Alliance Laundry Holdings LLC Reports 3rd Quarter 2009 Earnings

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RIPON, Wis.--(Business Wire)--
Alliance Laundry Holdings LLC announced today results for the three and nine
months ended September 30, 2009.

Net revenues for the quarter ended September 30, 2009 decreased $24.8 million to
$92.8 million from $117.6 million for the quarter ended September 30, 2008. Our
net income for the quarter ended September 30, 2009 was $9.2 million as compared
to $4.2 million for the quarter ended September 30, 2008. Adjusted EBITDA (see
"About Non-GAAP Financial Measures" below) for the quarter ended September 30,
2009 increased $0.5 million to $19.6 million from $19.1 million for the quarter
ended September 30, 2008.

The overall net revenue decrease of $24.8 million was partly attributable to a
decrease in United States and Canada revenues of $15.4 million, a decrease in
Europe revenues of $4.9 million, a decrease in Middle East and Africa revenues
of $2.9 million and a decrease in Latin America revenues of $2.6 million
partially offset by a $1.0 million increase in Asia revenues.

Net revenues for the nine months ended September 30, 2009 decreased $65.9
million, or 18.8%, to $284.1 million from $350.0 million for the nine months
ended September 30, 2008. Our net income for the nine months ended September 30,
2009 was $8.0 million as compared to $10.5 million for the nine months ended
September 30, 2008. Adjusted EBITDA (see "About Non-GAAP Financial Measures"
below) for the nine months ended September 30, 2009 was $55.6 million as
compared to $57.3 million for the nine months ended September 30, 2008.

Included in our net income for the nine months ended September 30, 2009 was an
unfavorable $13.6 million non-cash mark-to-market adjustment related to the
establishment of our new asset backed facility and $6.2 million of transaction
costs incurred in establishing the new asset backed facility, with no similar
items in the nine months ended September 30, 2008. These expenses were incurred
primarily in the quarter ended June 30, 2009.

In announcing the Company`s results, CEO Thomas F. L`Esperance said, "Excluding
the impact of the unfavorable $13.6 million non-cash mark-to-market adjustment
related to our new asset backed facility, revenues for the nine months were down
14.9% as compared to the same period last year which was in line with our
expectations. While revenues were in line with our expectations, cost controls
delivered bottom line results which slightly exceeded our expectations."

L`Esperance concluded, "We have adjusted our operations appropriately for the
current economic environment. Although market conditions continue to be
difficult, we expect strong earnings performance for the balance of 2009 as our
lower costs read through."

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 (including non-cash interest income), 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, 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 six
pages for the three and nine months ended September 30, 2009.

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

September 30, December 31,
2009 2008
Assets
Current assets:
Cash and cash equivalents $ 11,793 $ 14,314
Accounts receivable, net 18,171 13,775
Inventories, net 53,614 59,810
Retained beneficial interests in accounts receivable 27,845 28,168
Deferred income tax asset, net 4,688 4,730
Prepaid expenses and other assets 4,255 2,537
Total current assets 120,366 123,334

Notes receivable, net 2,940 4,666
Property, plant and equipment, net 64,156 69,099
Goodwill 183,922 182,464
Retained beneficial interests in financial assets 47,594 30,740
Deferred income tax asset, net 7,269 7,713
Debt issuance costs, net 4,821 6,202
Intangible assets, net 138,073 141,563
Total assets $ 569,141 $ 565,781

Liabilities and Member(s)' Equity
Current liabilities:
Current portion of long-term debt and capital lease obligations $ 576 $ 576
Revolving credit facility - -
Accounts payable 35,707 33,973
Other current liabilities 30,882 44,783
Total current liabilities 67,165 79,332

Long-term debt and capital lease obligations 288,803 310,152
Deferred income tax liability, net 5,468 5,485
Other long-term liabilities 22,561 24,934
Total liabilities 383,997 419,903

Commitments and contingencies
Member(s)' equity 185,144 145,878
Total liabilities and member(s)' equity $ 569,141 $ 565,781

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

Three Months Ended Nine Months Ended
September 30, September 30, September 30, September 30,
2009 2008 2009 2008

Net revenues:
Equipment and service parts $ 92,149 $ 116,430 $ 291,779 $ 345,833
Equipment financing, net 626 1,194 (7,714 ) 4,149
Net revenues 92,775 117,624 284,065 349,982
Cost of sales 67,205 89,549 215,614 259,105
Gross profit 25,570 28,075 68,451 90,877

Selling, general and administrative expense 12,393 13,602 38,921 50,779
Securitization, impairment and other costs, net (6,740 ) 3 - 556
Total operating expenses 5,653 13,605 38,921 51,335
Operating income 19,917 14,470 29,530 39,542

Interest expense 5,576 6,962 17,057 22,179
Income before taxes 14,341 7,508 12,473 17,363
Provision for income taxes 1,780 3,303 1,118 6,886
Net income $ 12,561 $ 4,205 $ 11,355 $ 10,477

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

Nine Months Ended
September 30, September 30,
2009 2008

Cash flows from operating activities:
Net income $ 11,355 $ 10,477
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Depreciation and amortization 12,993 14,135
Non-cash interest expense (income) (1,862 ) 797
Non-cash (gain) loss on commodity & foreign exchange contracts, net (2,944 ) 1,554
Non-cash executive unit compensation 341 2,052
Non-cash income from loan forgiveness (98 ) (262 )
Non-cash charge for pension plan accrual - 479
Deferred income taxes 625 4,760
Other, net - 222
Changes in assets and liabilities:
Accounts and notes receivable (2,001 ) (4,418 )
Inventories 6,838 (11,433 )
Retained beneficial interest (16,531 ) (2,742 )
Other assets (4,061 ) 716
Accounts payable 1,403 (3,504 )
Other liabilities (9,150 ) (532 )
Net cash provided by (used in) operating activities (3,092 ) 12,301

Cash flows from investing activities:
Capital expenditures (2,296 ) (7,153 )
Restricted cash 500 (500 )
Proceeds on disposition of assets - 252
Net cash used in investing activities (1,796 ) (7,401 )

Cash flows from financing activities:
Principal payments on long-term debt (21,000 ) (15,000 )
Change in other long-term debt, net (342 ) (457 )
Net increase in revolving line of credit borrowings - 9,000
Member contributions 27,039 2,806
Net cash provided by (used in) financing activities 5,697 (3,651 )

Effect of exchange rate changes on cash and cash equivalents (6 ) (454 )

Increase (decrease) in cash and cash equivalents 803 795
Cash and cash equivalents at beginning of period 14,314 10,594
Cash and cash equivalents at end of period $ 15,117 $ 11,389

Supplemental disclosure of cash flow information:
Cash paid for interest $ 21,123 $ 23,630
Cash paid for income taxes $ 1,098 $ 1,395

Reconciliation of Net income to EBITDA and Adjusted EBITDA, and reconciliation
of Adjusted EBITDA to Net Cash Provided by (Used in) Operating Activities for
the Three Months Ended September 30, 2009 and September 30, 2008 (Dollars in
Thousands):

Three Months Ended
September 30, September 30,
2009 2008

Net income $ 9,237 $ 4,205
Provision for income taxes 1,780 3,303
Interest expense 5,576 6,962
Depreciation and amortization (a) 4,370 4,466
Non-cash interest income included in amortization above (463 ) (450 )
EBITDA 20,500 18,486
Finance program adjustments (b) 487 490
Other non-recurring charges (c) (472 ) 3
Other non-cash charges (d) (935 ) 95
Adjusted EBITDA 19,580 19,074
Interest expense (5,576 ) (6,962 )
Non-cash interest income included in amortization above 463 450
Other non-cash interest (796 ) (89 )
Finance program adjustments (b) (487 ) (490 )
Other non-recurring charges (c) 472 (3 )
Cash taxes paid and payable 411 (423 )
Loss on sale of property, plant and equipment - 187
Other expense (617 ) -
Changes in assets and liabilities (15,521 ) (12,218 )
Net cash (used in) provided by operating activities $ (2,071 ) $ (474 )

(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 our qualified
special-purpose bankruptcy remote entity. 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. 125/140) and
cash basis revenues. In addition, we recognize mark-to-market adjustments for
our retained interests in financial assets which are considered finance program
adjustments in our Credit Agreement.

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

* Other non-recurring income of $0.5 million for the quarter ended September 30,
2009 consists of $0.5 million related to the Louisville, Kentucky pension plan
termination which is included in the securitization, impairment and other costs,
net line of our Condensed Consolidated Statements of Income.

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

* Other non-cash charges for the quarter ended September 30, 2009 consist of
$0.9 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
Condensed Consolidated Statements of Income.
* Other non-cash charges for the quarter ended September 30, 2008 consist of
$1.4 million of on-cash mark to market losses relating to commodity and foreign
exchange hedge agreements, which are included in the cost of sales line of our
Condensed Consolidated Statements of Income partially offset by $1.3 million of
lower non-cash expense for management incentive stock options, which is included
in the selling, general and administrative expense line of our Condensed
Consolidated Statements of Income.

Reconciliation of Net income to EBITDA and Adjusted EBITDA, and reconciliation
of Adjusted EBITDA to Net Cash Provided by (Used in) Operating Activities for
the Nine Months Ended September 30, 2009 and September 30, 2008 (Dollars in
Thousands):

Nine Months Ended
September 30, September 30,
2009 2008

Net income $ 8,031 $ 10,477
Provision for income taxes 1,118 6,886
Interest expense 17,057 22,179
Depreciation and amortization (a) 12,993 14,135
Non-cash interest income included in amortization above (1,381 ) (1,484 )
EBITDA 37,818 52,193
Finance program adjustments (b) 14,135 896
Other non-recurring charges (c) 6,203 556
Other non-cash charges (d) (2,538 ) 3,606
Adjusted EBITDA 55,618 57,251
Interest expense (17,057 ) (22,179 )
Non-cash interest income included in amortization above 1,381 1,484
Other non-cash interest (1,863 ) 797
Finance program adjustments (b) (14,135 ) (896 )
Other non-recurring charges (c) (6,203 ) (556 )
Cash taxes paid and payable (655 ) (2,126 )
Loss on sale of property, plant and equipment - 222
Other expense - 217
Changes in assets and liabilities (23,502 ) (21,913 )
Net cash (used in) provided by operating activities $ (6,416 ) $ 12,301

(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 our qualified
special-purpose bankruptcy remote entity. 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. 125/140) and
cash basis revenues. In addition, we recognize mark-to-market adjustments for
our retained interests in financial assets which are considered finance program
adjustments in our Credit Agreement.

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

* Other non-recurring charges for the nine months ended September 30, 2009
consist primarily of $6.3 million of expenses incurred to replace our asset
backed lending facility. These costs are included in the securitization,
impairment and other costs, net line of our Condensed Consolidated Statements of
Income.
* Other non-recurring charges for the nine months ended September 30, 2008
consist of $0.6 million related to the Louisville, Kentucky pension plan
termination which is included in the securitization, impairment and other costs
line of our Condensed Consolidated Statements of Income.

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

* Other non-cash charges for the nine months ended September 30, 2009 consist of
$2.9 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
Condensed Consolidated Statements of Income, partially offset by $0.3 million of
non-cash expense for management incentive stock options, which is included in
the selling, general and administrative expense line of our Condensed
Consolidated Statements of Income.
* Other non-cash charges for the nine months ended September 30, 2008 consist of
$1.6 million of non-cash mark to market losses relating to commodity and foreign
exchange hedge agreements, which are included in the cost of sales line of our
Condensed Consolidated Statements of Income and $2.0 million of non-cash expense
for management incentive stock options, which is included in the selling,
general and administrative expense line of our Condensed Consolidated Statements
of Income.

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

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