Alliance Entertainment Holding Corporation · NASDAQ:AENT
Alliance Entertainment — Investor Presentation (April 2023)
26 slides from Alliance Entertainment's investor presentation, Apr 12, 2023
Slide 1: Alliance Entertainment Investor Presentation
Alliance Entertainment Investor Presentation OTC:AENT April 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 OTC: AENT Share Price 1 $3.38 Market Cap 1 $166M FY 2022 Revenue 2 $1,417M FY 2022 Adj. EBITDA 2 $60M Cash & Cash Equivalents 2 $1.37M Shares Outstanding 3 49M Public Float 1 1
Slide 5: Direct-to-Consumer (DTC) & eCommerce
Direct - to - Consumer (DTC) & eCommerce Alliance is a $1.4 Billion leading Direct - to - Consumer (DTC) and eCommerce provider for the entertainment industry We are the gateway between brands and retailers 5
Slide 6: Expansion Plans
Expansion Plans Alliance continues to expand and diversify by adding brands, product categories, and retail partnerships Alliance is the conduit for leading brands to reach Alliance’s current customer base, while helping omni - channel retailers expand their product selection and fulfillment goals.
Slide 7: 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 8: Investment Thesis
8 Investment Thesis Alliance is one of the largest physical media and entertainment product distributors in the world and is a leader in fulfillment and eCommerce distribution solutions. Its existing product and service offering has positioned the Company to capitalize on shifts towards eCommerce an
Slide 9: 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 10: 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 11: 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 12: 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 12
Slide 13: 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 is expected to dramatically improve Alliance’s warehouse operations, allowing the Company to achieve increa
Slide 14: 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 15: Financial Summary
FY19 FY20 FY21 FY22 6 Months Ended 12-31-2022 $(19) FY19 FY20 FY21 FY22 6 Months Ended 12-31-2022 REVENUE ($ 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 Summa
Slide 16: Capitalization Table
Capitalization Table 1 Alliance Entertainment recently became a publicly traded company on February 13, 2023, following the closing of the business combination with Adara Acquisition Corp. 16 1. Does not include up to 60 million shares of contingent common stock which automatically convert into shar
Slide 17: Sales by Configuration
Sales by Configuration 17 (In Thousands) Sales by Configuration 6 Months Ended 12 - 31 - 2022 Fiscal Year Ended 6 - 30 - 2022 Fiscal Year Ended 6 - 30 - 2021 Fiscal Year Ended 6 - 30 - 2020 Gaming $277,974 40.6% $557,658 39.3% $497,817 37.6% $108,735 14.0% Vinyl $166,944 24.4% $329,202 23.2% $288,32
Slide 18: Income Statement Summary
6 Months Ended Fiscal Year 12 - 31 - 2022 06 - 30 - 2022 06 - 30 - 2021 06 - 30 - 2020 06 - 30 - 2019 Revenue $683,863 $1,417,377 $1,323,567 $775,596 $746,529 YoY Revenue Growth % 7.1% 70.7% 3.9% Cost of Goods Sold 637,498 1,234,995 1,140,885 656,485 637,970 Gross Profit $46,365 $182,382 $182,682 $1
Slide 19: Balance Sheet
Unaudited As of 12 - 31 - 2022 Audited As of 06 - 30 - 2022 Audited As of 06 - 30 - 2021 ASSETS Cash and Equivalents. 1,374 1,469 4,028 Accounts Receivable - Trade 170,851 98,699 111,332 Inventory 175,322 249,439 141,661 Other Current Assets 9,431 9,373 8,763 Net PP&E & Operating Lease Right - OF -
Slide 20: ESG Initiatives
ENVIRONMENTAL INITIATIVES Alliance has introduced eco - friendly CDF packaging, implemented paperless pick, pack and ship processes, and plans to reduce emissions with its new AutoStore ASRS system. DIVERSITY & INCLUSION EFFORTS Creating and sustaining a diverse and inclusive working environment is
Slide 21: Management Team
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 22: Recent News
Recent News 22 News Releases • Alliance Entertainment Completes Business Combination with Adara Acquisition Corp. - Feb 10, 2023 • Alliance Entertainment’s Mill Creek Entertainment Announces New Home Entertainment Licensing Agreement with The Walt Disney Company – Jan 30, 2023 • Alliance Entertainme
Slide 23: Contact
Contact Investor Relations Chris Tyson/Larry Holub MZ Group ( 949 ) 491 - 8235 AENT@mzgroup . us www.aent.com 23
Slide 24: Appendix
ay i it | Appendix
Slide 25: Reconciliation of Adjusted EBITDA to GAAP Net Income
Exhibit 1 Reconciliation of Adjusted EBITDA to GAAP Net Income 6 Months Ended Fiscal Year 12 - 31 - 2022 06 - 30 - 2022 06 - 30 - 2021 06 - 30 - 2020 06 - 30 - 2019 Operating Earnings Before Depreciation, Amortization & Arcade Adjustment $(18,640) $60,012 $68,548 $33,227 $24,509 Net Income/(Loss) Pe
Slide 26: Cash Flow Statement
6 Months Ended 12 - 31 - 2022 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) $(23,025) $28,619 $34,178 $5,361 $(5,894) Adjustments to Reconcile Net Income Cash provided by (Used In) Operating
Alliance Entertainment Holding — Investor Presentation (April 2023) on 6ix