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Alliance Laundry Holdings LLC Reports 2010 Sales and Earnings
RIPON, Wis.--(BUSINESS WIRE)--March 8, 2010--Alliance Laundry Holdings LLC announced today results for the year ended December 31, 2009.
Net revenues for full year 2009 decreased $67.1 million, or 14.6%, to $393.2 million from $460.3 million for the full year 2008. Our net income for 2009 was $16.6 million as compared to $15.5 million for 2008. Adjusted EBITDA (see “About Non-GAAP Financial Measures” below) for 2009 increased $6.4 million to $78.4 million from $72.0 million for 2008.
Excluding the impact of an unfavorable $13.6 million non-cash mark-to-market adjustment related to the establishment of our new asset backed facility in the second quarter of 2009; net revenues decreased $53.5 million or 11.6% as compared to the full year 2008.
The overall net income increase of $1.1 million was primarily attributable to lower gross profit of $15.8 million, offset by lower interest expense of $8.9 million, lower operating expenses of $6.6 million and a lower provision for income taxes of $1.4 million.
“While the economy in 2009 was the worst our company has experienced in more than two decades, I’m proud to report the Alliance team responded in an extraordinary way,” said CEO Thomas F. L’Esperance. “We delivered record profits, improved our liquidity position and dramatically improved our balance sheet.”
L’Esperance concluded, “Despite a continued challenging environment, we look to build upon our progress in 2010. We will continue to invest in new products and expansion of our customer one programs. As a result, we believe we will be well positioned for continued industry leadership and growth as the global economy recovers.”
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 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 twelve months ended December 31, 2009 along with the components of EBITDA and Adjusted EBITDA.
About Alliance Laundry Holdings LLC
Alliance Laundry Holdings LLC is the parent company of Alliance Laundry Systems LLC (www.comlaundry.com), a leading designer, manufacturer and marketer in North America of commercial laundry equipment used in laundromats, multi-housing laundries and on-premise laundries. Under the well-known brand names of Speed Queen®, UniMac®, Huebsch®, IPSO®, and Cissell®, we produce a full line of commercial washing machines and dryers with load capacities from 12 to 200 pounds. We have been a leader in the North American stand-alone commercial laundry equipment industry for more than ten years. With the addition of our European operations and Alliance Laundry’s export sales to Europe, we believe that we are also a leader in the European stand-alone commercial laundry equipment industry.
Safe Harbor for Forward-Looking Statements
With the exception of the reported actual results, this press release contains predictions, estimates and other forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of our business to differ materially from those expressed or implied by such forward-looking statements. Although we believe that our plans, intentions and expectations reflected in such forward-looking statements are based on reasonable assumptions, we can give no assurance that such plans, intentions, expectations, objectives or goals will be achieved. Important factors that could cause actual results to differ materially from those included in forward-looking statements include: impact of competition; continued sales to key customers; possible fluctuations in the cost of raw materials and components; possible fluctuations in currency exchange rates, which affect the competitiveness of our products abroad; possible fluctuation in interest rates, which affects our earnings and cash flows; the impact of substantial leverage and debt service on us; possible loss of suppliers; risks related to our asset backed facilities; dependence on key personnel; labor relations; potential liability for environmental, health and safety matters; potential future legal proceedings and litigation; and other risks listed from time to time in the Company’s reports, including, but not limited to the Company’s most recent Annual Report on Form 10-K for the year ended December 31, 2009.
Financial information for Alliance Laundry Holdings LLC appears on the next five pages for the years ended December 31, 2009 and 2008.
The following information was filed by Alliance Laundry Systems Llc on Tuesday, March 9, 2010 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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