Exhibit 99.1

ALJ REGIONAL HOLDINGS, INC. ANNOUNCES EARNINGS FOR THE FOURTH QUARTER AND YEAR ENDED SEPTEMBER 30, 2019

NEW YORK, NY, December 23, 2019 – ALJ Regional Holdings, Inc. (NASDAQ: ALJJ) (“ALJ”) announced results today for its fourth quarter and year ended September 30, 2019.  

ALJ is a holding company, whose wholly-owned subsidiaries are Faneuil, Inc. (“Faneuil”), Floors-N-More, LLC, d/b/a Carpets N' More (“Carpets”), and Phoenix Color Corp. (“Phoenix”).  Faneuil is a leading provider of call center services, back office operations, staffing services, and toll collection services to commercial and governmental clients across the United States. Carpets is one of the largest floor covering retailers in Las Vegas, Nevada, and a provider of multiple products for the commercial, retail, and home builder markets including all types of flooring, countertops, and cabinets.  Phoenix is a leading manufacturer of book components, educational materials, and related products producing value-added components, heavily illustrated books, and specialty commercial products using a broad spectrum of materials and decorative technologies.

Investment Highlights – Three Months and Year Ended September 30, 2019

Consolidated Results for ALJ

 

ALJ recognized consolidated net revenue of $89.0 million for the three months ended September 30, 2019, a decrease of $1.1 million, or 1.2%, compared to $90.1 million for the three months ended September 30, 2018.  The decrease was primarily driven by planned lower sales volumes at Carpets and lower volumes in components and packaging at Phoenix, largely offset by new contracts at Faneuil.  ALJ recognized consolidated net revenue of $84.2 million for the three months ended June 30, 2019.

 

ALJ recognized a net loss of $9.9 million and loss per share of $0.24 (diluted) for the three months ended September 30, 2019, compared to net income of $1.2 million and earnings per share (EPS) of $0.03 (diluted) for the three months ended September 30, 2018.  The majority of the loss was due to a non-cash deferred tax expense of $5.9 million and a non-cash write-off of intangible assets of $0.7 million. In addition, three contracts at Faneuil generated significant net losses during the quarter (the “Three Contracts”).   ALJ recognized a net loss of $7.2 million and loss per share of $0.19 (diluted) for the three months ended June 30, 2019.

 

ALJ recognized adjusted EBITDA of $5.2 million for the three months ended September 30, 2019, a decrease of $4.2 million, or 44.5%, compared to $9.3 million for the three months ended September 30, 2018. The main causes of the decrease were negative adjusted EBITDA associated with the Three Contracts, the wind-down of existing customer contracts, compliance costs related to the implementation of the new revenue recognition accounting standard, and higher overall employee benefits costs at Faneuil, unfavorable product mix and planned lower sales volumes for packaging and books at Phoenix, and reduced revenues at Carpets, somewhat offset by process improvements and cost reductions at Carpets.  ALJ recognized adjusted EBITDA of $5.2 million for the three months ended June 30, 2019.

 

ALJ recognized consolidated net revenue of $355.0 million for the year ended September 30, 2019, a decrease of $14.8 million, or 4.0%, compared to $369.8 million for the year ended September 30, 2018 due to lower planned volumes at Carpets and lower volume in components and packaging at Phoenix, offset by increases in business activity at Faneuil.    

 

ALJ recognized a net loss of $16.0 million and loss per share of $0.41 (diluted) for the year ended September 30, 2019, compared to net loss of $7.3 million and loss per share of $0.19 (diluted) for the year ended September 30, 2018.  As explained above, a large part of the loss was due to a non-cash charges incurred in the three months ended September 30, 2019.  

 

ALJ recognized adjusted EBITDA of $27.7 million for the year ended September 30, 2019, a decrease of $5.4 million, or 16.3%, compared to $33.1 million for the year ended September 30, 2018.  


The following information was filed by Alj Regional Holdings Inc (ALJJ) on Monday, December 23, 2019 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-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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