1 / 16

Overview

Overview. November 2006. Safe Harbor Statement.

gerald
Download Presentation

Overview

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Overview November 2006

  2. Safe Harbor Statement • Some of the statements included herein may include forward-looking statements which reflect our current views with respect to future events and financial performance. Statements which include the words “expect,” “intend,” “plan,” “believe,” “project,” “anticipate” and similar statements of a future or forward-looking nature identify forward-looking statements for the purposes of the federal securities laws or otherwise. • Forward-looking statements necessarily involve risks and uncertainties, and our actual results could differ materially from those anticipated in the forward-looking statements due to a number of factors. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to have been correct. We caution readers not to place undue reliance on such statements and undertake no obligation to update publicly any forward-looking statements for any reason, even if new information becomes available or other events occur in the future. All subsequent written and oral forward-looking statements attributable to us, or persons acting on our behalf, are expressly qualified in their entirety by the cautionary statements contained in this report and our public filings with the securities and Exchange Commission. 1

  3. Stocks At A Glance 2

  4. Investment Highlights • Stable and predictable cash flows with long-term contracts • Dominant player in fragmented markets • Diversified customer and geographic base • Attractive operating margins due to economies of scale • Committed equity sponsor, GTCR with significant ongoing investment • Experienced management team with significant equity incentive • Anti-Cyclical nature of business expected to provide predictability and steady growth over the long term 3

  5. Common Questions Q. What is a unit of “DRY” and a share of “DRA” comprised of? A. Each unit of “DRY” is comprised of an Income Deposit Security (IDS). Each IDS represents one share of Coinmach Service Corp’s Class A common stock and an 11% senior secured note due 2024 with a principle amount of $6.14. Each share of DRA represents one share of Coinmach Service Corp’s Class A common stock. Q. As a holder of a “DRY” unit, what payments might I receive? • A holder of a “DRY” unit will be entitled to quarterly interest payments at an annual rate of 11% or $0.6754 per unit per year. You may also receive quarterly dividend payments on the shares of Class A common underlying your IDS if and to the extent dividends are declared by our board of directors. Q. As a holder of “DRA” shares, what payments might I receive? • As a holder of “DRA”, you may receive quarterly dividend payments on the shares of Class A common stock if a dividend is declared by our board of directors. 4

  6. Company Overview 5

  7. Company Overview Revenue Breakdown • Dominant in three lines of business Super Laundry $25.0 mm Appliance Warehouse $36.1 mm Route Business Rental Business Coinmach $481.7 mm Distribution Business Stable and predictable free cash flows Note: Revenue numbers are as of March 31, 2006. 6

  8. Route Business Overview 7

  9. Route Overview • Provides laundry services to owners of apartment buildings • Approximately 10 million apartments with over 20 million people • 40 tons of quarters are collected per day • 3 billion pounds of laundry is done in our machines every year • Stable and predictable cash flows • Demand not impacted by economic cycles • Long-term renewable contracts • Geographic and customer diversification • Potential to use existing infrastructure to expand services into other businesses (e.g., public pay phones) • Significant barriers to entry • Improving business fundamentals • Improving occupancy rates • More renters, fewer home purchasers • Rigorous capital management 8

  10. Dominant Market Share (over 250 operators) Total U.S. market: 3.5 million machines Source: Multi-housing Laundry Association 9

  11. Diversified Geographic Base Operations in 40 States Across the U.S. 10

  12. Portfolio of Contracts 90% of all machines under long-term contracts 11

  13. Significant Barriers to Entry • Long term contracts • Capital requirements • Significant operating infrastructure • 70 sales professionals using IRR based bidding model • 450 experienced service technicians responding within 24 hours 90% of the time • 250 collectors utilizing computer routing • 35 security professionals monitoring variances to historical collections • Significant cash controls 12

  14. Rental Business Overview 13

  15. 55% Property owners/ management 39% Individuals 6% Corporate accounts Rental Business Overview Operations in 20 States Across the U.S. • Largest provider of leased laundry equipment • Property owners, management companies and individual • 219,000 machines as of June 2006 • Improve penetration in existing markets • Increase operating cash flow with maturing portfolio Customer Breakdown 14

  16. Appliance Warehouse History • AW is the product of two acquisitions in 1997 and 1998 totaling 44,000 machines in Georgia and Texas • Organic machine growth of 175,000 machines since 1998 • Rental business is well positioned for growth in both new and existing markets • Entered two new markets in the prior year, Detroit and Salt Lake City • Organic growth opportunities in multi unit new construction with individual hook ups Historical Machine Count and EBITDA 15

More Related