SOURCE: Altra Industrial Motion

July 29, 2005 17:10 ET

Altra Industrial Motion Announces Results for the Second Quarter of 2005

QUINCY, MA -- (MARKET WIRE) -- 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)
                                        2nd 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.

Contact Information

  • CONTACT INFORMATION:

    David Wall
    Chief Financial Officer
    Phone: (617) 689-6380
    Email: Email Contact