Ames Companies 8-K Ames True Temper Reports Third Quarter 2009 Results

Exhibit 99.1

Ames True Temper Reports Third Quarter 2009 Results

CAMP HILL, Pennsylvania, August 4, 2009 — ATT Holding Co., parent of Ames True Temper, Inc., reported today the results of Q3 2009 (thirteen week period ended June 27, 2009).

Third Quarter 2009 Results

Net sales for Q3 2009 were $130.0 million, a 20% decrease over $162.6 million in Q3 2008 (thirteen week period ended June 28, 2008). Net income for Q3 2009 was $9.2 million, compared to net income of $6.0 million for Q3 2008. Adjusted EBITDA (which is reconciled to net income on the attached table) for Q3 2009 was $16.5 million compared to $19.9 million for Q3 2008.

“Q3 revenue was negatively impacted by the continuing weak retail climate, reduced inventory levels at certain customers, and less than favorable weather. In light of current economic conditions in retail, we are pleased with our operational performance,” stated President and CEO Duane Greenly.

“Working capital continued to improve in Q3. Our revolver balance at the end of Q3 dropped to $32.0 million compared to $60.5 million in Q3 2008. Availability was $50.1 million and cash was $25.6 million as of June 27, 2009,” stated CFO Dave Nuti.

Year-to-Date 2009 Results

Net sales for YTD 2009 (thirty-nine week period ended June 27, 2009) were $364.7 million, a 10.7% decrease compared to $408.5 million for YTD 2008 (thirty-nine week period ended June 28, 2008). Net income for YTD 2009 was $1.2 million, compared to net income of $5.5 million for YTD 2008. Adjusted EBITDA (which is reconciled to net income on the attached table) for YTD 2009 was $48.8 million compared to Adjusted EBITDA for YTD 2008 of $49.7 million.

Ames True Temper, Inc. is a global provider of non-powered landscaping products that make work easier for homeowners and professionals.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws. Forward-looking statements may include the words “may,” “will,” “plans,” “estimates,” “anticipates,” “believes,” “expects,” “intends” and similar expressions. Although the Company believes that such statements are based on reasonable assumptions, these forward-looking statements are subject to numerous factors, risks and uncertainties that could cause actual outcomes and

results to be materially different from those projected or assumed in its forward-looking statements. These factors, risks and uncertainties include, among others, the following:

* We depend on a small number of customers for a significant portion of our business;

* Our results of operations have been and may continue to be adversely impacted by macroeconomic events;

* Increased reliance on third party suppliers and manufacturers may decrease our ability to meet customer demand;

* If we are unable to obtain raw materials for our products at favorable prices it could adversely impact our operating performance;

* We are subject to risks associated with our foreign operations, especially our operations in China;

* Unseasonable weather could have a negative impact on our business and financial results;

* Our lawn and garden sales are highly seasonal, which could impact our cash flow and operating results;

* Our industry is highly competitive and we may not be able to compete successfully;

* Further consolidation in the retail industry may adversely affect our results of operations;

* A failure to successfully introduce new products could result in a reduction in sales and floor space at retailers that carry our products;

* The products that we manufacture could expose us to product liability claims;

* Our ability to pay our debt or seek alternative financing may be adversely impacted by the other factors listed herein;

* Environmental health and safety laws, ordinances, and regulations impose risks and costs on us;

* We depend on the service of key individuals, the loss of any of which could materially harm our business;

* Unionized employees could strike or participate in a work stoppage; and

* We may not be able to acquire complementary lawn and garden product manufacturers or brands. In addition, pursuing or completing acquisitions may

negatively impact our operating results, divert management’s attention from operating our core business, and expose us to other risks.

The Company’s actual results, performance or achievements could differ materially from those expressed in, or implied by, the forward-looking statements. The Company can give no assurances that any of the events anticipated by or described in the forward-looking statements will occur or, if any of them do, what impact they will have on the business, results of operations and financial condition. The Company does not intend, and undertakes no obligation, to update any forward-looking statement.

CONTACT: Dave Nuti, Chief Financial Officer, +1-717-730-2933,
investor@amestruetemper.com, for Ames True Temper, Inc.

ATT Holding Co.
Consolidated Balance Sheets
(In thousands)
(Unaudited)

	June 27,			September 27,
	2009			2008
Assets
Current assets:
Cash and cash equivalents	$	25,635		$	17,159
Trade receivables, net		58,910			59,168
Inventories		96,959			110,891
Assets held for sale		—			1,025
Prepaid expenses and other current assets		5,162			6,156
Total current assets		186,666			194,399
Property, plant and equipment, net		46,752			55,237
Intangibles, net		54,395			56,149
Goodwill		56,594			58,242
Other noncurrent assets		7,245			9,798
Total assets	$	351,652		$	373,825
Liabilities and stockholder’s deficit
Current liabilities:
Trade accounts payable	$	22,284		$	35,691
Accrued interest payable		8,754			6,021
Accrued expenses and other current liabilities		24,492			27,634
Revolving loan		32,015			40,010
Current portion of long-term debt and capital lease obligation		576			554
Total current liabilities		88,121			109,910
Deferred income taxes		11,997			11,348
Long-term debt		299,819			300,130
Accrued retirement benefits		21,256			26,108
Other liabilities		10,896			10,534
Total liabilities		432,089			458,030
Commitments and contingencies
Stockholder’s deficit:
Total stockholder’s deficit		(80,437	)		(84,205	)
Total liabilities and stockholder’s deficit	$	351,652		$	373,825

ATT Holding Co.
Condensed Consolidated Statements of Operations
(In thousands)
(Unaudited)

	Thirteen week					Thirteen week
	period ended					period ended
	June 27, 2009					June 28, 2008
Net sales	$	130,036		100.0	%	$	162,580		100.0	%
Cost of goods sold		96,362		74.1	%		121,826		74.9	%
Gross profit		33,674		25.9	%		40,754		25.1	%
Selling, general, and administrative expenses		21,843		16.8	%		25,821		15.9	%
Loss on disposal of fixed assets		599		0.5	%		32		0.0	%
Amortization of intangible assets		302		0.2	%		340		0.2	%
Impairment charges		451		0.3	%		166		0.1	%
Operating income		10,479		8.1	%		14,395		8.9	%
Interest expense		7,085		5.4	%		8,396		5.2	%
Other income		(6,793	)	-5.2	%		(919	)	-0.6	%
Income before income taxes		10,187		7.8	%		6,918		4.3	%
Income tax expense		941		0.7	%		952		0.6	%
Net income	$	9,246		7.1	%	$	5,966		3.7	%

ATT Holding Co.
Condensed Consolidated Statements of Operations
(In thousands)
(Unaudited)

	Thirty-nine week				Thirty-nine week
	period ended				period ended
	June 27, 2009				June 28, 2008
Net sales	$	364,663	100.0	%	$	408,504	100.0	%
Cost of goods sold		268,301	73.6	%		302,455	74.0	%
Gross profit		96,362	26.4	%		106,049	26.0	%
Selling, general, and administrative expenses		62,143	17.0	%		71,776	17.6	%
Loss on disposal of fixed assets		901	0.2	%		531	0.1	%
Amortization of intangible assets		911	0.2	%		1,023	0.3	%
Impairment charges		927	0.3	%		200	0.0	%
Operating income		31,480	8.6	%		32,519	8.0	%
Interest expense		22,420	6.1	%		25,628	6.3	%
Other expense		5,643	1.5	%		470	0.1	%
Income before income taxes		3,417	0.9	%		6,421	1.6	%
Income tax expense		2,242	0.6	%		910	0.2	%
Net income	$	1,175	0.3	%	$	5,511	1.3	%

ATT Holding Co.
Reconciliation of Net Income to Adjusted EBITDA
(In thousands)
(Unaudited)

	Thirteen week			Thirteen week
	period ended			period ended
	June 27, 2009			June 28, 2008
Net income	$	9,246		$	5,966
Depreciation of property, plant and equipment		3,882			3,881
Amortization of intangible assets		302			340
Interest expense		7,085			8,396
Income tax expense		941			952
EBITDA (a)		21,456			19,535
Adjustments to EBITDA:
One-time costs for new long handle tool distribution (b)		—			195
Equity sponsor fees and other expenses (c)		569			898
Impairment charges (d)		451			166
Loss on disposal of fixed assets (e)		599			32
Net unrealized gains (f)		(6,533	)		(904	)
Adjusted EBITDA (a)	$	16,542		$	19,922

(a)	“EBITDA” is calculated as net income plus income tax expense, interest expense, depreciation and amortization. “Adjusted EBITDA” is EBITDA adjusted as indicated below. EBITDA and Adjusted EBITDA are not intended to represent cash flow from operations as defined by U.S. GAAP and should not be used as an alternative to net income as an indicator of operating performance or to cash flow as a measure of liquidity. EBITDA and Adjusted EBITDA are a basis upon which our management assesses financial performance and covenants in our senior credit facility are tied to ratios based on this measure. During Q3 2009, Adjusted EBITDA as defined by our senior credit facility was amended to exclude non-recurring gains. Accordingly, non-recurring gains are presented as adjustments to EBITDA. While EBITDA and Adjusted EBITDA are frequently used as a measure of operations and the ability to meet debt service requirements, they are not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the method of calculation.
(b)	Represents allowable addbacks for one-time set up expenses associated with new long handle tool business at one or more primary customers.
(c)	Consists of management fees paid to our private equity sponsor (Castle Harlan), non-cash (income) expense related to our postretirement plans and non-cash charges recorded in accordance with lease accounting standards due to the expensing of escalating rent on a straight-line basis.
(d)	Consists of impairment charges for long-lived assets.
(e)	Consists of losses on the disposition of property, plant and equipment.
(f)	Consists primarily of an unrealized foreign currency gain on a U.S. dollar denominated intercompany note issued by a Canadian subsidiary.

ATT Holding Co.
Reconciliation of Net Income to Adjusted EBITDA
(In thousands)
(Unaudited)

	Thirty-nine week		Thirty-nine week
	period ended		period ended
	June 27, 2009		June 28, 2008
Net income	$	1,175	$	5,511
Depreciation of property, plant and equipment		11,825		11,742
Amortization of intangible assets		911		1,023
Interest expense		22,420		25,628
Income tax expense		2,242		910
EBITDA (a)		38,573		44,814
Adjustments to EBITDA:
Cost savings initiatives (b)		—		(77	)
One-time costs for new long handle tool distribution (c)		—		500
Equity sponsor fees and other expenses (d)		1,276		3,224
Impairment charges (e)		927		200
Loss on disposal of fixed assets (f)		901		531
Net unrealized losses (g)		7,151		501
Adjusted EBITDA (a)	$	48,828	$	49,693

(a)	“EBITDA” is calculated as net income plus income tax expense, interest expense, depreciation and amortization. “Adjusted EBITDA” is EBITDA adjusted as indicated below. EBITDA and Adjusted EBITDA are not intended to represent cash flow from operations as defined by U.S. GAAP and should not be used as an alternative to net income as an indicator of operating performance or to cash flow as a measure of liquidity. EBITDA and Adjusted EBITDA are a basis upon which our management assesses financial performance and covenants in our senior credit facility are tied to ratios based on this measure. During Q3 2009, Adjusted EBITDA as defined by our senior credit facility was amended to exclude non-recurring gains. Accordingly, non-recurring gains are presented as adjustments to EBITDA. While EBITDA and Adjusted EBITDA are frequently used as a measure of operations and the ability to meet debt service requirements, they are not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the method of calculation.
(b)	Represents changes in accrual estimates related to an acquisition.
(c)	Represents allowable addbacks for one-time set up expenses associated with new long handle tool business at one or more primary customers.
(d)	Consists of management fees paid to our private equity sponsor (Castle Harlan), non-cash (income) expense related to our postretirement plans and non-cash charges recorded in accordance with lease accounting standards due to the expensing of escalating rent on a straight-line basis.
(e)	Consists of impairment charges for long-lived assets.
(f)	Consists of losses on the disposition of property, plant and equipment.
(g)	Consists primarily of an unrealized foreign currency loss on a U.S. dollar denominated intercompany note issued by a Canadian subsidiary.