Alliance Media Holdings Inc. Reports Financial Results For The Three And Nine Months Ended March 31, 2016

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™, Microsoft's Xbox 360, and Nintendo's Wii U™ and 3DS. Further, we have not yet seen a significant increase of value product offerings for the new PS4™ 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

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/alliance-media-holdings-inc-reports-financial-results-for-the-three-and-nine-months-ended-march-31-2016-300269297.html

SOURCE Alliance Media Holdings Inc.

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