Profile: Mac-Gray Corp (TUC.N)
3 Dec 2013
Mac-Gray Corporation (Mac-Gray) is a laundry facilities management contractor for the multi-unit housing industry in the United States. It manages laundry rooms under long-term leases with property owners, property management companies and colleges and universities. The Company provides laundry convenience to residents of multi-unit housing such as apartment buildings, condominiums, colleges and university residence halls, public housing complexes, and hotels and motels. Its commercial laundry equipment sales business sells commercial laundry equipment manufactured by Whirlpool Corporation, Dexter Laundry Company, American Dryer Corporation, and Primus Laundry Company. This business sells commercial laundry equipment primarily to retail laundromats, hotels and similar institutional users that operate their own on-premise laundry facilities. As of February 1, 2012, it provided laundry equipment and related services to laundry rooms located in 43 states throughout the continental United States and the District of Columbia.
Laundry Facilities Management Business
The Company, through its laundry facilities management business, it acts as a laundry facilities management contractor with property owners or managers. The Company leases space within a property, in some instances improve the leased space with flooring, ceilings and other improvements (betterments) and then install and service the laundry equipment and collect the payments. The property owner or manager is usually responsible for maintaining, cleaning, and securing the premises and payment of utilities. Under its long-term leases, it receives the exclusive right to provide and service laundry equipment within a multi-unit housing property. During the year ended December 31, 2011, its laundry facilities management business accounted for approximately 95% of its total revenue.
The Company also operate sales and/or service centers in Alabama, Arizona (two locations), Colorado, Connecticut, Florida (two locations), Georgia, Illinois, Louisiana, Maine, Maryland, Massachusetts, New Jersey, New Mexico, New York (two locations), North Carolina, Oregon, Tennessee (two locations), Texas (three locations), Utah, Virginia, and Washington. As of December 31, 2011, approximately 84% of its installed machine base was located in laundry facilities subject to long-term leases, with a weighted average remaining term of approximately four years.
Commercial Laundry Equipment Sales and Services Business
The Company, through its commercial laundry equipment sales and services business, the Company is a distributor for several commercial laundry equipment manufacturers, primarily Whirlpool. It does not manufacture any of the commercial laundry equipment that it sells. As an equipment distributor, it sells commercial laundry equipment to public retail laundromats, as well as to the multi-unit housing industry. In addition, it sells commercial laundry equipment directly to institutional purchasers, including hospitals and hotels, for use in their own on-premise laundry facilities. It is certified by the manufacturers to service the commercial laundry equipment that it sells. Installation and repair services are provided on an occurrence basis, not on a contractual basis. During 2010, its commercial laundry equipment sales business accounted for approximately 5% of its total revenue.
The Company Competes with Coinmach Corporation.
Suite 400, 404 Wyman Street
WALTHAM MA 02451