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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (date of earliest event reported):
December 10, 1998
MAC-GRAY CORPORATION
(Exact name of Registrant as specified in its charter)
Delaware 011-13495 04-3361982
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
22 Water Street, Cambridge, MA 02141
(Address of principal executive offices and zip code)
(617) 492-4040
(Registrant's telephone number, including area code)
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Item 5. Other Events
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On December 10, 1998, the Registrant issued the press release attached as
Exhibit 99.1 to this Current Report on Form 8-K.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
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(c) Exhibits
Exhibit No. Description
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99.1 Press release announcing that Mac-Gray Corporation will
repurchase 600,000 shares of its redeemable common stock in
January 1999.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Dated: December 10, 1998 MAC-GRAY CORPORATION
By: /s/ Stewart G. MacDonald, Jr.
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Stewart G. MacDonald, Jr.
Chairman and Chief Executive Officer
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EXHIBIT INDEX
Exhibit No. Description
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99.1 Press release announcing that Mac-Gray Corporation will
repurchase 600,000 shares of its redeemable common stock in
January 1999.
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EXHIBIT 99.1
MAC-GRAY TO PURCHASE 600,000 SHARES
CAMBRIDGE, Mass., Dec. 10 -- Mac-Gray Corporation (NYSE: TUC - news) announced
today that it will purchase 600,000 redeemable shares of its common stock for
approximately $7.6 million. The purchase is part of an agreement governing its
acquisition of Sun Services of America, Inc. in April 1997 prior to Mac-Gray's
initial public offering. Purchase of the shares from the former owner of Sun
Services, who currently serves as a Mac-Gray director, will be completed in
January, 1999 using funds from Mac-Gray's existing credit line.
In October, 1998 Mac-Gray's Board of Directors approved a stock repurchase
program authorizing the company to buy up to one million shares of its common
stock in the open market.
Stewart MacDonald, chairman and chief executive officer of Mac-Gray, said today:
"This is a great opportunity for our company. The repurchase plan was adopted
because of recent valuations, and the price of these shares falls well within
the range that we consider to be good value. Even though these shares were not
part of that contemplated plan, this purchase gives the company a good block of
shares and it decreases our dependence on the daily volume and availability
restrictions presented by the open market. It is also good news for all
remaining or prospective shareholders because it removes the market overhang
that these shares have represented."
Mac-Gray, founded in 1927, is one of the nation's leading providers of laundry
equipment and service to the multi-housing industry. In March, 1998 it acquired
Intirion Corporation, which produces the MicroFridge(R) family of compact
refrigerators/freezers with microwave ovens. MicroFridge is the leading choice
of college and university housing officers for on-campus installation, and is
used as well on military bases and in assisted-living facilities and the
hotel/motel markets. In April, 1998 Mac-Gray acquired Copico, Inc., the leading
provider of vended reprographics services to the academic and public library
markets in the Northeast and Florida.
Certain matters discussed in this release may constitute forward-looking
statements within the meaning of the federal securities laws. Actual results and
the timing of certain events could differ materially from those projected in or
contemplated by such-forward looking statements due to a number of factors,
including interest rates under the company's senior credit facility, the impact
of the company's growth activities on its operating activities, competition in
the laundry services industry and in the service industry generally, general
economic conditions and other risks detailed from time to time in the filings of
Mac-Gray Corporation with the Securities and Exchange Commission, including the
Annual Report on Form 10-K, as amended, Quarterly Reports on Form 10-Q for the
quarters ended March 31, June 30 and September 30, 1998 and other periodic
filings.
