AENT Alliance Entertainment Holding Corporation

Alliance Entertainment Holding Corporation (Nasdaq: AENT), a global distributor and wholesaler specializing in music, movies, video games, electronics, arcades, toys, and collectibles, has commenced installation at its Kentucky facility of Sure Sort® X, a cost-saving sortation technology system from warehouse automation solutions provider OPEX®, to be completed April 1st, 2024.

Utilizing this new Sure Sort X technology will result in annual labor savings of nearly $400,000 for Alliance Entertainment, along with an immediate savings of $460,000 from avoiding retrofitting older sorting technology set to be retired.

With nearly eight billion items sorted to date, Sure Sort leads the industry with its state-of-the-art product handling and throughput capability. Sure Sort X provides a reliable and robust industrial solution to handle nearly 100% of customer-sortable products, including items 60% smaller, nearly 20% larger, and up to 4X heavier.

The Alliance Entertainment Kentucky warehouse fulfilment center covers 873,000 sq feet, warehousing 31 million units of entertainment product across 330,000 SKUs and ships 52 million units annually. In 2023 Alliance went live with an AutoStore automated storage and retrieval system to maximize space with increased storage density, improve pick time to order completion and reduce overall headcount required. The AutoStore system with its 52,000 bins and 58 Blackline robots allows AEC the flexibility to add different product configurations and sizes into the warehouse ecosystem without having to modify the physical locations.

With the introduction of the Sure Sort X, this larger format sorter complements the five existing CD/DVD and vinyl record sorters at Alliance, giving the warehouse the ability to move away from manual sortation of larger product, specifically toys and electronics and accessories. OPEX’s technology and design using iBots allows Sure Sort X to utilize a significantly smaller footprint than traditional sortation with more destinations at a throughput rate of 2,100 units per hour. The Sure Sort X handles 95% of the current warehouse product with multiple bin/order size capability.

Bruce Ogilvie, Chairman of Alliance Entertainment, commented, “In partnership with OPEX, the expansion of automation capacity at our Kentucky warehouse facility with the acquisition of a Sure Sort X sortation system is a continuation of our margin improvement plan. Sure Sort X is an innovative application of industry-leading automated sortation technology, empowering us to dramatically improve operational efficiency, save time and money, and continually exceed customers’ expectations. The ROI based off current processes being redirected into the Sure Sort X is three years, with an expected reduction in this time frame by streamlining additional processes given the new capabilities and opportunities for continuous improvement. We continue to innovate and grow our distribution capabilities by futureproofing through the addition of technology and automation.”

Watch the Sure Sort® X video: https://www.opex.com/wp-content/uploads/2024/03/sure_sort_x-1080p.mp4.

For more information, visit https://www.opex.com/sure-sort-x.

About Alliance Entertainment

Alliance Entertainment (NASDAQ: AENT) is a premier distributor of music, movies, toys, collectibles, and consumer electronics. We offer over 325,000 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 GroupChris Tyson/Larry Holub(949) 491-8235AENT@mzgroup.us