Alliance Distributors Holding Inc. Reports Financial Results For The Three And Six Months Ended December 31, 2013 - KXNet.com - Bismarck/Minot/Williston/Dickinson-KXNEWS,ND

Alliance Distributors Holding Inc. Reports Financial Results For The Three And Six Months Ended December 31, 2013

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SOURCE Alliance Distributors Holding Inc.

NEW YORK, Feb. 6, 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 six months ended December 31, 2013.

Net sales for the three months ended December 31, 2013 decreased 20% to $14.5 million from $18.1 million in the three months ended December 31, 2012.  Net income for the three months ended December 31, 2013 declined to $165,000 from $313,000 for the comparable period in 2012.  Net income for the three months ended December 31, 2012 takes into account approximately $67,000 in expense for outsourcing our warehouse operations and relocating our principal office to New York City.

For the six months ended December 31, 2013 net sales increased 9% to $33.1 million from $30.4 million in the six months ended December 31, 2012.  Net income for the six months ended December 31, 2013 increased to $596,000 from $329,000 for the comparable period in 2012.  Net income for the six months ended December 31, 2012 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, "The release in November of Microsoft's Xbox One and Sony's PlayStation®4 negatively impacted our results by reducing revenues from prior generation consoles and games. Xbox360 and PS3 software sales were off as much as 35% industry-wide in December 2013 compared to sales of these products in December 2012.  We expect this to continue for the foreseeable future."

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, 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 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


Six Months ended


December 31,


December 31,


2013

2012


2013

2012







NET SALES

$14,450

$18,132


$33,105

$30,396







COST OF GOODS SOLD

12,481

15,809


28,681

26,336







GROSS PROFIT

1,969

2,323


4,424

4,060







OPERATING COSTS AND EXPENSES

1,607

1,689


3,238

3,228







INCOME FROM OPERATIONS BEFORE






  SPECIAL CHARGES

362

634


1,186

832







Special charges

-

67


-

192







INCOME FROM OPERATIONS

362

567


1,186

640







Interest expense

104

48


197

95







INCOME BEFORE PROVISION FOR






  INCOME TAXES

258

519


989

545







Provision for income taxes

93

206


393

216







NET INCOME

$   165

$   313


$    596

$    329







Net income per share:






   Basic and diluted

$    -

$ 0.01


$ 0.01

$ 0.01







Weighted average common shares outstanding:






   Basic

44,157

44,157


44,157

44,157

   Diluted

44,711

44,157


44,630

44,157







Note: Special charges in 2012 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
December 31, 2013 and 2012
(unaudited, in thousands)



December 31,


2013

2012

ASSETS






CURRENT ASSETS:



  Cash and equivalents

$     292

$     566

  Accounts receivable-net

4,279

6,358

  Inventory

12,597

8,748

  Advances to suppliers

312

301

  Prepaid expenses and other current assets

256

208

  Prepaid income taxes

330

-

  Deferred income taxes

460

276




                Total current assets

18,526

16,457




PROPERTY AND EQUIPMENT – NET

138

172




DEFERRED INCOME TAXES

91

211




OTHER ASSETS

59

54




TOTAL

$18,814

$16,894







LIABILITIES AND STOCKHOLDERS' EQUITY






CURRENT LIABILITIES:



  Asset-based revolving loan – bank

$  9,194

$  2,765

  Current portion of long-term debt

750

500

  Accounts payable

1,806

7,395

  Accrued expenses and other current liabilities

533

484




                Total current liabilities

12,283

11,144




LONG-TERM OBLIGATIONS

-

750




DEFERRED RENT

21

11




STOCKHOLDERS' EQUITY:



  Common Stock, 44,157 shares issued and outstanding

44

44

  Additional paid in capital

3,503

3,468

  Retained earnings

2,963

1,477




                Total stockholders' equity

6,510

4,989




TOTAL

$18,814

$16,894

 

 

ALLIANCE DISTRIBUTORS HOLDING INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED DECEMBER 31, 2013 AND 2012
(unaudited, in thousands)





2013

2012

OPERATING ACTIVITIES:



    Net income

$   596

$   329

    Adjustments to reconcile net income to net cash provided by



        operating activities:



        Depreciation and amortization

37

35

        Loss on disposition of assets

-

33

        Deferred income taxes

(128)

(70)

        Other

48

23

        Changes in operating assets and liabilities-net

808

188




                Net cash provided by operating activities

1,361

538




INVESTING ACTIVITIES:



    Security deposit

-

(43)

    Purchase of property and equipment

(8)

(113)




               Net cash used in investing activities

(8)

(156)




FINANCING ACTIVITIES:



    Repayments of asset-based revolving loan – bank, net of proceeds

(1,127)

(147)

    Payment of deferred financing costs

(25)

-

    Payment of long-term debt

(250)

(250)




                Net cash used in financing activities

(1,402)

(397)




DECREASE IN CASH AND EQUIVALENTS

(49)

(15)




CASH AND EQUIVALENTS, BEGINNING OF PERIOD

341

581




CASH AND EQUIVALENTS, END OF PERIOD

$  292

$  566

 

©2012 PR Newswire. All Rights Reserved.

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