Altra Industrial Motion
Jul 29, 2005

ALTRA INDUSTRIAL MOTION ANNOUNCES RESULTS FOR THE SECOND QUARTER OF 2005

 

QUINCY, MA., July 29, 2005  Altra Industrial Motion, Inc. announced that net income for the second quarter ended July 1, 2005 was $1.2 million. Second quarter 2005 revenues were $93.0 million, a 3.8% increase over the second quarter of 2004. Revenue performance was primarily due to strength in several key markets including primary metals, energy, mining and aerospace. The gross profit for the second quarter was 25.06% versus 24.65% in the first quarter (excluding a $1.7 million one time non-cash purchase accounting adjustment). Key components of working capital continued to improve in the second quarter, as accounts receivable decreased by $4.9 million and inventory decreased by $1.3 million. For the first six months of 2005, net income was $1.4 million, while revenues were $188.3 million, a 5.6% increase over the first six months of 2004. Gross profit for the first half of 2005 (excluding the $1.7 million one time non-cash purchase accounting adjustment) was 24.87% versus 23.80% in the first half of 2004.

Michael L. Hurt, CEO, said "We are pleased with our second quarter 2005 and first half 2005 results and continue to be on track to achieve our 2005 business plan. Our incoming orders for the second quarter continued to be strong and were 10.1% higher than the second quarter of 2004. We continued to strengthen our management team with experienced professionals that can implement our key initiatives to achieve our long term financial plans."

Altra Industrial Motion, Inc.
Consolidated Statement of Income (Unaudited)
(in thousands)

 

2 nd Quarter

YTD

 

2005

2005

 

13 weeks

26 weeks

 

ended

ended

 

July 1, 2005

July 1, 2005

 

 

 

Net Sales

$92,965

$188,337

Cost of Sales

69,669

143,190

Gross Profit

23,296

45,147

SG & A

16,060

32,650

Operating Income

7,236

12,497

Interest Expense

4,760

9,486

Other Expense

456

689

Income before Taxes

2,020

2,322

Income Taxes

808

929

Net Income

$1,212

$1,393

 

 

 

Depreciation & Amortization

2,670

5,461

Balance Sheet Summary
June 30, 2005

Cash

$8,356

Trade Receivables-Net

46,022

Inventories-Net

56,071

Working Capital

65,293

Total Debt

170,453

Shareholders' Equity

46,588

 

 

Capex YTD

1,960

Altra Industrial Motion, Inc. 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