MacGray Corp. (TUC, Financial) filed Annual Report for the period ended 2010-12-31.
Macgray Corp. has a market cap of $206.36 million; its shares were traded at around $14.93 with a P/E ratio of 106.64 and P/S ratio of 0.64. The dividend yield of Macgray Corp. stocks is 1.34%. Macgray Corp. had an annual average earning growth of 8.4% over the past 10 years.
leases with property owners and property management companies. Approximately 87% of our leases have a weighted average remaining life of 4 years. In the next seven years, 8% to 10% of our laundry room leases are up for renewal each year. We have traditionally relied upon exclusive, long-term leases with our customers, as well as frequent customer interaction and an emphasis on customer service, to assure continuity of financial and operating results. We cannot guarantee that in the future we will be able to establish long-term leases with new customers or renew existing long-term leases as they expire on favorable terms, or at all.
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Macgray Corp. has a market cap of $206.36 million; its shares were traded at around $14.93 with a P/E ratio of 106.64 and P/S ratio of 0.64. The dividend yield of Macgray Corp. stocks is 1.34%. Macgray Corp. had an annual average earning growth of 8.4% over the past 10 years.
Highlight of Business Operations:
For the years ended December 31, 2009 and 2010, our laundry facilities management business accounted for approximately 95% of our total revenue from continuing operations, and 94% and 95% of our gross margin from continuing operations, respectively. Through our laundry facilities management business, we act as a laundry facilities management contractor with property owners or managers. We lease 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 our long-term leases, we typically receive the exclusive right to provide and service laundry equipment within a multi-unit housing property in exchange for a negotiated percentage of the total revenue collected. We refer to this percentage as "facilities management rent." In each of the past five years, we have retained approximately 97% of our equipment base per year. Our gross additions to our equipment base for each of the years ended December 31, 2009 and 2010 through internally generated growth equaled 2%. Our additions, net of lost business, were -2% for the year ended December 31, 2009 and -1% for the year ended December 31, 2010. The machine base not retained is primarily attributable to contracts the Company has chosen not to renew due to unacceptable profit margins (including some acquired contracts that did not meet our performance criteria) and to a lesser degree, to property owners who chose to self-operate. We believe that our ability to maintain the relative size of our equipment base is indicative of our service of, and attention to, property owners and managers. We also provide our customers with proprietary technologies such as LaundryView, LaundryLinx, ChangePoint and our Client Resource Center, and we continue to invest in research and development of such technologies. We generally have the ability to set and adjust the vend pricing for our equipment based upon local market conditions.leases with property owners and property management companies. Approximately 87% of our leases have a weighted average remaining life of 4 years. In the next seven years, 8% to 10% of our laundry room leases are up for renewal each year. We have traditionally relied upon exclusive, long-term leases with our customers, as well as frequent customer interaction and an emphasis on customer service, to assure continuity of financial and operating results. We cannot guarantee that in the future we will be able to establish long-term leases with new customers or renew existing long-term leases as they expire on favorable terms, or at all.
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