COLLEGE POINT, N.Y., Aug. 11, 2006 (PRIMEZONE) -- Alliance Distributors Holding Inc. (OTCBB:ADTR), a distributor of interactive video games and gaming products, announced its financial results for the second quarter of 2006.
Net sales for the quarter increased 8.5% to $13.3 million compared to $12.2 million in the second quarter of 2005. Net income was $73,095, or $0.00 per share, compared to a net loss of $335,803, or $0.01 per share, in the 2005 period. Approximately $109,000 of net income reflects insurance proceeds for assets in excess of the book value of these assets.
For the six months ended June 30, 2006, net sales increased 15.0% to $26.6 million, compared to $23.1 million for the same period in 2005. Net loss was $20,490, or $0.00 per share, compared to a net loss of $465,481, or $0.01 per share, in the 2005 period. The net loss for the 2006 period reflects a $257,000 charge in the first quarter for transaction costs of a proposed acquisition that was not consummated, and approximately $109,000 of net income for the insurance proceeds referred to in the preceding paragraph.
Jay Gelman, Chairman and CEO, said, "It is an exciting time for the Company. We are relocating our offices, wholesale showroom, and warehouse to 1160 Commerce Ave in the Bronx. The new facility gives us almost 10,000 additional square feet of operating space, and allows us to be more efficient in selling to and servicing our growing customer base. We also expect to open a new Florida branch operation this month."
For additional information see the Company's SEC Report on Form 10-Q for the period ended June 30, 2006.
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 (Unaudited)
Three months ended Six months ended
June 30, June 30,
------------------------ -------------------------
2006 2005 2006 2005
----------- ----------- ----------- ------------
Net sales $13,268,597 $12,224,803 $26,587,196 $23,113,638
Cost of goods
sold 11,617,158 11,154,292 23,376,846 20,800,790
----------- ----------- ----------- -----------
Gross profit 1,651,439 1,070,511 3,210,350 2,312,848
Operating
expenses:
Selling,
general
and
administrative
expenses 1,445,957 1,274,402 2,721,150 2,551,804
Terminated
transaction
costs -- -- 257,457 --
Other income (108,772) -- (108,772) --
----------- ----------- ----------- -----------
Total operating
expenses 1,337,185 1,274,402 2,869,835 2,551,804
----------- ----------- ----------- -----------
Income (loss)
from operations 314,254 (203,891) 340,515 (238,956)
Interest expense 185,816 126,809 373,873 220,422
----------- ----------- ----------- -----------
Income (loss)
before provision
for (benefit
from) income
taxes 128,438 (330,700) (33,358) (459,378)
Provision for
(benefit from)
income taxes 55,343 5,103 (12,868) 6,103
----------- ----------- ----------- -----------
Net income (loss) $ 73,095 $ (335,803) $ (20,490) $ (465,481)
----------- ----------- ----------- -----------
Net income (loss)
per share -
basic $ .00 $ (.01) $ .00 $ (.01)
=========== =========== =========== ===========
Net income (loss)
per share -
diluted $ .00 $ (.01) $ .00 $ (.01)
=========== =========== =========== ===========
Weighted-average
common shares
outstanding -
basic 48,721,065 46,417,098 48,444,632 46,417,098
=========== =========== =========== ===========
Weighted-average
common shares
outstanding -
diluted 50,771,727 46,417,098 48,444,632 46,417,098
=========== =========== =========== ===========