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Alliance Entertainment Holding Corporation (AENT-6.47%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing includes financial statements for the quarter, showing a decrease in net revenues to $393,672,000 from $425,586,000 in the same quarter the previous year. The decrease is attributed to a decline in gaming product revenue and consumer products revenue.
Cost of revenues for the quarter was $351,382,000, representing 89% of net revenues, compared to 89% in the same quarter of the previous year. Operating expenses decreased to $27,493,000 from $31,713,000, primarily due to reduced distribution and fulfillment expenses.
The company reported an operating income of $14,797,000 for the quarter, compared to $15,990,000 in the previous year, with the decline attributed to a decrease in net revenues.
Interest expense for the quarter was $2,827,000, down from $3,328,000 in the previous year, primarily due to a reduction in the average revolver balance.
Net income for the quarter was $7,071,000, down from $8,914,000 in the previous year. The effective tax rate for the quarter was 25%, compared to 32% in the previous year.
Cash provided by operating activities was $13,618,000, while cash used in investing and financing activities was $7,546,000 and $4,711,000, respectively.
Alliance had a working capital of $49,260,000 as of December 31, 2024. The company acknowledges its dependence on positive operating results and potential financing to meet future obligations.
The filing also details various legal proceedings, including a class action complaint related to the Business Combination and a lawsuit filed by Office Create Corporation against COKeM International Ltd.
Alliance does not anticipate cash dividend payments to common stockholders in the near future.
The company identified material weaknesses in its internal controls over financial reporting, including deficiencies in entity-level controls and information technology general controls.
Alliance continues to focus on expanding its product offerings through acquisitions, such as the recent purchase of Handmade by Robots, and strategic partnerships, including a licensing agreement with Paramount Home Entertainment.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Alliance Entertainment Holding Corporation quarterly 10-Q report dated February 13, 2025. To report an error, please email earnings@qz.com.