Alliance Entertainment Holding Corporation · NASDAQ:AENT
Alliance Entertainment — Investor Presentation (January 2024)
24 slides from Alliance Entertainment's investor presentation, Jan 8, 2024
Slide 1: Alliance Entertainment Investor Presentation
Alliance Entertainment We bring entertainment to you! Investor Presentation | January 8, 2024 NASDAQ: AENT
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: We Bring Entertainment to You!
WE BRING ENTERTAINMENT TO YOU! Alliance Entertainment stocks the world’s largest selection of music, movies, video games, collectibles, toys and consumer electronics 4 • Trusted omni channel supplier to Walmart, Amazon, Best Buy, Costco, Target, Kohl’s, BJ’s, Meijer, Barnes & Noble, and 2,000 others
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 5 600+ Vendors 200+ Online Customers & Ships to Over 35,000 Storefronts 350K SKU’s in Stock
Slide 6: Sales by Configuration
Sales by Configuration 6 (In Thousands) Sales by Configuration Quarter Ended 09 - 30 - 2023 Fiscal Year Ended 06 - 30 - 2023 Fiscal Year Ended 06 - 30 - 2022 Fiscal Year Ended 06 - 30 - 2021 Fiscal Year Ended 06 - 30 - 2020 Gaming $52,600 23.2% $391,308 33.8% $557,658 39.3% $497,817 37.6% $108,735 1
Slide 7: Distribution Solutions division
Distribution Solutions(DS) is a division of Alliance that has over 65 significant video studios that by Exclusive contract rely on Distribution Solutions to manufacture, supply, and market video products. • DS has direct sales accounts with Amazon, Walmart, Target, Best Buy, and many other significa
Slide 8: Acquisition History
Acquisition 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 •
Slide 9: 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 10: 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 11: 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 350,000 SKUs in stock Selection Vinyl Retro Arcades 11
Slide 12: 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 13: 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 14: Financial Summary
FY20 FY21 FY22 FY23 Q124 FY20 FY21 FY22 FY23 Q124 2 $(17) REVENUE ($ in millions, Fiscal Year Ended 6/30) ADJUSTED EBITDA ($ in millions, Fiscal Year Ended 6/30) $776 $1,324 $1,417 $33 $69 $60 ADJUSTED EBITDA MARGIN 4.2% 5.2% 4.2% Financial Summary REVENUES $1.15 BILLION FY 2023 Alliance has grown r
Slide 15: Income Statement
1 Quarter Ended Fiscal Year 09 - 30 - 2023 06 - 30 - 2023 06 - 30 - 2022 06 - 30 - 2021 06 - 30 - 2020 Revenue $226,755 $1,158,722 $1,417,377 $1,323,567 $775,596 YoY Revenue Growth % - 18.3% 7.1% 70.7% 3.9% Cost of Goods Sold 200,501 1,054,788 1,234,995 1,140,885 656,485 Gross Profit 103,934 $103,93
Slide 16: Balance Sheet
Quarter Ended 09 - 30 - 2023 Audited As of 06 - 30 - 2023 Audited As of 06 - 30 - 2022 Audited As of 06 - 30 - 2021 Audited As of 06 - 30 - 2020 ASSETS Cash and Equivalents. 1,225 865 1,469 4,028 1,334 Accounts Receivable 93,504 104,939 98,699 111,332 70,881 Inventory 159,432 146,763 249,439 141,661
Slide 17: Capitalization Table
Class A Common Shares Warrants (WAEP: $11.46) Capitalization Table 1 Alliance Entertainment Management owns 81% of outstanding common shares 17 50,930,770 9,919,993 1. Does not include up to 60 million shares of contingent common stock which automatically convert into shares of Class A common in thr
Slide 18: 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 19: 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 20: Investment Highlights
Investment Highlights 20 Alliance Entertainment is the leading global entertainment 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 m
Slide 21: Appendix
Appendix 21
Slide 22: Adjusted EBITDA Reconciliation
Quarter Ended Fiscal Year 09 - 30 - 2023 06 - 30 - 2023 06 - 30 - 2022 06 - 30 - 2021 06 - 30 - 2020 Operating Earnings Before Depreciation, Amortization & Arcade Adjustment $1,305 $(17,964) $60,012 $68,548 $33,227 Net Income/(Loss) Per GAAP $(3,462) $(35,404) $28,619 $34,178 $5,361 Adj. EBITDA Calc
Slide 23: Cash Flow Statement
Quarter Ended 09 - 30 - 2023 Year Ended 06 - 30 - 2023 Year Ended 6 - 30 - 2022 Year Ended 6 - 30 - 2021 Year Ended 6 - 30 - 2020 Cash Flows from Operating Activities Net Income (Loss) $(3,462) $(35,404) $28,496 $34,178 $5,361 Adjustments to Reconcile Net Income Net Cash provided by (Used In) Operat
Slide 24: Exhibit Updates: New $120 Million Senior Secured Credit Facility
Exhibit 3 Updates ALLIANCE ENTERTAINMENT ANNOUNCES CLOSING OF NEW 3 - YEAR $120 MILL ION SENIOR SECURED CREDIT FACILITY The Company paid off Bank of America’s $150 Million outstanding credit facility and the new credit facility includes a $120 m ill ion asset based revolving credit facility (the “Re
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