NEW YORK, Feb. 13, 2012 /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 and six month periods ended December 31, 2011.

Net sales for the three months ended December 31, 2011 increased 7% to $20.8 million from $19.4 million in the three months ended December 31, 2010. Net income for the three months ended December 31, 2011 increased to $360,000, compared to $266,000 for the comparable period in 2010.

For the six months ended December 31, 2011, net sales increased 2% to $31.1 million from $30.6 million in the six months ended December 31, 2010. Net income for the six months ended December 31, 2011 increased to $406,000, compared to $270,000 for the comparable period in 2010.

Jay Gelman, Chairman and Chief Executive Officer, said, "We are very gratified to have achieved revenue and income growth during a period of double digit declines throughout most of the 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, 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 (In thousands, except per share amounts) (unaudited)

	Three Months ended		Six Months ended
	December 31,		December 31,
	2011	2010	2011	2010

NET SALES	$20,828	$19,415	$31,108	$30,626

COST OF GOODS SOLD	18,455	16,982	27,216	26,608

GROSS PROFIT	2,373	2,433	3,892	4,018

OPERATING COSTS AND EXPENSES	1,662	1,831	3,009	3,323

INCOME FROM OPERATIONS	711	602	883	695

Interest expense	110	156	198	245

INCOME BEFORE PROVISION FOR
INCOME TAXES	601	446	685	450

Provision for income taxes	241	180	279	180

NET INCOME	$ 360	$ 266	$ 406	$ 270

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	52,883	44,157	52,883

ALLIANCE DISTRIBUTORS HOLDING INC. AND SUBSIDIARY CONDENSED CONSOLIDATED BALANCE SHEETS December 31, 2011 and 2010 (unaudited, in thousands)
	December 31,
	2011	2010
ASSETS

CURRENT ASSETS:
Cash and equivalents	$ 478	$ 183
Accounts receivable-net	5,408	5,444
Inventory	5,985	10,223
Advances to suppliers	299	286
Prepaid expenses and other current assets	107	135
Deferred income taxes	213	287

Total current assets	12,490	16,558

PROPERTY AND EQUIPMENT – NET	129	212

DEFERRED INCOME TAXES	215	185

OTHER ASSETS	80	80

TOTAL	$12,914	$17,035


LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
Notes payable – bank	$ 3,610	$ 7,925
Accounts payable	4,276	4,288
Accrued expenses and other current liabilities	401	288

Total current liabilities	8,287	12,501

DEFERRED LEASE OBLIGATIONS	-	12


STOCKHOLDERS' EQUITY	4,627	4,522
TOTAL	$12,914	$17,035

COMMON SHARES OUTSTANDING	44,157	52,883

ALLIANCE DISTRIBUTORS HOLDING INC. AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS SIX MONTHS ENDED DECEMBER 31, 2011 AND 2010 (unaudited, in thousands)

	2011	2010
OPERATING ACTIVITIES:
Net income	$ 406	$ 270
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization	45	129
Provision for doubtful accounts	10	10
Equity compensation expense	6	18
Deferred income taxes	70	-
Other	18	(16)
Changes in operating assets and liabilities-net	933	(3,908)

Net cash provided by (used in) operating activities	1,488	(3,497)

INVESTING ACTIVITIES:
Purchase of property and equipment	(19)	(5)

Net cash used in investing activities	(19)	(5)

FINANCING ACTIVITIES:
Proceeds from note payable, net of repayments – bank	-	2,794
Repayments of note payable, net of proceeds – bank	(1,979)	-
Payment of long-term obligations	-	(15)

Net cash (used in) provided by financing activities	(1,979)	2,779

DECREASE IN CASH AND EQUIVALENTS	(510)	(723)

CASH AND EQUIVALENTS, BEGINNING OF PERIOD	988	906

CASH AND EQUIVALENTS, END OF PERIOD	$ 478	$ 183

SOURCE Alliance Distributors Holding Inc.

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[ www.alliancedistributors.com ]

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Alliance Distributors Holding Inc. Reports December 31, 2011 Financial Results

Alliance Distributors Holding Inc. Reports December 31, 2011 Financial Results