Altra Industrial Motion
May 19, 2006

ALTRA INDUSTRIAL MOTION ANNOUNCES RESULTS FOR THE FIRST QUARTER 2006

 

QUINCY, MA -- May 19, 2006. Altra Industrial Motion, Inc. announced that net income for the first quarter ended March 31, 2006 was $4.1 million.  First quarter 2006 net sales were $114.8 million, compared to $95.3 million in the first quarter of 2005 an increase of 20.4%.  The gross profit for the first quarter of 2006 increased to 27.8% from 23.0% in the first quarter last year and first quarter 2006 operating income was $11.9 million compared to $5.0 million in the first quarter of 2005, an increase of 140.0%.  Revenue performance was driven by the strength of several key markets including primary metals, energy, mining, turf & garden and user demand through our distribution partners.

Michael L. Hurt, CEO, said "We are very pleased with our first quarter results and accomplishments.  The growth and cost reduction initiatives we implemented in 2005 are yielding excellent results and the businesses we acquired from Hay Hall are contributing as expected.  The integration of the Hay Hall  business units is progressing as planned and we are already starting to see the benefits of some of the synergies we identified during due diligence."

Altra Industrial Motion, Inc.

 

 

 

 

(Unaudited)

 

Statement of Operations Data:
In Thousands of Dollars

1st  Quarter 2006
(13 weeks ended)
March 31, 2006

1st Quarter 2005
(13 weeks ended)
April 1, 2005

Net sales

                $114,784

          $95,302

Cost of sales

                   82,930

          73,402

Gross profit

                  31,854

           21,900

Selling, general and          operating expenses

                  19,931

           16,923

Operating income

                   11,923

            4,977

Interest expense

                     5,176

            4,262

Other (income)

                        (159)

        --

Income before taxes

                   6,906

               715

Income taxes

                   2,822

               314

Net income

                 $4,084

             $401

 

 

 

Other Financial Data:

 

 

Depreciation & amortization

               $2,945

        $2,761

Non cash inventory step up costs

$984

$1,699

Capital expenditures

               $1,245

$951


 

Altra Industrial Motion, Inc.

 

 

 

(Unaudited)

 

Balance Sheet Data:

March 31, 2006

April 1, 2005

In Thousands of Dollars

 

 

 

Assets:

 

 

  Cash and cash equivalents

$5,322

           $2,389

  Trade receivables, net

68,535

           51,312

   Inventories, net

72,524

            56,225

   Property, plant and equipment, net

73,243

           67,129

 

 

 

Liabilities:

 

 

  Current liabilities

$80,768

$60,995

   Long-term debt

218,234

158,954

 

 

 

Stockholder's equity

$32,824

$41,686

 

 

 

 

 

 

The company will conduct an investor conference call to discuss its unaudited first quarter financial results on Monday, May 22, 2006 at 4:00 PM EDT.  The public is invited to listen to the conference call by dialing 800.894.5910 domestically or 785.424.1052 for international access and asking to participate in the ALTRA conference call.  A replay of the recorded conference call will be available from May 23, 2006 until May 29, 2006.  To listen to the replay, dial 800.283.8520 domestically or 402.220.0870 for international access.

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 35 product lines with production facilities in six countries and sales coverage in over 70 countries.  Our leading brands are Ameridrives, Boston Gear, Warner Electric, Formsprag Clutch, Industrial Clutch, Kilian, Marland Clutch, Nuttall Gear, Stieber and Wichita Clutch, Twiflex Limited, Bibby Transmissions, Matrix International, Inertia Dynamics and Huco Dynatork.

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 company's Annual Report on Form 10-K filed with the Securities and Exchange Commission.  Altra Industrial Motion, 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.

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