Alliance Distributors Holding Inc. Reports Fourth Quarter And Year End Financial Results

NEW YORK, Aug. 27, 2013 /PRNewswire/ -- Alliance Distributors Holding Inc. (Pink Sheets: ADTR), a distributor and developer of interactive video games and gaming products, today announced its financial results for the fourth quarter and fiscal year ended June 30, 2013.

Net sales for the three months ended June 30, 2013 increased 80% to $18.6 million from $10.3 million for the three months ended June 30, 2012. Net income for the three months ended June 30, 2013 increased to $488,000 compared to a net loss of $55,000 for the three months ended June 30, 2012.  The loss for the 2012 period included approximately $111,000 of expenses in connection with the closing of the company's credit facility with PNC Bank.

For the fiscal year ended June 30, 2013, net sales increased 20% to $68.3 million from $56.8 million for the year ended June 30, 2012. Net income increased to $1.2 million for the year ended June 30, 2013 compared to $428,000 for the comparable 2012 period and reflects approximately $192,000 in costs for outsourcing the company's warehouse operations and relocating its principal office to New York City. The income for the year ended June 30, 2012 period included approximately $111,000 of expenses in connection with the closing of the company's credit facility with PNC Bank.

In August 2013, PNC Bank increased its revolving credit line to the company from $15 million to $25 million.

Jay Gelman, Chairman and Chief Executive Officer, said "In the quarter and year ended June 30, 2013 we continued to grow our business significantly despite ongoing weakness in the overall video game industry. We also strengthened our infrastructure by outsourcing our warehouse and fulfillment operations and relocating our headquarters. These efforts will be augmented starting in August 2013 with the expansion of our credit line to $25 million."

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®, 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.

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.

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SOURCE Alliance Distributors Holding Inc.