Alliance Laundry Holdings LLC Reports 1st Quarter 2009 Earnings

RIPON, Wis.--(Business Wire)--
Alliance Laundry Holdings LLC announced today results for the three months ended
March 31, 2009.

Net revenues for the quarter ended March 31, 2009 decreased $13.5 million, or
12.3%, to $96.4 million from $109.9 million for the quarter ended March 31,
2008. Our net income for the quarter ended March 31, 2009 increased $0.4 million
to $2.3 million from $1.9 million for the quarter ended March 31, 2008. Adjusted
EBITDA (see "About Non-GAAP Financial Measures" below) for the quarter ended
March 31, 2009 was $13.5 million as 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 the impact of foreign exchange
translation, 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.

The overall net income increase of $0.4 million for the quarter ended March 31,
2009 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.

In announcing the Company`s results, CEO Thomas F. L`Esperance said, "Given the
current state of global economic conditions, our top and bottom line performance
for the quarter were in line with our expectations. 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."

L`Esperance concluded, "We have adjusted our cost structure to the current
demand environment. 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 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 before
interest expense, income tax provision 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 months ended March 31, 2009 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®, UniMac®, Huebsch®, IPSO®, and Cissell®, 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.

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. Such forward-looking statements involve
known and unknown risks, uncertainties and other factors that may cause actual
results, performance or achievements of our business to differ materially from
those expressed or implied by such forward-looking statements. Although we
believe that our plans, intentions and expectations reflected in such
forward-looking statements are based on reasonable assumptions, we 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 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 our products abroad; possible
fluctuation in interest rates, which affects our earnings and cash flows; the
impact of substantial leverage and debt service on us; possible loss of
suppliers; risks related to our asset backed facilities; the availability of
borrowings under our Revolving Credit Facility; dependence on key personnel;
labor relations; potential liability for environmental, health and safety
matters; potential future legal proceedings and litigation; and other risks
listed from time to time in the Company`s reports, including, but not limited to
our Annual Reports on Form 10-K.

Financial information for Alliance Laundry Holdings LLC appears on the next five
pages for the three months ended March 31, 2009.

ALLIANCE LAUNDRY HOLDINGS LLC
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(in thousands)

March 31, December 31,
2009 2008
Assets
Current assets:
Cash and cash equivalents $ 8,700 $ 14,314
Accounts receivable, net 15,716 13,775
Inventories, net 58,097 59,810
Retained beneficial interests in accounts receivable 25,758 28,168
Deferred income tax asset, net 4,786 4,730
Prepaid expenses, restricted cash and other assets 2,312 2,537
Total current assets 115,369 123,334

Notes receivable, net 3,331 4,666
Property, plant and equipment, net 66,887 69,099
Goodwill 181,108 182,464
Retained beneficial interests in financial assets 31,509 30,740
Deferred income tax asset, net 6,906 7,713
Debt issuance costs, net 5,738 6,202
Intangible assets, net 139,678 141,563
Total assets $ 550,526 $ 565,781

Liabilities and Member(s)' Equity
Current
liabilities:
Current portion of long-term debt and capital lease obligations $ 445 $ 576
Revolving credit facility - -
Accounts payable 29,459 33,973
Other current liabilities 39,804 44,783
Total current liabilities 69,708 79,332

Long-term debt and capital lease obligations 290,125 310,152
Deferred income tax liability, net 5,135 5,485
Other long-term liabilities 25,791 24,934
Total liabilities 390,759 419,903

Commitments and contingencies
Member(s)' equity 159,767 145,878
Total liabilities and member(s)' equity $ 550,526 $ 565,781

ALLIANCE LAUNDRY HOLDINGS LLC
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(in thousands)

Three Months Ended
March 31, March 31,
2009 2008

Net revenues:
Equipment and service parts $ 93,341 $ 107,444
Equipment financing, net 3,024 2,471
Net revenues 96,365 109,915
Cost of sales 73,347 77,695
Gross profit 23,018 32,220

Selling, general and administrative expense 13,232 18,002
Securitization, impairment and other costs 347 479
Total operating expenses 13,579 18,481
Operating income 9,439 13,739

Interest expense 5,883 10,281
Income before taxes 3,556 3,458
Provision for income taxes 1,278 1,598
Net income $ 2,278 $ 1,860

ALLIANCE LAUNDRY HOLDINGS LLC
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in thousands)

Three Months Ended
March 31, March 31,
2009 2008

Cash flows from operating activities:
Net income $ 2,278 $ 1,860
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 4,311 4,891
Non-cash interest (income)expense (592 ) 2,926
Non-cash gain on commodity & foreign exchange contracts, net (238 ) (1,656 )
Non-cash executive unit compensation 420 1,478
Non-cash income from loan forgiveness - (262 )
Non-cash charge for pension plan accrual - 479
Deferred income taxes 642 647
Other, net 43 (1 )
Changes in assets and liabilities:
Accounts receivable (902 ) (2,748 )
Inventories 1,206 (5,063 )
Other assets 1,789 1,437
Accounts payable (4,117 ) 1,255
Other liabilities (3,611 ) (1,461 )
Net cash provided by operating activities 1,229 3,782

Cash flows from investing activities:
Capital expenditures (855 ) (1,908 )
Proceeds on disposition of assets - 71
Net cash used in investing activities (855 ) (1,837 )

Cash flows from financing activities:
Principal payments on long-term debt (20,139 ) (7,182 )
Member contributions 14,500 -
Issuance of common stock - 1,653
Net cash used in financing activities (5,639 ) (5,529 )

Effect of exchange rate changes on cash and cash equivalents (349 ) 449

Decrease in cash and cash equivalents (5,614 ) (3,135 )
Cash and cash equivalents at beginning of period 14,314 10,594
Cash and cash equivalents at end of period $ 8,700 $ 7,459

Supplemental disclosure of cash flow information:
Cash paid for interest $ 9,277 $ 10,430
Cash paid for income taxes $ 57 $ 58

Reconciliation of Net income to EBITDA and Adjusted EBITDA, and reconciliation
of Adjusted EBITDA to Net Cash Provided by Operating Activities for the Three
Months Ended March 31, 2009 and March 31, 2008. (Dollars in Thousands):

Three Months Ended
March 31, March 31,
2009 2008

Net income $ 2,278 $ 1,860
Provision for income taxes 1,278 1,598
Interest expense 5,883 10,281
Depreciation and amortization (a) 4,311 4,891
Non-cash interest income included in amortization above (464 ) (552 )
EBITDA 13,286 18,078
Finance program adjustments (b) (301 ) (689 )
Other non-recurring charges (c) 304 479
Other non-cash charges (d) 225 (178 )
Adjusted EBITDA 13,514 17,690

Interest expense (5,883 ) (10,281 )
Non-cash interest income included in amortization above 464 552
Other non-cash interest (592 ) 2,926
Finance program adjustments (b) 301 689
Other non-recurring charges (c) (304 ) (479 )
Cash taxes paid and payable (636 ) (951 )
Other, net - 216
Changes in assets and liabilities (5,635 ) (6,580 )
Net cash provided by operating activities $ 1,229 $ 3,782

(a) Depreciation and amortization amounts include amortization of deferred
financing costs included in interest expense.

(b) We currently operate an off-balance sheet commercial equipment finance
program in which newly originated equipment loans are sold to qualified
special-purpose bankruptcy remote entities. In accordance with GAAP, we are
required to record gains/losses on the sale of these equipment based promissory
notes. In calculating Adjusted EBITDA, management determines the cash impact of
net interest income on these notes. The finance program adjustments are the
difference between GAAP basis revenues (as prescribed by SFAS No. 140) and cash
basis revenues.

(c) Other non-recurring charges are described as follows:

* Other non-recurring charges of $0.3 million for the quarter ended March 31,
2009 consist of legal costs related to the Lehman bankruptcy, which is included
in the securitization, impairment and other costs line of our consolidated
Statements of Income.
* Other non-recurring charges of $0.5 million for the quarter ended March 31,
2008 relate to the Louisville, Kentucky pension plan termination, which is
included in the securitization, impairment and other costs line of our
consolidated Statements of Income.

(d) Other non-cash charges are described as follows:

* Other non-cash charges for the quarter ended March 31, 2009 relate to $0.4
million of non-cash expense for management incentive stock options, which is
included in the selling, general and administrative expense line of our
consolidated Statements of Income and $0.2 million of non-cash mark to market
gains relating to commodity and foreign exchange hedge agreements, which are
included in the cost of sales line of our consolidated Statements of Income.
* Other non-cash charges for the quarter ended March 31, 2008 relate to $1.5
million of non-cash expense for management incentive stock options, which is
included in the selling, general and administrative expense line of our
consolidated Statements of Income and $1.7 million of non-cash mark to market
gains relating to commodity and foreign exchange hedge agreements, which are
included in the cost of sales line of our consolidated Statements of Income.

Alliance Laundry Holdings LLC
Bruce P. Rounds, Vice President CFO
920-748-1634

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