PLANTATION, Fla. and LOS ANGELES, May 21, 2024 (GLOBE NEWSWIRE) -- Distribution Solutions, a division of Alliance Entertainment (NASDAQ: AENT), today announced the extension of its current partnership with Cineverse Corp (NASDAQ: CNVS), an innovative streaming technology and entertainment company. Distribution Solutions has successfully released over 200 SKUs for the home entertainment division of Cineverse to date. This includes titles from the flagship Hallmark brand, such as Hallmark Mystery and Hallmark ...

Financial Data and Key Metrics Changes - Net revenues for Q3 2024 were $211 million, a decrease of 7.3% compared to $227 million in Q3 2023 [19] - Gross profit increased to $28 million from $27.3 million in the same period last year, representing a 2.5% increase [20] - Gross profit margin improved to 13.3%, up from 12% in Q3 2023, an increase of 130 basis points [20] - Net loss for Q3 2024 was $3.4 million, an improvement of $4.4 million compared to a net loss of $7.8 million in Q3 2023 [20] - Adjusted EBITDA improved to $2.9 million from an adjusted EBITDA loss of $2.4 million in the prior year [20] Business Line Data and Key Metrics Changes - Consumer direct shipments accounted for 33% of gross sales revenue for Q3 2024, up from 34.4% to 39.1% year-over-year for the nine months ended March 31 [20] - Distribution Solutions generated $120 million of the $200 million in exclusive product sales, with significant exclusive video studios relying on its services [9] Market Data and Key Metrics Changes - For the nine months ending March 31, 2024, net revenue totaled $864 million, a decrease of 5.3% compared to $912 million in the same period of 2023 [23] - Gross profit for the nine months was $102 million, an increase of 38.4% from $74 million in the same period of 2023 [23] Company Strategy and Development Direction - The company aims to continue its acquisition strategy to grow and diversify its offerings, having successfully integrated over a dozen companies in the last 20 years [26] - Investment in automation and technology upgrades is a priority to enhance operational efficiency and support direct-to-consumer services [27][30] - The company is focusing on expanding its direct-to-consumer capabilities, which are increasingly in demand as consumer preferences shift [27] Management's Comments on Operating Environment and Future Outlook - Management noted that the restructuring costs are winding down, with significant savings expected from the closure of the Minnesota facility [57] - The company reported strong demand for entertainment products, indicating a positive consumer posture [56] - April 2024 revenue was approximately 10% above the previous year, driven by successful initiatives such as Record Store Day and exclusive product launches [43][44] Other Important Information - The company has reduced inventory from $163 million to $108 million and debt from $127 million to $87 million year-over-year [21][24] - A new three-year, $120 million senior secured asset-based credit facility was secured to support growth and refinance existing debt [21][25] Q&A Session Summary Question: What is the potential for gross margin expansion and long-term targets? - Management indicated a focus on profitable sales and expects gross margin improvements in fiscal 2025 [33] Question: What does the acquisition pipeline look like? - Management is engaged in robust discussions for potential acquisitions, emphasizing the importance of strategic value and appropriate pricing [34][35] Question: What opportunities exist for growing direct-to-consumer and e-commerce sales? - The company highlighted its leadership in direct-to-consumer fulfillment and noted significant partnerships with major retailers [36][37] Question: Why did net revenues decrease for the three and nine-month periods? - The decrease was attributed to the absence of liquidation sales that previously boosted revenue, with a focus now on more profitable sales [42] Question: What are the growth initiatives to improve revenue? - Management noted strong performance in music, particularly vinyl, and the expansion into live commerce as new sales channels [46][48] Question: Can you discuss the sustainability of vinyl growth? - Management confirmed that vinyl is a collectible item driving strong sales, with record labels increasingly focusing on vinyl releases [50][52] Question: What progress has been made in direct-to-consumer initiatives? - The company is fine-tuning its direct-to-consumer strategy, enhancing product listings and selection to support e-commerce initiatives [54]

Alliance Entertainment We bring entertainment to you! Third Quarter 2024 Financial Results Conference Call NASDAQ: AENT May 9, 2024 This presentation (together with oral statements made in connection herewith, this “Presentation”) is for informational purposes only. This Presentation shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities, nor shall there be any sale of securities in any states or jurisdictions in which such offer, solicitation or sale would be unlawful ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarter ended March 31, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-40014 ALLIANCE ENTERTAINMENT HOLDING CORPORATION (Exact Name of Registrant as Specified in Its Charter) (State or other j ...

PLANTATION, Fla., May 07, 2024 (GLOBE NEWSWIRE) -- Alliance Entertainment Holding Corporation (NASDAQ:AENT), a global distributor and wholesaler specializing in music, movies, video games, electronics, arcades, toys, and collectibles, today announced results of last month's Record Store Day events. Record Store Day (www.recordstoreday.com) is an annual event inaugurated in 2007 and held on one Saturday every April to "celebrate the culture of the independently owned record store‘" and brings together fans, ...

PLANTATION, Fla., April 23, 2024 (GLOBE NEWSWIRE) -- Alliance Entertainment Holding Corporation (NASDAQ:AENT), a global distributor and wholesaler specializing in music, movies, video games, electronics, arcades, toys, and collectibles, will hold a conference call on Thursday, May 9, 2024 at 4:30 p.m. Eastern Time to discuss its results for the fiscal third quarter ended March 31, 2024. A press release detailing these results will be issued prior to the call. Alliance Entertainment Executive Chairman Bruce ...

Company to Highlight Continued Success of Physical Media with Attendees K-Pop Sales Up 56.2% YoY through March 2024 to $49.8 Million PLANTATION, Fla., April 16, 2024 (GLOBE NEWSWIRE) -- Alliance Entertainment Holding Corporation (NASDAQ:AENT), a global distributor and wholesaler specializing in music, movies, video games, electronics, arcades, toys, and collectibles, will attend the Music Biz 2024 conference being held on May 13-16, 2024 at the JW Marriott Nashville in Nashville, Tennessee. The Music Busin ...

Management to Showcase 873,000 Sq Ft Warehouse including AutoStore™ Storage and Retrieval Technology and Sure Sort® X Sortation Technology System Management to Update Investors on Shift Toward Larger Scale Automation and Strategic Focus on Profitable Sales PLANTATION, Fla., April 09, 2024 (GLOBE NEWSWIRE) -- Alliance Entertainment Holding Corporation (NASDAQ:AENT), a global distributor and wholesaler specializing in music, movies, video games, electronics, arcades, toys, and collectibles, will host an inves ...

PLANTATION, Fla., March 21, 2024 (GLOBE NEWSWIRE) -- Alliance Entertainment Holding Corporation (NASDAQ:AENT), a global distributor and wholesaler specializing in music, movies, video games, electronics, arcades, toys, and collectibles, has commenced installation at its Kentucky facility of Sure Sort® X, a cost-saving sortation technology system from warehouse automation solutions provider OPEX®, to be completed April 1st, 2024. Utilizing this new Sure Sort X technology will result in annual labor savings o ...

PLANTATION, Fla., March 05, 2024 (GLOBE NEWSWIRE) -- Alliance Entertainment Holding Corporation (NASDAQ:AENT), a global distributor and wholesaler specializing in music, movies, video games, electronics, arcades, toys, and collectibles, will attend the 36th Annual ROTH Conference being held on March 17-19, 2024 at The Ritz Carlton Laguna Niguel located in Dana Point, California. Alliance Entertainment Executive Chairman Bruce Ogilvie, and CEO and CFO Jeff Walker will conduct in-person one-on-one meetings du ...