Coinmach Laundry announces second fiscal quarter results; EBITDA from operations increases 22%.ROSLYN Roslyn Roslyn may refer to: In places:
Before industrialization Corporation (NASDAQ/NMS:WDRY) is pleased to announce its results for the second fiscal quarter ended Sept. 27, 1996, showing a 22% increase in 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 from operations over the prior year's corresponding period. EBITDA from operations for the six month period increased by 17%. These results underscore The underscore character (_) is often used to make file, field and variable names more readable when blank spaces are not allowed. For example, NOVEL_1A.DOC, FIRST_NAME and Start_Routine. (character) underscore - _, ASCII 95. the effects of the following: - An increased machine base resulting from acquisitions and internal growth of approximately 28,000 machines as compared to a loss of 2,600 machines in the prior year's corresponding period. - A continuation in the improvement in EBITDA operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: above the 30% targeted goal and substantially above the 27% level achieved in the prior year's corresponding period. - A realization of cost savings from the reorganization and integration of the Solon Solon, Athenian statesman Solon (sō`lən), c.639–c.559 B.C., Athenian statesman, lawgiver, and reformer. He was also a poet, and some of his patriotic verse in the Ionic dialect is extant. At some time (perhaps c.600 B.C. and Allied Laundry acquisitions. Revenues grew 8% and 5% for the quarter and six month period ended Sept. 27, 1996, respectively, compared to the prior year's corresponding periods, primarily resulting from the successful execution of the company's acquisition and internal growth strategies. During the quarter ended Sept. 27, 1996, the company installed approximately 2,000 machines for new customers, the second consecutive quarter of internal expansion in contrast to its predecessor companies which had not grown in many years. For the six months ended Sept. 27, 1996, the company installed approximately 3,800 machines for new customers and acquired approximately 24,000 machines principally through the acquisition of Allied Laundry, located in the Midwest. Additionally, for the six months ended Sept. 27, 1996, the company's machine attrition rate Noun 1. attrition rate - the rate of shrinkage in size or number rate of attrition rate - a magnitude or frequency relative to a time unit; "they traveled at a rate of 55 miles per hour"; "the rate of change was faster than expected" fell to below 4% as compared to 5.6% for the same period during 1995. As a result, for the six months ended Sept. 27, 1996, the company's net machine base increased approximately 28,000 machines, or 13% over the same period in 1995. EBITDA from operations grew to $14.4 million from $11.8 million for the quarter ended Sept. 27, 1996, and grew to $28.7 million from $24.5 million for the six months then ended, representing increases of 22% and 17%, respectively. EBITDA margins improved to 31% and 30%, respectively, for the quarter and six months ended Sept. 27, 1996, as compared to 27% for each of the prior year's corresponding periods. EBITDA grew to $12.9 million from $9.6 million for the quarter ended Sept. 27, 1996, and grew to $27.3 million from $22.3 million for the six months then ended representing increases of 35% and 22%, respectively. The current quarter contains a non-operating non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. of approximately $1.5 million related to stock and options issued in conjunction with the company's recent initial public offering. The corresponding quarter and six month period in 1995 contain a $2.2 million restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. related to the consolidation of the corporate offices of Solon and Coinmach in 1995. During the first six months of the current fiscal year, the company spent approximately $35.1 million for capital expenditures, of which management estimates approximately $21.9 million was for growth in the machine base (including acquisitions), with the balance used for maintaining the installed base. The company is also pleased to announce that it has recently entered into a long term strategic alliance with Lexford Properties, Inc., a multi-regional property management company, to provide laundry equipment services to substantially all of its properties. The contract covers over 3,000 machines and is expected to increase the company's machine base by approximately 1,800 machines over the next four months. The company presently services approximately 1,200 machines for Lexford. Stephen R. Kerrigan, the company's 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. , said, "These quarterly results demonstrate the continued success of our operating strategy as we grow toward becoming the nation's leading supplier of laundry equipment services to the multi-family housing industry. During this quarter, we have continued our dramatic turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. , especially with regard to the former Solon operations which had experienced several years of losses. We have continued our impressive margin improvement to a record 31% for the most recent quarter reflecting, in part, the effective integration of both the Solon and Allied acquisitions. Our acquisition pipeline and growth opportunities remain excellent, and we expect to enjoy continued growth over the remaining six months of our fiscal year." Coinmach Laundry Corporation is a leading provider of coin-operated laundry equipment services for multi-family properties. The company owns and operates approximately 247,000 coin-operated washers and dryers on routes in over 26,000 locations in 28 states and the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). . The company is also a distributor of laundromat equipment and turnkey See turnkey system. laundromat stores. EBITDA (earnings before deductions for interest, income taxes, depreciation and amortization) is used by management and certain investors as an indicator of a company's ability to service debt. CONTACT: Coinmach Laundry Corporation, Robert M. Doyle, 516/484-2300 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion