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Alliance Media Holdings Inc. Reports Financial Results For The Three And Twelve Months Ended June 30, 2017

NEW YORK, Oct. 31, 2017 /PRNewswire/ -- Alliance Media Holdings Inc. (OTC-Pink: ADTR), a distributor, developer and publisher of interactive video games and gaming products, today announced its financial results for the three and twelve months ended June 30, 2017.

Sales for the three months ended June 30, 2017 decreased 40% to $5.3 million from $8.8 million in the three months ended June 30, 2016. The Company lost $991,000 for the three months ended June 30, 2017 compared to net income of $27,000 for the comparable period in 2016.

For the twelve months ended June 30, 2017 sales decreased 32% to $36.7 million from were $53.7 million, in the comparable 2016 period. The Company lost $1.8 million for the year ended June 30, 2017 compared to net income of $325,000 for the comparable period in 2016.

Jay Gelman, Chairman and Chief Executive Officer, said, "Our financial results reflect further movement by the video game industry towards digital and streaming alternatives. We are responding within our distribution business with innovative fulfillment initiatives and other approaches. We are also devoting considerable effort to develop proprietary video game content through our Zachtronics division and to enter into equity and publishing alliances with independent developers."

About Alliance

Alliance Media Holdings Inc. (www.alliancemediaholdings.com) is a vertically integrated video game company. Its Alliance Distributors operating division is a full-service wholesale distributor of video games, hardware and accessories, with a special concentration in value video games. Alliance is a licensed publisher for Sony Computer Entertainment of America, Microsoft and Nintendo, and as Alliance Digital Media® publishes both originally created and third party licensed games in console, mobile, and PC/Mac formats. Alliance develops both original and third-party video games as Zachtronics.

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. The words "estimate," "believe," "expect," "should" 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, including the related impact on discretionary consumer spending, changes in marketing and distribution strategies by manufacturers, timely development and release of video game products we produce, potential cost overruns in our development of video games, ability to protect our intellectual property rights, potential claims that we have infringed the intellectual property rights of others, market acceptance of games we develop and / or publish, ability to realize anticipated benefits of 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 MEDIA HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

THREE AND TWELVE MONTHS ENDED JUNE 30, 2017 AND 2016

(In thousands, except per share amounts)










Three Months


Twelve Months


2017


2016


2017


2016

















SALES

$ 5,267


$ 8,818


$36,717


$53,659









COST OF SALES

4,612


7,484


32,190


46,722









GROSS PROFIT

655


1,334


4,527


6,937









OPERATING COSTS AND EXPENSES

1,387


1,232


5,955


6,121









(LOSS) INCOME FROM OPERATIONS

(732)


102


(1,428)


816









Interest expense

51


74


241


305









(LOSS) INCOME BEFORE PROVISION








FOR INCOME TAXES

(783)


28


(1,669)


511









Provision for income taxes

208


1


158


186









NET (LOSS) INCOME

$ (991)


$ 27


$ (1,827)


$ 325









Net (loss) income per share – basic and diluted

$ (0.02)


$ -


($0.04)


$0.01









Weighted average common shares outstanding –








Basic

44,157


44,157


44,157


44,157

Diluted

44,157


46,546


44,157


45,254


















ALLIANCE MEDIA HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

JUNE 30, 2017 AND 2016

(in thousands)






JUNE 30,


2017


2016





ASSETS








CURRENT ASSETS:




Cash and equivalents

$ 492


$ 253

Accounts receivable-net

1,181


2,983

Inventory

8,766


11,638

Advances to suppliers and video game developers

208


636

Prepaid expenses and other current assets

661


333

Deferred income taxes

83


537





Total current assets

11,391


16,380





PROPERTY AND EQUIPMENT – NET

29


61





DEFERRED INCOME TAXES

38


201





OTHER ASSETS

116


136





TOTAL

$11,574


$16,778





LIABILITIES AND STOCKHOLDERS' EQUITY








CURRENT LIABILITIES:




Asset based revolving loan – bank

$3,244


$6,754

Accounts payable

1,089


1,153

Accrued expenses and other current liabilities

727


640





Total current liabilities

5,060


8,547





LONG TERM OBLIGATIONS

-


75





DEFERRED RENT

6


5





STOCKHOLDERS' EQUITY




Common Stock, 44,157 shares issued and outstanding

44


44

Additional paid in capital

4,034


3,850

Retained earnings

2,430


4,257





Total stockholders' equity

6,508


8,151





TOTAL

$11,574


$16,778






ALLIANCE MEDIA HOLDINGS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

TWELVE MONTHS ENDED JUNE 30, 2017 AND 2016

(in thousands)






2017


2016





OPERATING ACTIVITIES:




Net (loss) income

$ (1,827)


$ 325

Adjustments to reconcile net (loss) income to net cash




provided by (used in) operating activities:




Depreciation and amortization

71


59

Stock-based compensation expense

184


166

Deferred income taxes

617


(16)

Other

17


(12)

Changes in operating assets and liabilities, net

4,696


(864)





Net cash provided by (used in) operating activities

3,758


(342)





INVESTING ACTIVITIES:




Purchase of property and equipment

(9)


(18)





Net cash used in investing activities

(9)


(18)





FINANCING ACTIVITIES:




Proceeds from asset-based revolving loan – bank, net of repayments

-


266

Payment of note payable-bank, net of proceeds

(3,510)


-





Net cash (used in) provided by financing activities

(3,510)


266





NET INCREASE (DECREASE) IN CASH AND EQUIVALENTS

239


(94)





CASH AND EQUIVALENTS, BEGINNING OF YEAR

253


347





CASH AND EQUIVALENTS, END OF YEAR

$ 492


$ 253





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SOURCE Alliance Media Holdings Inc.