Coinmach Corporation Announces Third Fiscal Quarter Results.Business Editors CHARLOTTE, N.C.--(BUSINESS WIRE)--Jan. 14, 2002 Coinmach Corporation (the "Company"), the leading supplier of outsourced Outsourced is a modern day comedy of cross-cultural conflict and romance, directed by John Jeffcoat, released in 2007. Synopsis Todd Anderson (Josh Hamilton) spends his days managing a customer call center for American Novelty Products in Seattle, until his job, laundry Laundry can be:
Before industrialization equipment services for multi-family housing properties 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. , announced its results for the quarter ended December December: see month. 31, 2001.
Condensed Consolidated Statements of Operations are as follows
(dollars in millions):
Nine Months Ended Quarter Ended
December 31, December 31,
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2001 2000(1) 2001 2000
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Revenues: $402.9 $392.7 $135.8 $130.4
Costs and expenses:
Laundry operating
expenses 271.2 262.6 91.9 88.6
General and
administrative expenses 6.5 6.6 2.3 2.4
Depreciation
and amortization 96.6 95.8 31.6 32.1
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374.3 365.0 125.8 123.1
Operating income 28.6 27.7 10.0 7.3
Interest expense, net 50.5 51.3 16.5 17.7
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Loss before income taxes (21.9) (23.6) (6.5) (10.4)
(Benefit) from income taxes (4.4) (5.9) (1.2) (3.8)
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Net loss ($17.5) ($17.7) ($5.3) ($6.6)
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EBITDA $125.2 $123.5 $41.6 $39.4
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(1) The nine month period ended December 31, 2000 is comprised of
the period April 1, 2000 through June 30, 2000 (representing the
results prior to the going private transaction) and the period July 1,
2000 through December 31, 2000 (representing the results subsequent to
the going private transaction).
Selected Balance Sheet data is as follows (dollars in millions):
As of As of
December 31, 2001 March 31, 2001
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Cash and cash equivalents $27.1 $25.9
Property and equipment, net 283.8 276.0
Contract rights, net 357.5 376.8
Total assets 986.5 1,014.1
Total debt (1) 704.1 698.0
Stockholder's equity 70.8 91.8
(1) Excludes premium paid in October 1997 on the 11 3/4% Senior Notes.
The following table sets forth the Company's revenues for the
periods indicated (dollars in millions):
Nine Months ended December 31, Quarter ended December 31,
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2001 2000 Diff 2001 2000 Diff
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Route $ 359.4 $ 352.5 $ 6.9 $ 120.6 $ 119.7 $ 0.9
Distribution 27.0 26.9 0.1 9.5 5.9 3.6
Rental 16.5 13.3 3.2 5.7 4.8 0.9
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$ 402.9 $ 392.7 $ 10.2 $ 135.8 $ 130.4 $ 5.4
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Revenue increased by approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $10.2 million or 3% for the nine months ended December 31, 2001, as compared to the prior year's corresponding period. Revenue increased by approximately $5.4 million or 4% for the quarter ended December 31, 2001, as compared to the prior year's corresponding period. Route revenue for the nine months ended December 31, 2001 increased by approximately $6.9 million or 2% over the prior year's corresponding period. Route revenue for the quarter ended December 31, 2001 increased by approximately $0.9 million or 1% over the prior year's corresponding period. Management believes that the improvements in route revenue for the current periods are primarily the result of (i) increased revenue from the existing machine base due primarily to price changes and additional machine installations, (ii) the timing of price changes and internal growth in machine count during the prior and current year and (iii) greater same store revenues due primarily to pricing strategies There are many ways in which the price of a product can be determined. The following are the foremost strategies that businesses are likely to use. Competition-based pricing Setting the price based upon prices of the similar competitor products. implemented to address increased competition. Distribution revenue for the nine months ended December 31, 2001 increased by approximately $0.1 million or less than 1% from the prior year's corresponding period. Distribution revenue for the quarter ended December 31, 2001 increased by approximately $3.6 million or 61% over the prior year's corresponding period. The increase during the current quarter was primarily the result of an increase in sales from certain large retail laundromat (jargon, storage) laundromat - Synonym disk farm; see washing machine. customers. In addition, distribution sales are sensitive to general market and economic conditions and as a result have experienced fluctuations during such periods. Rental RENTAL. A roll or list of the rents of an estate containing the description of the lands let, the names of the tenants, and other particulars connected with such estate. This is the same as rent roll, from which it is said to be corrupted. revenue for the nine months ended December 31, 2001 increased by approximately $3.2 million or 24% over the prior year's corresponding period. Rental revenue for the quarter ended December 31, 2001 increased by approximately $0.9 million or 19% over the prior year's corresponding period. The increases in rental revenue were primarily the result of the internal growth of the machine base in existing areas of operations and expansion into new territories. Laundry operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. increased by approximately $8.6 million or 3% for the nine months ended December 31, 2001, as compared to the prior year's corresponding period. Laundry operating expenses increased by approximately $3.3 million or 4% for the quarter ended December 31, 2001, as compared to the prior year's corresponding period. The increases in laundry operating expenses were due primarily to (i) an increase in commission expense related to increased route revenue, (ii) costs associated with the expansion into new rental and distribution markets in the rental and distribution businesses, (iii) increased utility costs relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the operation of retail laundromats and (iv) an increase in cost of sales resulting from increased sales in the distribution business. As a percentage of revenues, laundry operating expenses were approximately 67% for both of the nine month periods ended December 31, 2001 and 2000. As a percentage of revenues, laundry operating expenses were approximately 68% for both of the three month periods ended December 31, 2001 and 2000. General and administrative expenses decreased by approximately 2% for the nine months ended December 31, 2001, as compared to the prior year's corresponding period. General and administrative expenses decreased by approximately 4% for the quarter ended December 31, 2001, as compared to the prior year's corresponding period. The decreases in general and administrative expenses were primarily due to a slight reduction in various costs relating to accounting, management information systems and other administrative functions. As a percentage of revenues, general and administrative expenses were approximately 1.6% and 1.7% for the nine months ended December 31, 2001 and 2000, respectively. As a percentage of revenues, general and administrative expenses were approximately 1.7% and 1.8% for the three months ended December 31, 2001 and 2000, respectively.
The following table sets forth the Company's EBITDA for the
periods indicated (dollars in millions):
Nine Months ended December 31, Quarter ended December 31,
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2001 2000 Diff 2001 2000 Diff
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Route $ 125.0 $ 123.7 $ 1.3 $ 41.2 $ 40.3 $ 0.9
Distribution 0.4 1.2 (0.8) 0.3 (0.4) 0.7
Rental 6.3 5.2 1.1 2.4 1.9 0.5
G&A (6.5) (6.6) 0.1 (2.3) (2.4) 0.1
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$ 125.2 $ 123.5 $ 1.7 $ 41.6 $ 39.4 $ 2.2
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EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become represents earnings from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the before deductions for interest, income taxes, depreciation and amortization and is used by certain investors as an indication of a company's 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. . However, EBITDA is not intended to represent cash flows for the period, nor has it been presented as an alternative to either (a) 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 determined by GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ) as an indicator Indicator Anything used to predict future financial or economic trends. Notes: In the context of technical analysis, an indicator is a mathematical calculation based on a securities price and/or volume. The result is used to predict future prices. of operating performance or (b) cash flows from operating, investing and financing activities (as determined by GAAP) as a measure of liquidity. Given that EBITDA is not a measurement 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 GAAP and is thus susceptible susceptible /sus·cep·ti·ble/ (su-sep´ti-b'l) 1. readily affected or acted upon. 2. lacking immunity or resistance and thus at risk of infection. sus·cep·ti·ble adj. to varying calculations, EBITDA as presented may not be comparable to other similarly titled measures of other companies. EBITDA was approximately $125.2 million for the nine months ended December 31, 2001, as compared to approximately $123.5 million for the prior year's corresponding period, representing an increase of approximately 1%. EBITDA was approximately $41.6 million for the quarter ended December 31, 2001, as compared to approximately $39.4 million for the prior year's corresponding period, representing an increase of approximately 6%. The increases were primarily the result of increased revenues in the route and rental businesses offset partially by increased operating expenses. EBITDA margins were approximately 31.1% for the nine months ended December 31, 2001, as compared to approximately 31.4% for the prior year's corresponding period. At December 31, 2001, the Company had outstanding 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. (excluding the unamortized premium of approximately $4.6 million) of approximately $704.1 million, which included $296.7 million of 11 3/4% Senior Notes due 2005 and $399.9 million of borrowings under its senior credit facility. The Company makes significant capital investments in the ordinary course of its business. The following table sets forth such investments (excluding acquisition of assets Acquisition of assets A merger or consolidation in which an acquirer purchases the selling firm's assets. and payments for capital lease obligations) for the periods indicated (dollars in millions):
Nine Months ended December 31, Quarter ended December 31,
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2001 2000 Diff 2001 2000 Diff
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Route $ 55.0 $ 58.3 $ (3.3) $ 19.3 $ 18.0 $ 1.3
Distribution - 0.2 (0.2) - - -
Rental 5.8 7.8 (2.0) 1.2 1.7 (0.5)
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$ 60.8 $ 66.3 $ (5.5) $ 20.5 $ 19.7 $ 0.8
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Capital expenditures consist of expenditures (i) on the Company's installed machine base and (ii) for other general corporate purposes. Capital expenditures for the nine months ended December 31, 2001 were approximately $60.8 million (excluding approximately $2.7 million relating to the acquisition of two small owner-operated routes and payments of approximately $2.7 million relating to capital lease obligations). The primary components of the Company's capital expenditures are (i) machine expenditures, (ii) advance location payments, and (iii) laundry room A laundry room (also called a utility room) is a room where clothes are washed. In a modern home, a laundry room would be equipped with an automatic washing machine and clothes dryer,and often a large basin, called a laundry tub, for hand-washing delicate articles of clothing such improvements. The net growth in the installed base of machines for the route business was approximately 4,500 for the nine months ended December 31, 2001. The net growth in the rental business machine base was approximately 14,100 for the nine months ended December 31, 2001. The full impact on revenues and cash flow generated from capital expended ex·pend tr.v. ex·pend·ed, ex·pend·ing, ex·pends 1. To lay out; spend: expending tax revenues on government operations. See Synonyms at spend. 2. on the net increase in the installed machine base are not expected to be reflected in the Company's financial results until subsequent reporting periods, depending on certain factors, including the timing of the capital expended. Capital expenditures are not necessarily incurred evenly throughout the year, and current year to date amounts may not be indicative indicative: see mood. of the anticipated annual capital expenditures. The Company anticipates that it will continue to utilize cash flows from operations to finance its capital expenditures and working capital needs, including interest payments on its outstanding 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. . Coinmach is the leading supplier of outsourced laundry equipment services for multi-family housing properties in North America. Coinmach's core business involves leasing laundry rooms from building owners and property management companies, installing and servicing laundry equipment, collecting revenues generated from laundry machines, and operating retail laundromats. At December 31, 2001, Coinmach, through its route and rental businesses, owned and operated approximately 835,000 washers and dryers in approximately 80,000 locations throughout North America. Certain statements contained in this press release reflect the Company's current expectations with respect to the future performance of the Company and may constitute "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. " within the meaning of the federal securities laws. These statements and the Company's business and prospects are subject to a variety of uncertainties, unknown risks and other factors that are difficult to predict, are beyond the control of the Company and rely upon assumptions that may prove to be inaccurate. Such factors could cause actual results to differ materially from those matters 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. , including, but not limited to, the ability of the Company to obtain capital on acceptable terms; adverse effects of the changing industry environment and increased competition; negative effects of the Company's substantial indebtedness and limitations imposed by restrictive covenants Restrictive covenants Provisions that place constraints on the operations of borrowers, such as restrictions on working capital, fixed assets, future borrowing, and payment of dividends. contained in the Company's debt instruments. These and other risk factors are described in the Company's Securities and Exchange Commission reports, including but not limited to its 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 fiscal year ended March 31, 2001 and its quarterly reports on Form 10-Q Form 10-Q See 10-Q. for the fiscal quarters ended June June: see month. 30, 2001 and September September: see month. 30, 2001. The Company undertakes no obligation to update forward-looking statements to reflect developments or information obtained after the date of such statements. |
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