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Mac-Gray Revenue, Net Income Higher During Second Quarter

Staff Writer |

WALTHAM, Mass. — Mac-Gray, provider of laundry facilities management services, saw its revenue and net income increase for second-quarter 2013, according to its latest financial report.

Revenue increased to $79.2 million, compared with $77.8 million in second-quarter 2012, while net income increased to $1.2 million, up from $1.1 million from the same period in 2012.

For the second quarter of 2013, Mac-Gray’s earnings before interest expense, income tax expense, depreciation and amortization expense (EBITDA) was $14.2 million, compared with $14.5 million in the year-earlier quarter, the company says.

“Mac-Gray delivered solid second-quarter results, generating both revenue growth and our fifth consecutive quarter of increased profitability,” says CEO Stewart G. MacDonald. “Same-location multi-housing revenue grew 1.5% in the second quarter compared with the second quarter of 2012.”

He attributes the increase to the company’s “vend management capabilities, higher equipment usage year-over-year, the expansion of our proprietary technologies...and an increase in the number of accounts.”

“More than 70% of our new installations involve one of our various card platforms, and these now run nearly 50% of our total equipment portfolio, up from 42% at year-end,” says MacDonald.

Mac-Gray also saw a boost in its commercial laundry sales.

“In commercial equipment, sales increased $400,000 in the second quarter of 2013 over the same period a year ago, to $3.6 million. We are seeing strength in this sector, even though we have reduced its scope to only the New England area,” says MacDonald.

Looking forward, MacDonald says, “Our strategic priorities are to continue to add accounts, further refine our vend management program, continue to convert our portfolio from coin- to card-operated equipment, and make accretive, tuck-in acquisitions in selected regions that would enable us to increase market density, which is another key to higher profitability.”

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