RIPON, Wis. — Alliance Laundry Holdings LLC is reporting increased revenue and income for the year ended Dec. 31, 2008.
Net revenues for full-year 2008 increased $17 million, or 3.8%, to $460.3 million from $443.3 million for 2007. Net income for 2008 was $15.5 million compared to $9.9 million for 2007. Adjusted EBITDA for 2008 increased $3.5 million to $72 million from $68.5 million for 2007.
“We are very proud to announce both record revenues and earnings for Alliance, particularly in light of the extremely weak global economy,” says Thomas F. L’Esperance, chief executive officer. “As well, as a result of our control over capital spending and working capital, we reduced our funded debt by $30.6 million, reflecting the outstanding ability of our business to generate free cash flow.”
Alliance attributed the $17 million overall net revenue increase to $20.5 million of higher commercial laundry revenues, $3.4 million of higher consumer laundry revenue and $0.8 million of higher service parts revenue, partially offset by $5.7 million of lower sales from the company’s European operations and higher worldwide sales eliminations of $2 million.
The overall net income increase of $5.6 million was primarily attributable to higher gross profit of $7.9 million, lower interest expense of $4 million and a lower provision for income taxes of $0.4 million, partially offset by higher selling, general and administrative expense of $3.3 million and higher securitization, impairment and other costs of $3.4 million.
“We experienced a drop in global demand for our products during the fourth quarter of 2008, and we do not expect market conditions to improve in the near term,” says L’Esperance. “In anticipation of this continuing environment, we immediately took steps to reduce both our workforce and spending. Overall, we are confident that our strong market position, continued focus on our strategic priorities and our ability to further reduce costs will enable Alliance to manage the current economic challenges while maintaining our commitment to long-term profitable growth.”