Alliance Entertainment Holding Corporation (Nasdaq: AENT), a global
distributor and wholesaler specializing in music, movies, video
games, electronics, arcades, toys, and collectibles, reported its
financial and operational results for the fourth quarter and
fiscal year ended June 30, 2024.
FY 2024 and Subsequent Operational
Highlights
- Net revenue totaled
$1.1 billion in fiscal year 2024.
- Gross profit
increased to $128.9 million in fiscal year 2024, up 24% from the
prior year, with gross margin improved 270bps to 11.7% on
profitable sales strategy.
- Net income was $4.6
million in fiscal year 2024, a $40 million improvement from the net
loss of $35.4 million in the prior year.
- Adjusted EBITDA
improved by $41.9 million, rising to $24.3 million from a negative
Adjusted EBITDA of $17.6 million in FY 2023, highlighting
successful cost-saving initiatives and improved operational
efficiencies.
- Higher-margin
Direct-to-Consumer (DTC) sales contributed 36% of gross revenue in
fiscal year 2024, up from 31% in the prior year.
- Inventory levels
were reduced to $97 million as of June 30, 2024, down from $147
million the prior year, as a result of effective inventory
management.
- Revolver balance
reduced by 45%, from $133 million to $73 million, significantly
improving liquidity and reducing debt service costs.
- Installed Sure
Sort® X, a cost-saving sortation technology system from
warehouse automation solutions provider OPEX® at its Kentucky
facility.
- Secured a new
three-year $120 million senior secured credit facility to refinance
an existing credit facility, support working capital needs, and
fuel future growth.
- Hosted first
Investor and Analyst Tour at Shepherdsville, Kentucky warehouse in
May 2024.
Bruce Ogilvie, Chairman of Alliance Entertainment, commented,
“We made substantial progress in strengthening our business during
fiscal 2024, and I am proud of the strategic actions we took to
position Alliance Entertainment for long-term growth and
profitability. Our exclusive distribution rights and broad content
portfolio have allowed us to maintain resilient demand in key
areas, such as physical music and movies, where we've seen growth
in vinyl, CDs, and home video products."
"We continued to grow our Direct-to-Consumer (DTC) channel in
2024, which now represents 36% of our gross revenue, up from 31%
the previous year. This shift highlights the effectiveness of our
approach in meeting evolving consumer preferences, and it is
helping to diversify and strengthen our revenue base. These higher
margin sales, combined with improved operational efficiencies and
other strategic initiatives, have contributed to a $40 million
turnaround in net income and a $41.9 million improvement in
adjusted EBITDA during fiscal 2024."
"Looking ahead, with new gaming hardware releases on the horizon
and the collectibles market showing stability, we are confident in
our ability to capture future demand and continue enhancing
profitability as we move into fiscal 2025 and beyond.”
Jeff Walker, Chief Executive Officer of Alliance Entertainment,
added, “Throughout fiscal 2024, we focused on executing our
operational strategies to drive profitability and efficiency, and
the results speak for themselves. Our emphasis on cost control and
margin enhancement delivered a 24% increase in gross profit,
raising gross margins to 11.7% and demonstrating our ability to
extract value from our revenue streams and adapt to evolving market
dynamics without sacrificing operational strength.
“One of our proudest achievements this year was turning around
adjusted EBITDA. We improved it by $41.9 million, from a loss of
$17.6 million last year to positive $24.3 million in fiscal 2024.
This significant recovery is a testament to the cost efficiencies
we’ve achieved, particularly through warehouse automation and the
strategic reduction of non-essential expenditures. Our ability to
streamline operations while focusing on higher-margin products has
played a pivotal role in this positive trajectory.
“Our net income also saw a dramatic improvement, rising to $4.6
million for fiscal 2024, a $40 million turnaround from the prior
year’s net loss of $35.4 million. This milestone highlights the
success of our long-term initiatives aimed at reducing operational
costs and improving overall profitability. The combination of a
stronger margin profile and disciplined cost management has
positioned us to continue delivering profitable growth.
“In specific product categories, we saw promising developments.
In our gaming segment, we more than doubled the average selling
price, particularly in hardware and retro arcade products. Our
strategic shift toward higher-value offerings is proving
successful, and we expect to benefit from new hardware releases in
the coming year. Similarly, in consumer products, we improved
margins and pricing, demonstrating the effectiveness of our
inventory rationalization efforts.
“Physical media, a core part of our portfolio, continues to show
resilience and growth. Vinyl sales grew 2%, and physical movie
sales surged by 8% this year, driven by demand for premium formats
like 4K UHD and collectible editions. We are well positioned to
capture more of this demand as brick-and-mortar retailers
increasingly cater to consumers seeking curated, high-quality
entertainment experiences. Our ability to provide retailers with a
diverse and extensive product range across both physical and
digital channels remains a key differentiator.
“From a liquidity perspective, we have made significant strides
in strengthening our financial position. We reduced our revolver
balance by 45%, from $133 million to $70 million, and saw net cash
from operations soar by 1,547%, reaching $55.8 million in fiscal
2024. Additionally, to support growth, we recently secured a new
three-year $120 million senior secured asset-based credit facility
with White Oak Commercial Finance. The proceeds were used to
refinance our existing credit facility, fund working capital, and
provide for general corporate purposes. These steps have positioned
us well to execute our acquisition strategy and capitalize on
future growth opportunities.
“As we look toward fiscal 2025, our focus remains on driving
growth through continued expansion and diversification. By adding
new exclusive licenses, expanding product categories, and building
stronger retail partnerships, we are positioning ourselves to
capture new opportunities in the marketplace. Our ongoing
investments in cutting-edge technologies like the Sure Sort® X and
the AutoStore™ systems are already driving significant efficiency
improvements, and we expect these innovations to further streamline
our operations and enhance profitability in the quarters ahead.
“With a disciplined approach to reducing expenses, lowering
debt, and optimizing inventory management, we are confident in our
ability to continue improving EBITDA and inventory turns in the
year ahead. Demand for physical music, particularly vinyl and CD
sales, remains strong, and we are excited about major upcoming
releases and opportunities in this space. As we continue executing
our strategy, we believe Alliance Entertainment is operating from a
strong foundation that positions us to effectively capitalize on
new opportunities and deliver sustained value to both our customers
and shareholders,” concluded Walker.
Fourth Quarter FY 2024 Financial Results
- Net revenues for the
fiscal fourth quarter ended June 30, 2024, were $236.4 million,
compared to $247.1 million in the same period of 2023, a decrease
of 4.3%.
- Gross profit for the
fiscal fourth quarter ended June 30, 2024, was $26.9 million,
compared to $30.2 million in the same period of 2023, a decrease of
10.9%.
- Gross profit margin
for the fiscal fourth quarter ended June 30, 2024, was 11.4%, down
from 12.2% in the same period of 2023, a decrease of 80 basis
points.
- Net income for the
fiscal fourth quarter ended June 30, 2024, was $2.6 million,
compared to net loss of $4.6 million for the same period of 2023,
an improvement of $7.2 million.
- Adjusted EBITDA for
the fiscal fourth quarter ended June 30, 2024, was $2.1
million.
FY 2024 Financial Results
- Net revenues for the
fiscal year ended June 30, 2024, were $1.10 billion, compared to
$1.16 billion in fiscal year 2023, a decrease of 5%.
- Gross profit for the
fiscal year ended June 30, 2024, was $128.9 million, compared to
$103.9 million in fiscal year 2023, an increase of 24%.
- Gross profit margin
for the fiscal year ended June 30, 2024, was 11.7%, up from 9.0% in
fiscal year 2023, an increase of 270 basis points.
- Net income for the
fiscal year ended June 30, 2024, was $4.6 million, compared to net
loss of $35.4 million for fiscal year 2023, an improvement of $40.0
million.
- Adjusted EBITDA for
the fiscal year ended June 30, 2024, improved by $41.9 million to
$24.3 million from an Adjusted EBITDA loss of $17.6 million for
fiscal year 2023.
- Net cash provided by
operating activities for the fiscal year ended June 30, 2024, was
$55.8 million, compared to $3.4 million in fiscal year 2023, an
increase of 1,547%.
Jeff Walker added, “We were encouraged by the ongoing
improvement in gross profit and gross margin in fiscal year 2024
over the prior year period as our cost-saving initiatives and focus
on positive sales continue to yield results. Improvements also led
to a fifth consecutive quarter of positive Adjusted EBITDA.”
Capital Structure Summary
As of June 30, 2024, Alliance Entertainment’s outstanding common
stock totaled 50,828,548 shares, including its public float of
2,218,622 shares. Management owns 81.9% of outstanding common
stock, as of September 19, 2024.
For additional information, please see the company's quarterly
report on Form 10-Q filed with the SEC.
Conference Call
Alliance Entertainment Executive Chairman Bruce Ogilvie and CEO
and CFO Jeff Walker will host the conference call, which will be
followed by a question-and-answer session. A presentation will
accompany the call and can be viewed during the webcast or accessed
via the investor relations section of the Company’s website
here.
To access the call, please use the following information:
Date: |
Thursday, September 19, 2024 |
Time: |
4:30 p.m. Eastern Time, 1:30 p.m. Pacific Time |
Toll-free dial-in number: |
1-877-407-0784 |
International dial-in number: |
1-201-689-8560 |
Conference ID: |
13748735 |
|
|
Please call the conference telephone number 5-10 minutes prior
to the start time. An operator will register your name and
organization. If you have any difficulty connecting with the
conference call, please contact RedChip Companies at
1-407-644-4256.
The conference call will be broadcast live and available for
replay at
https://viavid.webcasts.com/starthere.jsp?ei=1686884&tp_key=bc464c4da4
and via the investor relations section of the Company's website
here.
A telephone replay of the call will be available approximately
three hours after the call concludes and can be accessed through
November 19, 2024, using the following information:
Toll-free replay number: |
1-844-512-2921 |
International replay number: |
1-412-317-6671 |
Replay ID: |
13748735 |
|
|
About Alliance Entertainment
Alliance Entertainment (NASDAQ: AENT) is a premier
distributor of music, movies, toys, collectibles, and consumer
electronics. We offer over 325,000 unique in-stock SKU’s, including
over 57,300 exclusive compact discs, vinyl LP records, DVDs,
Blu-rays, and video games. Complementing our vast media catalog, we
also stock a full array of related accessories, toys, and
collectibles. With more than thirty-five years of distribution
experience, Alliance Entertainment serves customers of
every size, providing a robust suite of services to resellers and
retailers worldwide. Our efficient processing and essential seller
tools noticeably reduce the costs associated with administrating
multiple vendor relationships, while helping omni-channel retailers
expand their product selection and fulfillment goals. For more
information, visit www.aent.com.
Forward Looking Statements
Certain statements included in this Press Release that are not
historical facts are forward-looking statements for purposes of the
safe harbor provisions under the United States Private Securities
Litigation Reform Act of 1995. Forward-looking statements generally
are accompanied by words such as “believe,” “may,” “will,”
“estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,”
“would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,”
“outlook,” and similar expressions that predict or indicate future
events or trends or that are not statements of historical matters.
These forward-looking statements include, but are not limited to,
statements regarding estimates and forecasts of other financial and
performance metrics and projections of market opportunity. These
statements are based on various assumptions, whether identified in
this Press Release, and on the current expectations of Alliance’s
management and are not predictions of actual performance. These
forward-looking statements are provided for illustrative purposes
only and are not intended to serve as and must not be relied on by
an investor as, a guarantee, an assurance, a prediction, or a
definitive statement of fact or probability. Actual events and
circumstances are difficult or impossible to predict and will
differ from assumptions. Many actual events and circumstances are
beyond the control of Alliance. These forward-looking statements
are subject to a number of risks and uncertainties, including risks
relating to the anticipated growth rates and market opportunities;
changes in applicable laws or regulations; the ability of Alliance
to execute its business model, including market acceptance of its
systems and related services; Alliance’s reliance on a
concentration of suppliers for its products and services; increases
in Alliance’s costs, disruption of supply, or shortage of products
and materials; Alliance’s dependence on a concentration of
customers, and failure to add new customers or expand sales to
Alliance’s existing customers; increased Alliance inventory and
risk of obsolescence; Alliance’s significant amount of
indebtedness; our ability to refinance our existing indebtedness;
our ability to continue as a going concern absent access to sources
of liquidity; risks and failure by Alliance to meet the covenant
requirements of its revolving credit facility, including a fixed
charge coverage ratio; risks that a breach of the revolving credit
facility, including Alliance’s recent breach of the covenant
requirements, could result in the lender declaring a default and
that the full outstanding amount under the revolving credit
facility could be immediately due in full, which would have severe
adverse consequences for the Company; known or future litigation
and regulatory enforcement risks, including the diversion of time
and attention and the additional costs and demands on Alliance’s
resources; Alliance’s business being adversely affected by
increased inflation, higher interest rates and other adverse
economic, business, and/or competitive factors; geopolitical risk
and changes in applicable laws or regulations; risk that the
COVID-19 pandemic, and local, state, and federal responses to
addressing the pandemic may have an adverse effect on our business
operations, as well as our financial condition and results of
operations; substantial regulations, which are evolving, and
unfavorable changes or failure by Alliance to comply with these
regulations; product liability claims, which could harm Alliance’s
financial condition and liquidity if Alliance is not able to
successfully defend or insure against such claims; availability of
additional capital to support business growth; and the inability of
Alliance to develop and maintain effective internal controls.
For investor inquiries, please contact:
Dave GentryRedChip Companies,
Inc.1-407-644-4256AENT@redchip.com
ALLIANCE ENTERTAINMENT HOLDING
CORP.CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME (LOSS) |
|
|
Year Ended |
|
|
Year Ended |
|
($ in thousands except share
and per share amounts) |
June 30, 2024 |
|
|
June 30, 2023 |
|
Net Revenues |
$ |
1,100,483 |
|
|
$ |
1,158,722 |
|
Cost of Revenues (excluding
depreciation and amortization) |
|
971,594 |
|
|
|
1,054,788 |
|
Operating
Expenses |
|
|
|
|
|
|
|
Distribution and Fulfillment
Expense |
|
48,818 |
|
|
|
62,841 |
|
Selling, General and
Administrative Expense |
|
57,651 |
|
|
|
59,060 |
|
Depreciation and
Amortization |
|
5,880 |
|
|
|
6,629 |
|
Transaction Costs |
|
2,086 |
|
|
|
5,014 |
|
IC DISC Commissions |
|
- |
|
|
|
2,833 |
|
Restructuring Cost |
|
280 |
|
|
|
306 |
|
Loss on Disposal of Fixed
Assets |
|
33 |
|
|
|
(3 |
) |
Total Operating Expenses |
|
114,748 |
|
|
|
136,680 |
|
Operating Income (Loss) |
|
14,141 |
|
|
|
(32,746 |
) |
Other
Expenses |
|
|
|
|
|
|
|
Interest Expense, Net |
|
12,247 |
|
|
|
11,715 |
|
Change in Fair Value of
Warrants |
|
41 |
|
|
|
1 |
|
Total Other Expenses |
|
12,288 |
|
|
|
11,716 |
|
Income (Loss) Before Income Tax Benefit |
|
1,853 |
|
|
|
(44,462 |
) |
Income Tax Benefit |
|
(2,728 |
) |
|
|
(9,058 |
) |
Net Income (Loss) |
|
4,581 |
|
|
|
(35,404 |
) |
Other Comprehensive
Income (Loss) |
|
|
|
|
|
|
|
Foreign Currency
Translation |
|
(2 |
) |
|
|
(11 |
) |
Total Comprehensive Income (Loss) |
|
4,579 |
|
|
|
(35,415 |
) |
Net Income (Loss) per Share –
Basic and Diluted |
$ |
0.09 |
|
|
$ |
(0.74 |
) |
Weighted Average Common Shares
Outstanding – Basic |
|
50,828,548 |
|
|
|
48,138,393 |
|
Weighted Average Common Shares
Outstanding – Diluted |
|
50,837,148 |
|
|
|
48,398,623 |
|
|
|
|
|
|
|
|
|
ALLIANCE ENTERTAINMENT HOLDING
CORP.CONSOLIDATED BALANCE SHEETS |
|
($ in thousands) |
June 30, 2024 |
|
|
June 30, 2023 |
|
Assets |
|
|
|
|
|
|
|
Current Assets |
|
|
|
|
|
|
|
Cash |
$ |
1,129 |
|
|
$ |
865 |
|
Trade Receivables, Net |
|
92,357 |
|
|
|
104,939 |
|
Inventory, Net |
|
97,429 |
|
|
|
146,763 |
|
Other Current Assets |
|
5,298 |
|
|
|
8,299 |
|
Total Current Assets |
|
196,213 |
|
|
|
260,866 |
|
Property and Equipment,
Net |
|
12,942 |
|
|
|
13,421 |
|
Operating Lease Right-Of-Use
Assets |
|
22,124 |
|
|
|
4,855 |
|
Goodwill |
|
89,116 |
|
|
|
89,116 |
|
Intangibles, Net |
|
13,381 |
|
|
|
17,356 |
|
Other Long-Term Assets |
|
503 |
|
|
|
1,017 |
|
Deferred Tax Asset, Net |
|
6,533 |
|
|
|
2,899 |
|
Total Assets |
$ |
340,812 |
|
|
$ |
389,530 |
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
|
Accounts Payable |
$ |
133,221 |
|
|
$ |
151,622 |
|
Accrued Expenses |
|
9,371 |
|
|
|
9,340 |
|
Current Portion of Operating Lease Obligations |
|
1,979 |
|
|
|
3,902 |
|
Current Portion of Finance Lease Obligations |
|
2,838 |
|
|
|
2,449 |
|
Promissory Note |
|
— |
|
|
|
495 |
|
Contingent Liability |
|
511 |
|
|
|
150 |
|
Revolving Credit Facility, Net |
|
— |
|
|
|
133,281 |
|
Total Current Liabilities |
|
147,920 |
|
|
|
301,239 |
|
Revolving Credit Facility,
Net |
|
69,587 |
|
|
|
— |
|
Finance Lease Obligation, Non-
Current |
|
5,016 |
|
|
|
7,029 |
|
Operating Lease Obligations,
Non-Current |
|
20,413 |
|
|
|
1,522 |
|
Shareholder Loan
(subordinated), Non-Current |
|
10,000 |
|
|
|
— |
|
Warrant Liability |
|
247 |
|
|
|
206 |
|
Total Liabilities |
|
253,183 |
|
|
|
309,996 |
|
Commitments and Contingencies
(Note 11) |
|
|
|
|
|
|
|
Stockholders’ Equity |
|
|
|
|
|
|
|
Preferred Stock: Par Value
$0.0001 per share, Authorized 1,000,000 shares, Issued and
Outstanding 0 shares as of June 30, 2024 and June 30, 2023 |
|
— |
|
|
|
— |
|
Common Stock: Par Value
$0.0001 per share, Authorized 550,000,000 shares at June 30, 2024,
and at June 30, 2023; Issued and Outstanding 50,957,370 Shares at
June 30, 2024, and 49,167,170 at June 30, 2023 |
|
5 |
|
|
|
5 |
|
Paid In Capital |
|
48,058 |
|
|
|
44,542 |
|
Accumulated Other Comprehensive Loss |
|
(79 |
) |
|
|
(77 |
) |
Retained Earnings |
|
39,645 |
|
|
|
35,064 |
|
Total Stockholders’ Equity |
|
87,629 |
|
|
|
79,534 |
|
Total Liabilities and Stockholders’ Equity |
$ |
340,812 |
|
|
$ |
389,530 |
|
|
|
|
|
|
|
|
|
ALLIANCE ENTERTAINMENT HOLDING
CORP.CONSOLIDATED STATEMENTS OF CASH
FLOWS |
|
|
Year Ended |
|
|
Year Ended |
|
($ in thousands) |
June 30, 2024 |
|
|
June 30, 2023 |
|
Cash Flows from Operating Activities: |
|
|
|
|
|
|
|
Net Income (Loss) |
$ |
4,581 |
|
|
$ |
(35,404 |
) |
Adjustments to Reconcile Net Income (Loss) to |
|
|
|
|
|
|
|
Net Cash Provided by (Used in) Operating Activities: |
|
|
|
|
|
|
|
Inventory write-down |
|
- |
|
|
|
10,800 |
|
Depreciation of Property and Equipment |
|
1,904 |
|
|
|
2,221 |
|
Amortization of Intangible Assets |
|
3,976 |
|
|
|
4,408 |
|
Amortization of Deferred Financing Costs (Included in
Interest) |
|
861 |
|
|
|
167 |
|
Bad Debt Expense |
|
687 |
|
|
|
598 |
|
Deferred Income Taxes |
|
(3,634 |
) |
|
|
(8,171 |
) |
Stock-based Compensation Expense |
|
1,386 |
|
|
|
216 |
|
Gain (Loss) on Disposal of Fixed Assets |
|
75 |
|
|
|
(3 |
) |
Changes in Assets and Liabilities |
|
|
|
|
|
|
|
Trade Receivables |
|
11,896 |
|
|
|
(4,626 |
) |
Related Party Receivable |
|
- |
|
|
|
245 |
|
Inventory |
|
49,334 |
|
|
|
99,729 |
|
Income Taxes PayableReceivable |
|
517 |
|
|
|
(1,533 |
) |
Operating Lease Right-Of-Use Assets |
|
(17,269 |
) |
|
|
3,505 |
|
Operating Lease Obligations |
|
16,968 |
|
|
|
(3,893 |
) |
Other Assets |
|
3,357 |
|
|
|
5,031 |
|
Accounts Payable |
|
(18,401 |
) |
|
|
(68,950 |
) |
Accrued Expenses |
|
(420 |
) |
|
|
(952 |
) |
Net Cash Provided by Operating Activities |
|
55,818 |
|
|
$ |
3,388 |
|
Cash Flows from
Investing Activities: |
|
|
|
|
|
|
|
Cash Received for Business Acquisitions, Net of Cash Acquired |
|
- |
|
|
|
1 |
|
Capital Expenditures |
|
(228 |
) |
|
|
(825 |
) |
Cash Inflow from Asset Disposal |
|
66 |
|
|
|
- |
|
Net Cash Used in Investing Activities |
|
(162 |
) |
|
|
(824 |
) |
Cash Flows from
Financing Activities: |
|
|
|
|
|
|
|
Payments on Financing Leases |
|
(2,965 |
) |
|
|
(304 |
) |
Payments on Revolving Credit Facility |
|
(1,095,772 |
) |
|
|
(1,092,306 |
) |
Borrowings on Revolving Credit Facility |
|
1,035,428 |
|
|
|
1,089,453 |
|
Payments on Shareholder Note (Subordinated), Current |
|
(36,000 |
) |
|
|
(7,596 |
) |
Proceeds from Shareholder Note (Subordinated), Non-Current |
|
46,000 |
|
|
|
7,596 |
|
Issuance of common stock, net of transaction costs |
|
2,130 |
|
|
|
— |
|
Deferred Financing Costs |
|
(4,211 |
) |
|
|
— |
|
Net Cash Used in Financing Activities |
|
(55,390 |
) |
|
|
(3,157 |
) |
Net Increase (Decrease) in
Cash |
|
266 |
|
|
|
(593 |
) |
Net Effect of Currency
Translation on Cash |
|
(2 |
) |
|
|
(11 |
) |
Cash, Beginning of the
Period |
|
865 |
|
|
|
1,469 |
|
Cash, End of the
Period |
$ |
1,129 |
|
|
$ |
865 |
|
Supplemental
disclosure for Cash Flow Information |
|
|
|
|
|
|
|
Cash Paid for Interest |
$ |
12,247 |
|
|
$ |
11,425 |
|
Cash Paid for Income
Taxes |
$ |
444 |
|
|
$ |
648 |
|
Supplemental
Disclosure for Non-Cash Investing and Financing
Activities |
|
|
|
|
|
|
|
Conversion of Treasury
stock |
$ |
- |
|
|
$ |
2,674 |
|
Fixed Asset Financed with
Debt |
$ |
7,853 |
|
|
$ |
10,080 |
|
Capital Contribution |
$ |
- |
|
|
$ |
6,592 |
|
Business Combination: Reverse
recapitalization |
$ |
- |
|
|
|
(787 |
) |
|
|
|
|
|
|
|
|
Non-GAAP Financial Measures: We define Adjusted
EBITDA as net income or loss adjusted to exclude: (i) income tax
expense; (ii) other income (loss); (iii) interest expense; and (iv)
depreciation and amortization expense and (v) other infrequent,
non- recurring expenses. Our method of calculating Adjusted EBITDA
may differ from other issuers and accordingly, this measure may not
be comparable to measures used by other issuers. We use Adjusted
EBITDA to evaluate our own operating performance and as an integral
part of our planning process. We present Adjusted EBITDA as a
supplemental measure because we believe such a measure is useful to
investors as a reasonable indicator of operating performance. We
believe this measure is a financial metric used by many investors
to compare companies. This measure is not a recognized measure of
financial performance under GAAP in the United States and should
not be considered as a substitute for operating earnings (losses),
net earnings (loss) from continuing operations or cash flows from
operating activities, as determined in accordance with GAAP. See
the table below for a reconciliation, for the periods presented, of
our GAAP net income (loss) to Adjusted EBITDA.
|
Year Ended |
|
|
Year Ended |
|
($ in
thousands) |
June 30, 2024 |
|
|
June 30, 2023 |
|
Net Income (Loss) |
$ |
4,581 |
|
|
$ |
(35,404 |
) |
Add back: |
|
|
|
|
|
|
|
Interest Expense |
|
12,247 |
|
|
|
11,715 |
|
Income Tax (Benefit)
Expense |
|
(2,728 |
) |
|
|
(9,058 |
) |
Depreciation and
Amortization |
|
5,880 |
|
|
|
6,629 |
|
EBITDA |
|
19,980 |
|
|
|
(26,118 |
) |
Adjustments |
|
|
|
|
|
|
|
IC-DISC |
|
- |
|
|
|
2,833 |
|
Transaction Costs |
|
2,086 |
|
|
|
5,014 |
|
Restructuring Costs |
|
280 |
|
|
|
306 |
|
Stock-based Compensation
Expense |
|
1,386 |
|
|
|
216 |
|
Change in Fair Value of
Warrants |
|
41 |
|
|
|
1 |
|
Contingent Loss |
|
461 |
|
|
|
150 |
|
Loss (Gain) on Disposal of
PPE |
|
33 |
|
|
|
(3 |
) |
Adjusted
EBITDA |
$ |
24,267 |
|
|
$ |
(17,601 |
) |
|
|
|
|
|
|
|
|
Adjusted EBITDA for the year
ended June 30, 2023, included the following expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excessive International
Transportation Costs (Units Sold) |
|
|
|
|
|
8,241 |
|
Excessive International
Transportation Costs (On Hand) |
|
|
|
|
|
7,100 |
|
Markdown for Arcades Sold |
|
|
|
|
|
12,156 |
|
Incremental Storage Fees
Arcades |
|
|
|
|
|
4,643 |
|
Consumer Products Inventory
Reserve |
|
|
|
|
|
3,700 |
|
Total |
|
|
|
|
|
35,840 |
|
|
|
|
|
|
|
|
|
Alliance Entertainment (NASDAQ:AENT)
Gráfico Histórico do Ativo
De Nov 2024 até Dez 2024
Alliance Entertainment (NASDAQ:AENT)
Gráfico Histórico do Ativo
De Dez 2023 até Dez 2024