Alliance Laundry Holdings LLC Reports 1st Quarter 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 8, 2003 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, 2003. Net revenues for the quarter ended March 31, 2003 increased $1.4 million, or 2.2%, to $61.2 million from $59.8 million for the quarter ended March 31, 2002. Net income for the first quarter of 2003 decreased $2.5 million to $1.2 million as compared to net income of $3.7 million for the first quarter of 2002. 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 revenue increase of $1.4 million was primarily due to higher commercial laundry revenue of $0.4 million and higher service parts revenue of $1.0 million. The decrease in net income for the first quarter of 2003 resulted from higher selling, general and administrative expense of $1.2 million and higher interest expense of $1.3 million. The decrease in EBITDA of $1.9 million for the first quarter of 2003 was largely due to the higher selling, general and administrative expense and lower earnings from the Company's equipment financing program of $0.7 million. 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, "In sprite of the challenging economic environment, net revenues grew at a rate of 2.2% in the first quarter of 2003 and earnings were in line with our expectations. We planned for the higher SG&A expenses for the quarter and implemented our price increase program in April to offset for higher operating costs operating costs npl → gastos mpl operacionales such as pension, insurance and health care. At this point, we remain confident in our ability to achieve our goals for 2003." "We will continue to de-lever and focus on marketplace execution, asset management and aggressive cost control," 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. (1) 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). ), the Company also discloses EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization), which is a non-GAAP measure. Management believes that providing this additional information is useful to investors regarding the Company's ability to meet debt service, capital expenditures and working capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. and to better assess and understand operating performance. The Company does not intend for the information to be considered in isolation or as a substitute for GAAP measures. 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 "planned" and "expect" 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, 2002. 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 quarter ended March 31, 2003.
ALLIANCE LAUNDRY HOLDINGS LLC
CONSOLIDATED BALANCE SHEETS
(in thousands)
March 31, December 31,
----------- ------------
2003 2002
----------- ------------
(unaudited)
Assets
Current assets:
Cash $2,675 $7,339
Cash-restricted 841 99
Accounts receivable, net 9,938 5,834
Inventories, net 27,013 25,697
Beneficial interests in securitized
accounts receivable 17,945 19,864
Prepaid expenses and other 3,259 2,954
----------- ------------
Total current assets 61,671 61,787
Notes receivable, net 9,107 11,166
Property, plant and equipment, net 38,011 39,096
Goodwill, net 55,414 55,414
Beneficial interests in securitized
financial assets 22,806 21,483
Debt issuance costs, net 9,142 9,654
Other assets 1,642 1,010
----------- ------------
Total assets $197,793 $199,610
=========== ============
Liabilities and Members' Deficit
Current liabilities:
Current portion of long-term debt $9,835 $9,971
Revolving credit facility 2,000 -
Accounts payable 10,047 13,797
Other current liabilities 22,736 21,638
----------- ------------
Total current liabilities 44,618 45,406
Long-term debt:
Senior credit facility 168,404 173,266
Senior subordinated notes 110,000 110,000
Junior subordinated note 21,158 20,312
Other long-term debt 967 1,028
Deferred income taxes - -
Other long-term liabilities 11,045 10,338
----------- ------------
Total liabilities 356,192 360,350
Mandatorily redeemable preferred equity 6,000 6,000
Members' deficit (164,399) (166,740)
----------- ------------
Total liabilities and members' deficit $197,793 $199,610
=========== ============
ALLIANCE LAUNDRY HOLDINGS LLC
CONSOLIDATED STATEMENTS OF INCOME
(in thousands)
Three Months Ended
-----------------------
March 31, March 31,
2003 2002
--------- ---------
(unaudited)
Net revenues:
Commercial laundry $51,381 $51,040
Service parts 9,780 8,808
--------- ---------
61,161 59,848
Cost of sales 44,074 42,793
--------- ---------
Gross profit 17,087 17,055
Selling, general and administrative expense 8,217 6,986
--------- ---------
Total operating expense 8,217 6,986
--------- ---------
Operating income 8,870 10,069
Interest expense 7,685 6,359
Other income, net - 25
--------- ---------
Net income $1,185 $3,735
========= =========
ALLIANCE LAUNDRY HOLDINGS LLC
SELECTED FINANCIAL DATA
(in thousands)
Three Months Ended
-------------------
March 31, March 31,
2003 2002
--------- ---------
Other Operating Data: (Unaudited)
EBITDA (1) 11,166 13,081
EBITDA before infrequently occurring and
plant relocation costs 11,166 13,124
Depreciation and amortization (2) 2,807 3,624
Non-cash interest expense included in
amortization above (2) 511 637
Infrequently occurring costs - -
Plant relocation costs included in
administrative expense - 43
Capital Expenditures 1,134 517
EBITDA is reconciled to net income as follows:
Net income 1,185 3,735
add: Interest expense 7,685 6,359
add: Depreciation and amortization 2,807 3,624
less: Non-cash interest expense included in
amortization above 511 637
--------- ---------
EBITDA 11,166 13,081
add: Infrequently occurring items - -
add: Plant relocation costs included in
administrative expense - 43
--------- ---------
EBITDA before infrequently occurring and plant
relocation costs 11,166 13,124
========= =========
(1) "EBITDA", as presented, represents income before taxes plus
depreciation, amortization and interest expense.
(2) Depreciation and amortization amounts include amortization of
deferred financing costs included in interest expense.
Management's Discussion and Analysis of Financial Condition and Results of Operations for the Three Months Ended March 31, 2003 OVERVIEW The Company believes it is 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 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, UniMac, Huebsch and Ajax, the Company produces 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. The Company's 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, 2003 present 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 (the "Company"), including its wholly-owned direct and indirect subsidiaries, Alliance Laundry Systems LLC and Alliance Laundry Corporation. This discussion and analysis 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 Financial Statements and Notes thereto there·to adv. 1. To that, this, or it. 2. Archaic In addition to that; furthermore. thereto Adverb Formal 1. to that or it 2. included in this report and in conjunction with Management's Discussion and Analysis of Financial Condition and Results of Operations set forth in the Company's Annual Report on Form 10-K (file no. 333-56857) filed with the Securities and Exchange Commission, which includes the audited financial position and operating results of the Company as of and for the year ended December 31, 2002. RESULTS OF OPERATIONS The following table sets forth the Company's historical net revenues for the periods indicated:
Quarter Ended
---------------------
March 31, March 31,
2003 2002
--------- ---------
(Dollars in millions)
Net revenues:
Commercial laundry $51.4 $51.0
Service parts 9.8 8.8
--------- ---------
$61.2 $59.8
========= =========
The following table sets forth certain condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. historical financial data for the Company expressed as a percentage of net revenues for each of the periods indicated:
Quarter Ended
--------------------
March 31, March 31,
2003 2002
--------- ---------
Net revenues 100.0% 100.0%
Cost of sales 72.1% 71.5%
Gross profit 27.9% 28.5%
Selling, general and administrative expense 13.4% 11.7%
Operating income 14.5% 16.8%
Net income 1.9% 6.2%
Net revenues. Net revenues for the quarter ended March 31, 2003 increased $1.4 million, or 2.2%, to $61.2 million from $59.8 million for the quarter ended March 31, 2002. This increase was primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to higher commercial laundry revenue of $0.4 million and higher service parts revenue of $1.0 million. The increase in commercial laundry revenue was due primarily to 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 $0.9 million and higher international revenue of $0.2 million, partially offset by lower earnings from the Company's off-balance sheet equipment financing program of $0.7 million. The increase in North American equipment revenue was primarily due to higher revenue from laundromats and multi-housing laundries, partially offset by lower revenue from on-premise laundries. The increase in service parts revenue was due to gaining back additional service part sales due to more competitive pricing practices. Gross profit. Gross profit for the quarter ended March 31, 2003 and March 31, 2002 was $17.1 million. Favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. manufacturing efficiencies and a recent price increase were offset by the lower earnings from the Company's off-balance sheet equipment financing program. Gross profit as a percentage of net revenues decreased to 27.9% for the quarter ended March 31, 2003 from 28.5% for the quarter ended March 31, 2002. This 0.6% decrease was primarily attributable to the factors discussed above. Selling, general and administrative expense. Selling, general and administrative expenses for the quarter ended March 31, 2003 increased $1.2 million, or 17.6%, to $8.2 million from $7.0 million for the quarter ended March 31, 2002. The increase in selling, general and administrative expenses was primarily due to higher pension and fringe benefit fringe benefit Any nonwage payment or benefit granted to employees by employers. Examples include pension plans, profit-sharing programs, vacation pay, and company-paid life, health, and unemployment insurance. costs of $0.5 million, higher sales and marketing expenses of $0.3 million and higher independent development expenses of $0.2 million. Selling, general and administrative expenses as a percentage of net revenues increased to 13.4% for the quarter ended March 31, 2003 from 11.7% for the quarter ended March 31, 2002. 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, 2003 decreased $1.2 million, or 11.9%, to $8.9 million from $10.1 million for the quarter ended March 31, 2002. Operating income as a percentage of net revenues decreased to 14.5% for the quarter ended March 31, 2003 from 16.8% for the quarter ended March 31, 2002. Interest expense. Interest expense for the quarter ended March 31, 2003 increased $1.3 million, or 20.9%, to $7.7 million from $6.4 million for the quarter ended March 31, 2002. Interest expense in 2003 includes an unfavorable non-cash adjustment of $0.7 million related to a new 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 entered into in the fourth quarter of 2002. Interest expense in 2003 was also higher due to higher interest rates associated with the new swap agreement and higher letter of credit rates within the Company's new Senior Credit Facility. Net income. As a result of the foregoing, net income for the quarter ended March 31, 2003 decreased $2.5 million to net income of $1.2 million as compared to net income of $3.7 million for the quarter ended March 31, 2002. Net income as a percentage of net revenues decreased to 1.9% for the quarter ended March 31, 2003 from 6.2% for the quarter ended March 31, 2002. |
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