Debt and Interest Management - The Company reported total borrowings under the Term Loan of $1,365.0 million as of December 31, 2025, with interest rates of 1.25% for adjusted base rate loans and 2.25% for Term SOFR loans[442]. - An assumed 10% increase/decrease in the current interest rate would result in an annual interest expense change of $2.3 million on the non-hedged portion of the borrowing[442]. - The Company entered into a $600.0 million interest rate swap agreement effective September 3, 2024, paying a fixed rate of 3.61%[444]. - The Company also entered into a $150.0 million interest rate swap agreement effective April 1, 2025, paying a fixed rate of 3.36%[445]. - The company’s long-term debt decreased to $1,354,636 thousand from $2,034,545 thousand, indicating a reduction in leverage[469]. - The total liabilities decreased to $2,493,770 thousand from $3,109,433 thousand, reflecting improved financial health[469]. Financial Performance - The company's net revenues for the year ended December 31, 2025, were $1,709,237 thousand, an increase from $1,508,440 thousand in 2024, representing a growth of approximately 13.3%[470]. - Gross profit for the year was $642,104 thousand, up from $551,251 thousand in the previous year, indicating a gross margin improvement[470]. - Net income for the year was $101,755 thousand, compared to $98,319 thousand in 2024, reflecting a year-over-year increase of about 2.5%[470]. - The company reported a comprehensive income of $160,685 thousand for the year, significantly higher than $70,951 thousand in 2024[470]. - Cash flows from operating activities for 2025 were $211,685,000, compared to $145,460,000 in 2024, indicating a significant increase of 45.4%[476]. - The company reported foreign exchange losses on intercompany loans of $25.2 million in 2025, compared to losses of $(4.7) million in 2024 and gains of $0.5 million in 2023, indicating significant fluctuations in currency exchange rates[526]. Assets and Liabilities - The company's total assets as of December 31, 2025, were $2,885,888 thousand, an increase from $2,832,105 thousand in 2024[469]. - The total amount of stock repurchased in 2025 was $6,205,000, compared to $1,445,000 in 2024, indicating a significant increase in share buybacks[478]. - The total allowance for credit losses as of December 31, 2025, was $6.4 million, representing 1.1% of the total gross portfolio balance, unchanged from 2024[503]. - The Company’s residual interest in securitized accounts receivable was $28.8 million as of December 31, 2025, down from $36.3 million in 2024[593]. - The total securitization debt as of December 31, 2025, was $618.6 million, which includes $113.2 million related to trade receivables and $505.4 million related to equipment financing receivables[596]. Expenses and Costs - Selling, general, and administrative expenses rose to $324,458 thousand from $266,444 thousand, marking an increase of approximately 21.8%[470]. - The company experienced a non-cash stock-based compensation expense of $19,519,000 in 2025, up from $3,263,000 in 2024[476]. - The provision for credit losses was $3,622,000 in 2025, a decrease from $7,145,000 in 2024, reflecting improved credit quality[476]. - Advertising expenses for the year ended December 31, 2025, were approximately $16.0 million, an increase from $14.1 million in 2024 and $12.2 million in 2023, reflecting a growth trend in marketing investment[517]. - Research and development costs increased to $29.7 million in 2025, up from $22.8 million in both 2024 and 2023, indicating a focus on innovation and product development[527]. Foreign Currency and Risk Management - The Company has manufacturing and sales facilities in multiple countries, including the Czech Republic, China, and Thailand, exposing it to foreign currency risks[446]. - The Company does not designate its foreign currency contracts as hedge transactions, impacting current earnings based on mark-to-market adjustments[447]. - The company’s international sales are primarily denominated in U.S. dollars, but it faces transactional and translational foreign exchange risks related to its foreign operations[446]. - Foreign exchange transaction losses recorded in earnings were $1.2 million in 2025, compared to $0.7 million in 2024 and a gain of $(0.3) million in 2023, highlighting currency volatility impacts[526]. - The company recognized foreign exchange losses of $25,152 in 2025, compared to gains of $4,654 in 2024[567]. Acquisitions and Growth - The company acquired net assets of Metropolitan Laundry Machinery Sales Inc. for a total purchase price of $11,447 in 2025, with goodwill recognized at $8,180[563]. - From acquisitions completed in 2025, the company reported approximately $4.3 million in net revenues from these entities[565]. Stock and Shareholder Actions - The board of directors approved a 142-for-1 stock split on September 25, 2025, which was effective on September 26, 2025, impacting the share structure significantly[483]. - The Company closed its IPO on October 10, 2025, selling 43,195,120 shares at a public price of $22.00 per share, resulting in net proceeds of approximately $505.7 million after deducting offering expenses of about $39.5 million[485]. Inventory and Capital Expenditures - Total inventories as of December 31, 2025, amounted to $146,860 thousand, up from $134,483 thousand in 2024, which is a 9.2% increase[606]. - Capital expenditures for 2025 were $53,668,000, an increase from $43,485,000 in 2024, showing a growth of 27.5%[478]. Impairment and Depreciation - The Company did not record an impairment charge for the years ended December 31, 2025, 2024, and 2023, as the fair values of the Speed Queen, UniMac, and Huebsch trademarks exceeded their carrying values[621]. - Depreciation expense for the year ended December 31, 2025, was $42.0 million, compared to $39.7 million in 2024, marking an increase of 5.8%[608].
ALH(ALH) - 2025 Q4 - Annual Report