Alliance Entertainment Holding Corporation · NASDAQ:AENT
Alliance Entertainment — FY2024 Earnings Presentation
22 slides from Alliance Entertainment's earnings presentation, Sep 20, 2024
Slide 1: Fourth Quarter & Fiscal Year 2024 Financial Results Conference Call
_Allianée Entertainment ~ ~~) We-bringienteltidinmentto yout Fourth Quarter & Fiscal Year 2024 Financial Results Conference Call September 19, 2024 : NASDAQ: AE NT
Slide 2: Legal Disclaimer
Legal Disclaimer This presentation (together with oral statements made in connection herewith, this “Presentation Is fr informational purposes only. This Presentation shal not constitute on offer to sel. the salctetion of an offer to buy, ‘ny Securities, nor shall there Be chy sale of secuTtes in an
Slide 3: Alliance Senior Management
Alliance Senior Management Presenters: 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 s
Slide 4: Alliance Entertainment is the global category leading distributor in the $10 billion growing 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. slo amazon
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: $250M+ Revenue Annually
Exclusive Distribution: $250M+ Revenue Annually 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 largest custom
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 D 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 eliminate
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: Key Fiscal Fourth Quarter 2024 Highlights
Key Fiscal Fourth Quarter 2024 Highlights + Net revenues for the fiscal fourth quarter ended June 30, 2024, were $236.9 million, compared to $247.1 million in the same period of 2023. * Gross profit for the fiscal fourth quarter ended June 30, 2024, was $26.9 million, compared to $30.2 million in th
Slide 12: Key Fiscal Year 2024 Highlights
Key Fiscal Year 2024 Highlights + Net revenues for the fiscal year ended June 30, 2024, were $1.10 billion, compared to $1.16 billion in fiscal year 2023. + Consumer Direct Fulfillment (CDF) shipments were 36% of gross sales revenue for the fiscal year ended June 30, 2024, up from 31% in fiscal 2023
Slide 13: Select Financials
Select Financials REVENUE Covi spikes Fiscal Year Ended 6/30 FY20 FY21 FY22 Fy23 FY24 EARNINGS PER SHARE son $0.23 $0.60 $(.74) $.09 Balance Sheet & Cash Flows $in millions Fiscal Year Ended 6/30 FY20 FY21 -FY22.«s«FY28—FY.24 Debt $456 $536 $1360 $1333 $796 Inventory $628 si4\7_ $2494 $1468 $97.4 Ne
Slide 14: 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 c
Slide 15: Alliance Entertainment
Alliance Entertainment SCAN BELOW: 8201 Peters Road, Ste 1000 Plantation, FL 33324 Investor Relations Dave Gentry, CEO RedChip Companies 1-407-644-4256 AENT@redchip.com www.dent.com Link to Alliance Entertainment Press Releases
Slide 16: Appendix
Slide 17: Alliance Leadership Team
Alliance Leadership Team 94% Insider Ownership! Senior Management: oDwto Lneluaing non-benefelaounership of Og Legacy Tust Mr. Ogee tao adult cieren ere bustes of te Ogle Legacy Tutt dated September é,2021. Mr. ge dciamsbeneflaoanership of he shresheld by such bust Bruce ogvie route Cnn Sie ag cere
Slide 18: Income Statement
Income Statement Fiscal Yeor (Sinoo0s) 06-30-2024 06-30-2023 06-30-2022 06-30-2021 06-30-2020 YoY Revenue Gout na Te 77 aon coatot Goode sold sense 1os4788 134996 vanes 86 405, i ELECT Siez06 Gros Pott F 3 208 3 co ae ‘Operating Expenses: Detrowion ondFuriment xpense 48818 40% e190 san 64260 96808 s
Slide 19: Exhibit: Reconciliation of Adjusted EBITDA to GAAP Net Income
Exhibit 1 Reconciliation of Adjusted EBITDA to GAAP Net Income (sin 0008) ‘Operating Earnings Before Depreciation, Amortization & Arcade Adjustment (Adjusted EBITDA) Netincome/(Loss) Per GAAP {Ad}. EBITDA Caleulation: Net income/|(Loss) per GAAP Depreciation Amortization Interest Expense IC-DISC Com
Slide 20: Exhibit: Consolidated Statement of Cash Flows
Exhibit 2 Consolidated Statement of Cash Flows (in cos) Cash Flows from Operating Activities Net income (Loss) Adjustments to Reconcile Netincome Net Cash provided by (Used In) Operating Activities Inventory Write-Down Depreciation of Property and Equipment. Amortization of intangible Assets ‘Amorti
Slide 21: Sales by Configuration
Sales by Configuration ssaneco soneco saeco samc sence ssc0o (The global vinyl] records market size is estimated to grow by USD 790.55 million from 2024 to 2028, according to Technavio. (thawed) 6-30-24 FYE 6-90-23 FE 6-90-22 FYE 6-30-21 FYE 6-30-20 FYE Gaming $ 336,135 B1% $ 391,908 |G $ 557,658 GO
Slide 22: Quarterly Gross Profit, Net Income & Adj. EBITDA
Quarterly Gross Profit, Net Income & Adj. EBITDA ‘mae Quarterly Adjusted EBITDA ‘ar20 | 0220 | as70 | vz | ara | a2 | asm | am | arm | arm | asm | am | ars | aves | az | aaa | arza | ova | asa | ae lerssromt $23,228 | $37,468 $26,221 | $32.196 $28,403 | Se7s18 $41,512 Saae43$40720| $73,038 $40,138 |
Alliance Entertainment Holding — FY2024 Earnings Presentation on 6ix