ALLIANCE MEDIA HOLDINGS INC. NEW YORK, May 16, 2016 /PRNewswire/ -- Alliance Media Holdings Inc. (Pink Sheets: ADTR), a distributor, developer and publisher of interactive video games and gaming products, today announced its financial results for the three and nine months ended March 31, 2016.
Net sales for the three months ended March 31, 2016 increased 6% to $14.0 million from $13.2 million in the three months ended March 31, 2015. Net income for the three months ended March 31, 2016 decreased to $10,000 from $37,000 for the comparable period in 2015.
For the nine months ended March 31, 2016 net sales increased 8% to $44.8 million from $41.4 million in the nine months ended March 31, 2015. Net income for the nine months ended March 31, 2016 increased to $298,000 from $265,000 for the comparable period in 2015.
Jay Gelman, Chairman and Chief Executive Officer, said, "Overall industry conditions remain very similar to what we have previously reported. Principally, there continues to be limited availability of compelling value product offerings for the older hardware platforms; Sony's PS3(TM), Microsoft's Xbox 360, and Nintendo's Wii U(TM) and 3DS. Further, we have not yet seen a significant increase of value product offerings for the new PS4(TM) and Xbox One systems."
About Alliance
Alliance Media Holdings Inc., formerly Alliance Distributors Holding Inc., (www.alliancemediaholdings.com) is a vertically integrated video game company. Its Alliance Distributors operating division is a full-service wholesale distributor of video games, hardware and accessories, with a special concentration in value video games. Alliance is a licensed publisher for Sony Computer Entertainment of America, Microsoft and Nintendo, and as Alliance Digital Media® publishes both originally created and third party licensed games in console, mobile, and PC/Mac formats. Alliance develops both original and third-party video games as Alliance Game Studios (formerly Metaversal Studios).
Xbox One, Xbox, Xbox 360 and Xbox LIVE are either registered trademarks or trademarks of the Microsoft group of companies. Other Company and product names may be trademarks of their respective owners.
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.
ALLIANCE MEDIA HOLDINGS INC. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
(In thousands, except per share amounts)
(unaudited)
Three Months ended Nine Months ended
March 31, March 31,
--------- ---------
2016 2015 2016 2015
---- ---- ---- ----
NET SALES $13,997 $13,218 $44,841 $41,378
COST OF GOODS SOLD 12,268 11,480 39,238 36,150
------ ------ ------ ------
GROSS PROFIT 1,729 1,738 5,603 5,228
OPERATING COSTS AND
EXPENSES 1,639 1,607 4,889 4,573
----- ----- ----- -----
INCOME FROM
OPERATIONS 90 131 714 655
Interest expense 72 68 231 219
--- --- --- ---
INCOME BEFORE PROVISION FOR
INCOME TAXES 18 63 483 436
Provision for
income taxes 8 26 185 171
--- --- --- ---
NET INCOME $10 $37 $298 $265
=== === ==== ====
Net income per share:
Basic and diluted $ - $ - $0.01 $0.01
======== ======== ===== =====
Weighted average common shares
outstanding:
Basic 44,157 44,157 44,157 44,157
====== ====== ====== ======
Diluted 45,156 44,557 44,830 44,589
====== ====== ====== ======
ALLIANCE MEDIA HOLDINGS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, 2016 and 2015
(unaudited, in thousands)
------------------------
March 31,
---------
2016 2015
ASSETS
CURRENT ASSETS:
Cash and equivalents $36 $334
Accounts receivable-net 6,175 6,425
Inventory 13,079 12,505
Advances to suppliers 663 618
Prepaid expenses and other current assets 243 61
Prepaid income taxes 163 119
Deferred income taxes 601 591
--- ---
Total current assets 20,960 20,653
PROPERTY AND EQUIPMENT - NET 63 107
DEFERRED INCOME TAXES 141 179
OTHER ASSETS 60 62
--- ---
TOTAL $21,224 $21,001
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Asset-based revolving loan - bank $8,411 $6,955
Accounts payable 3,843 6,060
Accrued expenses and other current
liabilities 879 395
--- ---
Total current liabilities 13,133 13,410
------ ------
DEFERRED RENT 12 25
--- ---
STOCKHOLDERS' EQUITY:
Common Stock, 44,157 shares issued and
outstanding 44 44
Additional paid in capital 3,805 3,651
Retained earnings 4,230 3,871
----- -----
Total stockholders' equity 8,079 7,566
----- -----
TOTAL $21,224 $21,001
======= =======
ALLIANCE MEDIA HOLDINGS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
NINE MONTHS ENDED MARCH 31, 2016 AND 2015
(unaudited, in thousands)
2016 2015
---- ----
OPERATING ACTIVITIES:
Net income $298 $265
Adjustments to reconcile net income to net cash
(used in)
provided by operating activities:
Depreciation and
amortization 45 46
Stock-based compensation
expense 121 102
Deferred income taxes (20) (100)
Other (6) 15
Changes in operating assets
and liabilities-net (2,666) 804
------ ---
Net cash (used in) provided
by operating activities (2,228) 1,132
------ -----
INVESTING ACTIVITIES:
Purchase of property and
equipment (6) (35)
--- ---
Net cash used in investing
activities (6) (35)
--- ---
FINANCING ACTIVITIES:
Payments of asset-based
revolving loan - net of
proceeds - (679)
Proceeds from asset-based
revolving loan - net of
payments 1,923 -
Payment of long-term debt - (239)
--- ----
Net cash provided by (used
in) financing activities 1,923 (918)
----- ----
(DECREASE) INCREASE IN CASH
AND EQUIVALENTS (311) 179
---- ---
CASH AND EQUIVALENTS,
BEGINNING OF PERIOD 347 155
--- ---
CASH AND EQUIVALENTS, END OF
PERIOD $36 $334
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SOURCE Alliance Media Holdings Inc.
