Alliance Distributors Holding Inc. Reports Financial Results For The Three And Nine Months Ended March 31, 2014 - Hawaii News Now - KGMB and KHNL

Alliance Distributors Holding Inc. Reports Financial Results For The Three And Nine Months Ended March 31, 2014

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SOURCE Alliance Distributors Holding Inc.

NEW YORK, May 8, 2014 /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, 2014.

Net sales for the three months ended March 31, 2014 decreased 23% to $14.9 million from $19.3 million in the three months ended March 31, 2013.  Net income for the three months ended March 31, 2014 declined slightly to $392,000 from $402,000 for the comparable period in 2013.

For the nine months ended March 31, 2014 net sales decreased 3% to $48.0 million from $49.7 million in the nine months ended March 31, 2013.  Net income for the nine months ended March 31, 2014 increased to $988,000 from $731,000 for the comparable period in 2013.  Net income for the nine months ended March 31, 2013 takes into account approximately $192,000 in severance and related expenses for the outsourcing of warehousing and fulfillment operations.

Jay Gelman, Chairman and Chief Executive Officer, said, "Our revenue for the fiscal third quarter last year was elevated mainly because of a small group of especially advantageous purchases of product. Although we had less special offers during the same period this year we still substantially maintained our income level.

"It has been six months since Sony and Microsoft introduced the new generation of platforms. We are participating in software sales for these platforms as a distributor and continue to focus on the value product business for prior platforms. In late December 2013 we introduced The Pinball Arcade for the PS4™ game system which was our first publishing venture under our Alliance Digital Media label. Through the creative development team at our Metaversal Studios subsidiary, we continue to pursue additional publishing and development opportunities for all gaming platforms."

About Alliance Distributors Holding Inc.

Alliance Distributors Holding Inc. (www.alliancedistributors.com) is a full-service wholesale videogame distributor, specializing in gaming products and accessories for all key manufacturers and 3rd party publishers. Through its wholly-owned subsidiary, Alliance develops downloadable and social content video games as Metaversal Studios (www.metaversalstudios.com) and publishes videogames as Alliance Digital Media™ (www.alliancedigitalmedia.com).

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,


2014

2013


2014

2013







NET SALES

$14,921

$19,267


$48,026

$49,663







COST OF GOODS SOLD

12,793

16,816


41,474

43,152







GROSS PROFIT

2,128

2,451


6,552

6,511







OPERATING COSTS AND EXPENSES

1,454

1,713


4,692

4,941







INCOME FROM OPERATIONS BEFORE






  SPECIAL CHARGES

674

738


1,860

1,570







Special charges

-

-


-

192







INCOME FROM OPERATIONS

674

738


1,860

1,378







Interest expense

80

72


277

167







INCOME BEFORE PROVISION FOR






  INCOME TAXES

594

666


1,583

1,211







Provision for income taxes

202

264


595

480







NET INCOME

$   392

$   402


$    988

$    731







Net income per share:






   Basic and diluted

$  0.01

$ 0.01


$ 0.02

$ 0.02







Weighted average common shares outstanding:






   Basic

44,157

44,157


44,157

44,157

   Diluted

44,414

44,157


44,677

44,157







Note: Special charges in 2013 include costs incurred in connection with the outsourcing of the company's Bronx warehouse and relocation of its principle office to New York City.

 

 

ALLIANCE DISTRIBUTORS HOLDING INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

March 31, 2014 and 2013

(unaudited, in thousands)

 




March 31,


2014

2013

ASSETS






CURRENT ASSETS:



  Cash and equivalents

$     173

$     351

  Accounts receivable-net

8,067

9,998

  Inventory

13,062

12,623

  Advances to suppliers

962

2,114

  Prepaid expenses and other current assets

107

160

  Prepaid income taxes

130

-

  Deferred income taxes

459

245




                Total current assets

22,960

25,491




PROPERTY AND EQUIPMENT – NET

130

185




DEFERRED INCOME TAXES

115

112




OTHER ASSETS

56

50




TOTAL

$23,261

$25,838







LIABILITIES AND STOCKHOLDERS' EQUITY






CURRENT LIABILITIES:



  Asset-based revolving loan – bank

$  8,894

$  8,868

  Current portion of long-term debt

364

500

  Accounts payable

6,632

10,013

  Accrued expenses and other current liabilities

430

423




                Total current liabilities

16,320

19,804




LONG-TERM OBLIGATIONS

-

636




DEFERRED RENT

20

-




STOCKHOLDERS' EQUITY:



  Common Stock, 44,157 shares issued and outstanding

44

44

  Additional paid in capital

3,522

3,475

  Retained earnings

3,355

1,879




                Total stockholders' equity

6,921

5,398




TOTAL

$23,261

$25,838

 

ALLIANCE DISTRIBUTORS HOLDING INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

NINE MONTHS ENDED MARCH 31, 2014 AND 2013

(unaudited, in thousands)





2014

2013

OPERATING ACTIVITIES:



    Net income

$   988

$   731

    Adjustments to reconcile net income to net cash provided by



        (used in) operating activities:



        Depreciation and amortization

55

54

        Provision for doubtful accounts

-

25

        Loss on disposition of assets

-

32

        Deferred income taxes

(151)

60

        Other

74

34

        Changes in operating assets and liabilities-net

972

(6,560)




                Net cash provided by (used in) operating activities

1,938

(5,624)




INVESTING ACTIVITIES:



    Security deposit

-

(43)

    Purchase of property and equipment

(18)

(144)




               Net cash used in investing activities

(18)

(187)




FINANCING ACTIVITIES:



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

-

5,956

    Payments of asset-based revolving loan – net of proceeds

(1,427)

-

    Payment of deferred financing costs

(25)

-

    Payment of long-term debt

(636)

(375)




                Net cash (used in) provided by financing activities

(2,088)

5,581




DECREASE IN CASH AND EQUIVALENTS

(168)

(230)




CASH AND EQUIVALENTS, BEGINNING OF PERIOD

341

581




CASH AND EQUIVALENTS, END OF PERIOD

$  173

$    351

 

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