RIPON, Wis. — Alliance Laundry Holdings LLC is reporting decreased revenue for the first quarter, which ended March 31, 2009.
Net revenues for the quarter decreased $13.5 million, or 12.3%, to $96.4 million from $109.9 million in the same period last year. Net income for this quarter increased $0.4 million to $2.3 million from $1.9 million in the same period last year. Adjusted EBITDA for the quarter ended March 31, 2009 was $13.5 million compared to $17.7 million for the quarter ended March 31, 2008.
The overall net revenue decrease of $13.5 million included $2.2 million related to foreign exchange translation. Excluding this, the company’s first-quarter net revenues declined approximately 10.3%. The $13.5 million decrease was primarily attributable to a 7.5% decrease in United States and Canada revenues of $5.6 million, a decrease in Europe revenues of $6.1 million, which includes the unfavorable foreign exchange translation, and a decrease in Latin America revenues of $1.9 million.
“Given the current state of global economic conditions, our top- and bottom-line performance for the quarter [was] in line with our expectations,” says Thomas F. L’Esperance, chief executive officer. “Europe and Latin America continue to be a challenge versus our projections, but our U.S. and Canada net revenues are where we expected them to be.”
The overall net income increase of $0.4 million for this quarter was primarily attributable to lower selling, general and administrative expense of $4.8 million; lower interest expense of $4.4 million; and lower provision for income taxes of $0.3 million, partially offset by lower gross profit of $9.2 million.
“We have adjusted our cost structure to the current demand environment,” says L’Esperance. “We expect a strong earnings performance for the balance of 2009 as our lower costs of operation read through. Our 2009 priorities remain unchanged; we will continue to focus on our customer one initiatives and will continue to grow our presence outside of the U.S. and Canada.”
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