Alliance Distributors Holding Inc. Reports 2009 Third Quarter Financial Results
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NEW YORK, Nov. 2 /PRNewswire-FirstCall/ -- Alliance Distributors Holding Inc.
(Pink Sheets: ADTR), a distributor of interactive video games and gaming
products, today announced its financial results for the third quarter and nine
months ended September 30, 2009.
Net sales for the quarter decreased 31% to $15.4 million from $22.1 million in
the third quarter of 2008. Net income was $115,000 in the third quarter of
2009, compared to $219,000 in the third quarter of 2008.
For the nine months ended September 30, 2009, net sales decreased 32% to $44.5
million, compared to $65.5 million for the same period in 2008. Net income was
$329,000 for the nine months ended September 30, 2009 compared to $504,000 for
the comparable period in 2008.
Jay Gelman, Chairman and Chief Executive Officer, said, "The revenue declines
reflect the challenging times within our industry and the economy in general.
A higher margin mix of products made the three months ended September 30, 2009
our eighth consecutive profitable quarter.
"As we previously reported, in October we purchased the video game assets of
Metaversal Studios, our first step into the world of creating dedicated
content. We are currently developing Bad Apples and Alien Shore, two of the
partially developed video games that we acquired as part of the assets of
Metaversal Studio, for release as downloadable iPhone games. We are also
looking at other downloadable video game development opportunities."
Timing of Conference Call with Q&A
Alliance Distributors will conduct an earnings conference call, including a
question and answer period, at 3:00 PM ET today.
The call-in number for the conference call is:
800-967-7140 (confirmation code: 4089462)
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, PSP, PS2, X-Box 360, Wii, DS and GBA SP, peripherals and software
titles. Alliance produces video game content through its new Metaversal
subsidiary.
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.
ALLIANCE DISTRIBUTORS HOLDING INC.
INCOME STATEMENTS
THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008
(In thousands, except per share amounts)
(Unaudited)
Three Months Nine Months
------------ -----------
2009 2008 2009 2008
---- ---- ---- ----
NET SALES $15,356 $22,146 $44,476 $65,507
COST OF GOODS SOLD 13,397 20,206 38,399 59,647
------ ------ ------ ------
GROSS PROFIT 1,959 1,940 6,077 5,860
OPERATING COSTS AND EXPENSES 1,695 1,604 5,196 4,898
----- ----- ----- -----
INCOME FROM OPERATIONS 264 336 881 962
Interest expense 89 111 339 432
-- --- --- ---
INCOME BEFORE PROVISION FOR
INCOME TAXES 175 225 542 530
Provision for income taxes 60 6 213 26
-- - --- --
NET INCOME $115 $219 $329 $504
==== ==== ==== ====
Net income per share - basic and
diluted $- $- $0.01 $0.01
== == ===== =====
Weighted average common shares
outstanding -
Basic 52,883 53,883 52,883 53,727
====== ====== ====== ======
Diluted 52,884 54,602 52,938 54,337
====== ====== ====== ======
ALLIANCE DISTRIBUTORS HOLDING INC.
CONDENSED BALANCE SHEETS
(in thousands)
September 30, December 31,
2009 2008
---- ----
Unaudited Derived from
audited
financial
statements
ASSETS
CURRENT ASSETS:
Cash and equivalents $971 $924
Accounts receivable-net 4,574 5,334
Inventory 5,963 7,262
Due from vendors 284 342
Prepaid expenses and other current assets 183 215
Deferred income taxes 429 263
--- ---
Total current assets 12,404 14,340
PROPERTY AND EQUIPMENT - NET 348 501
DEFERRED INCOME TAXES 187 178
OTHER ASSETS 61 88
-- --
TOTAL $13,000 $15,107
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Notes payable - bank $5,516 $6,806
Accounts payable 3,248 4,630
Accrued expenses and other current liabilities 620 425
--- ---
Total current liabilities 9,384 11,861
DEFERRED LEASE OBLIGATIONS 41 50
STOCKHOLDERS' EQUITY 3,575 3,196
----- -----
TOTAL $13,000 $15,107
======= =======
COMMON SHARES OUTSTANDING 52,883 52,883
====== ======
ALLIANCE DISTRIBUTORS HOLDING INC.
CONDENSED STATEMENTS OF CASH FLOWS
NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008
(In thousands, Unaudited)
2009 2008
---- ----
OPERATING ACTIVITIES:
Net income $329 $504
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 165 154
Provision for doubtful accounts 145 70
Stock option compensation expense 50 60
Deferred income taxes (175) -
Other 21 46
Changes in operating assets and liabilities-net 852 652
--- ---
Net cash provided by operating activities 1,387 1,486
----- -----
INVESTING ACTIVITIES:
Purchase of property and equipment (12) (70)
---- ----
Net cash used in investing activities (12) (70)
---- ----
FINANCING ACTIVITIES:
Repayments of note payable, net of proceeds - bank (1,290) (950)
Payment of deferred financing costs (38) (45)
Payment of long-term obligations - (4)
- ---
Net cash used in financing activities (1,328) (999)
------- -----
INCREASE IN CASH AND EQUIVALENTS 47 417
-- ---
CASH AND EQUIVALENTS, BEGINNING OF PERIOD 924 320
--- ---
CASH AND EQUIVALENTS, END OF PERIOD $971 $737
==== ====
SOURCE Alliance Distributors Holding Inc.
Steve Gelman, VP of Marketing and Communications of Alliance Distributors
Holding Inc., +1-718-536-2248, steve@alliancedis.com
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