EX-99.1 2 v037853_ex99-1.txt Exhibit No. 99.1 ALLIANCE DISTRIBUTORS HOLDING INC. REPORTS FOURTH QUARTER AND YEAR END 2005 FINANCIAL RESULTS Company Operated Profitably; Sales Increased 67% Over Previous Year For Immediate Release College Point, New York - March 13, 2006 - Alliance Distributors Holding Inc. (OTC Bulletin Board: ADTR), a distributor of interactive video games and gaming products, today announced financial results for the fourth quarter and for the year ended December 31, 2005. Net sales in the fourth quarter increased 48.2% to $22.0 million compared to $14.8 million in the fourth quarter of 2004. Net income was $428,985, or $0.01 per diluted share, compared to a net loss of $281,993, or $0.01 per diluted share, in the 2004 quarter. Net sales for the year ended December 31, 2005, increased 67.5% to $58.7 million, compared to $35.0 million for the same period in 2004. Net income for the year ended December 31, 2005 was $185,725, or $0.00 per diluted share, compared to a net loss of $241,749, or $0.01 per diluted share, in the 2004 period. Jay Gelman, Chairman and CEO, said, "I am pleased with the strong revenue growth and profits that we recorded for the full year and the fourth quarter. The company was also profitable in the third quarter. We are proud to have achieved these milestones in our second full year of operations." About Alliance Distributors Holding Inc. Alliance Distributors Holding Inc. (www.alliancedistributors.com), which does business as Alliance Distributors, is a full service wholesale distributor of interactive video games and gaming products for all key manufacturers and 3rd party publishers in the video game industry. Alliance Distributors offers comprehensive support on Playstation 2, PS1, PSP, X-Box, Game Cube, Nintendo DS and GameBoy systems, peripherals and software titles. Safe Harbor Certain of the above statements contained in this press release may contain forward-looking statements which are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements 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 but not limited to, risks associated with technological change, competitive factors and general economic conditions. The Company has no duty and undertakes no obligation to update such statements. ALLIANCE DISTRIBUTORS HOLDING INC. Statements of Operations
Three months ended Year ended December 31, December 31, (unaudited) ---------------------------- ---------------------------- 2005 2004 2005 2004 ------------ ------------ ------------ ------------ Net sales $ 21,990,855 $ 14,836,792 $ 58,670,335 $ 35,036,991 Cost of goods sold 19,897,132 13,752,396 52,732,769 31,116,020 ------------ ------------ ------------ ------------ Gross profit 2,093,723 1,084,396 5,937,566 3,920,971 Selling, general and administrative expenses 1,568,613 1,214,959 5,307,646 3,919,071 ------------ ------------ ------------ ------------ Income (loss) from operations 525,110 (130,563) 629,920 1,900 Interest expense 181,892 148,792 521,513 229,844 ------------ ------------ ------------ ------------ Income (loss) before provision for (benefit from) income taxes 343,218 (279,355) 108,407 (227,944) Provision for (benefit from) income taxes (85,767) 2,638 (77,318) 13,805 ------------ ------------ ------------ ------------ Net income (loss) 428,985 (281,993) 185,725 (241,749) Preferred stock dividends -- 57,712 -- 164,531 ------------ ------------ ------------ ------------ Net income (loss) available to common stockholders $ 428,985 $ (339,705) $ 185,725 $ (406,280) ============ ============ ============ ============ Net income (loss) available to common stockholders per share - Basic $ .01 $ (.01) $ .00 $ (.01) ============ ============ ============ ============ Net income (loss) available to common stockholders per share - Diluted $ .01 $ (.01) $ .00 $ (.01) ============ ============ ============ ============ Weighted-average common shares outstanding-Basic 47,231,268 45,930,305 46,622,314 35,330,253 ============ ============ ============ ============ Weighted-average common shares outstanding-Diluted 47,981,694 45,930,305 47,110,005 35,330,253 ============ ============ ============ ============
Contact: David Devor Alliance Distributors Holding Inc. 718-747-1500 x 117 david@alliancedis.com