Alliance Laundry Holdings LLC Reports 3rd Quarter 2007 Earnings

Business Wire, Nov 15, 2007

RIPON, Wis. -- Alliance Laundry Holdings LLC announced today results for the three and nine months ended September 30, 2007.

Net revenues for the quarter ended September 30, 2007 increased $18.3 million, or 19.2%, to $113.4 million from $95.1 million for the quarter ended September 30, 2006. Our net income for the quarter ended September 30, 2007 was $1.2 million as compared to a net loss of $4.0 million for the quarter ended September 30, 2006. Adjusted EBITDA (see "About Non-GAAP Financial Measures" below) for the quarter ended September 30, 2007 increased $1.3 million to $16.4 million from $15.1 million for the quarter ended September 30, 2006.

The overall net revenue increase of $18.3 million was attributable to higher commercial laundry revenues of $14.4 million, higher consumer laundry revenue of $0.3 million, higher service parts revenue of $0.5 million, higher CLD Acquisition related sales of $1.9 million from European operations and lower worldwide sales eliminations of $1.2 million.

Net revenues for the nine months ended September 30, 2007 increased $73.4 million, or 28.9%, to $326.9 million from $253.5 million for the nine months ended September 30, 2006. Our net income for the nine months ended September 30, 2007 was $5.4 million as compared to a net loss of $7.3 million for the nine months ended September 30, 2006. Adjusted EBITDA (see "About Non-GAAP Financial Measures" below) for the twelve month period ended September 30, 2007 was $66.8 million.

In announcing the Company's results, CEO Thomas F. L'Esperance said, "We are extremely pleased with our top line performance for the quarter and nine months. Although results have been adversely affected by significantly higher material costs, our third quarter earnings reflected significant improvement from increased sales in our base business revenue for North America and continued strong performance for international sales and CLD Europe."

L'Esperance concluded, "Based on progress to date, we anticipate that our operational strategies and modest improvements in material costs in the U.S. will position us for a strong finish in 2007."

About 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 and Adjusted EBITDA, which are non-GAAP measures. We have presented EBITDA and Adjusted EBITDA because certain covenants in our Senior Credit Facility are tied to ratios based on these measures. "EBITDA" represents net income (loss) before interest expense, income tax (provision) benefit and depreciation and amortization, and "Adjusted EBITDA" (as defined under the Senior Credit Facility) is EBITDA as further adjusted to exclude, among other things, certain non-recurring expenses and other non-recurring non-cash charges. EBITDA and Adjusted EBITDA do not represent, and should not be considered, an alternative to net income or cash flow from operations, as determined by GAAP, and our calculations thereof may not be comparable to similarly entitled measures reported by other companies. Our Senior Credit Facility requires us to satisfy specified financial ratios and tests, including a maximum of total debt to Adjusted EBITDA and a minimum Adjusted EBITDA to cash interest expense. To the extent that we fail to maintain either of these ratios within the limits set forth in the Senior Credit Facility, our ability to access amounts available under our Revolving Credit Facility would be limited, our liquidity would be adversely affected and our obligations under the Senior Credit Facility could be accelerated. In addition, any such acceleration would constitute an event of default under the indenture governing the Senior Subordinated Notes (the "Notes Indenture"), and such an event of default under the Notes Indenture could lead to an acceleration of our obligations under the Senior Subordinated Notes. A reconciliation of EBITDA and Adjusted EBITDA with the most directly comparable GAAP measure is included below for the three and nine months ended September 30, 2007 along with the components of EBITDA and Adjusted EBITDA.

About Alliance Laundry Holdings LLC

Alliance Laundry Holdings LLC is the parent company of Alliance Laundry Systems LLC (www.comlaundry.com), a leading designer, manufacturer and marketer in North America of commercial laundry equipment used in laundromats, multi-housing laundries and on-premise laundries. Under the well-known brand names of Speed Queen([R]), UniMac([R]), Huebsch([R]), IPSO([R]), and Cissell([R]), we produce a full line of commercial washing machines and dryers with load capacities from 12 to 200 pounds. We have been a leader in the North American stand-alone commercial laundry equipment industry for more than ten years. With the addition of our European operations and Alliance Laundry's export sales to Europe, we believe that we are also a leader in the European stand-alone commercial laundry equipment industry.

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