NEW YORK, Feb. 11, 2013 /PRNewswire/ -- Alliance Distributors Holding Inc. (Pink Sheets: ADTR), a distributor and developer of interactive video games, today announced its financial results for the three month and six month periods ended December 31, 2012.
Net sales for the three months ended December 31, 2012 decreased 13% to $18.1 million from $20.8 million in the three months ended December 31, 2011. Net income for the three months ended December 31, 2012 declined to $313,000 from $360,000 for the comparable period in 2011, and reflects approximately $67,000 in costs for outsourcing our warehouse operations and relocating our principal office to New York City.
For the six months ended December 31, 2012 net sales decreased 2% to $30.4 million from $31.1 million in the six months ended December 31, 2011. Net income for the six months ended December 31, 2012 declined to $329,000 from $406,000 for the comparable period in 2011, and reflects approximately $192,000 in costs for outsourcing our warehouse operations and relocating our principal office to New York City.
Jay Gelman, Chairman and Chief Executive Officer, said, "We are gratified that we were able to maintain profitability despite Hurricane Sandy, our outsourcing and relocation costs, and continuing weakness in the overall video game industry."
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 | |||||
CONSOLIDATED INCOME STATEMENTS | |||||
(In thousands, except per share amounts) | |||||
(unaudited) | |||||
Three Months ended | Six Months ended | ||||
December 31, | December 31, | ||||
2012 | 2011 | 2012 | 2011 | ||
NET SALES | $18,132 | $20,828 | $30,396 | $31,108 | |
COST OF GOODS SOLD | 15,809 | 18,455 | 26,336 | 27,216 | |
GROSS PROFIT | 2,323 | 2,373 | 4,060 | 3,892 | |
OPERATING COSTS AND EXPENSES | 1,689 | 1,662 | 3,228 | 3,009 | |
INCOME FROM OPERATIONS BEFORE | |||||
SPECIAL CHARGES | 634 | 711 | 832 | 883 | |
Special charges | 67 | - | 192 | - | |
INCOME FROM OPERATIONS | 567 | 711 | 640 | 883 | |
Interest expense | 48 | 110 | 95 | 198 | |
INCOME BEFORE PROVISION FOR | |||||
INCOME TAXES | 519 | 601 | 545 | 685 | |
Provision for income taxes | 206 | 241 | 216 | 279 | |
NET INCOME | $ 313 | $ 360 | $ 329 | $ 406 | |
Net income per share: | |||||
Basic and diluted | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |
Weighted average common shares outstanding: | |||||
Basic and Diluted | 44,157 | 44,157 | 44,157 | 44,157 | |
Note: | Special charges 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, 2012 and 2011 | ||
(unaudited, in thousands) | ||
December 31, | ||
2012 | 2011 | |
ASSETS | ||
CURRENT ASSETS: | ||
Cash and equivalents | $ 566 | $ 478 |
Accounts receivable-net | 6,358 | 5,408 |
Inventory | 8,748 | 5,985 |
Advances to suppliers | 301 | 299 |
Prepaid expenses and other current assets | 208 | 107 |
Deferred income taxes | 276 | 213 |
Total current assets | 16,457 | 12,490 |
PROPERTY AND EQUIPMENT – NET | 172 | 129 |
DEFERRED INCOME TAXES | 211 | 215 |
OTHER ASSETS | 54 | 80 |
TOTAL | $16,894 | $12,914 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
CURRENT LIABILITIES: | ||
Asset-based revolving loan – bank | $ 2,765 | $ - |
Notes payable – bank | - | 3,610 |
Current portion of long-term debt | 500 | - |
Accounts payable | 7,395 | 4,276 |
Accrued expenses and other current liabilities | 484 | 401 |
Total current liabilities | 11,144 | 8,287 |
LONG-TERM OBLIGATIONS | 761 | - |
STOCKHOLDERS' EQUITY: | ||
Common Stock, 44,157 shares issued and outstanding | 44 | 44 |
Additional paid in capital | 3,468 | 3,457 |
Retained earnings | 1,477 | 1,126 |
Total stockholders' equity | 4,989 | 4,627 |
TOTAL | $16,894 | $12,914 |
ALLIANCE DISTRIBUTORS HOLDING INC. AND SUBSIDIARIES | ||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
SIX MONTHS ENDED DECEMBER 31, 2012 AND 2011 | ||
(unaudited, in thousands) | ||
2012 | 2011 | |
OPERATING ACTIVITIES: | ||
Net income | $ 329 | $ 406 |
Adjustments to reconcile net income to net cash provided by | ||
operating activities: | ||
Depreciation and amortization | 35 | 45 |
Provision for doubtful accounts | - | 10 |
Loss on disposition of assets | 33 | - |
Deferred income taxes | (70) | 70 |
Other | 23 | 24 |
Changes in operating assets and liabilities-net | 188 | 933 |
Net cash provided by operating activities | 538 | 1,488 |
INVESTING ACTIVITIES: | ||
Security deposit | (43) | - |
Purchase of property and equipment | (113) | (19) |
Net cash used in investing activities | (156) | (19) |
FINANCING ACTIVITIES: | ||
Repayments of asset-based revolving loan – bank, net of proceeds | (147) | - |
Repayments of note payable, net of proceeds – bank | - | (1,979) |
Payment of long-term debt | (250) | - |
Net cash used in financing activities | (397) | (1,979) |
DECREASE IN CASH AND EQUIVALENTS | (15) | (510) |
CASH AND EQUIVALENTS, BEGINNING OF PERIOD | 581 | 988 |
CASH AND EQUIVALENTS, END OF PERIOD | $ 566 | $ 478 |
SOURCE Alliance Distributors Holding Inc.
