WALTHAM, Mass. — Mac-Gray Corporation saw its net revenues for third-quarter 2011 increase to $78.5 million from $78.2 million for the same period in 2010. Net income was $604,000, compared to $826,000 in 2010.
Third-quarter 2011 net income includes a pre-tax unrealized gain of $45,000 related to interest rate derivative instruments and a non-cash, pre-tax loss of $255,000 related to fuel commodity derivative instruments. Third-quarter 2010 net income included a pre-tax unrealized gain of $1.1 million related to interest rate derivative instruments. Excluding these items from both periods, adjusted net income for third-quarter 2011 was $780,000, compared to $185,000 in 2010.
“This was a steady financial performance in the third quarter — achieving our fourth consecutive quarter of incremental year-over-year growth,” says Stewart G. MacDonald, Mac-Gray chief executive officer. “We continue to see stabilization in the multi-housing industry across the majority of the markets we serve. As a result, multi-housing same location revenue during the quarter rose by 1%, with particular strength in the Northeast and Northwest, and lesser improvement in the Southwest. Only our Southeast region was down. We continued to channel our resources toward generating organic growth through both new and renewal facility contracts in the most promising markets.”
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 approximately 86,000 laundry rooms located in 43 states and the District of Columbia. Mac-Gray also sells and services commercial laundry equipment.