EX-99.1 2 v084657_ex99-1.htm
Exhibit No.
99.1
 
ALLIANCE DISTRIBUTORS HOLDING INC. REPORTS
 
2007 SECOND QUARTER FINANCIAL RESULTS
 

For Immediate Release
 
New York, New York - August 14, 2007 - Alliance Distributors Holding Inc. (OTC Bulletin Board: ADTR), a distributor of interactive video games and gaming products, announced its financial results for the second quarter ended June 30, 2007.

Net sales for the quarter decreased 6% to $12.5 million from $13.3 million in the second quarter of 2006. The company incurred a net loss of $892,000, or $0.02 per share, in the second quarter of 2007, compared to net income of $73,000, or $0.00 per share, in the second quarter of 2006.

For the six months ended June 30, 2007, net sales increased 8% to $28.8 million, compared to $26.6 million for the same period in 2006. The company incurred a net loss of $1.5 million, or $0.03 per share, compared to a net loss of $20,000, or $0.00 per share in the 2006 period.

Effective May 11, 2007, the company increased its credit facility from $10 million to $15 million ($17.5 million in season) while decreasing the interest rate on borrowings under the facility from prime plus 1.50% to prime plus 0.75%. The credit facility was also extended to expire on May 31, 2010.

“Although our second quarter loss was a disappointment, we believe we have done a good job navigating through a particularly challenging time in video game distribution”, said Jay Gelman, Chairman and Chief Executive Officer. “Lack of hardware systems from Nintendo, Sony and Microsoft coupled with a reduced number of new software titles meant limited product available to drive revenues and profit. In addition, during the second quarter we aggressively sold inventory at reduced prices to drive sales and increase inventory turns.”

Gelman continued, “We are currently seeing definite improvement in the overall video game business. Sales in July were robust, and we expect that the recent price drops of Sony’s PS3 60gig and Microsoft’s XBOX 360, the introduction of new systems such as the PS3 80gig console, and the considerable amount of new software product slated for release through the rest of this calendar year, will help drive business in the third and fourth quarters of 2007.”

For additional information see the Company’s SEC Report on Form 10-Q for the three and six months ended June 30, 2007.
 
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.
 
 
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. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words “estimate,” “believe,” “expect,” 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, changes in marketing and distribution strategies by manufacturers, continued shortages of new platform systems, difficulty in integrating and deriving synergies from 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.
STATEMENTS OF OPERATIONS
THREE AND SIX MONTHS ENDED JUNE 30, 2007 AND 2006
(In thousands, except per share amounts)
(Unaudited)
 
   
Three Months 
  
Six Months 
  
   
2007 
  
2006 
  
2007 
  
2006
  
                   
NET SALES
  
$
12,499
  
$
13,268
  
$
28,772
  
$
26,587
  
                           
COST OF GOODS SOLD
    
11,516
    
11,617
    
26,209
    
23,377
  
                           
GROSS PROFIT
    
983
    
1,651
    
2,563
    
3,210
  
                           
OPERATING COSTS AND EXPENSES:
                          
Selling and administrative expenses
   
1,697
    
1,446
    
3,622
    
2,721
  
Terminated transaction costs
    
-
    
-
    
-
    
257
  
Other income
    
-
    
(109
)
  
-
    
(109
)
                           
Total operating expenses
    
1,697
    
1,337
    
3,622
    
2,869
  
                           
(LOSS) INCOME FROM OPERATIONS
    
(714
)
  
314
    
(1,059
)
  
341
  
                           
Interest expense
    
178
    
186
    
426
    
374
  
                           
(LOSS) INCOME BEFORE PROVISION FOR
                          
(BENEFIT FROM) INCOME TAXES
    
(892
)
  
128
    
(1,485
)
  
(33
)
                           
Provision for (benefit from) income taxes
    
-
    
55
    
-
    
(13
)
                           
NET (LOSS) INCOME
  
$
(892
)
$
73
  
$
(1,485
)
$
(20
)
                           
Net loss per share - basic and diluted
  
$
(0.02
)
$
0.00
  
$
(0.03
)
$
0.00
  
                           
Weighted average common shares outstanding -
                         
Basic
    
49,000
    
48,721
    
48,861
    
48,445
  
Diluted
    
49,000
    
50,772
    
48,861
    
48,445
  
                           
 
Contact:
 
Alliance Distributors Holding Inc.
Steve Gelman - VP of Marketing and Communications
718-536-2248
steve@alliancedis.com