Exhibit No. 99.1
ALLIANCE DISTRIBUTORS HOLDING INC. REPORTS
SECOND QUARTER 2006 FINANCIAL RESULTS
Year-to-Date Sales Increased 15.0% Over Previous Year
For Immediate Release
College Point, New York - August 11, 2006 - Alliance Distributors Holding Inc.
(OTC Bulletin Board: ADTR), a distributor of interactive video games and gaming
products, announced its financial results for the second quarter of 2006.
Net sales for the quarter increased 8.5% to $13.3 million compared to $12.2
million in the second quarter of 2005. Net income was $73,095, or $0.00 per
share, compared to a net loss of $335,803, or $0.01 per share, in the 2005
period. Approximately $109,000 of net income reflects insurance proceeds for
assets in excess of the book value of these assets.
For the six months ended June 30, 2006, net sales increased 15.0% to $26.6
million, compared to $23.1 million for the same period in 2005. Net loss was
$20,490, or $0.00 per share, compared to a net loss of $465,481, or $0.01 per
share, in the 2005 period. The net loss for the 2006 period reflects a $257,000
charge in the first quarter for transaction costs of a proposed acquisition that
was not consummated, and approximately $109,000 of net income for the insurance
proceeds referred to in the preceding paragraph.
Jay Gelman, Chairman and CEO, said, "It is an exciting time for the Company. We
are relocating our offices, wholesale showroom, and warehouse to 1160 Commerce
Ave in the Bronx. The new facility gives us almost 10,000 additional square feet
of operating space, and allows us to be more efficient in selling to and
servicing our growing customer base. We also expect to open a new Florida branch
operation this month."
For additional information see the Company's SEC Report on Form 10-Q for the
period ended June 30, 2006.
About Alliance Distributors Holding Inc.
Alliance Distributors Holding Inc. (www.alliancedistributors.com), which does
business as Alliance Distributors, is a full service wholesale distributor of
interactive video games and gaming products for all key manufacturers and 3rd
party publishers in the video game industry. Alliance Distributors offers
comprehensive support on Playstation 2, PS1, PSP, X-Box, Game Cube, Nintendo DS
and GameBoy systems, peripherals and software titles.
Safe Harbor
Certain of the above statements contained in this press release may contain
forward-looking statements which are intended to be covered by the safe harbors
created thereby. Investors are cautioned that all forward-looking statements
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 but not limited to, risks associated with technological
change, competitive factors and general economic conditions. The Company has no
duty and undertakes no obligation to update such statements.
ALLIANCE DISTRIBUTORS HOLDING INC.
Statements of Operations (Unaudited)
Three months ended June 30, Six months ended June 30,
--------------------------- ---------------------------
2006 2005 2006 2005
------------ ------------ ------------ ------------
Net sales $ 13,268,597 $ 12,224,803 $ 26,587,196 $ 23,113,638
Cost of goods sold 11,617,158 11,154,292 23,376,846 20,800,790
------------ ------------ ------------ ------------
Gross profit 1,651,439 1,070,511 3,210,350 2,312,848
Operating expenses:
Selling, general and administrative expenses 1,445,957 1,274,402 2,721,150 2,551,804
Terminated transaction costs -- -- 257,457 --
Other income (108,772) -- (108,772) --
------------ ------------ ------------ ------------
Total operating expenses 1,337,185 1,274,402 2,869,835 2,551,804
------------ ------------ ------------ ------------
Income (loss) from operations 314,254 (203,891) 340,515 (238,956)
Interest expense 185,816 126,809 373,873 220,422
------------ ------------ ------------ ------------
Income (loss) before provision for (benefit from)
income taxes 128,438 (330,700) (33,358) (459,378)
Provision for (benefit from) income taxes 55,343 5,103 (12,868) 6,103
------------ ------------ ------------ ------------
Net income (loss) $ 73,095 $ (335,803) $ (20,490) $ (465,481)
------------ ------------ ------------ ------------
Net income (loss) per share - basic $ .00 $ (.01) $ .00 $ (.01)
============ ============ ============ ============
Net income (loss) per share - diluted $ .00 $ (.01) $ .00 $ (.01)
============ ============ ============ ============
Weighted-average common shares outstanding - basic 48,721,065 46,417,098 48,444,632 46,417,098
============ ============ ============ ============
Weighted-average common shares outstanding - diluted 50,771,727 46,417,098 48,444,632 46,417,098
============ ============ ============ ============
Contact:
Alliance Distributors Holding Inc.
Steve Gelman - VP of Marketing and Communications
718-747-1500 x 133
steve@alliancedis.com