RIPON, Wis. — Alliance Laundry Holdings LLC has announced results for its second quarter, which ended June 30, 2008.
Net revenues for the quarter increased $5.5 million, or 4.7%, to $122.4 million from $116.9 million for the quarter ended June 30, 2007. The company’s net income for the quarter ended June 30, 2008, was $4.4 million compared to $2.7 million for the quarter ended June 30, 2007. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter ended June 30, 2008, increased $2.7 million to $20.5 million from $17.8 million for the quarter ended June 30, 2007.
The overall net revenue increase of $5.5 million was attributable to higher commercial laundry revenues of $5.7 million and higher European operations revenue of $1.8 million, partially offset by higher worldwide sales eliminations of $2.1 million, Alliance says. The increase in commercial laundry revenues includes $1.7 million of higher North American commercial equipment revenue and $4.9 million of higher international revenue, which were partially offset by $1.2 million of lower earnings from the company’s off-balance sheet equipment financing program.
Included in net income for the quarter ended June 30, 2008, was $1.9 million of non-cash incentive compensation related to the company’s stock option program. Included in the second quarter of 2007 was a similar expense of $0.8 million. Gross profit as a percentage of net revenues increased to 25% for the quarter ended June 30, 2008, from 24.6% for the quarter ended June 30, 2007, driven by higher sales volume and selling prices, partially offset by higher raw material and product distribution costs.
Net revenues for the six months ended June 30, 2008, increased $18.9 million, or 8.8%, to $232.4 million from $213.5 million for the six months ended June 30, 2007. Alliance’s net income for the six months ended June 30, 2008, was $6.3 million compared to $4.2 million for the six months ended June 30, 2007. Adjusted EBITDA for the six months ended June 30, 2008, increased $4.7 million to $38.2 million from $33.5 for the six months ended June 30, 2007.
“We are extremely pleased with our top-line and bottom-line performance for the quarter and six months, particularly given the difficult economic conditions in both the U.S. and Western Europe,” says Thomas F. L’Esperance, chief executive officer. “We introduced a broad-based price increase in the third quarter of 2008 to address the continued rise in steel and other commodity costs. ... Despite the recent increase in material costs, we believe Alliance is positioned for a strong finish in 2008.”
Alliance Laundry Holdings is the parent company of Alliance Laundry Systems, designer, manufacturer and marketer in North America of commercial laundry equipment under the brand names of Speed Queen, UniMac, Huebsch, IPSO and Cissell.