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.