Alliance Entertainment Holding Corporation · NASDAQ:AENT
Alliance Entertainment — Investor Presentation (July 2023)
22 slides from Alliance Entertainment's investor presentation, Jul 14, 2023
Slide 1: Alliance Entertainment Investor Presentation July 2023
Alliance Entertainment Investor Presentation July 2023
Slide 2: Legal Disclaimer
Legal Disclaimer 2 This presentation (together with oral statements made in connection herewith, this “Presentation”) is for informational purposes only . This Presentation shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities, nor shall there be any sale of s
Slide 3: Legal Disclaimer - Continued
Legal Disclaimer - Continued 3 Non - GAAP Financial Measures In addition to financial measures prepared in accordance with United States generally accepted accounting principles (“GAAP”) . s ome of the financial information and data contained in this Presentation, such as Adjusted EBITDA, EBITDA - C
Slide 4: Corporate Overview
Corporate Overview Alliance Entertainment is a premier distributor of music, movies, video games and consumer electronics 4 • Alliance Entertainment was initially capitalized with less than $200,000 and is now a worldwide distributor and retailer of physical exclusive and non - exclusive media of th
Slide 5: Direct-to-Consumer (DTC) & eCommerce
Direct - to - Consumer (DTC) & eCommerce Alliance is a leading Direct - to - Consumer (DTC) and eCommerce provider for the entertainment industry We are the gateway between brands and retailers 5
Slide 6: Growth History
Growth History 2013 Music & Video Distribution • Super D acquires Alliance Entertainment becoming the largest music and video distributor • The first major step in consolidating the 3 main packaged media categories. Super D rebrands to Alliance Entertainment post acquisition 2016 Music & VMI • AN Co
Slide 7: Service, Technology and Selection
SERVICE Product and eCommerce distribution and inventory solutions TECHNOLOGY State - of - the art systems and facilities SELECTION One of the largest physical media and entertainment product distributors Alliance provides traditional retailers with world class eCommerce abilities, leveling the play
Slide 8: Omni-Channel expansion solutions for retailers
MERCHANDISING SERVICES & IN - STORE OPERATIONS INVENTORY & PRODUCT PLACEMENT OMNI - CHANNEL STRATEGY SUPPORT AUTOMATED DTC PROCESS INVENTORY & CATEGORY MANAGEMENT SYSTEMS Alliance provides efficient, Omni - Channel expansion solutions for retailers eCommerce & DTC Vendor Managed Inventory Alliance p
Slide 9: Vast portfolio of entertainment products
Alliance consolidates and distributes a vast portfolio of entertainment products, while its proprietary database powers retailers’ online music and gaming offerings Gaming Products DVD & Blu - Ray CD Consumer Products Currently over 425,000 SKUs in stock Selection Vinyl Retro Arcades 9
Slide 10: AutoStore Automated Storage & Retrieval System
AutoStore Automated Storage & Retrieval System Alliance completed installing an AutoStore Automated Storage & Retrieval System for its Shepherdsville warehouse as of January 2023 . This system has improved Alliance’s warehouse operations, allowing the Company to achieve increased levels of speed, re
Slide 11: Strategically Located Operations
Shakopee, MN 220K Sqft Facility Shepherdsville, KY 873K Sqft Facility Distribution Center • Shepherdsville, KY • Shakopee, MN • Dallas, TX • Los Angeles, CA • Charlotte, NC Offices • Bentonville, AR • Itasca, IL • Irvine, CA • Sacramento, CA • EI Segundo, CA • Minneapolis, MN • Shepherdsville, KY •
Slide 12: Financial Summary
FY19 FY20 FY21 FY22 9 Months Ended 03-31-2023 2 FY19 FY20 FY21 FY22 9 Months Ended 03-31-2023 $(21) REVENUE ($ in millions, Fiscal Year Ended 6/30) ADJUSTED EBITDA ($ in millions, Fiscal Year Ended 6/30) $747 $776 $1,324 $1,417 $25 $33 $69 $60 ADJUSTED EBITDA MARGIN 3.3% 4.2% 5.2% 4.2% Financial Sum
Slide 13: Income Statement
9 Months Ended Fiscal Year 03 - 31 - 2023 06 - 30 - 2022 06 - 30 - 2021 06 - 30 - 2020 06 - 30 - 2019 Revenue $911,590 $1,417,377 $1,323,567 $775,596 $746,529 YoY Revenue Growth % 7.1% 70.7% 3.9% Cost of Goods Sold 837,897 1,234,995 1,140,885 656,485 637,970 Gross Profit $73,691 $182,382 $182,682 $1
Slide 14: Balance Sheet
Unaudited As of 03 - 31 - 2023 Audited As of 06 - 30 - 2022 Audited As of 06 - 30 - 2021 ASSETS Cash and Equivalents. 1,034 1,469 4,028 Accounts Receivable - Trade 79,445 98,699 111,332 Inventory 163,057 249,439 141,661 Other Current Assets 7,852 9,373 8,763 Net PP&E & Operating Lease Right - OF - U
Slide 15: Sales by Configuration
Sales by Configuration 15 (In Thousands) Sales by Configuration 9 Months Ended 03 - 31 - 2023 Fiscal Year Ended 06 - 30 - 2022 Fiscal Year Ended 06 - 30 - 2021 Fiscal Year Ended 06 - 30 - 2020 Gaming $333,046 36.5% $557,658 39.3% $497,817 37.6% $108,735 14.0% Vinyl $241,518 26.5% $329,202 23.2% $288
Slide 16: Capitalization Table
463,800 Capitalization Table 1 Alliance Entertainment Management & Directors own 98% of outstanding common shares 16 Class A Common Shares Warrants (WAEP: $11.46) Equity Incentive Plan Shares 3 50,502,170 9,970,090 1. Does not include up to 60 million shares of contingent common stock which automati
Slide 17: Management: Bruce Ogilvie, Executive Chairman
BRUCE OGILVIE Executive Chairman Bruce has spent his entire career in the entertainment distribution industry starting with the founding of Abbey Road Distributors in 1980 . Over the next 14 years, Bruce led Abbey Road’s growth to over $ 94 million in sales and successfully sold the business in 1994
Slide 18: Alliance Strategic Priorities
Alliance Strategic Priorities INCREASE MARKET SHARE Expanding its existing product and service offerings and executing its acquisition strategy will drive Alliance’s efforts toward increasing market share. ENHANCE DTC RELATIONSHIPS & CAPABILITIES Alliance’s DTC services are in greater demand as cons
Slide 19: Investment Highlights
Investment Highlights 19 Alliance Entertainment is a leading global wholesaler, direct - to - consumer distributor and e - commerce provider for the entertainment industry • Proven Management Experience and Equity Ownership. With over 30 years of operations and experience, Alliance management Team h
Slide 20: Appendix
Appendix 20
Slide 21: Reconciliation of Adjusted EBITDA to GAAP Net Income
Exhibit 1 Reconciliation of Adjusted EBITDA to GAAP Net Income 9 Months Ended Fiscal Year 03 - 31 - 2023 06 - 30 - 2022 06 - 30 - 2021 06 - 30 - 2020 06 - 30 - 2019 Operating Earnings Before Depreciation, Amortization & Arcade Adjustment $(21,019) $60,012 $68,548 $33,227 $24,509 Net Income/(Loss) Pe
Slide 22: Cash Flow Statement
9 Months Ended 03 - 31 - 2023 Year Ended 6 - 30 - 2022 Year Ended 6 - 30 - 2021 Year Ended 6 - 30 - 2020 Year Ended 6 - 30 - 2019 Cash Flows from Operating Activities Net Income (Loss) $(30,774) $28,619 $34,178 $5,361 $(5,894) Adjustments to Reconcile Net Income Net Cash provided by (Used In) Operat
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