PLANTATION, Fla., Feb. 12, 2025 (GLOBE NEWSWIRE) -- Alliance Entertainment Holding Corporation (NASDAQ:AENT) is thrilled to announce the launch of its latest line of Handmade by Robots™ collectible figures, which debuted in select Walmart stores nationwide and on Walmart.com on February 7. This exciting new collection represents a unique fusion of craftsmanship and pop culture, catering to the growing demand for collectible products that resonate with consumers and collectors alike. These figures are not ju ...

PLANTATION, Fla., Jan. 30, 2025 (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, February 13, at 4:30 p.m. Eastern Time to discuss its results for the second quarter ended December 31, 2024. A press release detailing these results will be issued prior to the call. Alliance Entertainment Executive Chairman Bruce Og ...

PLANTATION, Fla., Dec. 18, 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, is proud to announce the acquisition of Handmade by Robots, a highly sought-after line of collectible vinyl figures. This acquisition bolsters Alliance Entertainment's growing collectibles division and reflects the company's ongoing commitment to offering unique and innovativ ...

According to several indicators—including a robust labor market and tamed inflation figures—the U.S. economy heads into 2025 with strong tailwinds. Many of the securities that have been primary beneficiaries of this economic well-being are large-cap (or even mega-cap) titans in the tech industry. Companies like NVIDIA Corp. NASDAQ: NVDA have shares that have doubled or even tripled in price in the year leading to December 11, 2024. For many investors, these major players may be prohibitively expensive. Thei ...

Core Insights - Alliance Entertainment Holding Corporation is hosting a webinar on December 10, 2024, to discuss its leadership in the physical media distribution market [1][2] - The company is recognized as the largest player in its field, with a strong position due to its extensive reach and relationships with major content producers and retailers [2][3] - Alliance's business model is characterized as capital-light and low-cost, which positions it well for future growth [3] Company Overview - Alliance Entertainment specializes in the distribution of music, movies, video games, electronics, toys, and collectibles, offering over 325,000 unique in-stock SKUs [7] - The company has over 35 years of distribution experience and serves a diverse range of customers, providing essential services to resellers and retailers worldwide [7] - Alliance's operational efficiency helps reduce costs associated with managing multiple vendor relationships, aiding omni-channel retailers in expanding their product offerings [7]

Alliance Entertainment We bring entertainment to you! First Quarter Fiscal 2025 Financial Results Conference Call November 12, 2024 NASDAQ: AENT Legal Disclaimer 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, solicita ...

Financial Data and Key Metrics Changes - The company generated $229 million in net revenue for Q1 2025, an increase from $226.8 million in Q1 2024 [29] - Total cost of revenue was $203 million in Q1 2025, compared to $201 million in the same quarter last year, resulting in a gross margin of 11.2%, slightly below the 11.6% achieved in Q1 2024 [30] - Net income for the quarter was $400,000, a significant turnaround from a net loss of $3.5 million in the same period last year, leading to earnings per share improving from a negative $0.07 to a profit of $0.01 [31] - Adjusted EBITDA for the quarter was $3.4 million, marking the sixth consecutive quarter of positive adjusted EBITDA [32] - Inventory levels dropped to $138 million and debt reduced to $85 million as of September 30, 2024, improving financial flexibility [34] Business Line Data and Key Metrics Changes - The Distribution Solutions division generated $134 million in revenue in fiscal 2024, partnering with over 60 movie studios [15] - The AMPED division is a leader in exclusive physical music content distribution, with significant relationships with over 90 music labels [16] - The Mill Creek division specializes in exclusive video content licensing for major studios, enhancing the ability to offer unique video content [18] - Revenue from the exclusive relationship with Arcade1Up increased to $12.6 million in Q1 2025, up over 20% from $10.2 million in Q1 2024 [19] Market Data and Key Metrics Changes - The physical media market is normalizing back to historical growth levels in the high single digits after a surge during the pandemic [13] - The CD market has seen a revival, with CDs outselling digital albums at a 3 to 1 margin in the first half of the year [13] Company Strategy and Development Direction - The company aims to expand market share, improve margins, and drive EBITDA growth through licensing opportunities in video and collectibles [35][36] - Mergers and acquisitions remain central to the growth strategy, focusing on diversifying product categories and strengthening relationships with retail partners [37] - The company is investing in automation and technological innovation to enhance operational efficiencies, with significant cost savings already realized [36][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to leverage its capital-light model and integration capabilities to capture opportunities in the market [38] - The company anticipates significant opportunities as family-owned competitors age out and large studios look to sell or license physical media rights [38] Other Important Information - The company has a long history of strategic acquisitions, having successfully integrated over a dozen companies to expand its market presence [11][20] - The implementation of AutoStore technology has transformed operations, allowing for increased processing capacity and reduced distribution costs [26][27] Q&A Session Summary Question: How does the company balance inventory optimization with ensuring adequate stock for anticipated demand? - The company utilizes sophisticated purchasing systems and experienced buyers to manage inventory, focusing on both evergreen sellers and new releases to meet customer demand [40][41][42] Question: What measures are being considered to drive margin expansion in the coming quarters? - The company is seeing improvements in margins and plans to enhance margins through licensing models and obtaining additional rebates from suppliers [43][44] Question: Can you discuss the criteria for potential acquisitions and any specific targets? - The company is active in acquisition conversations, focusing on both consolidation opportunities within existing categories and new licensed entertainment product categories [45][46][47]

Revenue Growth and Sales Performance - Net revenues increased from $227 million to $229 million, a 1% year-over-year growth for the three months ended September 30, 2024[116] - Vinyl record sales grew by $3.2 million (4.8%) to $70.5 million, driven by a 4.9% increase in average selling price[117] - Physical movie sales (DVDs, Blu-Ray, Ultra HD) increased by $6.1 million (13.2%) to $52.9 million, with an 18.6% rise in average selling price[117] - Gaming product revenue rose by $4.5 million (8.6%) to $57.1 million, attributed to higher sales of hardware and retro arcades[119] - Consumer products revenue declined by $3.4 million (-31.6%) to $7.3 million due to a decrease in average selling price per unit[118] - Direct-to-consumer (DTC) business contributed approximately 34% of gross revenue for Q3 2024, up from 30% in the same period last year[116] Cost and Margin Analysis - Cost of revenues increased by $2 million (1%) to $203 million, while gross margin decreased from 11.6% to 11.2%[120] - Total operating expenses decreased by $5 million (-17.9%) to $23 million, with distribution and fulfillment expenses dropping by $2.7 million (-23%)[121] - The company closed its Shakopee, MN warehouse in May 2024, reducing operating costs and improving efficiency[121] Financial Performance and Liquidity - Interest expense decreased by $0.3 million (-10%) to $2.8 million for the three months ending September 30, 2024, driven by a reduction in the average revolver balance from $124 million to $81 million (-35%)[122] - Non-GAAP Adjusted EBITDA increased to $3.4 million for the three months ending September 30, 2024, compared to $1.3 million in the same period of the prior year[123] - The company's revolver balance decreased from $126 million on September 30, 2023, to $88 million (-$38 million or -28%) on September 30, 2024, due to improved cash conversion from accounts receivable and inventory[128] - Net cash provided by financing activities was $14.7 million for the three months ending September 30, 2024, compared to $3.1 million in the same period prior year, primarily due to increased borrowing for inventory[132] - The company's liquidity ratio improved to 1.34 from 0.87 last year, reflecting a stronger ability to meet short-term obligations[129] - Inventory decreased by $41 million for the three months ending September 30, 2024, compared to a $13 million increase in the same period prior year, driven by lower inventory on-hand to support sales[131] Credit Facilities and Financial Stability - The company entered into a $120 million senior secured asset-based credit facility with White Oak Commercial Finance, LLC, replacing the prior credit facility with Bank of America[125] - The company concluded it has sufficient cash to fund operations for at least twelve months, supported by the new credit facility, strategic initiatives, and financial performance[126] Internal Controls and Remediation - Material weaknesses in internal control over financial reporting were identified, primarily related to entity-level controls, IT general controls, and financial close processes[136][137][138] - Remediation efforts for material weaknesses are ongoing, with significant actions expected to be finalized by the fiscal year ending June 30, 2025[139][140][141] Legal Proceedings and Risks - Alliance is involved in legal proceedings, claims, and government investigations, which could result in monetary damage awards, fines, penalties, or injunctive orders, potentially affecting the company's business and financial condition[145][146] - A class action lawsuit filed on March 31, 2023, alleges breaches of fiduciary duties related to the Business Combination, with potential losses currently unestimable[147] - COKeM faces a lawsuit seeking damages of at least $20,913,200 plus 9% interest for alleged contributory trademark infringement and related claims[148] - A class action complaint filed on August 8, 2024, alleges violations of the Video Privacy Protection Act (VPPA) by disclosing user data to Facebook, with financial impact currently unestimable[149] Inventory and Operations - Alliance Entertainment maintains in-stock inventory of over 325,000 SKU products and serves more than 70 countries worldwide[101]

Core Insights - Alliance Entertainment Holding Corporation reported a strong start to fiscal 2025, with improved profitability driven by operational efficiencies and higher-margin Direct-to-Consumer sales [3][4][5]. Financial Performance - Net revenue for Q1 FY 2025 increased to $229 million, with year-over-year sales growth in key categories: vinyl (up 4.8%), CDs (up 4.0%), physical movie sales (up 13.2%), and gaming products (up 8.6%) [2]. - Direct-to-Consumer sales accounted for 34% of gross revenue, up from 30% in the prior year [2][4]. - Operating income improved to $2 million, a turnaround from an operating loss of $1.6 million in the previous year [2]. - Net income was $0.4 million, a $3.9 million improvement from a net loss of $3.5 million in the prior year [2]. - Adjusted EBITDA increased to $3.4 million, up from $1.3 million in Q1 FY 2024 [2][5]. Cost Management and Efficiency - Distribution and fulfillment expenses decreased to $9 million, down 23% year-over-year, due to ongoing automation initiatives [2][4]. - Selling, General and Administrative (SG&A) expenses decreased to $13 million, down 9% from the prior year [2]. - Inventory levels were reduced to $138 million as of September 30, 2024, down from $159 million a year earlier, reflecting effective inventory management [2][7]. Debt and Liquidity - The company reduced its revolver debt by 33%, from $126 million on September 30, 2023, to $85 million as of September 30, 2024, enhancing liquidity and reducing debt service costs [2][7]. - Cash increased to $4.29 million as of September 30, 2024, compared to $1.13 million at the end of the previous quarter [15][17]. Strategic Initiatives - Alliance signed an exclusive distribution agreement with Arcade1Up, generating $12.6 million in revenue in Q1 FY 2025, up from $10.2 million in the same period last year [2][6]. - The company also formed an exclusive partnership with Magenta Light Studios for physical home entertainment releases in the US and Canada, further enhancing its market position [2]. Market Outlook - The company aims to leverage its strengths as a capital-light, low-cost provider while addressing opportunities in underpenetrated channels like digital video streaming [4][8]. - Continued focus on expanding product offerings and strengthening retail partnerships is expected to capture new opportunities across the entertainment landscape [8][9].

Core Insights - Alliance Entertainment Holding Corporation is a leading global distributor and wholesaler in the physical media market, specializing in music, movies, video games, electronics, and collectibles [1][2] - The company achieved a significant financial turnaround in fiscal 2024, reporting a net income of $4.6 million, which is a $40 million improvement from the previous year [2] - Alliance's extensive reach and scale create a strong competitive advantage, positioning it as the dominant player in the distribution of physical media [2] Company Overview - Alliance Entertainment offers over 325,000 unique in-stock SKUs, including more than 57,300 exclusive compact discs, vinyl LP records, DVDs, Blu-rays, and video games [3] - The company has over thirty-five years of distribution experience and serves a diverse range of customers, providing a comprehensive suite of services to resellers and retailers worldwide [3] - Alliance's operational efficiency helps reduce costs associated with managing multiple vendor relationships, enabling omni-channel retailers to expand their product offerings [3] Upcoming Events - Alliance Entertainment will host a webinar on October 15, 2024, featuring insights from Chairman Bruce Ogilvie and CEO Jeff Walker [1][2] - The event will include a live question and answer session, allowing investors to engage directly with company leadership [2]