Alliance Entertainment (AENT) Q3 2024 Earnings Report

Revenue: Q3 2024 revenue of $211.2M, YoY -7.25%, QoQ -50.37% (per company metrics). Gross profit: $26.6M, gross margin 12.6% (vs. 12.6% stated in data; management also cited 13.3% for the quarter in commentary). Operating income: $1.41M (0.67% margin). Net income: -$3.38M (-1.60% margin). EBITDA: $0.60M (GAAP); Adjusted EBITDA: $2.90M (quarterly). Nine months ended 3/31/2024: Revenue $864.0M; Gross profit $102.0M; Gross margin 11.8% (vs. 8.1% prior year). Net income (nine months) $2.1M; Adjusted EBITDA $22.2M. Inventory declined to $108.0M (YoY from $163.0M); debt declined to $87.0M (YoY from $127.0M). Balance sheet health improved with a new $120.0M senior secured asset-based facility and planned Minnesota facility closure by 5/31/2024. Cash flow indicators per alternative metrics: operating cash flow per share $0.42; free cash flow per share $0.42. Current ratio 1.394; quick ratio 0.652; cash ratio 0.0113. In-stock SKUs: ~325,000. Management targets 4%-5% adjusted EBITDA margin for 2024, indicating ongoing margin discipline and cost-reduction initiatives.