Alliance Entertainment Holding Corporation · NASDAQ:AENT
Alliance Entertainment — Q4 2024 Earnings Presentation
20 slides from Alliance Entertainment's earnings presentation, Sep 19, 2024
Slide 1: Alliance Entertainment Investor Presentation
Alliance Entertainment We bring entertainment to you! INVESTOR PRESENTATION September 2024 NASDAQ: AENT
Slide 2: Legal Disclaimer
Legal Disclaimer 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 secu
Slide 3: 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. 325K SKU’s
Slide 4: AENT: 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 5: $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 6: 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 7: 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 8: Acquisition Case Study
Acquisition Case Study A trusted full-service film and TV distributor M&A Criteria acquired in 2018 • Historical multiples below • Consolidated movie distribution vertically and grew 3.0x EBITDA before from 18 studios in 2018 to 60+ studios today. synergies and accretive • Consolidated fulfillment,
Slide 9: 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 10: Select Financials
Select Financials REVENUE ADJUSTED EBITDA1 Covid Spike3 $ in millions $ in millions Fiscal Year Ended 6/30 Fiscal Year Ended 6/30 $1,324 $1,417 $69 $1,158 $1,100 $60 $776 $33 $(17)2 $24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 EARNINGS PER SHARE ADJUSTED EBITDA MARGIN $0.11 $0.23 $0.60 $(.7
Slide 11: Improving Performance and Strategic M&A: Pathway to Future Growth
Improving Performance and Strategic M&A: Pathway to Future Growth As the capital light, low-cost provider with the largest reach, Alliance is focused on adding market share, improving margins, and growing EBITDA. Market Share Growth Add New Products & Verticals through M&A • Channel expansion where
Slide 12: Alliance Leadership Team
Alliance Leadership Team 94% Insider Ownership1 Senior Management: Board of Directors: Bruce Ogilvie Executive Chairman Tom Donaldson Director, Compensation, Audit, and Nominating and Bruce has spent his entire career in the entertainment distribution industry starting with the founding of Abbey Roa
Slide 13: Investor Relations
Investor Relations Alliance Entertainment Dave Gentry, CEO 8201 Peters Road, Ste 1000 RedChip Companies Plantation, FL 33324 1-407-644-4256 AENT@redchip.com www.aent.com Link to Alliance Entertainment Press Releases 13
Slide 14: Appendix
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Slide 15: Exhibit 1 Reconciliation of Adjusted EBITDA to GAAP Net Income
Exhibit 1 Reconciliation of Adjusted EBITDA to GAAP Net Income Fiscal Year ($ in 000’s) 06-30-2024 06-30-2023 06-30-2022 06-30-2021 06-30-2020 Operating Earnings Before Depreciation, Amortization & Arcade $24,267 $(17,964) $60,012 $68,548 $33,227 Adjustment (Adjusted EBITDA) Net Income/(Loss) Per GA
Slide 16: Exhibit 2 Consolidated Statement of Cash Flows
Exhibit 2 Consolidated Statement of Cash Flows Year Ended Year Ended Year Ended Year Ended Year Ended 06-30-2024 06-30-2023 6-30-2022 6-30-2021 6-30-2020 ($ in 000’s) Cash Flows from Operating Activities Net Income (Loss) $4,581 $(35,404) $28,496 $34,178 $5,361 Adjustments to Reconcile Net Income Ne
Slide 17: Sales by Configuration
Sales by Configuration The global vinyl The global brand records licensing market market size is is projected to estimated to grow from USD grow by USD 274.9 billion in 790.55 2022 to USD million from 385.4 billion by 2024 to 2028, 2027 at a CAGR according to of 4.1% from 2022 Technavio. to 2027. 17
Slide 18: Quarterly Gross Profit, Net Income & Adj. EBITDA
Quarterly Gross Profit, Net Income & Adj. EBITDA ($ in 000’s) 18
Slide 19: Income Statement
Income Statement Fiscal Year ($ in 000’s) 06-30-2024 06-30-2023 06-30-2022 06-30-2021 06-30-2020 Revenue $1,100,483 $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 971,594 1,054,788 1,234,995 1,140,885 656,485 Gross Profit $128,890 $103,934 $1
Slide 20: Balance Sheet
Balance Sheet Audited Audited Audited Audited Audited ($ in 000’s) 06-30-2024 As of 06-30-2023 As of 06-30-2022 As of 06-30-2021 As of 06-30-2020 ASSETS Cash and Equivalents. 1,129 865 1,469 4,028 1,334 Accounts Receivable 92,537 98,699 111,332 70,881 104,939 Inventory 97,429 146,763 249,439 141,661
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