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Mac-Gray Reports Sixth Straight Quarter of Increased Profitability

Staff Writer |

Higher revenue, adjusted net income reported for third quarter

WALTHAM, Mass. — Mac-Gray’s overall revenue for the third quarter totaled $79.5 million, up from $77.9 million in third quarter 2012, according to financial results ending Sept. 30.

Net income for third quarter 2013 was $1.5 million, or $0.09 per diluted share, over net income of $1.5 million, or $0.10 per diluted share, for the same period in 2012, the company says. Third-quarter 2013 net income includes $420,000 of transaction costs related to the proposed merger with CSC Fenway, and a pre-tax unrealized gain of $29,000 related to fuel commodity derivatives, the company adds.

Third-quarter of 2012 net income included non-cash unrealized gains related to interest rate and fuel commodity derivative instruments of $125,000 and $67,000, respectively.

Excluding these items from both periods, the company reports its adjusted net income for third quarter 2013 increased to $1.7 million, or $0.11 per diluted share, compared with adjusted net income of $1.2 million, or $0.08 per diluted share, for the same period in 2012.

Third-quarter 2013 earnings before interest expense, income tax expense, depreciation and amortization expense (EBITDA) was $14.6 million, compared to $15.6 million in the same period of 2012, the company says.

Excluding from both periods unrealized gains/losses related to interest rate and fuel commodity derivative instruments, as well as transaction costs in third quarter 2013, the EBITDA was $15.0 million, down from $15.4 million in third quarter 2012.

“Results for the third quarter improved over last year’s same period with revenue growth of 2% and our sixth consecutive quarter of increased profitability,” says CEO Stewart G. MacDonald. “Same-location multi-housing revenue grew 1% in the third quarter compared with the third quarter of 2012, primarily reflecting the success of our vend management capabilities. Commercial equipment sales grew 29% over last year’s third quarter reflecting strength in this sector, despite a reduced scope to only the New England region.”

“Our business through the first nine months of the year is stable, with year-to-date revenue and gross margin on par with the same period in 2012,” MacDonald adds. “During this year we have completed and successfully integrated the tuck-in acquisitions of three small laundry facilities management businesses that have contributed to our performance.”

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