Alliance Entertainment Reports Fourth Quarter and Fiscal Year 2024 Results

About this update from Alliance Entertainment Holding Corporation

[{"type":"text","content":"Operational efficiencies and margin improvements drive profitability turnaround Higher-margin DTC sales increased to 36% of gross revenue in FY24 Strengthened balance sheet with 45% reduction in revolver debt and added new $120M credit facility PLANTATION, Fla., Sept. 19, 2024 (GLOBE NEWSWIRE) -- 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 de...

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