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Alliance Laundry Holdings LLC Reports 2nd Quarter 2009 Earnings
RIPON, Wis.--(BUSINESS WIRE)--August 12, 2009--Alliance Laundry Holdings LLC announced today results for the three and six months ended June 30, 2009.
Net revenues for the quarter ended June 30, 2009 decreased $27.5 million to $94.9 million from $122.4 million for the quarter ended June 30, 2008. Our net loss for the quarter ended June 30, 2009 was $3.5 million as compared to income of $4.4 million for the quarter ended June 30, 2008. Adjusted EBITDA (see “About Non-GAAP Financial Measures” below) for the quarter ended June 30, 2009 increased $2.0 million to $22.5 million from $20.5 million for the quarter ended June 30, 2008.
The overall net revenue decrease of $27.5 million was partly attributable to an unfavorable $13.6 million non-cash mark-to-market adjustment related to the establishment of our new asset backed facility in June of 2009. Excluding the asset backed facility adjustment, revenues for the quarter decreased $13.9 million or 11.4% as compared to the quarter ended June 30, 2008.
Included in our net income for the quarter ended June 30, 2009 was the unfavorable $13.6 million non-cash mark-to-market adjustment related to the establishment of our new asset backed facility and $6.2 million of transaction costs incurred in establishing the new asset backed facility with no similar items in the quarter ended June 30, 2008.
Net revenues for the six months ended June 30, 2009 decreased $41.1 million, or 17.7%, to $191.3 million from $232.4 million for the six months ended June 30, 2008. Our net loss for the six months ended June 30, 2009 was $1.2 million as compared to income of $6.3 million for the six months ended June 30, 2008. Adjusted EBITDA (see “About Non-GAAP Financial Measures” below) for the six months ended June 30, 2009 was $36.0 million as compared to $38.2 for the six months ended June 30, 2008.
In announcing the Company’s results, CEO Thomas F. L’Esperance said, “We are extremely pleased with our bottom line performance for the quarter and six months, particularly given the difficult global economic conditions. While revenues were in line with our expectations, cost controls delivered bottom line results which slightly exceeded our expectations.”
L’Esperance concluded, “We have adjusted our operations appropriately for the current economic environment. Although market conditions are difficult, we expect strong earnings performance for the balance of 2009 as our lower costs of operating read through.”
About Non-GAAP Financial Measures
In addition to disclosing financial results that are determined in accordance with generally accepted accounting principles (GAAP), we also disclose EBITDA and Adjusted EBITDA, which are non-GAAP measures. We have presented EBITDA and Adjusted EBITDA because certain covenants in our Senior Credit Facility are tied to ratios based on these measures. “EBITDA” represents net income (loss) before interest expense, income tax provision (benefit) and depreciation and amortization (including non-cash interest income), and “Adjusted EBITDA” (as defined under the Senior Credit Facility) is EBITDA as further adjusted to exclude, among other things, certain non-recurring expenses and other non-recurring non-cash charges. EBITDA and Adjusted EBITDA do not represent, and should not be considered, an alternative to net income or cash flow from operations, as determined by GAAP, and our calculations thereof may not be comparable to similarly entitled measures reported by other companies. Our Senior Credit Facility requires us to satisfy specified financial ratios and tests, including a maximum of total debt to Adjusted EBITDA and a minimum Adjusted EBITDA to cash interest expense. To the extent that we fail to maintain either of these ratios within the limits set forth in the Senior Credit Facility, our ability to access amounts available under our Revolving Credit Facility would be limited, our liquidity would be adversely affected and our obligations under the Senior Credit Facility could be accelerated. In addition, any such acceleration would constitute an event of default under the indenture governing the Senior Subordinated Notes (the “Notes Indenture”), and such an event of default under the Notes Indenture could lead to an acceleration of our obligations under the Senior Subordinated Notes. A reconciliation of EBITDA and Adjusted EBITDA with the most directly comparable GAAP measure is included below for the three and six months ended June 30, 2009 along with the components of EBITDA and Adjusted EBITDA.
The following information was filed by Alliance Laundry Holdings Llc on Wednesday, August 12, 2009 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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