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Lenders’ Presentation June 28, 2006

Lenders’ Presentation June 28, 2006. Disclaimer The following information contains forward-looking statements within the meaning of the Private Securities

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Page 1: Lenders’ Presentation June 28, 2006. Disclaimer The following information contains forward-looking statements within the meaning of the Private Securities

Lenders’ PresentationLenders’ Presentation

June 28, 2006June 28, 2006

Page 2: Lenders’ Presentation June 28, 2006. Disclaimer The following information contains forward-looking statements within the meaning of the Private Securities

DisclaimerDisclaimer

The following information contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on Management’s current expectations and beliefs, as well as a number of assumptions concerning future events. These statements are subject to risks, uncertainties, assumptions and other important factors, many of which are outside Management’s control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. You are cautioned not to put undue reliance on such forward-looking statements because actual results may vary materially from those expressed or implied. All forward-looking statements are based on information available to Management on this date and Alliance Laundry assumes no obligation to, and expressly disclaims any obligation to, update or revise any forward looking statements, whether as a result of new information, future events or otherwise.

Page 3: Lenders’ Presentation June 28, 2006. Disclaimer The following information contains forward-looking statements within the meaning of the Private Securities

AgendaAgenda

Transaction Overview

Alliance Financial Update

LSG / CLD Overview

Amendment Request

Public Lenders’ Q&A

Pro Forma Financial Projections

Private Lenders’ Q&A

Presenters

Bruce Rounds, CFOAlliance Laundry Systems LLC

Bruce Rounds, CFOAlliance Laundry Systems LLC

Tom L’Esperance, CEOAlliance Laundry Systems LLC

Diane Albanese, Vice PresidentLehman Brothers

Bruce Rounds, CFOAlliance Laundry Systems LLC

Page 4: Lenders’ Presentation June 28, 2006. Disclaimer The following information contains forward-looking statements within the meaning of the Private Securities

Transaction OverviewTransaction Overview

Page 5: Lenders’ Presentation June 28, 2006. Disclaimer The following information contains forward-looking statements within the meaning of the Private Securities

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Transaction OverviewTransaction Overview

Alliance Laundry Systems reached an agreement to purchase the Commercial Laundry Division (“CLD”) from Laundry Systems Group (“LSG”) on May 23, 2006

Acquisition strategically enhances geographic scope, expands product offering and provides control of soft-mount technology

Total transaction value of $85 million includes capital lease obligations assumed

Alliance expects to finance the acquisition with a combination of debt and equity in order to maintain existing leverage levels

$60 million add-on to the existing Term Loan Facility, along with a $5 million increase to the Revolving Credit Facility to maintain adequate liquidity

— Maturity and amortization schedules will remain the same as existing $23 million in equity from Teachers’ and management (1)(2)(3)

Sources and Uses

1. The remaining $1.4 million of the total purchase price reflects the capital lease assumed.2. Management includes both Alliance and CLD.3. Teachers’ equity will initially be funded through $20.0 mm bridge facility held at a new limited liability Holding Company,

parent to Alliance Laundry Holdings LLC; remaining equity will be provided by Alliance and CLD management.4. Alliance will fund the full €59.0 mm purchase price, which includes the assumption of $1.4 mm capital lease, at close.

Through post-closing purchase price adjustments, the value of the capital lease will be returned to Alliance approximately 60 days post-close.

($ in millions)

Sources Uses

Term Loan Add-On $60.0 Adjusted Purchase Price (4) $74.8

Teachers' Equity (3) 20.0 Transaction Costs 5.3

Equity (3) 3.2 Cash for Europe 3.1

Capital Lease Assumed 1.4 Capital Lease Assumed 1.4

Total Sources $84.6 Total Uses $84.6

Page 6: Lenders’ Presentation June 28, 2006. Disclaimer The following information contains forward-looking statements within the meaning of the Private Securities

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Pro Forma CapitalizationPro Forma Capitalization

Pro Forma Capitalization

The financing of the transaction has been structured to be leverage neutral

($ in millions)Alliance EBITDA ProForma EBITDA

Consolidated Capitalization 3/ 31/ 2006 Multiple Adj. 3/ 31/ 2006 Multiple

Revolver (1) $3.0 0.0x $0.0 $3.0 0.0x

Term Loan B 177.0 2.9x 60.0 237.0 3.3x

Senior Subordinated Notes 149.4 2.4x 0.0 149.4 2.1x

Other Long-Term Debt 1.0 0.0x 0.0 1.0 0.0x

Capital Lease 0.0 0.0x 1.4 1.4 0.0x

Total Debt $330.4 5.4x $61.4 $391.8 5.4x

less: Cash $0.3 0.0x $3.1 $3.4 0.0x

Net Debt $330.1 5.4x $58.3 $388.4 5.3x

Equity (market value) (2) 117.0 1.9x 23.2 140.2 1.9x

Total Enterprise Value $447.1 7.3x $81.5 $528.6 7.3x

LTM Adjusted EBITDA (3) $61.5 $72.7

1. Total availability under Revolver is increasing from $50 million to $55 million.2. Reflects market value of equity of Alliance at January 27, 2005 and CLD in conjunction with acquisition.3. Alliance LTM Adjusted EBITDA as of March 31, 2006; CLD LTM EBITDA as of December 31, 2005 and is subject to E&Y diligence

adjustments. See the Company’s filings with the Securities and Exchange Commission for a reconciliation of Adjusted EBITDA to Net Loss.

Page 7: Lenders’ Presentation June 28, 2006. Disclaimer The following information contains forward-looking statements within the meaning of the Private Securities

Alliance Financial UpdateAlliance Financial Update

Page 8: Lenders’ Presentation June 28, 2006. Disclaimer The following information contains forward-looking statements within the meaning of the Private Securities

Alliance Performance Summary Alliance Performance Summary

Net revenues for the year ended December 31, 2005 increased $36.3 million, or 12.9%, to $317.3 million from $281.0 million Revenue growth was primarily driven by price and volume increases

Gross profit for the year ended December 31, 2005 decreased $6.0 million, or 7.2%, to $76.0 million from $82.0 million Decrease in gross profit attributed to higher cost of sales from asset step-ups and higher-than expected steel prices

$25 million of debt reduction since Facility closing date Leverage of 5.4x well below the maximum 6.50x Total Debt / EBITDA covenant as of March 31, 2006 (steps down to 6.25x at

June 30, 2006)

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Income StatementIncome Statement($ in millions) Quarter Ended, Fiscal Year Ended Quarter Ended, LTM

3/ 31/ 2005 6/ 30/ 2005 9/ 30/ 2005 12/ 31/ 2005 12/ 31/ 2005 3/ 31/ 2006 3/ 31/ 2006

Total Revenue $69.9 $85.7 $78.4 $83.3 $317.3 $71.5 $318.9

Gross Profit 11.0 20.6 22.4 21.9 76.0 18.6 83.6

% Margin 15.7% 24.0% 28.6% 26.3% 24.0% 26.0% 26.2%

EBITDA (GAAP Reporting) ($23.9) $8.1 $16.3 $14.8 $15.3 $9.6 $48.9 % Margin NA 9.5% 20.9% 17.7% 4.8% 13.5% 15.3%

Adjusted EBI TDA $12.7 $16.6 $14.1 $17.1 $60.4 $13.8 $61.5 % Margin 18.1% 19.3% 17.9% 20.6% 19.0% 19.3% 19.3%

Capital Expenditures $0.7 $1.6 $0.9 $1.2 $4.4 $1.4 $5.1Total Debt $347.3 $344.3 $336.3 $326.3 $326.3 $330.4 $330.4

Financial Performance UpdateFinancial Performance Update

Page 9: Lenders’ Presentation June 28, 2006. Disclaimer The following information contains forward-looking statements within the meaning of the Private Securities

LSG / CLD OverviewLSG / CLD Overview

Page 10: Lenders’ Presentation June 28, 2006. Disclaimer The following information contains forward-looking statements within the meaning of the Private Securities

Commercial Laundry Division of LSGCommercial Laundry Division of LSG

Managed out of Belgium, CLD is one of LSG’s two operating divisions, with approximately 400 employees

CLD has been a significant strategic partner of Alliance since 2002

CLD focuses on two geographic regions: Europe (Ipso) & the U.S. (Cissell & Ipso)

Focused on the laundromat and on-premise laundry (“OPL”) segments

Offers a full range of commercial washer extractors, tumbler dryers and ironers

Strong position in washer extractor soft-mount technology

Strong market position in Europe

Products distributed worldwide through local distributors

Stand-alone 2005 revenue and EBITDA of approximately $98.1 million and $11.2 million(1), respectively

CLD is a leading manufacturer and marketer of commercial washing and drying machines and finishing equipment

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1. CLD financials subject to E&Y diligence adjustments.

Page 11: Lenders’ Presentation June 28, 2006. Disclaimer The following information contains forward-looking statements within the meaning of the Private Securities

CLD Unit OverviewCLD Unit Overview

Focuses on laundromat and OPL segments

(European Operations) (U.S. Operations)

Facilities: 2 in Belgium (Wevelgem and Deinze)

Employees: 240

Production: 14,000 units per year (primarily washer-extractors, as well as ironers and tumbler dryers)

Unaudited 2005 Financials(1): Net Revenue: €53.7 million Adj. EBITDA: €7.2 million

Primary Competitors: Electrolux, Girbau, Primus

Focuses on laundromat, dry-cleaning and OPL segments

Cissell facilities: Louisville, KY and Portland, TN

Ipso sales center: Fort Mill, SC

Employees: 153

Production: 1,000 units per year (primarily large stand-alone tumbler dryers)

Unaudited 2005 Financials(1): Net Revenue: $30.1 million Adj. EBITDA: $2.0 million

Primary Competitors: Alliance, Dexter, Milnor, Girbau

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1. CLD financials subject to E&Y diligence adjustments.

Page 12: Lenders’ Presentation June 28, 2006. Disclaimer The following information contains forward-looking statements within the meaning of the Private Securities

CLD Unit Sales By GeographyCLD Unit Sales By Geography

(European Operations) (U.S. Operations)

U.S.84%

EMEA12%

Far East4%

EMEA75%

U.S.18%

Far East7%

2005 Net Revenue: €53.7 million 2005 Net Revenue: $30.1 million

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1. EMEA refers to Europe, the Middle East and Africa.

The acquisition further diversifies Alliance’s geographical reach and customer base

(1)

(1)

Page 13: Lenders’ Presentation June 28, 2006. Disclaimer The following information contains forward-looking statements within the meaning of the Private Securities

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CLD Historical FinancialsCLD Historical Financials

1. Financial results unaudited and are subject to E&Y diligence adjustments.2. Converted at an exchange rate of €1.24 / $1.00.3. Converted at an exchange rate of €1.27 / $1.00.

European Operations (1)

U.S. Operations (1)

CLD (Total) (1)

(€ and $ in millions)

2004A 2005A

Sales € 44.8 € 53.7% Growth 19.8%

Adj. EBITDA € 5.5 € 7.2% Margin 12.3% 13.5%

2004A 2005A

Sales $29.4 $30.1% Growth 2.2%

Adj. EBITDA $2.3 $2.0% Margin 8.0% 6.7%

2004A (2) 2005A (3)

European Ops Sales $55.6 $68.1

U.S. Ops Sales 29.4 30.1

Total Sales $85.1 $98.1

% Growth 15.3%

European Ops Adj. EBITDA $6.9 $9.2

U.S. Ops Adj. EBITDA 2.3 2.0

Total Adj. EBI TDA $9.2 $11.2

% Margin 10.8% 11.4%

Page 14: Lenders’ Presentation June 28, 2006. Disclaimer The following information contains forward-looking statements within the meaning of the Private Securities

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Growth Growth OpportunitiesOpportunities

Synergies and Synergies and Cost SavingsCost Savings

Key Credit StrengthsKey Credit Strengths

Increased size and scale Diversification with increased sales contribution from

Europe Increased product differentiation to support Alliance’s

multi-brand strategies Ownership of soft-mount technology broadens product

lines and reduces risk Branding unique products across markets creates

opportunity

Increased economies of scale provide potential opportunities for cost savings, such as corporate overhead

Substantial US manufacturing consolidation opportunity Additional synergies expected from combined

procurement

Strong MarketStrong MarketPositionPosition

Access to two strong brands with significant market share Significant presence in Western Europe

Access to CLD’s European distribution network Existing management expected to continue operating

European business

Page 15: Lenders’ Presentation June 28, 2006. Disclaimer The following information contains forward-looking statements within the meaning of the Private Securities

Amendment RequestAmendment Request

Page 16: Lenders’ Presentation June 28, 2006. Disclaimer The following information contains forward-looking statements within the meaning of the Private Securities

Summary of Terms Summary of Terms

1. Reflects 3/31/06 pro forma balance.

Borrower: Alliance Laundry Systems LLC (the “Company”)

Lead Arranger: Lehman Brothers Inc.

Administrative Agent: Lehman Commercial Paper Inc.

Add-On Facilities: $5 million Revolving Credit Commitments (the "Revolver")$60 million Term Loan B (the "TLB")

Pro Forma Credit Facilities: Size Maturity Current PricingRevolver $55.0 million January 27, 2011 L + 250 bps

Term Loan 237.0 million(1)

January 27, 2012 L + 225 bps$292.0 million

Security: First priority lien on all currently owned and hereafter acquired tangible and intangible assets of the Companyand the Guarantors, including all stock, ownership units, membership interests and notes owned by the Company or the Guarantors and 65% of the equity interests in the Company's first tier foreign subsidiaraies, but excluding trade receivables and equipment notes subject to the Company's securitization facilities

Guarantees: Holding company parent and each direct and indirect domestic subsidiary of the Company currently ownedor hereafter acquired (other than subsidiaries in place or formed as part of the Company's off-balancesheet accounts receivable and equipment loan financing activity)

Add-on Use of Proceeds: Revolver: General corporate purposesTLB: To fund the acquisition and pay fees and expenses

Amortization: Revolver: NoneTLB: 0.25% per quarter with a bullet payment at maturity

Optional Prepayments: Prepayable any time at par

Mandatory Prepayments: (i) 100% of asset sales and recovery events (subject to reinvestment rights);(ii) 100% from debt proceeds with carveouts;(iii) 50% from equity proceeds with carveouts;(iv) Beginning with the 2007 fiscal year, 75% from excess cash flow,

steps down to 50% if below 4.5x total leverage and 0% below 4.0x total leverage

Financial Covenants: Same as existing, including:• Maximum total leverage ratio • Minimum interest coverage ratio

Covenant Amendments: Include CLD Acquision as a Permitted AcquisitionAnnual capital expenditure basket increased from $10 million to $13 millionForeign debt capacity increased from $2.5 million to $5.0 millionOther changes included in the First Amendment to the Credit Agreement

Consent Fee: 10 bps

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Page 17: Lenders’ Presentation June 28, 2006. Disclaimer The following information contains forward-looking statements within the meaning of the Private Securities

Proposed Transaction TimelineProposed Transaction Timeline

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Week of Alliance-CLD Transaction Events

June 26th Lender Presentation (June 28)

July 10th Commitments and consents due from lenders (July 11) Comments due from lenders on documentation Close and fund (July 14)

Holiday

June

S M T W T F S1 2 3

4 5 6 7 8 9 1011 12 13 14 15 16 1718 19 20 21 22 23 2425 26 27 28 29 30

July

S M T W T F S1

2 3 4 5 6 7 89 10 11 12 13 14 15

16 17 18 19 20 21 2223/30 24 25 26 27 28 29

Key Dates

Page 18: Lenders’ Presentation June 28, 2006. Disclaimer The following information contains forward-looking statements within the meaning of the Private Securities

Public Lenders’ Q&APublic Lenders’ Q&A