DISTRIBUTORS HOLDING INC. REPORTS
SECOND QUARTER FINANCIAL RESULTS
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
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.
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
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.
May 11, 2007, the company increased its credit facility from $10 million to
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.
our second quarter loss was a disappointment, we believe we have done a good
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.”
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,
help drive business in the third and fourth quarters of 2007.”
additional information see the Company’s SEC Report on Form 10-Q for the three
and six months ended June 30, 2007.
Alliance Distributors Holding Inc.
Distributors Holding Inc. (www.alliancedistributors.com),
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
PS3, PSP, PS2, X-Box 360, Wii, DS and GBA SP, peripherals and software
The following information was filed by Alliance Distributors Holding Inc. (ADTR) on Tuesday, August 14, 2007 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.