PLANTATION, Fla., Jan. 23, 2024 (GLOBE NEWSWIRE) -- Alliance Entertainment Holding Corporation (NASDAQ:AENT) ("Alliance Entertainment", "Company"), a distributor and wholesaler of the world's largest in stock selection of music, movies, video games, electronics, arcades, toys and collectibles, will hold a conference call on Thursday, February 8, 2024 at 4:30 p.m. Eastern Time to discuss its results for the fiscal second quarter ended December 31, 2023. A press release detailing these results will be issued ...

Core Viewpoint - Alliance Entertainment Holding Corporation will hold a conference call on February 8, 2024, to discuss its fiscal second quarter results for the period ending December 31, 2023 [1] Group 1: Conference Call Details - The conference call is scheduled for February 8, 2024, at 4:30 p.m. Eastern Time [2] - Participants can join the call using the toll-free number 1-877-407-0784 or the international number 1-201-689-8560, with a Conference ID of 13743609 [2] - A live broadcast of the call will be available, along with a replay accessible through the company's investor relations website [2][3] Group 2: Company Overview - Alliance Entertainment is a leading distributor of music, movies, toys, collectibles, and consumer electronics, offering over 375,000 unique SKUs [4] - The company has over 57,300 exclusive products, including compact discs, vinyl records, DVDs, Blu-rays, and video games [4] - With over thirty-five years of distribution experience, Alliance Entertainment provides services to resellers and retailers globally, helping them reduce costs and expand product offerings [4]

PLANTATION, Fla., Jan. 22, 2024 (GLOBE NEWSWIRE) -- Alliance Entertainment Holding Corporation (NASDAQ:AENT) ("Alliance Entertainment", "Company"), a distributor and wholesaler of the world's largest in stock selection of music, movies, video games, electronics, arcades, toys and collectibles, announced today that on January 19, 2024, the Company received written notice from The Nasdaq Stock Market LLC ("Nasdaq") that for the ten consecutive business days from January 4, 2024, to January 18, 2024, the closi ...

PLANTATION, Fla., Jan. 09, 2024 (GLOBE NEWSWIRE) -- Alliance Entertainment Holding Corporation (NASDAQ:AENT) ("Alliance Entertainment", "Company"), a distributor and wholesaler of the world's largest in stock selection of music, movies, video games, electronics, arcades, toys and collectibles, today announced its COKeM gaming division reported sales of the popular Arcade1Up home arcade machines that exceeded initial forecasts in the calendar fourth quarter of 2023. "Sales of Arcade1Up products performed wel ...

Financial Performance - Net revenues for the three months ended September 30, 2023, were $226,755,000, a decrease of 5% from $238,701,000 in the same period of 2022[13]. - The company reported a net loss of $3,462,000 for the three months ended September 30, 2023, compared to a net loss of $7,509,000 in the same period of 2022, indicating a 54% improvement[13]. - Operating loss for the quarter was $1,587,000, an improvement from an operating loss of $7,793,000 year-over-year[13]. - For the three months ended September 30, 2023, the net loss was $3,462,000, a significant improvement from a net loss of $7,509,000 for the same period in 2022, representing a reduction of approximately 54%[22]. - Net cash used in operating activities for the three months ended September 30, 2023, was $2,739,000, compared to $48,176,000 for the same period in 2022, indicating a substantial decrease in cash outflow[22]. - Basic and diluted loss per share for Class A Common Stock was $(0.07) for the three months ended September 30, 2023, compared to $(0.16) for the same period in 2022[42]. - Non-GAAP Adjusted EBITDA improved to approximately $1.3 million from $(4.1) million in the same period last year[140]. Revenue and Sales Trends - Vinyl record sales increased by 1.3% year-over-year, from $66 million to $67 million, with an average selling price increase of 3.9%[135]. - Physical movie sales rose by 7.9% year-over-year, from $43 million to $47 million, driven by new theatrical releases and higher average selling prices[135]. - Consumer products revenue decreased by 40.4% year-over-year, from $18 million to $11 million, reflecting post-pandemic normalization in sales volume[135]. - Gaming product revenue declined by 25.9% year-over-year, from $71 million to $53 million, despite an increase in average selling prices[135]. - Customer 1 accounted for 18.5% of revenue in Q3 2023, down from 24.9% in Q3 2022, indicating a diversification in customer revenue sources[35]. Assets and Liabilities - Total current assets increased slightly to $261,215,000 as of September 30, 2023, compared to $260,866,000 at June 30, 2023[10]. - Total liabilities decreased marginally to $309,858,000 from $309,996,000[10]. - Cash balance increased to $1,225,000 as of September 30, 2023, from $865,000 at June 30, 2023[10]. - Trade receivables, net as of September 30, 2023, were $93.504 million, down from $104.939 million as of June 30, 2023[48]. - Inventory, net increased to $159.432 million as of September 30, 2023, from $146.763 million as of June 30, 2023[49]. - The Company has a revolving credit facility with an outstanding balance of $125.684 million as of September 30, 2023, down from $133.323 million as of June 30, 2023[68]. Cost Management - Cost of revenues for the same period was $200,501,000, down from $213,233,000, reflecting a 6% reduction[13]. - Total Operating Expenses decreased from $33.3 million to $27.8 million, representing a decline from 13.9% to 12.3% of net revenue[138]. - Costs incurred with MVP Logistics, LLC, were $1.0 million for the three months ended September 30, 2023, down from $2.0 million in the same period in 2022[79]. - Cash paid for interest increased to $3,140,000 in Q3 2023 from $2,013,000 in Q3 2022, reflecting a rise of approximately 56%[22]. Strategic Initiatives - The company has plans for market expansion and new product development, although specific details were not disclosed in the financial statements[12]. - Management is evaluating cost reduction opportunities and process efficiencies as part of its overall growth and diversification strategy[33]. - The company added Think3Fold LLC to its portfolio on July 1, 2022, as part of its expansion strategy[26]. Financing and Capital Structure - The company issued 1,335,000 shares of common stock, resulting in an increase in paid-in capital to $47,202,000[16]. - Following the merger with Adara, the total shares of common stock outstanding increased to 49,167,170[97]. - A letter of intent was signed for a potential $150 million senior secured credit facility to refinance existing debt and fund working capital needs[146]. - The Credit Facility was reduced from $225 million to $175 million as of April 21, 2023, and is currently under negotiation for renewal[145]. Goodwill and Impairment Testing - The Company tested goodwill for impairment and concluded that the fair value of equity is higher than the carrying value, indicating no impairment[159]. - The Company has the option to perform a qualitative assessment for goodwill impairment, which may lead to a one-step impairment test if fair value is deemed less than carrying amount[160]. - The contingent consideration related to the Think3Fold acquisition had a fair value of zero as of September 30, 2023[91]. Miscellaneous - The effective tax rate for the three months ended September 30, 2023, was 26%, consistent with the rate for the same period in 2022[72]. - The Company has a 401(k) Plan with automatic enrollment at a 3% contribution rate, and a matching contribution of $0.50 for every dollar up to 4%[71].

Financial Performance - For the year ended June 30, 2023, net revenues decreased from $1,417 million to $1,159 million, a decline of $259 million or 18% year-over-year [331]. - The gross margin declined to 9.0% compared to 12.9% in the prior year, primarily due to inventory adjustments and increased transportation costs [333]. - B2B wholesale customer base revenue was down almost 20% year-over-year, but improved to a decline of 8% in Q4 as economic conditions stabilized [331]. - Vinyl sales decreased 2% to $324 million, while gaming products revenue decreased 30% to $391 million, totaling $715 million or 62% of revenue mix [332]. - Consumer products revenue increased from $58 million to $80 million, a growth of $22 million or 37% year-over-year, benefiting from the acquisition of Think3Fold [332]. - For the year ended June 30, 2023, the company reported a net loss of $35.4 million compared to a net income of $28.6 million for the same period in 2022 [352]. Cost and Expenses - The cost of revenues, excluding depreciation and amortization, decreased from $1,235 million to $1,055 million, a reduction of $180 million or 15% year-over-year [333]. - Total Operating Expenses as a percentage of net revenue increased from 9.9% to 11.8% year-over-year [335]. - Interest Expense rose from $4.1 million to $11.7 million, an increase of 189%, due to a higher average revolver balance of $156 million and an effective interest rate increase to 6.0% [336]. - The company recorded an inventory write-down of $7.1 million for gaming arcades and $15.3 million in excessive transportation costs [334]. - Fulfillment payroll decreased from $46.5 million to $40.4 million, while average cost per labor hour decreased by 3% [335]. Cash Flow and Liquidity - Cash provided by operating activities was $3.4 million, a significant improvement from $(83.6) million used in operations in the previous year [352]. - Inventory decreased by $99.7 million year-over-year, which was a key factor in the reduced cash used in operations [352]. - The revolver balance decreased from $136 million to $133 million year-over-year, with availability dropping from $48 million to $2 million [342]. - Cash and cash equivalents and borrowing capacity under the revolving credit facility totaled $0.9 million and $1.7 million, respectively, as of June 30, 2023 [341]. - Net cash used in financing activities was $3.2 million for the year ended June 30, 2023, compared to cash provided of $81.0 million in the prior year [353]. Equity and Debt - Following the merger with Adara, net equity decreased by $787,000 compared to Legacy Alliance's consolidated balance sheet [322]. - The company failed to meet the Fixed Charge Coverage Ratio covenant requirement, leading to an amendment of the Credit Facility [344]. - Amendment No. 13 extended the termination date of the Credit Facility to December 31, 2023, with restrictions on new debt and investments [346]. - The exercise price of the Warrants is $11.50, significantly higher than the current market price of $1.32, which may limit cash proceeds from warrant exercises [347]. Tax and Adjustments - Income tax benefit of $9.1 million was recorded compared to an expense of $9.4 million in the prior year, with a pretax loss of $(44.5) million [337]. - Non-GAAP Adjusted EBITDA for the year ended June 30, 2023, was approximately $(17.6) million, down from $60.0 million in the prior year [338]. - The company performed a goodwill impairment test and concluded that there was no impairment, as the fair value of equity exceeded the carrying value [357]. - The fair value of the company's reporting unit exceeded its carrying value by less than 10% as of June 30, 2023 [361]. Acquisitions and Investments - The company acquired Think3Fold for no consideration, impacting the cash flow from investing activities [353]. - Accounts Payable increased by approximately $69 million due to liabilities related to the Think3Fold acquisition [352]. - The company has not issued dividends, maintaining an expected dividend yield of 0% [366].

As filed with the Securities and Exchange Commission on June 22, 2023 Registration No. 333-271219 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Amendment No. 4 to FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 ALLIANCE ENTERTAINMENT HOLDING CORPORATION (Exact name of registrant as specified in its charter) | Delaware | 5199 | 85-2373325 | | --- | --- | --- | | (State or other jurisdiction of | (Primary Standard Industrial | (I.R.S. Employer | | incorporation or or ...

As filed with the Securities and Exchange Commission on June 16, 2023 Registration No. 333-271219 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Amendment No. 3 TABLE OF CONTENTS (Address, including zip code, and telephone number, including area code, of registrant's principal executive offices) Jeffrey Walker Chief Executive Officer 8201 Peters Road Suite 1000 Plantation, Florida (954) 255-4000 (Name, address, including zip code, and telephone number, including area code, of agent ...

Table of Contents As filed with the Securities and Exchange Commission on June 6, 2023 Registration No.333-271219 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Amendment No. 2 to FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 ALLIANCE ENTERTAINMENT HOLDING CORPORATION (Exact name of registrant as specified in its charter) Delaware 5199 85-2373325 | (State or other jurisdiction of (Primary Standard Industrial | (I.R.S. Employer | | --- | --- | | incorporation or or ...

Financial Performance - Net Revenues decreased from $320 million to $228 million, a decline of $93 million or 29% year-over-year for the three months ended March 31, 2023[125]. - For the nine months ended March 31, 2023, net revenues decreased by 21% to $911.6 million from $1,152.2 million in the prior year[133]. - Gaming products revenue decreased by 30% to $333 million, while vinyl sales decreased by 3% to $242 million, totaling $575 million and representing 63% of revenue mix[134]. - Consumer Products revenue increased from $14 million to $19 million, a 36% increase year-over-year, attributed to the acquisition of Think3Fold[126]. - The company reported a net loss of $30.8 million compared to a net income of $33.2 million for the same period in 2022[151]. Cost and Expenses - Cost of Revenues, excluding depreciation and amortization, decreased from $280 million to $200 million, a reduction of $80 million or 29% year-over-year[127]. - Total cost of revenues, excluding depreciation and amortization, decreased by 16% to $837.9 million from $998.3 million year-over-year[135]. - Total Operating Expenses increased from $34.2 million to $34.7 million, with the percentage of net revenue rising from 10.7% to 15.3% year-over-year[128]. - Operating expenses as a percentage of net revenue increased from 9.3% to 11.7% year-over-year[136]. - Total operating expenses decreased slightly from $107.4 million to $106.7 million year-over-year[133]. Interest and Financing - Interest Expense increased from $1.0 million to $3.2 million, driven by a higher average revolver balance and an increase in the effective interest rate to 6.9%[129]. - Interest expense increased from $2.7 million to $9.1 million, primarily due to a higher average revolver balance and an increase in effective interest rate to 5.5%[137]. - The company had an outstanding revolver balance of approximately $127 million under the Credit Facility with Bank of America[169]. - The interest on borrowings accrued at a weighted average rate of 5.48% for the nine months ended March 31, 2023[169]. - A hypothetical 100 basis point increase in daily interest rates would increase the Company's interest expense by approximately $0.4 million per quarter[169]. Tax and Write-downs - The company recorded an income tax benefit of $11.4 million for the nine months ended March 31, 2023, compared to an expense of $10.5 million in the prior year[137]. - The company recognized a $7.1 million write-down for gaming arcades and $3.7 million for consumer products to their estimated net realizable value during the nine months ended March 31, 2023[157]. Liquidity and Capital - As of March 31, 2023, the company had cash and cash equivalents of $1.0 million and a borrowing capacity of $24.4 million under its revolving credit facility[142]. - The credit line with Bank of America was amended on April 21, 2023, reducing the facility from $225 million to $175 million[143]. - The company is in active discussions with lenders to renew its revolving credit facility before the current term expires on September 29, 2023[143]. - The company may seek to raise additional capital through the sale of equity securities following the current offering[147]. - The company’s liquidity position remains uncertain due to operational losses and the lack of a revised long-term revolver in place[144]. Operational Challenges - The company incurred customer rebates of approximately $12.2 million to stimulate demand for arcades during the nine months ended March 31, 2023[121]. - The company plans to invest in additional warehouse automation to address labor resource scarcity and manage changes in demand[128]. - The company recorded higher landed costs of $15.3 million due to disruptions in the transportation industry, impacting inventory write-downs for the nine months ended March 31, 2023[170]. - Inflationary pressures have begun to affect the Company's operations, particularly in freight, shipping costs, and payroll[170]. - The Company continues to monitor interest rates and inflation, which may impact sales, gross profits, and gross margins[170]. Risk Management - The Company does not currently engage in hedging transactions to manage exposure to interest rate risk[167]. - The Company believes it is not exposed to significant credit risk on cash, as primary cash is held in high-quality financial institutions[166]. - Ongoing credit evaluations and risk assessments are performed to minimize trade receivable risk[166]. - The Company’s indebtedness may make it more vulnerable to economic downturns and subject to covenants that restrict operations[168].