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Alliance Entertainment, a Florida-based brick-and-mortar media distributor and wholesaler, reported third quarter (calendar first quarter) results for the three months ended March 31.
Net income for the quarter was $227.7 millioncompared to $320.4 million Decline in 2022 29% (see below).
The company said the decline in revenue was “primarily due to conservative inventory conditions in our business-to-business (B2B) customer base and direct-to-consumer (DTC) sales channels due to macroeconomic uncertainty.”
During the quarter, the company noted, it “implemented cost-saving initiatives, including layoffs and reductions in executive salaries, in response to macroeconomic headwinds from rising inflation and interest rates, as well as retailers’ relatively conservative inventory positions.”
Still, Alliance did have some wins in the early months of 2023, including a multiyear home entertainment licensing deal with Disney that will see it distribute hundreds of live-action movies and TV shows from Disney’s ABC Signature on the 20th. . Television, Hollywood Studios, Touchstone Pictures and 20th Century Studios content libraries.
The deal applies to both DVD and Blu-ray releases.
Distributed labels owned by Alliance’s AMPED Distribution division 26 nominations At this year’s Grammy Awards, he won seven times.These include three Grammy Awards for Bonnie Raitt, including Song of the Year that’s all.
Other Grammys for AMPED this year include Best Latin Pop Album for Rueben Blades & Boca Livre, PasserosBest American Roots Performance went to Aaron Neville & The Dirty Dozen Brass Band from Rueben Blades Productions and Petaluma Records.
Alliance has also expanded its partnership with the Criterion Collection, which licenses “significant classic and contemporary films”. Alliance will continue to distribute Criterion Collection titles on physical media throughout the United States, as well as “behind the scenes” services such as inventory, order management and financial services.
alliance Completing the SPAC merger During the quarter, joined forces with Adara Acquisition Corp.
The deal sees Adara shareholders taking twenty two% shares in the new company, while Alliance shareholders will retain 78% bet.The deal gives the new company an implicit form surrounding value $480 million.
“As a public company with strong cash flow and access to capital markets, we are well positioned to grow through acquisitions, strengthen DTC relationships, and expand product offerings.”
Jeff Walker, Alliance Entertainment
The company trades on Pink Sheets, an over-the-counter (OTC) stock listing service favored by penny stock companies.It is reported that it has been apply to Listed on Nasdaq.
The company has been Trading on the OTC Market About 10 USD per share, but its share price has fallen to about $3 per share.This gives the combined company a market capitalization of approximately $147.5 million.
The company is optimistic about its public listing.
“As a public company, we are now well-positioned to pursue future strategic portfolios that further diversify our product offerings and invest in our operations and proprietary technology,” alliance chairman Bruce Ogilvie said in a statement.
“During the year, we continued to strengthen our foundation as one of the world’s largest distributors of brick-and-mortar media and entertainment products, securing new partnerships and moving to greater automation across our operations.”
CEO Jeff Walker said: “As the macro issues affecting us subside, we have implemented several value-creating initiatives to reduce costs, including layoffs and management salary reductions. We believe that, in combination with these initiatives, we have developed We have developed a long-term strategy with competitive advantages that will enable us to achieve continued success.
“Going forward, we will continue to expand and diversify through the addition of brands, product categories and retail partnerships, as well as various cost-cutting initiatives. To support this growth, we are investing in automated facilities and upgrading proprietary software. As a company A public company with strong cash flow and access to capital markets, we are well positioned to grow through acquisitions, strengthening DTC relationships and expanding product offerings.
“Finally, we are working on a listing on the National Stock Exchange to better align with our corporate profile and increase our visibility with investors. We look forward to providing an update on our progress in the coming months.”
For the nine months ended March 31, 2023, Alliance Entertainment’s net revenue was $911.6 millioncompared to $1.152 billion Nine months ended March 31, 2022.
Adjusted EBITDA for the nine months ended March 31, 2023 loss Adjusted EBITDA for the nine months ended March 31, 2022 was $60.6 million.
Adjusted EBITDA loss Adjusted EBITDA for the calendar first quarter ending March 31, 2023 (the company’s fiscal third quarter) was $2.4 million, compared to $9.6 million for the same period in 2022.
The company reported a net loss of $7.8 million for the fiscal third quarter ending March 31, 2023 (calendar quarter ), compared with a net income of $3.7 million for the same period in 2022 .Global Music Business
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