Alliance Entertainment (US:AENT)2024-09-19 23:28Financial Performance - Net revenue for fiscal year 2024 totaled $1.1 billion, a decrease of 5% from $1.16 billion in fiscal year 2023[12] - Net income for fiscal year 2024 was $4.6 million, representing a $40 million turnaround from a net loss of $35.4 million in the previous year[2] - Operating income improved to $14,141 compared to a loss of $32,746 in the prior year, indicating a significant turnaround[24] - Net income for the year ended June 30, 2024, was $4,581, compared to a net loss of $35,404 in the previous year[24] - The company reported a basic and diluted net income per share of $0.09 for the year ended June 30, 2024, compared to a loss of $0.74 per share in the previous year[24] Profitability Metrics - Gross profit increased to $128.9 million, up 24% from the prior year, with gross margin improving by 270 basis points to 11.7%[2] - Adjusted EBITDA improved by $41.9 million, rising to $24.3 million from a negative $17.6 million in fiscal year 2023[2] - Adjusted EBITDA for the year ended June 30, 2023, was $(17,601), highlighting challenges in operational performance[29] Sales and Revenue Composition - Direct-to-Consumer (DTC) sales accounted for 36% of gross revenue in fiscal year 2024, up from 31% in the prior year[2] - Physical media sales showed resilience, with vinyl sales growing by 2% and physical movie sales increasing by 8%[8] Cash Flow and Liquidity - Net cash provided by operating activities soared by 1,547%, reaching $55.8 million in fiscal year 2024[13] - Cash flows from operating activities increased significantly to $55,818 from $3,388 in the previous year, indicating stronger cash generation[27] Debt and Financial Health - Revolver debt was reduced by 45%, from $133 million to $73 million, enhancing liquidity and reducing debt service costs[3] - The company secured a new three-year $120 million senior secured credit facility to support working capital and future growth[3] - Total liabilities decreased to $253,183 from $309,996, reflecting improved financial health[26] Inventory Management - Inventory levels were reduced to $97 million as of June 30, 2024, down from $147 million the previous year[2] - Total current assets decreased to $196,213 from $260,866, primarily due to a reduction in inventory[25] - Inventory levels decreased to $97,429 from $146,763, suggesting improved inventory management[25] Shareholder Information - The weighted average common shares outstanding increased to 50,828,548 from 48,138,393, reflecting potential equity financing activities[24]