RIPON, Wis. — Net revenues for Alliance Laundry Holdings LLC, the parent company of Alliance Laundry Systems, were $128.9 million for the quarter ended June 30, a 9.4% increase from second-quarter 2011.
Second-quarter net income was $6.0 million, compared to $5.8 million for second-quarter 2011, a 4.5% increase. Adjusted EBITDA was $24.4 million compared to $21.5 million the previous year.
The overall net-revenue increase of $11.0 million was attributable to revenue increases in the United States and Canada ($8.5 million), Asia ($2.9 million), Latin America ($0.9 million) and the Middle East and Africa ($0.6 million). These increases were partially offset by a decline in Europe revenues of $1.9 million.
The overall net-income increase of $0.2 million for the second quarter was primarily attributable to improved operating income of $2.1 million, a decrease in interest expense of $3.8 million and a decrease in provision for income taxes of $0.6 million. Early extinguishment of $6.2 million in debt partially offset the gains.
Net revenues for the six months ended June 30 increased $24.0 million, or 10.8%, to $246.1 million compared to the first half of 2011. Net income for the period increased 9.3%, to $11.5 million.
“We are pleased to report a record quarter driven by strong organic growth in North America, Latin America, and Middle East and Asia,” says CEO and President Michael Schoeb. “Our diverse operations delivered record revenues and EBITDA despite continued headwinds in Europe, the negative impact of foreign currency, and higher raw material and distribution costs.”
Second-quarter results continue to demonstrate Alliance’s progress in executing strategies with an intensified effort on new product development, according to Schoeb.
Alliance recently completed a refinancing of its senior credit facilities, which dramatically reduces interest expense over the term of the new agreement. “This new credit agreement improves our financial position and provides the flexibility to invest in additional capacity and innovative new products, which positions the business for long-term growth,” Schoeb says.
Alliance Laundry Systems designs, manufactures and markets commercial laundry equipment under the brand names of Speed Queen, UniMac, Huebsch, IPSO and Cissell.
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