Altra Industrial Motion
Apr 26, 2005

ALTRA INDUSTRIAL MOTION ANNOUNCES FIRST QUARTER 2005 AND YEAR END 2004 RESULTS

QUINCY, MA., APRIL 26, 2005 Altra Industrial Motion, Inc. announced unaudited first quarter 2005 and year end 2004 results. First quarter 2005 revenues were $95.5 million. This strong first quarter 2005 revenue performance was primarily due to strength in several key markets including primary metals, energy, mining and the general industrial market. Unaudited first quarter 2005 gross margins were $23.5 million, total operating expenses were $16.6 million, operating profit was $7.0 million and adjusted EBITDA was $9.8 million.

 

Combined unaudited historical revenues for Colfax PT and Kilian Manufacturing for the fiscal year ending December 31, 2004 were $343.3 million. The gross margin, adjusted for one-time non-cash purchase accounting, was 23.5%. The non cash purchase accounting adjustment was a one time $3.7 million write up of certain Colfax PT and Kilian inventories from cost to market value in accordance with GAAP of which $2.0 million was expensed in the fourth quarter 2004. Unaudited adjusted 2004 EBITDA for the combined entity was $34.3 million.

Michael L. Hurt, CEO, said "We are pleased with our first quarter 2005 results and are on track to achieve our 2005 business plan. We have completed the staffing of our senior management team and our first quarter results confirm that the key initiatives we are driving through the Altra Business System (ABS) are on target."

 

 

 

 

1st Qtr 2005

2004 Combined

 

Unaudited

Unaudited Historical

 

Altra Industrial Motion

Colfax PT & Kilian

 

(000's)

(000's)

 

 

 

Sales

$95,459

$343,308

Cost of Sales

71,927

262,784

Adjusted Gross Profit

23,532

80,524

Inventory Step Up Costs

1,699

2,019

Gross Profit

21,833

78,505

Selling, General and

 

 

Administrative Expenses

16,552

56,075

Operating Income

$5,281

$22,430

Interest Expense (Income)

4,722

6,216

Other Expense (Income)

256

(563)

Income before Taxes

$303

$16,777

 

 

 

EBITDA

$7,801

$32,234

Inventory Step Up Costs (reconciliation to GAAP)

1,699

2,019

Adjusted EBITDA

$9,500

$34,253

 

 

 

 

Altra Industrial Motion is a leading global designer, manufacturer and marketer of industrial power transmission and motion control products. The company brings together strong brands covering over 35 product lines with production facilities in six countries and sales coverage in over 70 countries. The group consists of Warner Electric, Boston Gear, Formsprag Clutch, Stieber Clutch, Ameridrives Couplings, Wichita Clutch, Nuttall Gear, Marland Clutch, Delroyd Worm Gear and Kilian Manufacturing.

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 discussed in the offering circular relating to the company's Rule 144A offering of 9% Senior Secured Notes due 2011.

SOURCE: Altra Industrial Motion documents

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CONTACT INFORMATION:

David Wall
Chief Financial Officer
Phone: (617) 689-6380
Email: david.wall@altramotion.com