ADTR Alliance Distributors Holding Inc. Reports September 30, 2013 Financial Results
NEW YORK, Nov. 7, 2013 /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, 2013.
Net sales for the quarter ended September 30, 2013 increased 52% to $18.7 million from $12.3 million for the quarter ended September 30, 2012. Net income for the 2013 quarter increased to $431,000 from $16,000 in the corresponding period in 2012. Net income for the quarter ended September 30, 2012 takes into account approximately $125,000 in severance and related expenses for the outsourcing of warehousing and fulfillment operations.
The Company also reported that it signed an agreement with FarSight Studios to publish The Pinball Arcade, a video game developed by FarSight Studios for the new PlayStation®4. The game has been submitted to Sony Corporation Entertainment America LLC for final approval.
Jay Gelman, Chairman and Chief Executive Officer, said, "The release in November of Microsoft's Xbox One and Sony's PlayStation®4 may negatively impact our results starting in the fourth quarter by reducing revenues from prior generation consoles and games."
Gelman continued, "FarSight Studios is a respected developer in our industry and we are delighted to enter into the publishing arena with them on a great family oriented title that utilizes the best features of the PS4™ console. Subject to Sony's final approval we are aiming to release the title later this month, which would put us in the PS4™ launch window."
About Alliance Distributors Holding Inc.
Alliance Distributors Holding Inc. and subsidiaries (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, and publishes videogames as Alliance Digital Media™.
About FarSight Studios
FarSight Studios (www.farsightstudios.com) is a videogame developer located in Big Bear Lake, California. As experienced developers, FarSight Studios has been creating videogames continuously since 1989. They have developed games for every major console from the original Nintendo Entertainment System to the PlayStation®4. FarSight's games have been awarded Editor's Choice awards, Toy of the Year nominations, and Greatest Hits designations on multiple platforms.
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
INCOME STATEMENTS
THREE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012
(Unaudited; in thousands)
2013
2012
NET SALES
$18,655
$12,264
COST OF GOODS SOLD
16,200
10,527
GROSS PROFIT
2,455
1,737
OPERATING COSTS AND EXPENSES
1,631
1,539
INCOME FROM OPERATIONS BEFORE
SPECIAL CHARGES
824
198
Special charges – warehouse closure
-
125
INCOME FROM OPERATIONS
824
73
Interest expense
93
47
INCOME BEFORE PROVISION FOR INCOME TAXES
731
26
Provision for income taxes
300
10
NET INCOME
$ 431
$ 16
Net income per share:
Basic and diluted
$ .01
$ -
Weighted average common shares outstanding:
Basic
44,157
44,157
Diluted
44,519
44,157
ALLIANCE DISTRIBUTORS HOLDING INC. AND SUBSIDIARIES
CONDENSED BALANCE SHEETS
(Unaudited, in thousands)
September,
September,
2013
2012
ASSETS
CURRENT ASSETS:
Cash and equivalents
$ 115
$ 351
Accounts receivable-net
6,197
6,228
Inventory
16,375
6,021
Advances to suppliers
280
120
Prepaid expenses and other current assets
435
197
Deferred income taxes
409
308
Total current assets
23,811
13,225
PROPERTY AND EQUIPMENT – NET
153
113
DEFERRED INCOME TAXES
80
215
OTHER ASSETS
60
98
TOTAL
$24,104
$13,651
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Asset-based revolving loan – bank
$10,428
$ 2,423
Current portion of long-term debt
761
500
Accounts payable
5,958
4,746
Accrued expenses and other current liabilities
496
422
Total current liabilities
17,643
8,091
LONG-TERM DEBT
114
875
DEFERRED RENT
22
11
STOCKHOLDERS' EQUITY:
Common Stock, 44,157 shares issued and outstanding
44
44
Additional paid in capital
3,483
3,466
Retained earnings
2,798
1,164
Total stockholders' equity
6,325
4,674
TOTAL
$24,104
$13,651
ALLIANCE DISTRIBUTORS HOLDING INC. AND SUBSIDIARIES
CONDENSED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012
(Unaudited, in thousands)
2013
2012
OPERATING ACTIVITIES:
Net income
$ 431
$ 16
Adjustments to reconcile net income to net cash (used in)
provided by operating activities:
Depreciation and amortization
19
17
Deferred income taxes
(66)
(106)
Other
21
17
Changes in operating assets and liabilities-net
(583)
506
Net cash (used in) provided by operating activities
(178)
450
INVESTING ACTIVITIES:
Security deposit
-
(42)
Purchase of property and equipment
(5)
(24)
Net cash used in investing activities
(5)
(66)
FINANCING ACTIVITIES:
Repayments of asset-based revolving loan – bank, net of proceeds
-
(489)
Proceeds from asset-based revolving loan – bank, net of payments
107
-
Payment of deferred financing costs
(25)
Payment of long-term debt
(125)
(125)
Net cash used in financing activities
(43)
(614)
DECREASE IN CASH AND EQUIVALENTS
(226)
(230)
CASH AND EQUIVALENTS, BEGINNING OF PERIOD
341
581
CASH AND EQUIVALENTS, END OF PERIOD
$ 115
$ 351
SOURCE Alliance Distributors Holding Inc.
Copyright 2013 PR Newswire
NEW YORK, Nov. 7, 2013 /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, 2013.
Net sales for the quarter ended September 30, 2013 increased 52% to $18.7 million from $12.3 million for the quarter ended September 30, 2012. Net income for the 2013 quarter increased to $431,000 from $16,000 in the corresponding period in 2012. Net income for the quarter ended September 30, 2012 takes into account approximately $125,000 in severance and related expenses for the outsourcing of warehousing and fulfillment operations.
The Company also reported that it signed an agreement with FarSight Studios to publish The Pinball Arcade, a video game developed by FarSight Studios for the new PlayStation®4. The game has been submitted to Sony Corporation Entertainment America LLC for final approval.
Jay Gelman, Chairman and Chief Executive Officer, said, "The release in November of Microsoft's Xbox One and Sony's PlayStation®4 may negatively impact our results starting in the fourth quarter by reducing revenues from prior generation consoles and games."
Gelman continued, "FarSight Studios is a respected developer in our industry and we are delighted to enter into the publishing arena with them on a great family oriented title that utilizes the best features of the PS4™ console. Subject to Sony's final approval we are aiming to release the title later this month, which would put us in the PS4™ launch window."
About Alliance Distributors Holding Inc.
Alliance Distributors Holding Inc. and subsidiaries (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, and publishes videogames as Alliance Digital Media™.
About FarSight Studios
FarSight Studios (www.farsightstudios.com) is a videogame developer located in Big Bear Lake, California. As experienced developers, FarSight Studios has been creating videogames continuously since 1989. They have developed games for every major console from the original Nintendo Entertainment System to the PlayStation®4. FarSight's games have been awarded Editor's Choice awards, Toy of the Year nominations, and Greatest Hits designations on multiple platforms.
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
INCOME STATEMENTS
THREE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012
(Unaudited; in thousands)
2013
2012
NET SALES
$18,655
$12,264
COST OF GOODS SOLD
16,200
10,527
GROSS PROFIT
2,455
1,737
OPERATING COSTS AND EXPENSES
1,631
1,539
INCOME FROM OPERATIONS BEFORE
SPECIAL CHARGES
824
198
Special charges – warehouse closure
-
125
INCOME FROM OPERATIONS
824
73
Interest expense
93
47
INCOME BEFORE PROVISION FOR INCOME TAXES
731
26
Provision for income taxes
300
10
NET INCOME
$ 431
$ 16
Net income per share:
Basic and diluted
$ .01
$ -
Weighted average common shares outstanding:
Basic
44,157
44,157
Diluted
44,519
44,157
ALLIANCE DISTRIBUTORS HOLDING INC. AND SUBSIDIARIES
CONDENSED BALANCE SHEETS
(Unaudited, in thousands)
September,
September,
2013
2012
ASSETS
CURRENT ASSETS:
Cash and equivalents
$ 115
$ 351
Accounts receivable-net
6,197
6,228
Inventory
16,375
6,021
Advances to suppliers
280
120
Prepaid expenses and other current assets
435
197
Deferred income taxes
409
308
Total current assets
23,811
13,225
PROPERTY AND EQUIPMENT – NET
153
113
DEFERRED INCOME TAXES
80
215
OTHER ASSETS
60
98
TOTAL
$24,104
$13,651
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Asset-based revolving loan – bank
$10,428
$ 2,423
Current portion of long-term debt
761
500
Accounts payable
5,958
4,746
Accrued expenses and other current liabilities
496
422
Total current liabilities
17,643
8,091
LONG-TERM DEBT
114
875
DEFERRED RENT
22
11
STOCKHOLDERS' EQUITY:
Common Stock, 44,157 shares issued and outstanding
44
44
Additional paid in capital
3,483
3,466
Retained earnings
2,798
1,164
Total stockholders' equity
6,325
4,674
TOTAL
$24,104
$13,651
ALLIANCE DISTRIBUTORS HOLDING INC. AND SUBSIDIARIES
CONDENSED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012
(Unaudited, in thousands)
2013
2012
OPERATING ACTIVITIES:
Net income
$ 431
$ 16
Adjustments to reconcile net income to net cash (used in)
provided by operating activities:
Depreciation and amortization
19
17
Deferred income taxes
(66)
(106)
Other
21
17
Changes in operating assets and liabilities-net
(583)
506
Net cash (used in) provided by operating activities
(178)
450
INVESTING ACTIVITIES:
Security deposit
-
(42)
Purchase of property and equipment
(5)
(24)
Net cash used in investing activities
(5)
(66)
FINANCING ACTIVITIES:
Repayments of asset-based revolving loan – bank, net of proceeds
-
(489)
Proceeds from asset-based revolving loan – bank, net of payments
107
-
Payment of deferred financing costs
(25)
Payment of long-term debt
(125)
(125)
Net cash used in financing activities
(43)
(614)
DECREASE IN CASH AND EQUIVALENTS
(226)
(230)
CASH AND EQUIVALENTS, BEGINNING OF PERIOD
341
581
CASH AND EQUIVALENTS, END OF PERIOD
$ 115
$ 351
SOURCE Alliance Distributors Holding Inc.
Copyright 2013 PR Newswire
