EX-99.1 2 b66303ahexv99w1.htm EX-99.1 PRESS RELEASE, DATED JULY 26, 2007 exv99w1
 

EXHIBIT 99.1
(ALTRA HOLDINGS, INC. LOGO)
ALTRA HOLDINGS ANNOUNCES RECORD
RESULTS FOR THE SECOND QUARTER 2007
QUINCY, MA — July 26, 2007
Altra Holdings, Inc. (NASDAQ: AIMC), a leading global supplier of clutch brakes, couplings, gearing, belted drives and power transmission components, announced record net sales of $163.1 million for the second quarter ended June 30, 2007 compared to $119.8 million in the second quarter of 2006, an increase of 36.1%. Operating income for the second quarter of 2007 increased 37.0% to $16.3 million from $11.9 million in the second quarter of 2006. Recurring diluted earnings per share increased 24.0%, or $0.06 per share, to $0.31 in the second quarter of 2007 from $0.25 in the second quarter of 2006. Revenue performance was driven by new product initiatives, continued strength in key late cycle markets, defense applications, global clutch brake sales, and by the Company’s recent acquisition of TB Wood’s. Operating results were spurred by cost savings from the Altra Business System, low cost country sourcing, and the synergies generated from the Hay Hall and TB Wood’s acquisitions.
Net sales for the six months ended June 30, 2007 increased 26.1% to $295.8 million from $234.6 million for the first six months of 2006. Gross profit as a percentage of sales for the first half of 2007 increased 40 basis points to 27.7% from 27.3% in the first half of 2006. SG&A expenses as a percentage of sales decreased 50 basis points from 17.2% for the first six months of 2006 to 16.7% for the first six months of 2007. Operating profit for the six months of 2007 increased 31.9% to $31.4 million from $23.8 million in the first six months of 2006.
Michael L. Hurt, Chairman and CEO said “We are pleased to report another quarter of record financial results. Our organic sales growth of 9.6% in the second quarter exceeded our business plan and was driven by continued focus on our top line growth initiatives. New products sales and global target market results were major contributors to our strong organic revenue growth. Our earnings growth was the result of continuous operational improvements; coupled with ongoing successful integration of the Hay Hall and TB Wood’s acquisitions. Also, our very successful follow-on stock offering completed this quarter strengthened the balance sheet and increased the float of our stock which benefits current and future investors in Altra.”

 

 

Altra Holdings, Inc.
                                 
    (Unaudited)     (Unaudited)  
Statement of Operations Data:   Quarter Ended     Year to Date Ended  
In Thousands of Dollars, except per share amounts   June 30, 2007     June 30, 2006     June 30, 2007     June 30, 2006  
Net sales
   $ 163,142     $ 119,774     $ 295,848     $ 234,558  
Cost of sales
     119,369       87,501       214,027       170,431  
 
                        
Gross profit
     43,773       32,273       81,821       64,127  
Selling, general & administrative expenses
     27,267       20,382       49,388       40,313  
Restructuring charges
     198       —       991       —  
 
                        
Operating income
     16,308       11,891       31,442       23,814  
Interest expense, net
     10,692       6,374       19,840       12,815  
Other expense (income), net
     123       72       76       (87 )
 
                        
Income before taxes
     5,493       5,445       11,526       11,086  
Income taxes
     2,045       1,749       4,310       4,186  
 
                        
Net income
   $ 3,448     $ 3,696     $ 7,216     $ 6,900  
 
                        
 
Net Income per share:
                                
Basic
   $ 0.15     $ $11.13     $ 0.33     $ 24.21  
Diluted
   $ 0.15     $ 0.19     $ 0.31     $ 0.36  
 
                                
Weighted Average common shares outstanding
                                
 
Basic
     22,250       332       22,066       285  
Diluted
     23,268       19,413       23,075       19,350  
                                 
Balance Sheet Data:   (Unaudited)                  
In Thousands of Dollars   June 30, 2007     June 30, 2006                  
Assets:
                                
Cash and cash equivalents
   $ 34,376     $ 5,573                  
Trade Receivables, net
     92,706       64,653                  
Inventories, net
     104,287       73,191                  
Property, plant and equipment, net
     116,380       80,978                  
Liabilities:
                                
Current liabilities
   $ 80,761     $ 71,888                  
Long-term debt
   $ 321,341     $ 226,588                  
Stockholders’ equity
   $ 137,322     $ 33,473                  
 
                                
Other Financial Data:
                                
Depreciation & amortization
   $ 6,067     $ 3,801     $ 10,532     $ 6,746  
Non cash inventory step up costs
   $ 2,782     $ 1,294     $ 2,782     $ 2,278  
Capital expenditures
   $ 3,215     $ 2,865     $ 4,249     $ 4,110  

 

 

The company will conduct an investor conference call on Friday, July 27, 2007 at 11:00 AM EDT to discuss its second quarter and first six months financial results. The public is invited to listen to the conference call by dialing 800-909-5202 domestically or 758-830-7975 for international access and asking to participate in Conference ID# ALTRA. Also, the company has posted slides including its reconciliation to recurring net income on its web site www.altramotion.com in the Investor Relations section under the Events & Presentations tab to help the participants better follow the discussions. A replay of the recorded conference call will be available from July 27, 2007 until August 3, 2007. To listen to the replay, dial 888-225-1656 domestically or 402-220-4975 for international access and ask to participate in the Conference ID# ALTRA.
Altra Holdings, Inc., through its wholly-owned subsidiary Altra Industrial Motion, Inc., is a leading multi-national designer, producer and marketer of a wide range of mechanical power transmission products. The company brings together strong brands covering over 40 product lines with production facilities in nine countries and sales coverage in over 70 countries. Our leading brands include Boston Gear, Warner Electric, TB Wood’s, Formsprag Clutch, Ameridrives Couplings, Industrial Clutch, Kilian Manufacturing, Marland Clutch, Nuttall Gear, Stieber Clutch, Wichita Clutch, Twiflex Limited, Bibby Transmissions, Matrix International, Inertia Dynamics, Huco Dynatork and Warner Linear.
This press release includes statements which are forward looking within the meaning of applicable securities laws. These statements may include or imply projections of future performance that are based upon the company’s expectations or assumptions. These expectations and assumptions, as well as the company’s future performance, are subject to a number of risks and uncertainties. Factors that could cause actual results to differ from projected results are described from time to time in the company’s Securities and Exchange Commission reports and other filings, including but not limited to the risks described in the Registration Statement on Form S-1 filed on June 4, 2007. Altra Holdings, Inc. is under no obligation to, and expressly disclaims any obligation to, update or alter its forward looking statements, whether as a result of new information, future events or otherwise. AIMC-E
SOURCE: Altra Holdings documents
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CONTACT INFORMATION:
David Wall
Chief Financial Officer
Phone: (617) 689-6380
Email: david.wall@altramotion.com