RIPON, Wis. — Alliance Laundry Holdings LLC reported an increase in revenues for the third quarter of 2008, which ended Sept. 30.
Net revenues for the quarter ending Sept. 30, 2008, increased $4.2 million, or 3.7%, to $117.6 million from $113.4 million for the quarter ending Sept. 30, 2007. The company’s net income for the quarter ending Sept. 30, 2008, was $4.2 million as compared to $1.2 million for the quarter ending Sept. 30, 2007. Adjusted EBITDA for the quarter ending Sept. 30, 2008, increased $2.7 million to $19.1 million from $16.4 million for the quarter ending Sept. 30, 2007.
Alliance Laundry Holdings attributes the overall net revenue increase of $4.2 million primarily to higher commercial laundry revenues of $3.2 million, higher service parts revenues of $0.7 million and higher consumer laundry revenues of $1.0 million, partially offset by higher worldwide sales eliminations of $0.6 million.
The increase in commercial laundry revenues included $0.9 million of higher North American commercial equipment revenue and $3.3 million of higher international revenue, which were partially offset by $0.8 million of lower earnings from the company’s off-balance sheet equipment financing program.
Alliance Laundry Holdings attributes the overall net income increase of $3 million for the quarter ending Sept. 30, 2008, primarily to higher gross profit of $1.2 million, lower selling, general and administrative expense of $2.1 million, and a lower interest expense of $2.4 million, partially offset by a higher provision for income taxes of $2.8 million.
Net revenues for the nine months ending Sept. 30, 2008, increased $23.1 million, or 7.1%, to $350 million from $326.9 million for the nine months ending Sept. 30, 2007. The company’s net income for the nine months ending Sept. 30, 2008, was $10.5 million compared to $5.4 million for the nine months ending Sept. 30, 2007. Adjusted EBITDA for the nine months ending Sept. 30, 2008, increased $7.4 million to $57.3 million for the nine months ending Sept. 30, 2007.
“We are extremely pleased with our top- and bottom-line performance for the quarter and nine months, particularly given the turbulence in the global financial markets and the difficult economic conditions we face in both the U.S. and Europe,” says Thomas F. L’Esperance, chief executive officer.
“We have seen a drop in demand in North America and Europe during the third quarter, and we do not expect market conditions to improve in the near term,” he adds. “In anticipation of this continuing environment, we have already taken steps to reduce our work force and reduce spending accordingly. Overall, we are confident that our strong market position, continued focus on our strategic priorities and our ability to control costs should enable Alliance to manage the current economic challenges while maintaining our commitment to long-term profitable growth.”
Have a question or comment? E-mail our editor Dave Davis at [email protected].