Music Distribution Company Alliance Entertainment Announces First Quarter Revenue of $227.7 Million, Down 29% Year-over-Year on Calendar

Alliance Entertainment, a physical media distributor and wholesaler headquartered in Florida, has announced results for its fiscal third quarter (calendar first quarter) for the three months ended March 31.

Net revenue for the quarter was $227.7 millioncompared to $320.4 million At the same time in 2022, 29% (refer to the following).

The company said the revenue decline was “mainly due to conservative inventory positions driven by business-to-business (B2B) customer base and direct-to-consumer (DTC) sales channels driven by macroeconomic uncertainty.” rice field.

During the quarter, the company said it had “implemented cost-cutting initiatives, including headcount reductions and executive pay cuts, to combat macroeconomic headwinds from rising inflation and interest rates, and retailers’ relatively conservative inventory positions. I did,” he said.

Still, the Alliance scored some wins in the early months of 2023, including a multi-year home entertainment licensing deal with Disney. The deal will see the company distribute hundreds of live-action film and TV titles from Disney’s ABC signature. Content library from TV, Hollywood Pictures, Touchstone Pictures and 20th Century Studios.

The deal covers DVD and Blu-Ray distribution.

Distributed label owned by Alliance’s AMPED Distribution division Received 26 nominations He won seven Grammy Awards this year. That includes three Grammy Awards, including Song of the Year for Bonnie Raitt. Just Like That.

Other Grammy wins for AMPED this year include Best Latin Pop Album by Ruben Blaze and Vocalibre. pacielloRueben Blades Productions, and Aaron Neville & The Dirty Dozen Brass Band from Petaluma Records won Best American Roots Performance.

The Alliance also expanded its partnership with Criterion Collection, which provides licenses for “significant classic and contemporary films.” The Alliance will continue to distribute Criterion Collection titles in physical media format across the United States, along with “backroom services” such as inventory, order management and financial services.

alliance Completed SPAC merger Partnered with Adara Acquisition Corp. during the quarter.

The transaction will allow Adara shareholders to twenty two% Alliance shareholders will hold shares in the new company. 78% wager.The deal gave the new company an implied pro forma surrounding values $480 million.

“As a public company with strong cash flow and access to capital markets, we are well positioned to grow through acquisitions, strengthen our relationship with DTC and expand our product offering.”

Jeff Walker, Alliance Entertainment

The firm trades on Pink Sheets, an over-the-counter (OTC) stock listing service favored by penny stock companies. According to reports, apply to Listed on NASDAQ.

The company previously Trading on the OTC market around $ 10 Worth per share, but the stock has since fallen by about 50% 3 dollars per share.As a result, the market capitalization of the post-merger company will be approximately $147.5 million.

The company remains positive about going public.

“As a publicly traded company, we are now well-positioned to pursue future strategic integrations that further diversify our product offering and invest in our business operations and proprietary technology,” said Alliance Chairman Bruce Ogilvie in a statement. is in,’ he said.

“Throughout the year, we continued to build our foundation as the world’s largest distributor of physical media and entertainment products, securing new partnerships and moving toward automation at scale in our operations.”

CEO Jeff Walker said, “As the macro-issues impacting us have subsided, we have implemented multiple value creation initiatives to reduce costs, including headcount reductions and executive pay cuts. Combined with these efforts, we believe we have developed a long-term strategy with a competitive advantage for continued success.

“Looking forward, we will continue to expand and diversify with additional brands, product categories and retail partnerships, combined with a variety of cost-reduction initiatives. Investing in automation and proprietary software upgrades.As a public company with strong cash flow and access to capital markets, we have grown through acquisitions, strengthened our relationship with DTC and expanded our product offering. are in a favorable position to

“Finally, we are working towards a listing on a national stock exchange to be more in line with our corporate identity and increase recognition from investors. I look forward to

For the nine months ended March 31, 2023, Alliance Entertainment’s net revenues were as follows: $911.6 millioncompared to $1,152 million Nine months until 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 $21 million, compared with $60.6 million.

Adjusted EBITDA loss Revenue for the first calendar quarter ended March 31, 2023 (the third quarter of the Company’s fiscal year) was $2.4 million and Adjusted EBITDA for the same period of 2022 was $9.6 million.

The company posted a net loss of $7.8 million for the third fiscal quarter (calendar first quarter), which ended March 31, 2023, and a net income of $3.7 million for the same period of music business

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