Altra Industrial Motion
Oct 28, 2005

ALTRA INDUSTRIAL MOTION ANNOUNCES RESULTS FOR THE THIRD QUARTER OF 2005

 

  QUINCY, MA., October 28, 2005   Altra Industrial Motion, Inc. announced that net income for the third quarter ended September 30, 2005 was $.6 million.  Third quarter 2005 revenues were $85.2 million, a 3.9% increase over the third quarter of 2004.  Revenue performance was primarily due to strength in several key markets including primary metals, energy, mining and aerospace, and offset by a soft turf and garden market caused by the hot and dry summer.  The gross profit for the third quarter was 25.3% versus 24.9% in the second quarter. For the first nine months of 2005, net income was $2.6 million, while revenues were $273.5 million, a 5.2% increase over the first nine months of 2004.  Gross profit for the first nine months of 2005 (excluding the $1.7 million one time non-cash purchase accounting adjustment) was 25.0% versus 23.6% in the first nine months of 2004.

Michael L. Hurt, CEO, said "We are pleased with our third quarter 2005 and first nine months of 2005 results and continue to be on track to achieve our 2005 business plan. Our incoming orders for the third quarter continued to be strong and were 14.5% higher than the third quarter of 2004.  These orders helped to increase our backlog to $103.7 million, a 17.2 % increase over September 2004, and 4.1% over June 2005."

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

 

 3rd Quarter

YTD

 

  2005

  2005

 

13 weeks

39 weeks

 

  ended

  ended

 

Sept 30, 2005

Sept 30, 2005

 

   

Net Sales

$85,156

$273,491

Cost of Sales

63,644

206,926

Gross Profit

21,512

66,565

SG & A

16,276

49,544

Operating Income

5,236

17,021

Interest Expense

4,304

12,870

Other (Income) Expense

(110)

(157)

Income before Taxes

1,042

4,308

Income Taxes

417

1,723

Net Income

$625

$2,585

 

 

 

Depreciation & Amortization

3,046

8,484

     

Balance Sheet Summary

 
Sept 30, 2005
 

Cash

$10,294

 

Trade Receivables-Net

45,440

 

Inventories-Net

53,432

 

Working Capital

71,256

 

Total Debt

165,490

 

Shareholders' Equity

42,405

 

 

 

 

Capex YTD

3,401

 

 

 

 

 

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