News Column

Alliance Laundry Holdings LLC Reports Record Second Quarter Results

August 26, 2014



By a News Reporter-Staff News Editor at China Business Newsweekly -- Alliance Laundry Holdings LLC announced results for the three and six months ended June 30, 2014.

Net revenues for the quarter ended June 30, 2014 increased $44.4 million, or 31.2%, to $186.8 million from $142.4 million for the quarter ended June 30, 2013. Excluding the impact of the Primus Laundry Equipment Group acquisition, net revenues increased 9.9% for the second quarter 2014. Our net income for the quarter ended June 30, 2014 decreased $3.6 million to $6.4 million from $10.0 million for the quarter ended June 30, 2013. Adjusted EBITDA (see "About Non-GAAP Financial Measures" below) for the quarter ended June 30, 2014 increased $12.2 million to $41.2 million from $29.0 million for the quarter ended June 30, 2013. Excluding the impact of the Primus Laundry Equipment Group acquisition, Adjusted EBITDA for the second quarter 2014 increased $3.5 million, or 11.9%, to $32.5 million.

The net revenues increase of $44.4 million was attributable to increases in United States & Canada revenues of $12.6 million, Europe revenues of $21.2 million, Latin America revenues of $0.5 million, Asia revenues of $5.1 million and Middle East & Africa revenues of $5.0 million. These increases represent percentage growth by segment for United States & Canada revenues of 12.2%, Europe revenues of 137.4%, Latin America revenues of 11.7%, Asia revenues of 41.9% and Middle East & Africa revenues of 81.0%.

The net income decrease of $3.6 million was attributable to higher selling, general and administrative expenses of $10.3 million, higher restructuring and other costs of $9.9 million and higher interest expense of $2.6 million, partially offset by higher gross profit of $17.3 million and lower provision for income taxes of $1.9 million.

Net revenues for the six months ended June 30, 2014 increased $66.5 million, or 25.1%, to $331.5 million from $265.0 million for the six months ended June 30, 2013. Excluding the impact of the Primus Laundry Equipment Group acquisition, net revenues increased 9.3% for the six months ended June 30, 2014. Our net income for the six months ended June 30, 2014 decreased $2.7 million to $12.0 million from $14.7 million for the six months ended June 30, 2013. Adjusted EBITDA for the six months ended June 30, 2014 increased $21.7 million to $73.1 million from $51.4 million for the six months ended June 30, 2013. Excluding the impact of the Primus Laundry Equipment Group acquisition, Adjusted EBITDA for the six months ended June 30, 2014 increased $5.7 million, or 11.0%, to $57.0 million.

The net revenues increase of $66.5 million was attributable to increases in United States & Canada revenues of $21.9 million, Europe revenues of $30.2 million, Latin America revenues of $2.4 million, Asia revenues of $5.5 million and Middle East & Africa revenues of $6.5 million. These increases represent percentage growth by segment for United States & Canada revenues of 11.6%, Europe revenues of 104.9%, Latin America revenues of 26.1%, Asia revenues of 21.7% and Middle East & Africa revenues of 53.8%.

Michael D. Schoeb, President & CEO, commented, "Our revitalized product portfolio and improved branding drove significant growth in our core commercial product revenues in U.S. & Canada. The addition of the Primus Group in March aided our growth in all geographic regions, led by Europe at 137%. Excluding the impact of the Primus acquisition, organic growth was 9.9% for the second quarter."

Schoeb concluded, "We had a very good second quarter with revenues and operating margins, excluding restructuring charges, hitting all time record levels. The Alliance team continues strong execution on our strategic initiatives, including the integration of the Primus Group. As a result, we have increased confidence in our ability to achieve our 2014 and five-year performance goals." 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 Amended December 2012 Credit Facilities are tied to a ratio based on these measures. EBITDA represents net income before interest expense, income tax provision, depreciation and amortization (including non-cash interest income). Adjusted EBITDA, as defined in our Amended December 2012 Credit Facilities, is EBITDA as further adjusted to exclude, among other things, certain non-recurring expenses or income and other non-recurring non-cash charges which are further defined therein. 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.

Keywords for this news article include: Asia, China, Alliance Laundry Holdings LLC.

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Source: China Business Newsweekly


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