Loan specialists' Presentation

1525 days ago, 469 views
PowerPoint PPT Presentation
Organization together Laundry Systems came to a consent to buy the Commercial Laundry Division ... Concentrated on the laundromat and on-reason clothing (

Presentation Transcript

Slide 1

Moneylenders' Presentation June 28, 2006

Slide 2

Disclaimer The accompanying data contains forward-peered proclamations inside the significance of the Private Securities Litigation Reform Act of 1995. These forward-looking articulations depend on Management's present desires and convictions, and various suspicions concerning future occasions. These announcements are liable to dangers, instabilities, presumptions and other essential components, a large portion of which are outside Management's control, that could bring about real results to contrast substantially from the outcomes talked about in the forward-looking explanations. You are forewarned not to put undue dependence on such forward-looking articulations on the grounds that genuine results may fluctuate really from those communicated or inferred. All forward-looking explanations depend on data accessible to Management on this date and Alliance Laundry expect no commitment to, and explicitly repudiates any commitment to, upgrade or update any forward looking articulations, whether as a consequence of new data, future occasions or something else.

Slide 3

Agenda Transaction Overview Alliance Financial Update LSG/CLD Overview Amendment Request Public Lenders' Q&A Pro Forma Financial Projections Private Lenders' Q&A Presenters Bruce Rounds, CFO Alliance Laundry Systems LLC Bruce Rounds, CFO Alliance Laundry Systems LLC Tom L'Esperance, CEO Alliance Laundry Systems LLC Diane Albanese, Vice President Lehman Brothers Bruce Rounds, CFO Alliance Laundry Systems LLC

Slide 4

Transaction Overview

Slide 5

Transaction Overview Alliance Laundry Systems achieved a consent to buy the Commercial Laundry Division ("CLD") from Laundry Systems Group ("LSG") on May 23, 2006 Acquisition deliberately improves geographic extension, grows item offering and gives control of delicate mount innovation Total exchange estimation of $85 million incorporates capital rent commitments accepted Alliance hopes to fund the procurement with a mix of obligation and value so as to keep up existing influence levels $60 million extra to the current Term Loan Facility, alongside a $5 million increment to the Revolving Credit Facility to keep up sufficient liquidity Maturity and amortization calendars will continue as before as existing $23 million in value from Teachers' and administration (1)(2)(3) Sources and Uses 1 The rest of the $1.4 million of the aggregate price tag mirrors the capital rent expected. Administration incorporates both Alliance and CLD. Instructors' value will at first be supported through $20.0 mm connect office held at another restricted risk Holding Company, parent to Alliance Laundry Holdings LLC; remaining value will be given by Alliance and CLD administration. Cooperation will support the full €59.0 mm price tag, which incorporates the presumption of $1.4 mm capital rent, at close. Through post-shutting price tag changes, the estimation of the capital rent will be come back to Alliance roughly 60 days post-close.

Slide 6

Pro Forma Capitalization The financing of the exchange has been organized to be influence nonpartisan Pro Forma Capitalization Total accessibility under Revolver is expanding from $50 million to $55 million. Reflects showcase estimation of value of Alliance at January 27, 2005 and CLD in conjunction with obtaining. Organization together LTM Adjusted EBITDA as of March 31, 2006; CLD LTM EBITDA as of December 31, 2005 and is liable to E&Y persistence conformities. See the Company's filings with the Securities and Exchange Commission for a compromise of Adjusted EBITDA to Net Loss. 2

Slide 7

Alliance Financial Update

Slide 8

Alliance Performance Summary Financial Performance Update Net incomes for the year finished December 31, 2005 expanded $36.3 million, or 12.9%, to $317.3 million from $281.0 million Revenue development was principally determined by cost and volume builds Gross benefit for the year finished December 31, 2005 diminished $6.0 million, or 7.2%, to $76.0 million from $82.0 million Decrease in gross benefit ascribed to higher cost of offers from resource step-ups and higher-than anticipated steel costs $25 million of obligation lessening since Facility shutting date Leverage of 5.4x well underneath the most extreme 6.50x Total Debt/EBITDA contract as of March 31, 2006 (stages down to 6.25x at June 30, 2006) Income Statement 3

Slide 9

LSG/CLD Overview

Slide 10

Commercial Laundry Division of LSG Managed out of Belgium, CLD is one of LSG's two working divisions, with around 400 representatives CLD has been a critical vital accomplice of Alliance since 2002 CLD concentrates on two geographic areas: Europe (Ipso) & the U.S. (Cissell & Ipso) Focused on the laundromat and on-start clothing ("OPL") fragments Offers a full scope of business washer extractors, tumbler dryers and ironers Strong position in washer extractor delicate mount innovation Strong market position in Europe Products circulated worldwide through nearby merchants Stand-alone 2005 income and EBITDA of roughly $98.1 million and $11.2 million (1) , separately CLD is a main producer and advertiser of business washing and drying machines and completing hardware CLD financials subject to E&Y industriousness alterations. 4

Slide 11

CLD Unit Overview Focuses on laundromat and OPL sections (European Operations) (U.S. Operations) Focuses on laundromat, dry-cleaning and OPL sections Cissell offices: Louisville, KY and Portland, TN Ipso deals focus: Fort Mill, SC Facilities: 2 in Belgium (Wevelgem and Deinze) Employees: 153 Employees: 240 Production: 1,000 units for each year (fundamentally huge remain solitary tumbler dryers) Production: 14,000 units for every year (essentially washer-extractors, and additionally ironers and tumbler dryers) Primary Competitors: Alliance, Dexter, Milnor, Girbau Primary Competitors: Electrolux, Girbau, Primus Unaudited 2005 Financials (1) : Net Revenue: $30.1 million Adj. EBITDA: $2.0 million Unaudited 2005 Financials (1) : Net Revenue: €53.7 million Adj. EBITDA: €7.2 million CLD financials subject to E&Y determination alterations. 5

Slide 12

CLD Unit Sales By Geography The securing further enhances Alliance's geological reach and client base (European Operations) (U.S. Operations) (1) (1) 2005 Net Revenue: €53.7 million 2005 Net Revenue: $30.1 million 1. EMEA alludes to Europe, the Middle East and Africa. 6

Slide 13

CLD Historical Financials (€ and $ in millions) European Operations (1) CLD (Total) (1) U.S. Operations (1) Financial results unaudited and are liable to E&Y persistence changes. Changed over at a conversion scale of €1.24/$1.00. Changed over at a swapping scale of €1.27/$1.00. 7

Slide 14

Key Credit Strengths Increased size and scale Diversification with expanded deals commitment from Europe Increased item separation to bolster Alliance's multi-image techniques Ownership of delicate mount innovation widens product offerings and decreases chance Branding one of a kind items crosswise over business sectors makes opportunity Growth Opportunities Synergies and Cost Savings Increased economies of scale give potential chances to cost reserve funds, for example, corporate overhead Substantial US fabricating union open door Additional collaborations anticipated from consolidated obtainment Strong Market Position Access to two in number brands with critical piece of the pie Significant nearness in Western Europe Access to CLD's European conveyance organize Existing administration anticipated that would keep working European business 8

Slide 15

Amendment Request

Slide 16

Summary of Terms Reflects 3/31/06 expert forma adjust. 9

Slide 17

Proposed Transaction Timeline Holiday Key Dates 10

Slide 18

Public Lenders' Q&A