WALTHAM, Mass. — Mac-Gray Corp. recently announced its financial results for the quarter and year ended Dec. 31, reporting greater profitability despite flat total revenue.
Mac-Gray Corp. saw its net revenue for fourth-quarter 2012 decrease slightly to $82.2 million from $82.7 million for the same period in 2011. Net income increased to $2.6 million compared to $102,000 in fourth-quarter 2011.
For the 12 months ended Dec. 31, Mac-Gray reported net revenue of $322.1 million, compared to $322.0 million for 2011. Net income for 2012 increased to $4.3 million compared to $3.2 million in 2011.
“Mac-Gray concluded 2012 with a solid fourth-quarter performance,” says Stewart G. MacDonald, the company’s CEO. “We improved our operating margins, achieved a higher level of adjusted EBITDA and more than doubled our adjusted earnings. In addition, for the third consecutive quarter, we increased our profitability despite flat total revenue.”
While the effect of Hurricane Sandy on Mac-Gray’s revenue was less than originally feared, MacDonald says, it cost the company more than $600,000 in capital expenditures to replace damaged or destroyed equipment in the Northeast.
“Overall, we invested $6 million in capital expenditures in the fourth quarter, bringing our year-to-date total to $36.9 million, compared with $32.5 million in 2011. The 14% increase in annual capital spending reflects our expectations of achieving continued profitable growth in our core business in 2013.”
Mac-Gray derives its revenue principally through the contracting of debit-card- and coin-operated laundry facilities in multi-unit housing facilities. The company manages laundry rooms located in 43 states and the District of Columbia. Mac-Gray also sells and services commercial laundry equipment.