American Locker Group Incorporated (OTCQB: ALGI), the worldwide leader in secure storage solutions, today reported its results for the year ended December 31, 2011. American Locker reported net sales of $13.4 million and net income of $37,000, or $0.02 per share.

    2011 Year End Results           2011 2010 Vs. 2010 Net sales $13.4 million $12.1 million 10.6%   Net income $37,000 $68,000 -45.7%   Adjusted EBITDA $753,000 $628,000 19.9%   Earnings per share $0.02 $0.04 -50.0%  

The increase in revenue was driven by increased concession revenue received pursuant to the Company’s contract with Disney, in addition to increased locker sales. The Company’s reorganization of its outside sales efforts also contributed to increased revenue.

The decrease in net income for 2011 as compared to 2010 was a result of increased rent expense of $347,000, as well as increased depreciation expense of $335,000. The increase in rent expense is due to the commencement of rent for the new DFW facility. The increase in depreciation is due to depreciation of the lockers used in the Disney contract, in addition to capital improvements related to the new facility.

"It is a testament to the quality of our people that we were able to increase revenue and relocate our primary manufacturing facility during the year," said Paul M. Zaidins, Chief Executive Officer.

Adjusted EBITDA for the Company totaled $753,000 during 2011, an increase of $125,000 from 2010. Adjusted EBITDA as a percentage of revenues for 2011 was 5.6%.

Use of Non-GAAP Financial Measure: Adjusted EBITDA

To provide investors with additional information regarding the Company’s financial results, this press release presents Adjusted EBITDA, a non-GAAP financial measure. The Company has provided a reconciliation below of net income (loss) to adjusted EBITDA, the most directly comparable GAAP financial measure.

Adjusted EBITDA is a key metric used by the Company’s management to monitor and evaluate the performance of the business and believes the presentation of this measure will enhance investors’ ability to analyze trends in the Company’s business, evaluate the Company’s performance relative to other companies, and evaluate the Company’s ability to service debt.

Adjusted EBITDA is not a presentation made in accordance with GAAP and the Company’s computation of Adjusted EBITDA may vary from other companies. Adjusted EBITDA should not be considered as an alternative to operating earnings or net income as a measure of operating performance. In addition, Adjusted EBITDA is not presented as and should not be considered as an alternative to cash flows as a measure of liquidity. Adjusted EBITDA has important limitations as an analytical tool and should not be considered in isolation, or as a substitute for analysis of the Company’s results as reported under GAAP.

Because of these limitations, you should consider Adjusted EBITDA alongside other financial performance measures, including various cash flow metrics, net loss and the Company’s other GAAP results.

Reconciliation of EBITDA calculation for twelve month period ended December 31:

          Year Ended December 31, 2011 2011   2010   Net Income (Loss) $ 37,091 $ 68,369 Income tax expense (benefit) 43,516 131,796 Interest expense 68,733 16,232 Other income (move allowance in excess of expense) (129,232 ) - Depreciation and amortization expense 671,009 336,037 Equity based compensation   62,025     75,516 Adjusted EBITDA $ 753,142 $ 627,950  

Forward-Looking Statements

In the interests of providing Company shareholders and potential investors with information regarding the Company, including the Company’s assessment of its and its subsidiaries’ future plans and operations, certain statements included in this press release may constitute forward-looking information or forward-looking statements (collectively, “forward-looking statements”). All statements contained herein that are not clearly historical in nature are forward-looking, and the words “anticipate,” “believe,” “expect,” “estimate” and similar expressions are generally intended to identify forward-looking statements. Actual events or results may differ materially. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievement since such expectations are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company’s actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company and the foregoing list of important factors is not exhaustive. These forward-looking statements made as of the date hereof disclaim any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise. Company shareholders and potential investors should carefully consider the information contained in the Company’s filings with United States securities administrators at www.sec.gov before making investment decisions with regard to the Company.

About American Locker Group Incorporated

American Locker is the world's premier supplier of secure storage solutions under the American Locker and Canadian Locker brands. The Company is best known for manufacturing and servicing the widely-utilized key and lock system with the iconic plastic orange cap. Additionally, American Locker provides precision sheet metal fabrication services to Fortune 1000 customers. Its Security Manufacturing Corporation subsidiary is a leading provider of multi-tenant mailboxes.

Further information about American Locker and its subsidiaries is available at

www.americanlocker.com

www.securitymanufacturing.com

www.canadianlocker.com