Alliance Distributors Holding Inc. Reports Financial Results For The Three And Nine Months Ended March 31, 2015

May 18, 2015, 09:00 ET from Alliance Distributors Holding Inc.

NEW YORK, May 18, 2015 /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 three and nine months ended March 31, 2015.

Net sales for the three months ended March 31, 2015 decreased 11% to $13.2 million from $14.9 million in the three months ended March 31, 2014.  Net income for the three months ended March 31, 2015 declined to $37,000 from $392,000 for the comparable period in 2014.

For the nine months ended March 31, 2015 net sales decreased 14% to $41.4 million from $48.0 million in the nine months ended March 31, 2014.  Net income for the nine months ended March 31, 2015 decreased to $265,000 from $988,000 for the comparable period in 2014. 

Jay Gelman, Chairman and Chief Executive Officer, said, "We had fewer sources for value product during the March 2015 periods than in the corresponding 2014 periods. The decline in availability reflects residual turmoil from last year's new platform introductions of Sony's Playstation®4 and Microsoft's Xbox One, vendors who are out of business, licensing lapses, and a reduction in distress closeout opportunities. I expect that vendors who are now concentrating on new platform products will in due course accelerate their value product offerings.

"BlazeBlue: Battle Cards™ is our first licensed mobile game for Apple's iPad and is available for download in the App store. The reduction in net income from the 2014 periods reflects our costs for the development of BlazeBlue as well as the decline in our value revenues."

About Alliance

Alliance Distributors Holding Inc. (www.alliancedistributors.com), along with its wholly-owned subsidiary, Alliance Metaversal Studio LLC, 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).

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, the emergence of new or growing competitors and 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

CONSOLIDATED INCOME STATEMENTS

(In thousands, except per share amounts)

(unaudited)







Three Months ended


Nine Months ended


March 31,


March 31,


2015

2014


2015

2014







NET SALES

$13,218

$14,921


$41,378

$48,026







COST OF GOODS SOLD

11,480

12,793


36,150

41,474







GROSS PROFIT

1,738

2,128


5,228

6,552







OPERATING COSTS AND EXPENSES

1,607

1,454


4,573

4,692













INCOME FROM OPERATIONS

131

674


655

1,860







Interest expense

68

80


219

277







INCOME BEFORE PROVISION FOR






  INCOME TAXES

63

594


436

1,583







Provision for income taxes

26

202


171

595







NET INCOME

$    37

$   392


$    265

$    988







Net income per share:






   Basic and diluted

$      -

$  0.01


$ 0.02

$ 0.02







Weighted average common shares outstanding:






   Basic

44,157

44,157


44,157

44,157

   Diluted

44,557

44,414


44,589

44,677







 

 

 

ALLIANCE DISTRIBUTORS HOLDING INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

March 31, 2015 and 2014

(unaudited, in thousands)




March 31,


2015

2014

ASSETS






CURRENT ASSETS:



  Cash and equivalents

$     334

$     173

  Accounts receivable-net

6,425

8,067

  Inventory

12,505

13,062

  Advances to suppliers

618

962

  Prepaid expenses and other current assets

61

107

  Prepaid income taxes

119

130

  Deferred income taxes

591

459




                Total current assets

20,653

22,960




PROPERTY AND EQUIPMENT – NET

107

130




DEFERRED INCOME TAXES

179

115




OTHER ASSETS

62

56




TOTAL

$21,001

$23,261







LIABILITIES AND STOCKHOLDERS' EQUITY






CURRENT LIABILITIES:



  Asset-based revolving loan – bank

$  6,955

$  8,894

  Current portion of long-term debt

-

364

  Accounts payable

6,060

6,632

  Accrued expenses and other current liabilities

395

430




                Total current liabilities

13,410

16,320




LONG-TERM OBLIGATIONS

-

-




DEFERRED RENT

25

20




STOCKHOLDERS' EQUITY:



  Common Stock, 44,157 shares issued and outstanding

44

44

  Additional paid in capital

3,651

3,522

  Retained earnings

3,871

3,355




                Total stockholders' equity

7,566

6,921




TOTAL

$21,001

$23,261

 


 

 

ALLIANCE DISTRIBUTORS HOLDING INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

NINE MONTHS ENDED MARCH 31, 2015 AND 2014

(unaudited, in thousands)






2015

2014

OPERATING ACTIVITIES:



    Net income

$   265

$   988

    Adjustments to reconcile net income to net cash provided by



        operating activities:



        Depreciation and amortization

46

55

        Stock-based compensation expense

102

43

        Deferred income taxes

(100)

(151)

        Other

15

31

        Changes in operating assets and liabilities-net

804

972




                Net cash provided by operating activities

1,132

1,938




INVESTING ACTIVITIES:



    Purchase of property and equipment

(35)

(18)




               Net cash used in investing activities

(35)

(18)




FINANCING ACTIVITIES:



    Payments of asset-based revolving loan – net of proceeds

(679)

(1,427)

    Payment of deferred financing costs

-

(25)

    Payment of long-term debt

(239)

(636)




                Net cash used in financing activities

(918)

(2,088)




INCREASE (DECREASE) IN CASH AND EQUIVALENTS

179

(168)




CASH AND EQUIVALENTS, BEGINNING OF PERIOD

155

341




CASH AND EQUIVALENTS, END OF PERIOD

$ 334

$  173

 

SOURCE Alliance Distributors Holding Inc.



RELATED LINKS

http://www.alliancedistributors.com