NEW YORK, Aug. 22, 2011 /PRNewswire/ -- Alliance Distributors Holding Inc. (Pink Sheets: [ ADTR ]), a distributor of interactive video games and gaming products, today announced its financial results for the three-month period and fiscal year ended June 30, 2011.

Net sales for the three months ended June 30, 2011 were $10.4 million, essentially flat with the comparable 2010 period. Net income for the three months ended June 30, 2011 decreased to $8,000, compared to $62,000 for the comparable period in 2010.

For the fiscal year ended June 30, 2011, net sales decreased 19% to $57 million, compared to $70.5 million for the twelve-month period ended June 30, 2010. Net income decreased to $285,000 for the fiscal year ended June 30, 2011, compared to $740,000 for the twelve-month period ended June 30, 2010.

Jay Gelman, Chairman and Chief Executive Officer, said, "We continue to see a challenging landscape in the video game market. Lower hardware sales and a muted and disappointing release schedule of front line software titles persist in our industry. Our operating results also continue to be impacted by the costs of our Metaversal Studios game development subsidiary."

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 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.

ALLIANCE DISTRIBUTORS HOLDING INC. AND SUBSIDIARY CONSOLIDATED INCOME STATEMENTS THREE AND TWELVE MONTHS ENDED JUNE 30, 2011 AND 2010 (In thousands, except per share amounts)

	Three Months		Twelve Months
	2011	2010	2011	2010
	Unaudited	Unaudited	Derived from	Unaudited
			audited financial
			statements

NET SALES	$10,410	$10,362	$ 57,004	$ 70,471

COST OF SALES	8,781	8,555	49,464	61,168

GROSS PROFIT	1,629	1,807	7,540	9,303

OPERATING COSTS AND EXPENSES	1,474	1,618	6,544	7,681

INCOME FROM OPERATIONS	155	189	996	1,662

Interest expense	147	108	532	431

INCOME BEFORE PROVISION FOR
INCOME TAXES	8	81	464	1,191

Provision for income taxes	-	19	179	451

NET INCOME	$ 8	$ 62	$ 285	$ 740

Net income per share – basic and diluted	$ -	$ -	$ 0.01	$ 0.01

Weighted average common shares outstanding –
Basic and Diluted	46,746	52,883	51,353	52,883

Certain 2010 amounts have been reclassified to conform to the 2011 presentation. This reclassification includes a decrease to cost of sales and a corresponding increase in operating costs and expenses related to software development costs.

ALLIANCE DISTRIBUTORS HOLDING INC. AND SUBSIDIARY CONDENSED CONSOLIDATED BALANCE SHEETS JUNE 30, 2011 AND 2010 (in thousands)

	JUNE 30,
	2011	2010
	Derived from audited
	Financial statements

ASSETS

CURRENT ASSETS:
Cash and equivalents	$ 988	$ 906
Accounts receivable-net	3,457	3,909
Inventory	6,581	5,849
Advances to suppliers	153	257
Prepaid expenses and other current assets	145	236
Deferred income taxes	268	277

Total current assets	11,592	11,434

PROPERTY AND EQUIPMENT – NET	153	318

DEFERRED INCOME TAXES	230	185

OTHER ASSETS	81	98

TOTAL	$12,056	$12,035

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
Notes payable – bank	$ 5,589	$ 5,131
Accounts payable	2,012	2,289
Accrued expenses and other current liabilities	240	353

Total current liabilities	7,841	7,773

LONG-TERM OBLIGATIONS	-	28

STOCKHOLDERS' EQUITY	4,215	4,234

TOTAL	$12,056	$12,035

COMMON SHARES OUTSTANDING	44,157	52,883

ALLIANCE DISTRIBUTORS HOLDING INC. AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS TWELVE MONTHS ENDED JUNE 30, 2011 AND 2010 (in thousands)

	2011	2010
	Derived from	Unaudited
	audited financial
	statements
OPERATING ACTIVITIES:
Net income	$ 285	$ 740
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization	223	236
Provision for doubtful accounts	15	140
Stock option compensation expense	31	48
Deferred income taxes	(36)	171
Other	10	19
Changes in operating assets and liabilities-net	(472)	(1,370)

Net cash provided by (used in) operating activities	56	(16)

INVESTING ACTIVITIES:
Purchase of property and equipment	(44)	(123)
Acquisition of assets of Metaversal Studios, Inc.	-	(25)
Note receivable in connection with acquisition	-	(30)

Net cash used in investing activities	(44)	(178)

FINANCING ACTIVITIES:
Proceeds from note payable, net of repayments – bank	458	323
Purchase and retirement of common stock	(335)	-
Payment of deferred financing costs	(38)	(38)
Payment of long-term obligations	(15)	(15)

Net cash provided by financing activities	70	270

INCREASE IN CASH AND EQUIVALENTS	82	76

CASH AND EQUIVALENTS, BEGINNING OF PERIOD	906	830

CASH AND EQUIVALENTS, END OF PERIOD	$ 988	$ 906

SOURCE Alliance Distributors Holding Inc.

[ Back to top ]

RELATED LINKS
[ www.alliancedistributors.com ]

Contributing Sources

Market Wire

N@N

Alliance Distributors Holding Inc. Reports Fourth Quarter and Year End Financial Results

Alliance Distributors Holding Inc. Reports Fourth Quarter and Year End Financial Results