Content about Income

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.

WALTHAM, Mass. — Mac-Gray Corporation saw its net revenues for third-quarter 2011 increase to $78.5 million from $78.2 million for the same period in 2010. Net income was $604,000, compared to $826,000 in 2010.

Third-quarter 2011 net income includes a pre-tax unrealized gain of $45,000 related to interest rate derivative instruments and a non-cash, pre-tax loss of $255,000 related to fuel commodity derivative instruments. Third-quarter 2010 net income included a pre-tax unrealized gain of $1.1 million related to interest rate derivative instruments. Excluding these items from both periods, adjusted net income for third-quarter 2011 was $780,000, compared to $185,000 in 2010.

“This was a steady financial performance in the third quarter — achieving our fourth consecutive quarter of incremental year-over-year growth,” says Stewart G. MacDonald, Mac-Gray chief executive officer. “We continue to see stabilization in the multi-housing industry across the majority of the markets we serve. As a result, multi-housing same location revenue during the quarter rose by 1%, with particular strength in the Northeast and Northwest, and lesser improvement in the Southwest. Only our Southeast region was down. We continued to channel our resources toward generating organic growth through both new and renewal facility contracts in the most promising markets.”

Mac-Gray derives its revenue principally through the contracting of debit-card- and coin-operated laundry facilities in multi-unit housing facilities. The company manages approximately 86,000 laundry rooms located in 43 states and the District of Columbia. Mac-Gray also sells and services commercial laundry equipment.