Alliance Entertainment Holding Corporation · NASDAQ:AENT
Alliance Entertainment — Q2 FY2025 Earnings Presentation
22 slides from Alliance Entertainment's earnings presentation, Feb 13, 2025
Slide 1: Alliance Entertainment Second Quarter Fiscal 2025
Slide 2: Legal Disclaimer
Legal Disclaimer This presentation (together with oral statements made in connection herewith, this ) is for it purposes only. This ‘ion shall not constitute an offer to sell, or the solicitation of an offer to buy, anny Securities, nor shal there be any sole of secures in any states or jurisitions
Slide 3: Alliance Senior Management
Alliance Senior Management Presenters: hi: 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 a
Slide 4: Global category leading distributor in the $10 billion physical media industry
Alliance Entertainment is the global category leading distributor in the $10 billion growing physical media industry. We are the gateway between brands and retailers, leveraging 30 years of expertise to sustain significant scale and maintain high structural and economic barriers to entry. — GO— al,
Slide 5: We Bring Entertainment to You!
WE BRING ENTERTAINMENT TO YOU! As the premier entertainment company in the growing physical media industry, Alliance Entertainment is a key partner to major media enterprises, manufacturers, and content creators, serving over 4,000 Partners/Retailers. Category leader in $10B+ physical media market;
Slide 6: $10B+ Physical Media (PM) Market Opportunity
$10B+ Physical Media (PM) Market Opportunity * Market normalizing to historical growth levels after pandemic induced elevation — Vinyl, arcades, games, toys, and collectibles continue to grow at high single digit rates * Despite rise of digital, underlying opportunities for PM: Vinyl resurgence: 43M
Slide 7: Exclusive Distribution: Approximately $300M Revenue TTM
Exclusive Distribution: Approximately $300M Revenue TTM Exclusive distribution is a big focus and huge growth opportunity for Alliance Entertainment. Studios and labels which have moved to Distribution Solutions, AMPED, and Mill Creek divisions see increases in sales because of the industry's larges
Slide 8: Acquisition History
Acquisition History + 20+ year history of disciplined, accretive acquisitions serving as main driver of growth * Strategy entrenches market share and positioning to align successfully with the changing retail industry and consumer buying patterns * Active pipeline — all-time-high after a period of n
Slide 9: Acquisition Case Study
Acquisition Case Study %) DISTRIBUTION SOLUTIONS A trusted full-service film and TV distributor acquired in 2018 * Consolidated movie distribution vertically and grew from 18 studios in 2018 to 60+ studios today. * Consolidated fulfillment, bringing products in-house to create synergies and eliminat
Slide 10: Automation & Restructuring
Automation & Restructuring Significant post-pandemic operational restructuring to better align with suppliers and customers, improve margins and achieve record levels of profitability. Investments & enhancements to automated handling equipment to: + Reduce shipping times + Streamline order processin
Slide 11: Q2 FY2025 Financial Highlights
Q2 FY2025 Financial Highlights Revenue Cost of Revenue Gross Margin $ in millions $ in millions 1.2% 10.7% Q2FY24 Q2FY25 Q2FY24 Q2FY25 Q2FY24 Q2FY25 Earnings Per Share Net Income Adjusted EBITDA $ in millions $ in millions $0.18 $0.19! Q2FY24 Q2FY25 Q2FY24 Q2FY25 Q2FY24 Q2FY25 1. Actual performance
Slide 12: Select Financials
Select Financials REVENUE en Covid Spike? $ in millions Fiscal Year Ended 6/30; TTM|Ended 9/30 FY21 FY22 FY23 FY24 TT™M EARNINGS PER SHARE $0.23 $0.60 $(0.74) $.09 $0.194 Balance Sheet $ in millions Fiscal Year Ended 6/30 FY 21 FY 22 FY 23 FY24 Q225 Debt $53.6 $136.0 $133.3 $79.6 $77.0 Inventory $14
Slide 13: Improving Performance and Strategic M&A: Pathway to Future Growth
Improving Performance and Strategic M&A: Pathway to Future Growth As the capital light, low-cost provider with the largest reach, Alliance is focused on adding market share, improving margins, and growing EBITDA. [7 Market Share Growth Channel expansion where direct vendor selling remains low and co
Slide 14: Alliance Entertainment
Alliance Entertainment 8201 Peters Road, Ste 1000 Plantation, FL 33324 SCAN BELOW: Investor Relations Dave Gentry, CEO RedChip Companies 1-407-644-4256 AENT@redchip.com www.aent.com Link to Alliance Entertainment Press Releases
Slide 15: Appendix
Appendix
Slide 16: Alliance Leadership Team
Alliance Leadership Team 94% Insider Ownership! Senior Management: “W> & 8 6) § Including non-beneficial ownership of Ogilvie Legacy Trust; Mr. Ogilvie's two adult children are trustees of the Ogilvie Legacy Trust dated September 14, 2021. Mr. Ogilvie disclaims beneficial ownership of the shares hel
Slide 17: Reconciliation of Adjusted EBITDA to GAAP Net Income
Exhibit 1 Reconciliation of Adjusted EBITDA to GAAP Net Income (S in 000's) Q0Q Fiscal Year 12-31-2024 12-31-2023 06-30-2024 06-30-2023 06-30-2022 Operating Earnings Before Dep $16,071 $18,767 $24,267 $(17,964) $60,012 mortization (Adjusted EBITDA) Net Income/(Loss) Per GAAP $7,071 $8,914 $4,581 $(3
Slide 18: Consolidated Statement of Cash Flows
Exhibit 2 Consolidated Statement of Cash Flows ($ in 000's) Cash Flows from Operating Acti Net Income (Loss) Adjustments to Reconcile Net Income Net Cash provided by (Used In) Operating Activities Inventory Write-Down Depreciation of Property and Equipment Amortization of Intangible Assets Amortizat
Slide 19: Sales by Configuration
Sales by Configuration se00900 mGaming mcD sa1o000 sat0o%0 * ls. Sales Configuration Fiscal Year mVinyl Collectables DVD/Blu-ray/UltraHD 3PL Fees $225,000 25000 $25,000 Sales by Configuration Quarter over Quarter Gaming wViny! mcd mCollectables § DVD/Blu-ray/UltraHD 3PL Fees 6/30/2024 6/30/2023 6/30
Slide 20: Key Financial Metrics - Quarterly
Key Financial Metrics - Quarterly ($ in 000s) GAAP Income, Adjusted EBITDA $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 ($10,000) $20,000) ( y QI 2022 Q2 2022 Q3 2022 Q42022 QI 2023 Q22023 Q32023 Q4 2023 QI2024 Q22024 Q3 2024 Q42024 QI2025 Q22025 Gross Profit $40,720 $73,038 $4
Slide 21: Income Statement
Income Statement 0a Fiscal Year ($ in 00's) Revenue $425,586 $1,100,483 $1,158,722 $1,417,377 323,567 YoY Revenue Growth % 5.03% 18.3% 71% 70.75 Cost of Goods Sold 351,382 377,883 971,594 1,054,788 1,234,995 140,885 Gross Profit $128,890 $103,034 Gross Profit % 10.7% M2% W7% Operating Expenses: Dist
Slide 22: Balance Sheet
Balance Sheet Quarter uarter Ended Audited Audited Audited (sin 000s) Ended a f Asof Audited As of 06-30-2021 12-31-2024 As of 06-30-2022 ASSETS Cash and Equivalents. 2,490 2,655 1129 865 1469 4,028 Accounts Receivable 147,038 183,564 92,537 104,939 98,699 1,332 Inventory 96,338 13,933 97.429 146,76
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