Alliance Entertainment (AENT) GlobeNewswire·2025-05-15 20:01Core Insights - Alliance Entertainment Holding Corporation reported a net income of 5.3 million improvement year-over-year, indicating strong operational execution and margin gains [1][11] - The company reduced its revolver debt by 25% year-over-year, enhancing its balance sheet and liquidity position [1][11] - Direct to Consumer sales accounted for 35% of gross revenue, up from 33% in the same quarter of the previous year, reflecting a growing trend in consumer fulfillment [1][10] Financial Performance - Net revenues for the third quarter ended March 31, 2025, were 211.2 million in the same period of 2024 [15] - Gross profit for the third quarter was 28.0 million year-over-year, with a gross profit margin of 13.6%, compared to 13.2% in the prior year [15] - Adjusted EBITDA for the quarter was 2.9 million in the same period of 2024 [11][15] Operational Highlights - The company launched a distribution partnership with Paramount Pictures, becoming the exclusive licensee of Paramount's physical media in the U.S. and Canada, which strengthens its position in the home entertainment market [6][5] - Physical movie sales surged 39% year-over-year, increasing from 58 million, driven by new exclusive content partnerships [6] - Vinyl record sales increased by 11% year-over-year, rising from 86 million, supported by strong consumer demand [6] Inventory and Cost Management - Inventory levels improved to 108.0 million at March 31, 2024, indicating better inventory turnover and working capital efficiency [6] - Total operating expenses decreased by 11.4% year-over-year, with distribution and fulfillment costs declining by 10.2% due to automation initiatives [6] - Interest expense declined by 20.2% year-over-year, reflecting a lower revolving credit balance and improved financial efficiency [6]