EX-99.1 2 b67447ahexv99w1.htm EX-99.1 PRESS RELEASE OF ALTRA HOLDINGS, INC., DATED NOVEMBER 2, 2007 exv99w1
 

Exhibit 99.1
(ALTRA LOGO)
ALTRA HOLDINGS ANNOUNCES RECORD
EARNINGS FOR THE THIRD QUARTER 2007
QUINCY, MA — November 2, 2007
Altra Holdings, Inc. (NASDAQ: AIMC), a leading global supplier of clutch brakes, couplings, gearing, belted drives and power transmission components, announced record net income of $4.3 million for the third quarter ended September 29, 2007 compared to $3.8 million for the third quarter of 2006, an increase of 13.6%. Recurring diluted earnings per share increased 177.8%, or $0.16 per share, to $0.25 per share in the third quarter of 2007 from $0.09 per share in the third quarter of 2006. Diluted earnings per share were $0.17 in the third quarter of 2007 versus $0.20 per share in the third quarter of 2006. Net sales for the quarter increased 39.0% (9.9% organic) to $157.0 million from $113.0 million in the third quarter of 2006. Operating income for the third quarter of 2007 increased 34.2% to $18.0 million from $13.4 million in the third quarter of 2006. Revenue performance was driven by strong sales in the aerospace and defense, material handling, motion control, energy and mining markets. Operating income continues to improve from cost savings derived from the Altra Business System, low cost country sourcing, and the synergies we are realizing from our integration of the TB Wood’s business.
Net income for the nine months ended September 29, 2007 increased 20.6% to $12.9 million from $10.7 million for the first nine months of 2006. Recurring diluted earnings per share increased 38.3% or $0.23 per share to $0.83 per share for the first nine months of 2007 from $0.60 per share for the first nine months of 2006. Diluted earnings per share were $0.54 for the first nine months of 2007 versus $0.56 for the first nine months of 2006. Net sales for the nine months ended September 29, 2007 increased 30.3% (9.0% organic) to $452.8 million from $347.5 million for the first nine months of 2006. Gross profit as a percentage of sales for the first nine months of 2007 increased 130 basis points to 28.5% from 27.2% in the first nine months of 2006. SG&A expenses as a percentage of sales for the first nine months of 2007 decreased 80 basis points from 17.6% to 16.8% for the same period in 2006. Operating income for the nine months of 2007 increased 38.6% to $51.6 million from $37.2 million in the first nine months of 2006.
Michael L. Hurt, Chairman and CEO said “We are pleased to report record financial results again this quarter. Our organic revenue growth of 9.9% in the third quarter was driven by the management team continuing to focus on new products and target markets. Our served global markets remained strong. Growth in North America remained solid with Europe and Asia Pacific being very strong. Our earnings growth was the result of continuous operational improvements, ongoing successful integration of the TB Wood’s acquisition, and profits generated from the increased revenues. Also, we strengthened our balance sheet this quarter with the retirement of $24.4 million of the 111/4% bonds and lowered our Net Debt to LTM Adjusted EBITDA Ratio to 3.1.

 

 

Altra Holdings, Inc.
                                 
    (Unaudited)     (Unaudited)  
Statement of Operations Data:   Quarter Ended     Year to Date Ended  
In thousands, except per share data   September 29, 2007     September 29, 2006     September 29, 2007     September 29, 2006  
 
                                
Net sales
   $ 156,976     $ 112,953     $ 452,824     $ 347,511  
Cost of sales
     111,920       82,528       323,816       252,959  
 
                        
Gross profit
     45,056       30,425       129,008       94,552  
Selling, general & operating expenses
     26,871       20,858       76,259       61,171  
Restructuring charges
     189       —       1,180       —  
Gain on curtailment of post-retirement benefit plan
     —       (3,838 )     —       (3,838 )
 
                        
Operating income
     17,996       13,405       51,569       37,219  
Interest expense, net
     11,389       6,567       31,229       19,382  
Other expense, net
     298       734       374       647  
 
                        
Income before taxes
     6,309       6,104       19,966       17,190  
Income taxes
     1,999       2,311       7,067       6,497  
 
                        
Net income
   $ 4,310     $ 3,793     $ 12,899     $ 10,693  
 
                        
 
                                
Net income per share:
                                
 
                                
Basic
   $ 0.17     $ 11.42     $ 0.56     $ 35.52  
Diluted
   $ 0.17     $ 0.20     $ 0.54     $ 0.56  
 
                                
Weighted average common shares outstanding:
                                
 
                                
Basic
     25,075       332       23,069       301  
Diluted
     26,119       19,370       24,094       19,162  
 
                                
Balance Sheet Data:   (Unaudited)                
In thousands
   September 29, 2007   September 29, 2006                
                         
 
                                
Assets:
                                
Cash and cash equivalents
   $ 30,037     $ 5,760                  
Trade receivables, net
     86,634       64,555                  
Inventories, net
     107,641       73,691                  
Property, plant and equipment, net
     116,668       81,511                  
 
                                
Liabilities:
                                
Current liabilities
   $ 93,491     $ 69,952                  
Long-term debt
   $ 295,401     $ 227,851                  
 
                                
Stockholders’ equity
   $ 145,873     $ 39,105                  
 
                                
Other Financial Data:
                                
Depreciation & amortization
   $ 5,845     $ 3,565     $ 16,377     $ 10,311  
Non cash inventory step up costs
     —       —     $ 651     $ 2,278  
Capital expenditures
   $ 2,554     $ 2,023     $ 6,803     $ 6,133  
The company will conduct an investor conference call on Monday, November 5, 2007 at 10:00 AM EST to discuss its unaudited third quarter and first nine months financial results. The public is invited to listen to the conference call by dialing 800-862-9098 domestically or 785-424-1051 for international access, and asking to participate in Conference ID# ALTRA. Also the company has posted slides on its web site www.altramotion.com in the Investor Relations Section in the Events & Presentations tab to help the participants better follow the discussions. A replay of the recorded conference call will be available from November 5, 2007 until November 12, 2007. To listen to the replay, dial 800-723-0549 domestically or 402-220-2657 for international access.
Altra Holdings, Inc., through its wholly-owned subsidiary Altra Industrial Motion, Inc., is a leading multinational 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.

 

 

Discussion of Non-GAAP Measures
As used in this release and the accompanying slides posted on its website, non-GAAP recurring diluted earnings per share is calculated using net income that excludes non-recurring advisory fees, premiums and interest expense associated with extinguished debt, non-recurring tax benefits and OPEB curtailment gain, and other events that management does not consider to be directly related to the company’s core operating performance. Non-GAAP recurring diluted net income per share is calculated by dividing non-GAAP net income by GAAP weighted average shares outstanding (diluted).
Altra believes that the presentation of non-GAAP recurring net income and non-GAAP recurring diluted earnings per share provides important supplemental information to management and investors regarding financial and business trends relating to the company’s financial condition and results of operations. For further information regarding why Altra believes that these non-GAAP measures provide useful information to investors, and some of the limitations associated with the use of these measures, please refer to the company’s Current Report on Form 8-K filed today with the SEC. The Form 8-K is available on the SEC’s website at www.sec.gov or under the Events and Presentations tab of the Investor Relations Section of the Altra website described above.
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