Alliance Entertainment’s COKeM Gaming Division Exceeds Sales Forecast for Arcade1UP Products in 2023 Calendar Fourth Quarter
PLANTATION, Fla., Jan. 09, 2024 (GLOBE NEWSWIRE) -- Alliance Entertainment Holding Corporation (Nasdaq: AENT) (“Alliance Entertainment”, “Company”), a distributor and wholesaler of the world’s largest in stock selection of music, movies, video games, electronics, arcades, toys and collectibles, today announced its COKeM gaming division reported sales of the popular Arcade1Up home arcade machines that exceeded initial forecasts in the calendar fourth quarter of 2023.
“Sales of Arcade1Up products performed well and exceeded expectations during the 2023 holiday season,” said Ken Glaser, Alliance Entertainment SVP of Sales. “Throughout 2023, the team worked hard to right-size our arcade inventory levels which began 2023 at $54.3 million. 2023 year ending arcade inventory stood at $17.4 million. There was also more than $20 million in new arcade inventory purchased in 2023 to support the holiday sales, and our strategy and focus this year is on profitable sales growth with our growing arcade customer base. Success during the holiday season can be attributed to aggressive sales and advertising campaigns, working hand-in-hand with Arcade1up to drive consumers to our retail partners and our alignment with key e-commerce retailers, including Amazon, Best Buy, Kohl’s, Target, Walmart, Wayfair, QVC/HSN, Dell and more.
“This year’s hot holiday items in the arcade category included the Infinity Game Table (www.infinitygametable.com), the award-winning digital tabletop gaming experience by Arcade1Up. Infinity Game Table and its recently released companion ‘Infinity Game Board’ brings digital versions of iconic classics, new favorites, and an ever-growing library of games. Also, the introduction of the riserless “Deluxe” Arcade Cabinets, which include best sellers Pac-Man, Ms. Pac-Man/Galaga Class of 81, Mortal Kombat and more were launched mid-year 2023. These core titles are expected to show sales growth of more than 60% in 2024. With a more focused approach and consistent market pricing on ‘core’ arcade SKU’s, we expect there to be a renewed interest and excitement around the assortment in the coming year,” concluded Glaser.
Jeff Walker, CEO & CFO of Alliance Entertainment, added, “We are encouraged by the higher-than-expected arcade sales results our COKeM gaming division this holiday season. Our compelling gaming product offerings were supported by high impact advertising campaigns and key retail partnerships. We expect this trend to continue as we solidify Alliance Entertainment’s position as the premiere distributer of Arcade1Up products to retailers across the United States. These trends, along with an improvement to working capital, higher inventory turns, and reduced fixed and variable cost position us well for calendar year 2024.”
About Tastemakers LLC | Arcade1Up
It’s time to play again! Home entertainment titan Tastemakers presents Arcade1Up, a line of award-winning, innovative ¾ scale home arcade and pinball machines featuring licensed retro games from the golden age of arcades. Arcade1Up’s classic titles include NFL Blitz Legends, NBA JAM™: SHAQ EDITION, Golden Tee 3D, Terminator 2, Tron™, Street Fighter™, X-Men, Mortal Kombat®, Atari, Pong®, PAC-MAN™, Star Wars™, Marvel Super Heroes™, Teenage Mutant Ninja Turtles™, and more. Arcade1Up allows people to play in the comfort of their homes, with an authentic retro arcade experience at an accessible price. Check out Arcade1Up.com, Facebook, Instagram, Twitter, TikTok, YouTube and the Arcade1Up Companion App available in the App Store and Google Play.
About COKeM International
COKeM is a cutting-edge distribution company serving the video games and accessories industry. COKeM’s world-class 220,000 square-foot warehouse is located in Shakopee, Minnesota. COKeM is always leveling up, providing expanded services including full-service distribution, design & merchandising, sales support, e-commerce and publishing across gaming. Whether you would like to take advantage of our in-house e-commerce and publishing across gaming. marketing team, unique partner relationships or product end-of life management services, COKeM’s ready to deliver customized and light-speed business solutions for winners. For more information visit www.cokem.com.
About Alliance Entertainment
Alliance Entertainment (NASDAQ: AENT) is a premier distributor of music, movies, toys, collectibles, and consumer electronics. We offer over 375,000 unique in stock SKU’s, including over 57,300 exclusive compact discs, vinyl LP records, DVDs, Blu-rays, and video games. Complementing our vast media catalog, we also stock a full array of related accessories, toys and collectibles. With more than thirty-five years of distribution experience, Alliance Entertainment serves customers of every size, providing a robust suite of services to resellers and retailers worldwide. Our efficient processing and essential seller tools noticeably reduce the costs associated with administrating multiple vendor relationships, while helping omni-channel retailers expand their product selection and fulfillment goals. For more information, visit www.aent.com.
Forward Looking Statements
Certain statements included in this Press Release that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding estimates and forecasts of other financial and performance metrics and projections of market opportunity. These statements are based on various assumptions, whether identified in this Press Release, and on the current expectations of Alliance’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as and must not be relied on by an investor as, a guarantee, an assurance, a prediction, or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Alliance. These forward-looking statements are subject to a number of risks and uncertainties, including risks relating to the anticipated growth rates and market opportunities; changes in applicable laws or regulations; the ability of Alliance to execute its business model, including market acceptance of its systems and related services; Alliance’s reliance on a concentration of suppliers for its products and services; increases in Alliance’s costs, disruption of supply, or shortage of products and materials; Alliance’s dependence on a concentration of customers, and failure to add new customers or expand sales to Alliance’s existing customers; increased Alliance inventory and risk of obsolescence; Alliance’s significant amount of indebtedness; our ability to refinance our existing indebtedness; our ability to continue as a going concern absent access to sources of liquidity; risks and failure by Alliance to meet the covenant requirements of its revolving credit facility, including a fixed charge coverage ratio; risks that a breach of the revolving credit facility, including Alliance’s recent breach of the covenant requirements, could result in the lender declaring a default and that the full outstanding amount under the revolving credit facility could be immediately due in full, which would have severe adverse consequences for the Company; known or future litigation and regulatory enforcement risks, including the diversion of time and attention and the additional costs and demands on Alliance’s resources; Alliance’s business being adversely affected by increased inflation, higher interest rates and other adverse economic, business, and/or competitive factors; geopolitical risk and changes in applicable laws or regulations; risk that the COVID-19 pandemic, and local, state, and federal responses to addressing the pandemic may have an adverse effect on our business operations, as well as our financial condition and results of operations; substantial regulations, which are evolving, and unfavorable changes or failure by Alliance to comply with these regulations; product liability claims, which could harm Alliance’s financial condition and liquidity if Alliance is not able to successfully defend or insure against such claims; availability of additional capital to support business growth; and the inability of Alliance to develop and maintain effective internal controls.
For investor inquiries, please contact:
MZ Group
Chris Tyson/Larry Holub
(949) 491-8235
AENT@mzgroup.us
© Copyright Globe Newswire, Inc. All rights reserved. The information contained in this news report may not be published, broadcast or otherwise distributed without the prior written authority of Globe Newswire, Inc.
