Alliance Laundry Holdings LLC Reports 1st Quarter 2004 Earnings

Business Wire, May 7, 2004

Business Editors

RIPON, Wis.--(BUSINESS WIRE)--May 7, 2004

Alliance Laundry Holdings LLC announced today results for the quarter ended March 31, 2004.

Net revenues for the quarter ended March 31, 2004 increased $5.2 million, or 8.5%, to $66.3 million compared to $61.1 million for the quarter ended March 31, 2003. Net income for the first quarter of 2004 increased $3.0 million to $4.2 million as compared to $1.2 million for the same period in 2003. Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)(a) for the first quarter of 2004 was $13.5 million compared with EBITDA of $11.2 million for the first quarter of 2003.

The overall net revenue increase of $5.2 million was primarily attributable to higher commercial laundry revenue of $5.0 million and service parts revenue of $0.2 million. The increase in net income of $3.0 million for the first quarter of 2004 was primarily attributable to higher gross profit of $3.7 and lower interest expense of $0.6 million partially offset by higher sales and marketing expenses of $0.4 million and $0.7 million of costs incurred in the first quarter of 2004 related to a proposed initial public offering of Income Deposit Securities.

In announcing the Company's results today, Chairman and CEO Thomas F. L'Esperance said, "We are extremely pleased with our year over year top line revenue growth of 8.5% for the first quarter of 2004. Leading the way for the quarter was higher international equipment revenue of $2.7 million and higher North American equipment revenue of $1.3 million."

"During the first quarter of 2004 we have paid down $5.1 million on long-term debt. We will continue to focus on strong top line performance in 2004 to help offset higher medical and material costs," said L'Esperance.

Alliance Laundry Holdings LLC, headquartered in Ripon, Wisconsin, is a leading manufacturer of commercial laundry products and provider of services for laundromats, multi-housing laundries, on-premise laundries and drycleaners worldwide. The Company offers a full line of washers and dryers for light commercial use as well as large frontloading washers, heavy duty tumbler dryers, and presses and finishing equipment for heavy commercial use. The Company's products are sold under four well known brand names: Speed Queen, UniMac, Huebsch and Ajax.

(a) Non-GAAP Financial Measures

In addition to disclosing financial results that are determined in accordance with generally accepted accounting principles (GAAP), we also disclose EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization), which is a non-GAAP measure. We believe that EBITDA is useful as a means to evaluate our ability to service existing debt, to sustain potential future increases in debt and to satisfy capital requirements. EBITDA, adjusted for certain non-cash items and as defined in our Senior Credit Facility, is also used to determine our compliance with key financial covenants under our Senior Credit Facility, which among other things, impacts the amount of indebtedness we are permitted to incur. Our use of EBITDA, however, should not be considered an alternative to measures of operating performance as determined in accordance with GAAP, including net income as a measure of our operating results and cash flows as a measure of our liquidity. Other companies may define EBITDA differently. A reconciliation of EBITDA to net income is provided under the heading Selected Financial Data of this press release.

Safe Harbor for Forward-Looking Statements

With the exception of the reported actual results, this press release contains predictions, estimates and other forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended, including, without limitation, statements that include the words "continue" and "strong" or similar expressions and statements relating to growth or performance objectives. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the Company to differ materially from those expressed or implied by such forward-looking statements. Although the Company believes that its plans, intentions and expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that such plans, intentions, expectations, objectives or goals will be achieved. Important factors that could cause actual results to differ materially from those included in the forward-looking statements include: impact of competition; continued sales to key customers; possible fluctuations in the cost of raw materials and components; possible fluctuations in currency exchange rates, which affect the competitiveness of the Company's products abroad; market acceptance of new and enhanced versions of the Company's products; the impact of substantial leverage and debt service on the Company and other risks listed from time to time in the Company's reports, including, but not limited to the Company's most recent Annual Report on Form 10-K for the year ended December 31, 2003.