WALTHAM, Mass. — Mac-Gray Corp., provider of laundry facilities management services to multi-unit housing locations, has announced its financial results for the second quarter, which ended June 30.
Mac-Gray reported record second-quarter revenue of $92.9 million, an increase of 34% from its 2007 second-quarter revenue of $69.2 million. Net income for the second quarter was $210,000, or $0.02 per diluted share, compared with net income of $768,000, or $0.06 per diluted share, for the second quarter of 2007.
Second-quarter 2008 net income included a pre-tax gain of $1.2 million on the change in value of derivative instruments and a $207,000 charge for the early extinguishment of debt related to the financing of the acquisition of Automatic Laundry Co. (ALC). Results for 2008 also reflect significantly higher interest expense related to the debt incurred to fund the company’s acquisitions completed during the past 12 months. Second-quarter 2007 net income included a pre-tax gain on the change in value of derivative instruments of $516,000.
Excluding the gain on derivatives from both periods, and the charge for the early extinguishment of debt, adjusted net loss for the second quarter of 2008 was $374,000, or ($0.03) per share, compared with adjusted net income of $465,000, or $0.03 per diluted share, for the second quarter of 2007.
For the second quarter of 2008, Mac-Gray’s earnings before interest expense, provision for income taxes, depreciation and amortization expense (EBITDA) increased to $18.8 million, compared to $13.9 million in the year-earlier quarter. EBITDA, as adjusted for the items described above, increased 33% to $17.8 million for the second quarter of 2008, compared with $13.4 million in the year-earlier quarter.
“We have completed two major acquisitions in the past year that have greatly increased our density in a number of key markets,” says Stewart G. MacDonald, Mac-Gray’s chairman and chief executive officer. “We continue to pursue organic growth opportunities, such as vend price increases, the addition of new accounts, and conversion to card-operated equipment.”