Mac-Gray Corporation Announces First-Quarter 2008 Financi...( Record Revenue Leads to Net Income &...)

Record Revenue Leads to Net Income & EBITDA (as adjusted) Increases of 21%

and 8%

WALTHAM, Mass., May 8 /PRNewswire-FirstCall/ -- Mac-Gray Corporation (NYSE: TUC), the nation's premier provider of laundry facilities management services to multi-unit housing locations, today announced its financial results for the first quarter ended March 31, 2008.

Mac-Gray reported record first-quarter revenue of $77.6 million, an increase of 9% from 2007 first-quarter revenue of $71.5 million. Net income for the first quarter was approximately $762,000, or $0.06 per diluted share, compared with net income of $1.3 million, or $0.09 per diluted share for the first quarter of 2007. First-quarter 2008 net income includes an unrealized loss of $1.2 million related to derivative instruments. First-quarter 2007 net income included an unrealized loss of $264,000 related to derivative instruments. Excluding these items from both periods, adjusted net income for the first quarter of 2008 increased 21% to $1.7 million, or $0.13 per diluted share, compared with adjusted net income of $1.4 million, or $0.10 per diluted share, for the first quarter of 2007.

Please refer to Table 1, included at the end of this news release, for a reconciliation of net income, as reported, to net income, as adjusted.

For the first quarter of 2008, Mac-Gray's earnings before interest expense, provision for income taxes, depreciation and amortization expense (EBITDA) was $15.0 million, compared with $14.7 million in the year-earlier quarter. EBITDA, as adjusted for the items described above relating to derivative instruments, increased 8% to $16.2 million for the first quarter of 2008, compared with $15.0 million in the year-ea
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