THREE MONTHS ENDED SEPTEMBER 30, 2015 AND 2014

(Unaudited, in thousands)









2015

2014




OPERATING ACTIVITIES:



    Net income

$       6

$  215

    Adjustments to reconcile net income to net cash



        (used in) provided by operating activities:



        Depreciation and amortization

15

15

        Stock-based compensation  expense

37

21

        Deferred income taxes

(20)

(54)

       Other

(2)

7

        Changes in operating assets and liabilities, net

(3,451)

(129)




                Net cash (used in) provided by operating activities

(3,415)

75




INVESTING ACTIVITIES:



    Purchase of property and equipment

(1)

(20)




                Net cash used in investing activities

(1)

(20)




FINANCING ACTIVITIES:



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

3,186

247

    Payment of long-term debt

-

(239)




                Net cash provided by (used in) financing activities

3,186

8




 (DECREASE) INCREASE IN CASH AND EQUIVALENTS

(230)

63




CASH AND EQUIVALENTS, BEGINNING OF PERIOD

347

155




CASH AND EQUIVALENTS, END OF PERIOD

$  117

$ 218




 

SOURCE Alliance Media Holdings Inc.



RELATED LINKS

http://alliancemediaholdings.com