NEW YORK, Nov. 10, 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 first
quarter ended September 30, 2014.
Net sales for the quarter ended September
30, 2014 decreased 29% to $13.2
million from $18.7 million for the quarter ended
September 30, 2013. Net income for
the 2014 quarter decreased to $215,000 from $431,000 in the corresponding period in 2013.
Jay Gelman, Chairman and Chief
Executive Officer, said "The decline in revenue and net income from
the first fiscal quarter of 2013 reflects an unusually large number
of compelling value and closeout opportunities in the 2013
period."
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
|
|
THREE MONTHS ENDED
SEPTEMBER 30, 2014 AND 2013
|
|
(In thousands,
except per share amounts)
|
|
|
|
2014
|
2013
|
|
|
|
|
|
|
|
NET
SALES
|
$13,180
|
$18,655
|
|
|
|
|
COST OF
SALES
|
11,403
|
16,200
|
|
|
|
|
GROSS
PROFIT
|
1,777
|
2,455
|
|
|
|
|
OPERATING COSTS
AND EXPENSES
|
1,352
|
1,631
|
|
|
|
|
INCOME FROM
OPERATIONS
|
425
|
824
|
|
|
|
|
Interest
expense
|
77
|
93
|
|
|
|
|
INCOME BEFORE
PROVISION FOR
|
|
|
|
INCOME
TAXES
|
348
|
731
|
|
|
|
|
Provision for income
taxes
|
133
|
300
|
|
|
|
|
NET
INCOME
|
$
215
|
$
431
|
|
|
|
|
Net income per
share – basic and diluted
|
$
-
|
$
0.01
|
|
|
|
|
Weighted average
common shares outstanding –
|
|
|
|
Basic
|
44,157
|
44,157
|
|
Diluted
|
44,620
|
44,519
|
|
|
|
|
ALLIANCE
DISTRIBUTORS HOLDING INC. AND SUBSIDIARIES
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
SEPTEMBER 30, 2014
AND 2013
|
|
(Unaudited, in
thousands)
|
|
|
|
|
September
30,
|
|
2014
|
2013
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
Cash and
equivalents
|
$ 218
|
$ 115
|
|
Accounts
receivable-net
|
5,869
|
6,197
|
|
Inventory
|
12,160
|
16,375
|
|
Advances to
suppliers
|
724
|
280
|
|
Prepaid
expenses and other current assets
|
257
|
435
|
|
Deferred
income taxes
|
580
|
409
|
|
|
|
|
Total current assets
|
19,808
|
23,811
|
|
|
|
|
PROPERTY AND
EQUIPMENT – NET
|
123
|
153
|
|
|
|
|
DEFERRED INCOME
TAXES
|
144
|
80
|
|
|
|
|
OTHER
ASSETS
|
62
|
60
|
|
|
|
|
TOTAL
|
$20,137
|
$24,104
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
Asset based
revolving loan – bank
|
$7,881
|
$10,428
|
|
Current
portion of long-term debt
|
-
|
761
|
|
Accounts
payable
|
4,385
|
5,958
|
|
Accrued
expenses and other current liabilities
|
404
|
496
|
|
|
|
|
Total current liabilities
|
12,670
|
17,643
|
|
|
|
|
LONG-TERM
DEBT
|
-
|
114
|
|
|
|
|
DEFERRED
RENT
|
32
|
22
|
|
|
|
|
STOCKHOLDERS'
EQUITY
|
|
|
|
Common Stock,
44,157 shares issued and outstanding
|
44
|
44
|
|
Additional paid
in capital
|
3,570
|
3,483
|
|
Retained
earnings
|
3,821
|
2,798
|
|
|
|
|
Total stockholders' equity
|
7,435
|
6,325
|
|
|
|
|
TOTAL
|
$20,137
|
$24,104
|
|
|
|
|
ALLIANCE
DISTRIBUTORS HOLDING INC. AND SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
THREE MONTHS ENDED
SEPTEMBER 30, 2014 AND 2013
|
|
(Unaudited, in
thousands)
|
|
|
|
|
2014
|
2013
|
|
|
|
|
OPERATING
ACTIVITIES:
|
|
|
|
Net income
|
$ 215
|
$ 431
|
|
Adjustments to reconcile net income to net cash
|
|
|
|
provided
by (used in) operating activities:
|
|
|
|
Depreciation and amortization
|
15
|
19
|
|
Stock-based compensation expense
|
21
|
4
|
|
Deferred
income taxes
|
(54)
|
(66)
|
|
Other
|
7
|
17
|
|
Changes in
operating assets and liabilities, net
|
(129)
|
(583)
|
|
|
|
|
Net cash provided by (used in) operating activities
|
75
|
(178)
|
|
|
|
|
INVESTING
ACTIVITIES:
|
|
|
|
Purchase of property and equipment
|
(20)
|
(5)
|
|
|
|
|
Net cash used in investing activities
|
(20)
|
(5)
|
|
|
|
|
FINANCING
ACTIVITIES:
|
|
|
|
Proceeds from asset based revolving loan – bank, net of
repayments
|
247
|
107
|
|
Payment of deferred financing costs
|
-
|
(25)
|
|
Payment of long-term debt
|
(239)
|
(125)
|
|
|
|
|
Net cash provided by (used in) financing activities
|
8
|
(43)
|
|
|
|
|
INCREASE
(DECREASE) IN CASH AND EQUIVALENTS
|
63
|
(226)
|
|
|
|
|
CASH AND
EQUIVALENTS, BEGINNING OF PERIOD
|
155
|
341
|
|
|
|
|
CASH AND
EQUIVALENTS, END OF PERIOD
|
$ 218
|
$ 115
|
|
|
|
SOURCE Alliance Distributors Holding Inc.
