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Alliance Distributors Holding Inc. Reports September 30, 2012 Financial Results
Submitted by admin on 11/29/2012 @ 1:52 PM
Companies mentioned in this article:
Alliance Distributors Holding Inc.
NEW YORK, Nov. 29, 2012 /PRNewswire/ -- Alliance Distributors Holding Inc. (Pink Sheets: ADTR), a distributor of interactive video games and gaming products, today announced its financial results for its first quarter ended September 30, 2012.
Net sales for the first quarter in 2012 were $12.3 million, up 19% from the comparable 2011 period. Net income for the first quarter in 2012 declined to $16,000 from $46,000 in the first quarter of 2011. The decrease in net income reflects in part $125,000 in severance and related charges in connection with the previously announced outsourcing by the Company of its warehousing and fulfillment operations.
Jay Gelman, Chairman and Chief Executive Officer, said, "Year-over-year video game industry revenue continues to show a decline. We have been able to avoid significant downturns in our revenues by investing in value software and pursuing opportunities in key frontline software titles, and operations should increasingly benefit from the outsourcing we completed in the October. However, our results in the current quarter ending December 31, 2012 will be negatively impacted by business disruption from recent Hurricane Sandy.
"The first quarter also saw progress in our branching out into the publishing aspect of the video game business. Alliance Metaversal Studio LLC, our content development arm, signed publishing license agreements with Microsoft, Sony Computer Entertainment of America, and Nintendo of America. The addition of these rights to our iOS, Android, and Steam publishing rights gives Metaversal Studios platforms to publish offerings that may be made available to us from a wide variety of developers."
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.
Xbox, Xbox 360 and Xbox LIVE are either registered trademarks or trademarks of the Microsoft group of companies.
ALLIANCE DISTRIBUTORS HOLDING INC. AND SUBSIDIARIES
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INCOME STATEMENTS
-----------------
THREE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011
----------------------------------------------
(Unaudited; in thousands)
------------------------
2012 2011
---- ----
NET SALES $12,264 $10,280
COST OF GOODS SOLD 10,527 8,761
------ -----
GROSS PROFIT 1,737 1,519
OPERATING COSTS AND EXPENSES 1,539 1,347
----- -----
INCOME FROM OPERATIONS BEFORE
SPECIAL CHARGES 198 172
Special Charges - warehouse
closure 125 -
--- ---
INCOME FROM OPERATIONS 73 172
Interest expense 47 88
--- ---
INCOME BEFORE PROVISION FOR INCOME
TAXES 26 84
Provision for income taxes 10 38
--- ---
NET INCOME $16 $46
=== ===
Net income per share:
Basic and diluted $ - $ -
======== ========
Weighted average common shares outstanding:
Basic and diluted 44,157 44,157
====== ======
ALLIANCE DISTRIBUTORS HOLDING INC. AND SUBSIDIARIES
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CONDENSED BALANCE SHEETS
------------------------
(Unaudited, in thousands)
------------------------
September, September,
2012 2011
---- ----
ASSETS
CURRENT ASSETS:
Cash and
equivalents $351 $362
Accounts
receivable-
net 6,228 4,060
Inventory 6,021 7,780
Advances to
suppliers 120 677
Prepaid
expenses
and other
current
assets 197 155
Deferred
income
taxes 308 268
--- ---
Total
current
assets 13,225 13,302
PROPERTY AND
EQUIPMENT -
NET 113 140
DEFERRED
INCOME
TAXES 215 230
OTHER ASSETS 98 77
--- ---
TOTAL $13,651 $13,749
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Asset-based
revolving
loan - bank $2,423 $ -
Notes
payable -
bank - 5,388
Current
portion of
long-term
debt 500 -
Accounts
payable 4,746 3,795
Accrued
expenses
and other
current
liabilities 422 299
--- ---
Total
current
liabilities 8,091 9,482
LONG-TERM
DEBT 886 -
STOCKHOLDERS'
EQUITY 4,674 4,267
----- -----
TOTAL $13,651 $13,749
======= =======
COMMON
SHARES
OUTSTANDING 44,157 44,157
====== ======
ALLIANCE DISTRIBUTORS HOLDING INC. AND SUBSIDIARIES
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CONDENSED STATEMENTS OF CASH FLOWS
----------------------------------
THREE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011
----------------------------------------------
(Unaudited, in thousands)
------------------------
2012 2011
---- ----
OPERATING ACTIVITIES:
Net income $16 $46
Adjustments to reconcile net income to net cash
provided by
operating activities:
Depreciation and amortization 17 24
Deferred income taxes (106) -
Other 6 20
Changes in operating assets and
liabilities-net 506 (506)
--- ----
Net cash provided by (used in)
operating activities 439 (416)
--- ----
INVESTING ACTIVITIES:
Security deposit (42) -
Purchase of property and equipment (24) (9)
--- ---
Net cash used in investing activities (66) (9)
--- ---
FINANCING ACTIVITIES:
Repayments of asset-based revolving
loan - bank, net of proceeds (489) -
Repayments of note payable, net of
proceeds - bank - (201)
Payment of long-term debt (114) -
---- ---
Net cash used in financing activities (603) (201)
---- ----
DECREASE IN CASH AND EQUIVALENTS (230) (626)
---- ----
CASH AND EQUIVALENTS, BEGINNING OF
PERIOD 581 988
--- ---
CASH AND EQUIVALENTS, END OF PERIOD $351 $362
==== ====
SOURCE Alliance Distributors Holding Inc.