Alliance Media Holdings Inc. Reports Fourth Quarter And Year End Financial Results

NEW YORK, Sept. 24, 2015 /PRNewswire/ -- Alliance Media Holdings Inc. (Pink Sheets: ADTR), a distributor, developer and publisher of interactive video games and gaming products, announced today its financial results for the fourth quarter and fiscal year ended June 30, 2015.

Net sales for the three months ended June 30, 2015 decreased less than 1% to $12.7 million from $12.8 million for the three months ended June 30, 2014. Net income for the three months ended June 30, 2015 decreased to $61,000 compared to $251,000 for the three months ended June 30, 2014.  Net income for the three months ended June 30, 2015 includes a non-cash write off of approximating $66,000 in deferred tax assets related to the expiration of unexercised stock options granted to employees in 2005. 

For the fiscal year ended June 30, 2015, net sales decreased 11% to $54.1 million from $60.9 million for the year ended June 30, 2014. Net income was approximately $326,000 for the year ended June 30, 2015 compared to $1.2 million for comparable 2014 period.

Jay Gelman, Chairman and Chief Executive Officer, said, "During the fourth quarter we continued to have fewer sources of value product than in the corresponding 2014 period. As I mentioned previously, the decline in availability reflects residual turmoil from last year's new platform introductions of Sony's Playstation®4, Microsoft's Xbox One and Nintendo's Wii U, vendors who are out of business, vendors' licensing lapses, and a reduction in distress closeout opportunities. I anticipate that vendors who are concentrating on new platform products will in due course accelerate their value product offerings.

"Our fiscal 2015 results were also affected by approximately $550,000 in costs to develop our BlazeBlue: Battle Cards™ title. The introduction of the title brought positive reviews but very limited economic activity. We have substantially reduced our internal development staff and expect to outsource more of our future development activity.

"We are the exclusive publishers of Gianna Sisters: Twisted Dreams - Director's Cut and Brunswick Pro Bowling for North America and South America, and in the next several months expect to introduce Gianna Sisters for the Wii U and Brunswick Pro Bowling for the PS4™, Xbox One and Wii U. Gianna Sisters was developed by Black Forest Games. Brunswick Pro Bowling was developed by Farsight Studios."

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).

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 Digital Media and Battle Cards are trademarks or registered trademarks of Alliance Metaversal Studio LLC.  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.

 

ALLIANCE MEDIA HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED INCOME STATEMENTS

THREE MONTHS AND YEARS ENDED JUNE 30, 2015 AND 2014

(In thousands, except per share amounts)







Three Months


Year


2015

2014


2015

2014













NET SALES

$12,748

$12,827


$54,126

$60,853







COST OF SALES

11.035

11.026


47,185

52,500







GROSS PROFIT

1,713

1,801


6,941

8,353







OPERATING COSTS AND EXPENSES

1,413

1,311


5,986

6,003







INCOME FROM OPERATIONS

300

490


955

2,350







Interest expense

78

94


297

371







INCOME BEFORE PROVISION FOR






  INCOME TAXES

222

396


658

1,979







Provision for income taxes

161

145


332

740







NET INCOME

$   61

$  251


$    326

$   1,239







Net income per share – basic and diluted

$     -

$ 0.01


$ 0.01

$   0.03







Weighted average common shares outstanding –






    Basic

44,157

44,157


44,157

44,157

    Diluted

44,804

44,529


44,630

44,657













 

 

ALLIANCE MEDIA HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

JUNE 30, 2015 AND 2014

(in thousands)






JUNE 30,


2015

2014




ASSETS






CURRENT ASSETS:



  Cash and equivalents

$    347

$    155

  Accounts receivable-net

4,948

3,689

  Inventory

14,633

12,495

  Advances to suppliers

-

22

  Prepaid expenses and other current assets

194

256

  Deferred income taxes

593

541




                Total current assets

20,715

17,158




PROPERTY AND EQUIPMENT – NET

102

118




DEFERRED INCOME TAXES

129

129




OTHER ASSETS

63

54




TOTAL

$21,009

$17,459




LIABILITIES AND STOCKHOLDERS' EQUITY






CURRENT LIABILITIES:



  Asset based revolving loan – bank

$6,488

$7,634

  Current portion of long-term debt

-

239

  Accounts payable

6,288

1,659

  Accrued expenses and other current liabilities

550

709




                Total current liabilities

13,326

10,241




DEFERRED RENT

23

19




STOCKHOLDERS' EQUITY



  Common Stock, 44,157 shares issued and outstanding

44

44

  Additional paid in capital

3,684

3,549

  Retained earnings

3,932

3,606




                Total stockholders' equity

7,660

7,199




TOTAL

$21,009

$17,459




 

 

ALLIANCE MEDIA HOLDINGS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED JUNE 30, 2015 AND 2014

(in thousands)






2015

2014




OPERATING ACTIVITIES:



    Net income

$   326

$   1,239

    Adjustments to reconcile net income to net cash



        provided by operating activities:



        Depreciation and amortization

61

70

        Stock-based compensation  expense

135

70

        Deferred income taxes

(52)

(247)

        Other

18

37

        Changes in operating assets and liabilities, net

1,164

2,139




                Net cash provided by operating activities

1,652

3,308




INVESTING ACTIVITIES:



    Purchase of property and equipment

(45)

(21)




                Net cash used in investing activities

(45)

(21)




FINANCING ACTIVITIES:



    Payment of note payable-bank, net of proceeds

(1,146)

(2,687)

    Payment of deferred financing costs

(30)

(25)

    Payment of long-term debt

(239)

(761)




                Net cash used in financing activities

(1,415)

(3,473)




INCREASE (DECREASE) IN CASH AND EQUIVALENTS

192

(186)




CASH AND EQUIVALENTS, BEGINNING OF YEAR

155

341




CASH AND EQUIVALENTS, END OF YEAR

$   347

$   155




 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/alliance-media-holdings-inc-reports-fourth-quarter-and-year-end-financial-results-300148865.html

SOURCE Alliance Media Holdings Inc.

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