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Alliance Laundry Holdings Reports 1st Quarter Revenue Drop

Jason Hicks |

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.”
 

About the author

Jason Hicks

American Drycleaner

Jason Hicks was assistant editor for American Trade Magazines, which publishes American Coin-Op, American Drycleaner and American Laundry News, for more than nine years, and web editor for three years.

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