Alliance Laundry Holdings LLC Reports 1st Quarter 2004 Earnings.Business Editors RIPON Ripon, town (1991 pop. 11,952), North Yorkshire, N England, on the Ure River. It is a market town with foundries, varnish and paint factories, tanneries, and breweries. Ripon is famous as an old cathedral city where monasteries have stood since the 7th cent. , Wis adv. 1. Certainly; really; indeed. v. t. 1. To think; to suppose; to imagine; - used chiefly in the first person sing. present tense, I wis. See the Note under Ywis. .--(BUSINESS WIRE)--May 7, 2004 Alliance Laundry Laundry can be:
Before industrialization Holdings LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control announced today results for the quarter ended March 31, 2004. Net revenues for the quarter ended March 31, 2004 increased $5.2 million, or 8.5%, to $66.3 million compared to $61.1 million for the quarter ended March 31, 2003. Net income for the first quarter of 2004 increased $3.0 million to $4.2 million as compared to $1.2 million for the same period in 2003. Earnings Before Interest, Taxes, Depreciation and Amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
The overall net revenue increase of $5.2 million was primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to higher commercial laundry revenue of $5.0 million and service parts revenue of $0.2 million. The increase in net income of $3.0 million for the first quarter of 2004 was primarily attributable to higher gross profit of $3.7 and lower interest expense of $0.6 million partially offset by higher sales and marketing expenses of $0.4 million and $0.7 million of costs incurred in the first quarter of 2004 related to a proposed initial public offering of Income Deposit Securities. In announcing the Company's results today, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM). The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs F. L'Esperance said, "We are extremely pleased with our year over year top line revenue growth of 8.5% for the first quarter of 2004. Leading the way for the quarter was higher international equipment revenue of $2.7 million and higher North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. equipment revenue of $1.3 million." "During the first quarter of 2004 we have paid down $5.1 million on long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. . We will continue to focus on strong top line performance in 2004 to help offset higher medical and material costs," said L'Esperance. Alliance Laundry Holdings LLC, headquartered in Ripon, Wisconsin Ripon is a city in Fond du Lac County, Wisconsin, United States. As of the 2000 census, the city population was 6,828. The city is located within the Town of Ripon. History Founding , is a leading manufacturer of commercial laundry products and provider of services for laundromats, multi-housing laundries, on-premise laundries and drycleaners worldwide. The Company offers a full line of washers and dryers for light commercial use as well as large frontloading washers, heavy duty tumbler dryers, and presses and finishing equipment for heavy commercial use. The Company's products are sold under four well known brand names: Speed Queen, UniMac, Huebsch and Ajax. (a) Non-GAAP Financial Measures In addition to disclosing financial results that are determined in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ), we also disclose EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization), which is a non-GAAP measure. We believe that EBITDA is useful as a means to evaluate our ability to service existing debt, to sustain potential future increases in debt and to satisfy capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. . EBITDA, adjusted for certain non-cash items and as defined in our Senior Credit Facility, is also used to determine our compliance with key financial covenants under our Senior Credit Facility, which among other things, impacts the amount of indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. we are permitted to incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. . Our use of EBITDA, however, should not be considered an alternative to measures of operating performance as determined in accordance with GAAP, including net income as a measure of our operating results and cash flows as a measure of our liquidity. Other companies may define EBITDA differently. A reconciliation of EBITDA to net income is provided under the heading Selected Financial Data of this press release. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. for Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , and Section 21E of the Securities Act of 1934, as amended, including, without limitation, statements that include the words "continue" and "strong" or similar expressions and statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc growth or performance objectives. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the Company to differ materially from those expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by such forward-looking statements. Although the Company believes that its plans, intentions and expectations reflected in such forward-looking statements are based on reasonable assumptions, it 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 the 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 the Company's products abroad; market acceptance of new and enhanced versions of the Company's products; the impact of substantial leverage and debt service on the Company 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 Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December December: see month. 31, 2003. Financial information for Alliance Laundry Holdings LLC appears on the next three pages, followed by management's discussion and analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial of financial condition and results of operations for the three months ended March 31, 2004.
ALLIANCE LAUNDRY HOLDINGS LLC
CONSOLIDATED BALANCE SHEETS
(unaudited)
(in thousands)
March 31, December 31,
-------------------------
2004 2003
------------ ------------
Assets
Current assets:
Cash $9,230 $7,937
Accounts receivable, net 7,549 9,157
Inventories, net 32,333 26,215
Beneficial interests in securitized
accounts receivable 16,221 16,789
Prepaid expenses and other 1,659 898
------------ ------------
Total current assets 66,992 60,996
Notes receivable, net 6,411 8,161
Property, plant and equipment, net 32,654 34,035
Goodwill, net 55,414 55,414
Beneficial interests in securitized
financial assets 22,691 22,676
Debt issuance costs, net 7,154 7,636
Other assets 1,926 1,721
------------ ------------
Total assets $193,242 $190,639
============ ============
Liabilities and Members' Deficit
Current liabilities:
Current portion of long-term debt $12,156 $11,270
Revolving credit facility - -
Accounts payable 9,821 11,279
Other current liabilities 22,618 20,428
------------ ------------
Total current liabilities 44,595 42,977
Long-term debt:
Senior credit facility 140,091 145,975
Senior subordinated notes 110,000 110,000
Junior subordinated note 25,189 24,171
Other long-term debt 720 783
Other long-term liabilities 7,335 6,491
Mandatorily redeemable preferred interests 6,000 -
------------ ------------
Total liabilities 333,930 330,397
Commitments and contingencies
Mandatorily redeemable preferred interests - 6,000
Members' deficit (140,688) (145,758)
------------ ------------
Total liabilities and members' deficit $193,242 $190,639
============ ============
ALLIANCE LAUNDRY HOLDINGS LLC
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(in thousands)
Three Months Ended
-------------------------
March 31, March 31,
2004 2003
------------ ------------
Net revenues:
Commercial laundry $56,308 $51,329
Service parts 9,972 9,780
------------ ------------
66,280 61,109
Cost of sales 45,521 44,022
------------ ------------
Gross profit 20,759 17,087
Selling, general and administrative expense 8,619 8,217
Offering related expenses 728 -
------------ ------------
Total operating expense 9,347 8,217
------------ ------------
Operating income 11,412 8,870
Interest expense 7,110 7,685
Other income (expense), net (34) -
------------ ------------
Income before taxes 4,268 1,185
Provision for income taxes 49 -
------------ ------------
Net income $4,219 $1,185
============ ============
SELECTED FINANCIAL DATA
(unaudited)
(in thousands)
Three Months Ended
-------------------------
March 31, March 31,
2004 2003
------------ ------------
Cash flow data:
Net cash provided by (used in) operating
activities $7,052 $(503)
Net cash used in investing activities (698) (1,134)
Net cash used in financing activities (5,061) (3,027)
Other data:
EBITDA(1) $13,482 $11,166
Capital expenditures 698 1,134
Reconciliation: EBITDA
Net income (2) $4,219 $1,185
Provision for income taxes 49 -
------------ ------------
Income before income taxes 4,268 1,185
Adjustments:
Interest expense 7,110 7,685
Depreciation and amortization 2,587 2,807
Non-cash interest expense included in
amortization above (483) (511)
------------ ------------
EBITDA(1) $13,482 $11,166
============ ============
(1) "EBITDA", as presented, represents income before taxes plus
depreciation, amortization and interest expense.
(2) Subsequent to the consummation of the Recapitalization, we are not
a federal income tax paying entity.
Management's Discussion and Analysis of Financial Condition and Results of Operations for the Three Months Ended March 31, 2004 OVERVIEW We believe we are the leading designer, manufacturer and marketer of stand-alone (jargon) stand-alone - Capable of operating without other programs, libraries, computers, hardware, networks, etc. Exactly what is absent is presumed to be obvious from context. "We only run Windows on stand-alone PCs because it's too dangerous to run it on networked ones." commercial laundry equipment in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and that we are similarly a leader worldwide. Under the well-known well-known adj. 1. Widely known; familiar or famous: a well-known performer. 2. Fully known: well-known facts. brand names of Speed Queen(R), UniMac(R), Huebsch(R), and Ajax(R), we produce a full line of commercial washing machines (storage) washing machine - An old-style 14-inch hard disk in a floor-standing cabinet. So called because of the size of the cabinet and the "top-loading" access to the media packs - and, of course, they were always set on "spin cycle". and dryers with load capacities from 16 to 250 pounds as well as presses and finishing equipment. Our commercial products are sold to four distinct customer groups: (i) laundromats; (ii) multi-housing laundries, consisting primarily of common laundry facilities in apartment buildings, universities and military installations; (iii) on-premise laundries, consisting primarily of in-house In-house In the context of general equities, keeping an activity within the firm. For example, rather than go to the marketplace and sell a security for a client to anyone, an attempt is made to find a buyer to complete the transaction with the firm. laundry facilities of hotels, hospitals, nursing homes and prisons and (iv) drycleaners. The unaudited financial statements as of and for the quarter ended March 31, 2004 represent the consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: financial position and results of operations of Alliance Laundry Holdings LLC, including its wholly-owned direct and indirect subsidiaries, Alliance Laundry Systems LLC and Alliance Laundry Corporation. This report should be read in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with the audited financial statements presented in our Annual Report on Form 10-K (file no. 333-56857-02) filed with the Securities and Exchange Commission, effective March 8, 2004, which includes our audited financial statements as of and for the years ended December 31, 2003 and 2002. RESULTS OF OPERATIONS The following table provides our historical net revenues for the periods indicated:
Quarter Ended
-------------------------
March 31, March 31,
2004 2003
-------------------------
(Dollars in millions)
Net revenues:
Commercial laundry $56.3 $51.3
Service parts 10.0 9.8
------------ ------------
$66.3 $61.1
============ ============
The following table provides certain condensed historical financial
data expressed as a percentage of net revenues for each of the periods
indicated:
Quarter Ended
-------------------------
March 31, March 31,
2004 2003
-------------------------
Net revenues 100.0% 100.0%
Cost of sales 68.7% 72.0%
Gross profit 31.3% 28.0%
Selling, general and administrative expense 13.0% 13.4%
Offering related expenses 1.1% -
Operating income 17.2% 14.5%
Net income 6.4% 1.9%
Three Months Ended March 31, 2004 Compared to Three Months Ended March 31, 2003 Net revenues. Net revenues for the quarter ended March 31, 2004 increased $5.2 million, or 8.5%, to $66.3 million from $61.1 million for the quarter ended March 31, 2003. This increase was primarily attributable to higher commercial laundry revenue of $5.0 million and service parts revenue of $0.2 million. The increase in commercial laundry revenue was due primarily to higher international revenue of $2.7 million, higher North American equipment revenue of $1.3 million and higher earnings from our off-balance sheet equipment financing program of $1.0 million. Revenue for North America was higher for on-premise laundries and lower for coin-operated Adj. 1. coin-operated - of devices that do not operate without the prior insertion of one or more coins; "a coin-operated telephone" coin-operated adj [machine] → que funciona con monedas laundry customers. Revenue for international customers was higher in Asia and Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). .
Gross profit. Gross profit for the quarter ended March 31, 2004 increased $3.7 million, or 21.5%, to $20.8 million from $17.1 million for the quarter ended March 31, 2003. This increase was primarily attributable to the higher earnings from our off-balance sheet equipment financing program of $1.0 million, lower depreciation expense of $0.2 million, margins associated with the higher sales volume, and a price increase, which were partially offset by nickel nickel, metallic chemical element; symbol Ni; at. no. 28; at. wt. 58.69; m.p. about 1,453°C;; b.p. about 2,732°C;; sp. gr. 8.902 at 25°C;; valence 0, +1, +2, +3, or +4. and chrome (jargon) chrome - (From automotive slang via wargaming) Showy features added to attract users but contributing little or nothing to the power of a system. "The 3D icons in Motif are just chrome, but they certainly are *pretty* chrome!" surcharges of $0.7 million related to stainless steel stainless steel: see steel. stainless steel Any of a family of alloy steels usually containing 10–30% chromium. The presence of chromium, together with low carbon content, gives remarkable resistance to corrosion and heat. purchases and unfavorable exchange rates related to foreign purchases. Gross profit as a percentage of net revenues increased to 31.3% for the quarter ended March 31, 2004 from 28.0% for the quarter ended March 31, 2003. Selling, general and administrative expense. Selling, general and administrative expenses for the quarter ended March 31, 2004 increased $0.4 million, or 4.9%, to $8.6 million from $8.2 million for the quarter ended March 31, 2003. The increase in selling, general and administrative expenses was primarily due to higher sales and marketing expenses of $0.4 million. Selling, general and administrative expenses as a percentage of net revenues decreased to 13.0% for the quarter ended March 31, 2004 as compared to 13.4% for the quarter ended March 31, 2003. Offering related expense. Offering related expense for the quarter ended March 31, 2004 was $0.7 million, with no similar expense in 2003. Offering related expense as a percentage of net revenues was 1.1% for the quarter ended March 31, 2004. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. . As a result of the foregoing, operating income for the quarter ended March 31, 2004 increased $2.5 million, or 28.7%, to $11.4 million from $8.9 million for the quarter ended March 31, 2003. Operating income as a percentage of net revenues increased to 17.2% for the quarter ended March 31, 2004 from 14.5% for the quarter ended March 31, 2003. Interest expense. Interest expense for the quarter ended March 31, 2004 decreased $0.6 million, or 7.5%, to $7.1 million from $7.7 million for the quarter ended March 31, 2003. Lower cash interest expense resulting from a reduction in total debt outstanding was partially offset by higher cash interest expense related to the Junior Subordinated Subordinated A claim ranked lower in priority than other claims. Common stock claims are always subordinated to debt. Note. Interest expense in 2004 includes an unfavorable non-cash adjustment of $0.4 million to reflect changes in the fair values of an interest rate swap Interest Rate Swap A deal between banks or companies where borrowers switch floating-rate loans for fixed rate loans in another country. These can be either the same or different currencies. agreement. Interest expense in 2003 includes an unfavorable non-cash adjustment of $0.7 million to reflect changes in the fair values of a similar interest rate swap agreement. Net income. As a result of the foregoing, net income for the quarter ended March 31, 2004 increased $3.0 million to net income of $4.2 million as compared to a net income of $1.2 million for the quarter ended March 31, 2003. Net income as a percentage of net revenues increased to 6.4% for the quarter ended March 31, 2004 from 1.9% for the quarter ended March 31, 2003. |
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