Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 04, 2013 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'MAC-GRAY CORP | ' |
Entity Central Index Key | '0001038280 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 14,748,558 |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $13,537 | $14,328 |
Trade receivables, net of allowance for doubtful accounts | 6,704 | 5,835 |
Inventory of finished goods, net | 2,144 | 1,284 |
Deferred income taxes | 1,148 | 1,148 |
Prepaid facilities management rent and other current assets | 11,633 | 9,476 |
Total current assets | 35,166 | 32,071 |
Property, plant and equipment, net | 143,699 | 129,947 |
Goodwill | 58,185 | 57,737 |
Intangible assets, net | 164,395 | 169,640 |
Prepaid facilities management rent and other assets | 14,307 | 12,014 |
Total assets | 415,752 | 401,409 |
Current liabilities: | ' | ' |
Current portion of long-term debt and capital lease obligations | 1,587 | 1,201 |
Trade accounts payable | 10,369 | 9,189 |
Accrued facilities management rent | 20,390 | 20,930 |
Accrued expenses and other current liabilities | 18,663 | 13,677 |
Total current liabilities | 51,009 | 44,997 |
Long-term debt and capital lease obligations | 196,141 | 190,969 |
Deferred income taxes | 45,133 | 46,770 |
Other liabilities | 1,178 | 1,386 |
Total liabilities | 293,461 | 284,122 |
Commitments and contingencies (Note 6) | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock ($.01 par value, 5 million shares authorized, no shares issued or outstanding) | ' | ' |
Common stock ($.01 par value, 30 million shares authorized, 14,516,074 issued and outstanding at December 31, 2012, and 14,734,072 issued and outstanding at September 30, 2013) | 147 | 145 |
Additional paid in capital | 92,918 | 89,706 |
Accumulated other comprehensive loss | ' | -130 |
Retained earnings | 29,226 | 27,566 |
Total stockholders' equity | 122,291 | 117,287 |
Total liabilities and stockholders' equity | $415,752 | $401,409 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ' | ' |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 14,734,072 | 14,516,074 |
Common stock, shares outstanding | 14,734,072 | 14,516,074 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenue: | ' | ' | ' | ' |
Laundry facilities management revenue | $75,002 | $74,372 | $229,357 | $229,316 |
Commercial laundry equipment sales | 4,509 | 3,501 | 10,968 | 10,620 |
Total revenue | 79,511 | 77,873 | 240,325 | 239,936 |
Cost of revenue: | ' | ' | ' | ' |
Cost of laundry facilities management revenue | 53,925 | 52,600 | 161,659 | 160,840 |
Depreciation and amortization | 10,878 | 10,706 | 32,230 | 31,536 |
Cost of commercial laundry equipment sales | 3,665 | 2,827 | 8,932 | 8,675 |
Total cost of revenue | 68,468 | 66,133 | 202,821 | 201,051 |
Gross margin | 11,043 | 11,740 | 37,504 | 38,885 |
Operating expenses: | ' | ' | ' | ' |
General and administration | 4,261 | 4,303 | 13,452 | 15,506 |
Sales and marketing | 2,733 | 2,772 | 8,945 | 8,435 |
Depreciation and amortization | 178 | 216 | 554 | 626 |
Incremental costs of proxy contests | ' | ' | 770 | 377 |
Transaction costs | 420 | ' | 597 | ' |
Gain on sale of assets, net | -114 | -57 | -269 | -97 |
Total operating expenses | 7,478 | 7,234 | 24,049 | 24,847 |
Income from operations | 3,565 | 4,506 | 13,455 | 14,038 |
Interest expense, including the change in fair value of non-hedged interest rate derivative instruments and amortization of deferred financing costs | 1,147 | 1,931 | 4,100 | 7,235 |
Loss on early extinguishment of debt | ' | ' | 54 | 3,762 |
Income before provision for income taxes | 2,418 | 2,575 | 9,301 | 3,041 |
Income tax expense | 961 | 1,104 | 3,714 | 1,285 |
Net income | 1,457 | 1,471 | 5,587 | 1,756 |
Other comprehensive gain, net of tax: | ' | ' | ' | ' |
Unrealized gain on derivative instruments | ' | 173 | 130 | 493 |
Comprehensive income | $1,457 | $1,644 | $5,717 | $2,249 |
Earnings per share - basic (in dollars per share) | $0.10 | $0.10 | $0.38 | $0.12 |
Earnings per share - diluted (in dollars per share) | $0.09 | $0.10 | $0.37 | $0.12 |
Weighted average common shares outstanding - basic (in shares) | 14,715 | 14,447 | 14,634 | 14,396 |
Weighted average common shares outstanding - diluted (in shares) | 15,405 | 15,134 | 15,206 | 15,078 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Additional Paid In Capital | Accumulated Other Comprehensive Loss | Comprehensive Income | Retained Earnings |
In Thousands, except Share data, unless otherwise specified | ||||||
Balance at Dec. 31, 2012 | $117,287 | $145 | $89,706 | ($130) | ' | $27,566 |
Balance (in shares) at Dec. 31, 2012 | ' | 14,516,074 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
Net income | 5,587 | ' | ' | ' | 5,587 | 5,587 |
Other comprehensive income: | ' | ' | ' | ' | ' | ' |
Unrealized gain on derivative instrument and reclassification, net of tax of $79 (Note 3) | 130 | ' | ' | 130 | 130 | ' |
Comprehensive income | 5,717 | ' | ' | ' | 5,717 | ' |
Options Exercised | 598 | 1 | 597 | ' | ' | ' |
Options Exercised (in shares) | ' | 64,096 | ' | ' | ' | ' |
Stock issuance - Employee Stock Purchase Plan | 274 | ' | 274 | ' | ' | ' |
Stock issuance - Employee Stock Purchase Plan (in shares) | ' | 24,162 | ' | ' | ' | ' |
Non-cash stock compensation expense | 1,945 | ' | 1,945 | ' | ' | ' |
Dividends paid, $.2625 per share | -3,851 | ' | ' | ' | ' | -3,851 |
Stock grants | 321 | 1 | 396 | ' | ' | -76 |
Stock grants (in shares) | ' | 129,740 | ' | ' | ' | ' |
Balance at Sep. 30, 2013 | $122,291 | $147 | $92,918 | ' | ' | $29,226 |
Balance (in shares) at Sep. 30, 2013 | ' | 14,734,072 | ' | ' | ' | ' |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Parenthetical) (USD $) | 9 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 |
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY | ' |
Unrealized gain on derivative instrument and reclassification, tax expense | $79 |
Dividends paid, per share (in dollars per share) | $0.26 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ' | ' |
Net income | $5,587 | $1,756 |
Adjustments to reconcile net income to net cash flows provided by operating activities: | ' | ' |
Depreciation and amortization | 32,784 | 32,162 |
Amortization of deferred financing costs | 262 | 356 |
Loss on early extinguishment of debt | 54 | 1,220 |
Decrease in allowance for doubtful accounts and lease reserves | -15 | -41 |
Gain on disposition of assets | -269 | -97 |
Stock grants | 321 | 392 |
Gain on change in fair value of interest rate derivatives | -196 | -360 |
Gain loss on change in fair value of fuel commodity derivatives | -20 | -43 |
Decrease in deferred income taxes | -1,424 | -1,298 |
Non-cash stock compensation | 1,945 | 2,024 |
Increase in accounts receivable | -854 | -405 |
Increase in inventory | -860 | -685 |
Increase in prepaid facilities management rent and other assets | -7,204 | -3,232 |
Increase (decrease) in accounts payable, accrued facilities management rent, accrued expenses and other liabilities | 5,330 | -1,682 |
Net cash flows provided by operating activities | 35,441 | 30,067 |
Cash flows from investing activities: | ' | ' |
Capital expenditures | -30,799 | -25,269 |
Payments for acquisitions | -5,128 | ' |
Proceeds from sale of assets | 335 | 177 |
Net cash flows used in investing activities | -35,592 | -25,092 |
Cash flows from financing activities: | ' | ' |
Payments on capital lease obligations | -1,217 | -1,010 |
Payment on senior notes | ' | -100,000 |
Payments on secured revolving credit facility | -75,976 | -169,592 |
Borrowings on secured revolving credit facility | 79,911 | 289,978 |
Payments on secured term credit facility | ' | -18,750 |
Proceeds from exercise of stock options | 598 | 588 |
Proceeds from issuance of common stock | 274 | 300 |
Debt acquisition and amendment costs | -379 | -1,497 |
Cash dividend paid | -3,851 | -2,629 |
Repurchase of common stock | ' | -2,000 |
Net cash flows used in financing activities | -640 | -4,612 |
Increase (decrease) in cash and cash equivalents | -791 | 363 |
Cash and cash equivalents, beginning of period | 14,328 | 13,881 |
Cash and cash equivalents, end of period | 13,537 | 14,244 |
Supplemental cash flow activities: | ' | ' |
Capital lease agreements | 2,840 | 770 |
Fair value of net assets acquired | 5,847 | ' |
Consideration paid in cash | 5,128 | ' |
Future cash payment | $719 | ' |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Basis of Presentation | ' |
Basis of Presentation | ' |
1. Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial reporting and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. The unaudited interim condensed consolidated financial statements do not include all information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America. In the opinion of the management of Mac-Gray Corporation (the “Company” or “Mac-Gray,”) the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of normal, recurring adjustments), which are necessary to present fairly the Company’s financial position, the results of its operations, and its cash flows. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s 2012 audited consolidated financial statements filed with the Securities and Exchange Commission in its Annual Report on Form 10-K for the year ended December 31, 2012. The results for interim periods are not necessarily indicative of the results to be expected for the full year. | |
The Company generates the majority of its revenue from card and coin-operated laundry equipment located in 44 states throughout the United States, as well as the District of Columbia. The Company’s principal client base is the multi-unit housing market, which consists of apartments, condominium units, colleges and universities. The Company also sells and services commercial laundry equipment to commercial laundromats, multi-housing properties and institutions. The majority of the Company’s purchases of laundry equipment are from one supplier. | |
For information on a significant event, see Note 13, “Subsequent Events”. | |
LongTerm_Debt
Long-Term Debt | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Long-Term Debt | ' | |||||||||||||
Long-Term Debt | ' | |||||||||||||
2. Long-Term Debt | ||||||||||||||
On February 29, 2012, the Company entered into an Amended and Restated Senior Secured Credit Agreement (as amended, the “2012 Credit Agreement”). On May 17, 2013, the Company entered into Amendment No. 1 to the Amended and Restated Senior Secured Credit Agreement. The 2012 Credit Agreement provides for borrowings up to $250,000 under a revolving credit facility (the “Revolver”). The 2012 Credit Agreement matures on May 17, 2018. The 2012 Credit Agreement also provides for Swingline Loans of up to $10,000 (the “Swingline Loans”) and any Swingline Loans will reduce the borrowings available under the Revolver. Subject to certain terms and conditions, the 2012 Credit Agreement gives the Company the option to increase the Revolver or establish one or more new term loans, provided that the aggregate commitments under the 2012 Credit Agreement cannot exceed $350,000. The 2012 Credit Agreement is collateralized by a blanket lien on the assets of the Company and each of its subsidiaries as well as a pledge by the Company of all the capital stock of its subsidiaries. Outstanding indebtedness under the 2012 Credit Agreement bears interest at a fluctuating rate equal to (i) in the case of Eurodollar rate loans, the LIBOR rate plus an applicable percentage, ranging from 1.25% to 2.00% per annum (currently 2.00%), determined by reference to our consolidated total leverage ratio, and (ii) in the case of base rate loans and swingline loans, the higher of (a) the federal funds rate plus 0.50%, (b) the annual rate of interest announced by Bank of America, N.A. as its “prime rate,” or (c) for each day, the floating rate of interest equal to LIBOR for a one month term quoted for such date (the highest of which is defined as the “Base Rate”), plus, in each case, an applicable percentage, ranging from 0.25% to 1.00% per annum (currently 1.00%), determined by reference to our consolidated total leverage ratio. | ||||||||||||||
The Company pays a commitment fee equal to a percentage of the actual daily-unused portion of the Revolver under the 2012 Credit Agreement. This percentage is determined quarterly by reference to the Company’s consolidated total leverage ratio and ranges between 0.25% per annum and 0.40% per annum (currently 0.40%). For purposes of the calculation of the commitment fee, letters of credit are considered usage under the Revolver, but swingline loans are not considered usage under the Revolver. | ||||||||||||||
The 2012 Credit Agreement includes certain financial and operational covenants, including restrictions on paying dividends and other distributions, making certain acquisitions and incurring indebtedness, and requires that the Company maintain certain financial ratios. The most significant financial ratios that the Company is required to maintain include a consolidated total leverage ratio of not greater than 3.75 to 1.00 (3.50 to 1.00 as of December 31, 2013 and thereafter) and a consolidated cash flow coverage ratio of not less than 1.20 to 1.00. The Company was in compliance with all financial covenants at September 30, 2013. | ||||||||||||||
During the first quarter of 2012, the Company incurred deferred financing costs of $1,497 associated with the 2012 Credit Agreement and wrote off unamortized deferred financing costs of $133 associated with the Company’s 2008 credit facility. | ||||||||||||||
During the second quarter of 2013, the Company incurred deferred financing costs of $379 and wrote off unamortized deferred financing costs of $54 associated with Amendment No. 1 to the 2012 Credit Agreement. | ||||||||||||||
As of September 30, 2013, there was $193,680 outstanding under the Revolver and $1,380 in outstanding letters of credit. The available balance under the Revolver was $54,940 at September 30, 2013. The average interest rates on the borrowings outstanding under the 2012 Credit Agreement at September 30, 2012 and 2013 were 3.65% and 2.00%, respectively, including the applicable spread paid to the banks and, for 2012, the effect of the interest rate swap agreements tied to the debt (see Note 3 for discussion on Fair Value Measurements). | ||||||||||||||
On August 16, 2005, the Company issued senior unsecured notes in the amount of $150,000 with the fixed interest rate of 7.625%. On October 21, 2011, the Company redeemed $50,000 of the senior notes by utilizing $51,271 of availability under its 2008 credit facility, as amended. The Company paid a premium of $1,271 as well as interest accrued through the date of redemption and wrote off unamortized deferred financing costs of $623 associated with this redemption. On March 30, 2012, the Company redeemed the remaining $100,000 of the senior notes by utilizing $103,495 of availability under the 2012 Credit Agreement and paying a premium of $2,542 as well as interest accrued through the date of redemption. The Company wrote off the remaining $1,087 of unamortized deferred financing costs associated with this redemption. | ||||||||||||||
Interest expense associated with the Company’s long term debt for the three and nine months ended September 30, 2012 and 2013 is comprised of the following: | ||||||||||||||
Three months ended | Nine months ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2012 | 2013 | 2012 | 2013 | |||||||||||
Interest expense | $ | 1,966 | $ | 1,063 | $ | 7,239 | $ | 4,034 | ||||||
Change in the fair value of non-hedged interest rate derivative instruments | (125 | ) | — | (360 | ) | (196 | ) | |||||||
Amortization of deferred financing costs | 90 | 84 | 356 | 262 | ||||||||||
Interest expense, including change in fair value of non-hedged interest rate derivative instruments and amortization of deferred financing costs | $ | 1,931 | $ | 1,147 | $ | 7,235 | $ | 4,100 | ||||||
Capital lease obligations are comprised primarily of the Company’s fleet of vehicles which totaled $2,425 and $4,048 at December 31, 2012 and September 30, 2013, respectively. | ||||||||||||||
Required payments under the Company’s long-term debt and capital lease obligations are as follows: | ||||||||||||||
Amount | ||||||||||||||
2013 (three months) | $ | 255 | ||||||||||||
2014 | 1,021 | |||||||||||||
2015 | 969 | |||||||||||||
2016 | 956 | |||||||||||||
2017 | 847 | |||||||||||||
Thereafter | 193,680 | |||||||||||||
$ | 197,728 | |||||||||||||
The Company historically has not needed sources of financing other than its internally generated cash flow, revolving credit facilities, and senior notes to fund its working capital, capital expenditures, and smaller acquisitions. The Company anticipates that its cash flow from operations and revolving credit facilities will be sufficient to meet its anticipated cash requirements for at least the next twelve months. | ||||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||||||||||||
3. Fair Value Measurements | ||||||||||||||||||||||||||
The Company has adopted accounting guidance regarding fair value measurements, which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. The guidance utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels: | ||||||||||||||||||||||||||
Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. | ||||||||||||||||||||||||||
Level 2: Inputs, other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. | ||||||||||||||||||||||||||
Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions. | ||||||||||||||||||||||||||
The following table summarizes the basis used to measure certain financial assets and financial liabilities at fair value on a recurring basis in the balance sheet: | ||||||||||||||||||||||||||
Basis of Fair Value Measurments | ||||||||||||||||||||||||||
Balance at | Quoted | Significant | Significant | |||||||||||||||||||||||
September 30, | Prices In | Other | Unobservable | |||||||||||||||||||||||
2013 | Active | Observable | Inputs | |||||||||||||||||||||||
Markets | Inputs | (Level 3) | ||||||||||||||||||||||||
for | (Level 2) | |||||||||||||||||||||||||
Identical | ||||||||||||||||||||||||||
Items | ||||||||||||||||||||||||||
(Level 1) | ||||||||||||||||||||||||||
Fuel commodity derivatives (included in current liabilities) | $ | 17 | $ | — | $ | — | $ | 17 | ||||||||||||||||||
The Company entered into standard International Swaps and Derivatives Association (“ISDA”) interest rate swap agreements (“Swap Agreements”) to manage the interest rate associated with its debt. The interest rate Swap Agreements matured on April 1, 2013. Under these agreements the Company received a variable rate of LIBOR plus a markup and paid a fixed rate. The Company recognized a non-cash unrealized gain of $405 for the three months ended September 30, 2012, and a non-cash unrealized gain of $406 and $1,235 for the nine months ended September 30, 2013 and 2012, respectively, on the interest rate Swap Agreements as a result of the change in the fair value. | ||||||||||||||||||||||||||
On September 23, 2011 the Company entered into a fuel commodity derivative to manage the fuel cost of its fleet of vehicles. The derivative was effective January 1, 2012 and expired December 31, 2012. On September 19, 2012 the Company entered into an additional fuel commodity derivative. The derivative was effective January 1, 2013 and expires December 31, 2013. The derivative has a monthly notional amount of 80 thousand gallons from January 1, 2013 through December 31, 2013 for a total notional amount of 960 thousand gallons. The Company has a put price of $3.26 per gallon and a strike price of $3.90 per gallon. The Company recognized a non-cash unrealized gain of $29 and $67 for the three months ended September 30, 2013 and 2012, respectively, and a non-cash unrealized gain of $20 and $43 for the nine months ended September 30, 2013 and 2012, respectively, on these fuel commodity derivatives as a result of the change in the fair value. | ||||||||||||||||||||||||||
The fair value of the fuel commodity derivative is based on market assumptions and quoted pricing and is considered a Level 3 item. | ||||||||||||||||||||||||||
The fuel commodity derivative activity for the nine months ended September 30, 2013 is as follows: | ||||||||||||||||||||||||||
Balance, December 31, 2012 | $ | (37 | ) | |||||||||||||||||||||||
Realized gains | — | |||||||||||||||||||||||||
Unrealized gains | 20 | |||||||||||||||||||||||||
Settlements | — | |||||||||||||||||||||||||
Balance, September 30, 2013 | $ | (17 | ) | |||||||||||||||||||||||
The Company determines the fair value of the amount outstanding under its 2012 Credit Facility using Level 2 inputs. The fair value of the 2012 Credit Agreement at September 30, 2013 approximates carrying value. | ||||||||||||||||||||||||||
During the first quarter of 2012, as a result of the senior note redemption (Note 2), the Company no longer qualified for hedge accounting treatment on its only effective interest rate swap agreement. Accordingly, the amount included in Accumulated Other Comprehensive Loss at the time hedge accounting was lost was reclassified as an earnings charge through the maturity date of the derivative. This charge to interest expense, when combined with an interest rate swap agreement that previously lost hedge accounting treatment, amounted to $210 for the nine months ended September 30, 2013 compared to $280 and $875 for the three and nine months ended September 30, 2012, respectively. | ||||||||||||||||||||||||||
The tables below display the impact the Company’s derivative instruments had on the Condensed Consolidated Balance Sheets as of December 31, 2012 and September 30, 2013 and the Condensed Consolidated Statements of Income and Comprehensive Income for the three and nine months ended September 30, 2012 and 2013. | ||||||||||||||||||||||||||
Fair Values of Derivative Instruments | ||||||||||||||||||||||||||
Liability Derivatives | ||||||||||||||||||||||||||
December 31, 2012 | September 30, 2013 | |||||||||||||||||||||||||
Balance Sheet | Fair Value | Balance Sheet | Fair Value | |||||||||||||||||||||||
Location | Location | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||||
Fuel commodity derivatives | Accrued expenses | $ | 37 | Accrued expenses | $ | 17 | ||||||||||||||||||||
The Effect of Derivative Instruments on the Consolidated Statements of Income and Comprehensive Income | ||||||||||||||||||||||||||
for the three months ended September 30, 2012 and 2013 | ||||||||||||||||||||||||||
Derivatives in | Amount of Loss | Location of Loss | Amount of Loss | Derivatives Not | Location of | Amount of Gain or (Loss) | ||||||||||||||||||||
Net Investment | Recognized in OCI on | Reclassified from | Reclassified from | Designated as | Gain or (Loss) | Recognized in Income on | ||||||||||||||||||||
Derivative (Effective | Accumulated | Accumulated OCI into | Recognized in | Derivative | ||||||||||||||||||||||
Portion) | OCI into Income | Income (Effective | ||||||||||||||||||||||||
Portion) | ||||||||||||||||||||||||||
Hedging | September 30, | (Effective | September 30, | Hedging | Income on | September 30, | ||||||||||||||||||||
Relationships | 2012 | 2013 | Portion) | 2012 | 2013 | Instruments | Derivative | 2012 | 2013 | |||||||||||||||||
Interest rate contracts: | Interest expense, including the change in the fair value of non-hedged derivative instruments: | Interest rate contracts: | Interest expense, including the change in the fair value of non-hedged derivative instruments: | |||||||||||||||||||||||
Unrealized | $ | — | $ | — | Unrealized | $ | (280 | ) | $ | — | Unrealized | $ | 405 | $ | — | |||||||||||
Realized | — | — | Realized | — | — | Realized | (444 | ) | — | |||||||||||||||||
Total | $ | — | $ | — | Total | $ | (280 | ) | $ | — | Total | $ | (39 | ) | $ | — | ||||||||||
Fuel commodity derivatives: | Cost of revenue: | Fuel commodity derivatives: | Cost of revenue: | |||||||||||||||||||||||
Unrealized | $ | — | $ | — | Unrealized | $ | — | $ | — | Unrealized | $ | 67 | $ | 29 | ||||||||||||
Realized | — | — | Realized | — | — | Realized | 14 | — | ||||||||||||||||||
Total | $ | — | $ | — | Total | $ | — | $ | — | Total | $ | 81 | $ | 29 | ||||||||||||
The Effect of Derivative Instruments on the Consolidated Statements of Income and Comprehensive Income | ||||||||||||||||||||||||||
for the nine months ended September 30, 2012 and 2013 | ||||||||||||||||||||||||||
Derivatives in | Amount of Loss Recognized | Location of Loss | Amount of Loss | Derivatives Not | Location of | Amount of Gain or (Loss) | ||||||||||||||||||||
Net Investment | in OCI on Derivative | Reclassified from | Reclassified from | Designated as | Gain or (Loss) | Recognized in Income on | ||||||||||||||||||||
(Effective Portion) | Accumulated | Accumulated OCI into | Recognized in | Derivative | ||||||||||||||||||||||
OCI into Income | Income (Effective | |||||||||||||||||||||||||
Portion) | ||||||||||||||||||||||||||
Hedging | September 30, | (Effective | September 30, | Hedging | Income on | September 30, | ||||||||||||||||||||
Relationships | 2012 | 2013 | Portion) | 2012 | 2013 | Instruments | Derivative | 2012 | 2013 | |||||||||||||||||
Interest rate contracts: | Interest expense, including the change in the fair value of non-hedged derivative instruments: | Interest rate contracts: | Interest expense, including the change in the fair value of non-hedged derivative instruments: | |||||||||||||||||||||||
Unrealized | $ | (67 | ) | $ | — | Unrealized | $ | (875 | ) | $ | (210 | ) | Unrealized | $ | 1,235 | $ | 406 | |||||||||
Realized | (162 | ) | — | Realized | (162 | ) | — | Realized | (1,178 | ) | (398 | ) | ||||||||||||||
Total | $ | (229 | ) | $ | — | Total | $ | (1,037 | ) | $ | (210 | ) | Total | $ | 57 | $ | 8 | |||||||||
Fuel commodity derivatives: | Cost of revenue: | Fuel commodity derivatives: | Cost of revenue: | |||||||||||||||||||||||
Unrealized | $ | — | $ | — | Unrealized | $ | — | $ | — | Unrealized | $ | 43 | $ | 20 | ||||||||||||
Realized | — | — | Realized | — | — | Realized | 47 | — | ||||||||||||||||||
Total | $ | — | $ | — | Total | $ | — | $ | — | Total | $ | 90 | $ | 20 | ||||||||||||
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2013 | |
Acquisitions | ' |
Acquisitions | ' |
4. Acquisitions | |
During 2013, the Company acquired the assets of certain laundry facilities management businesses for total consideration of $5,847. Payments totaling $5,128 were made at the closings and the balance for one of the acquisitions is to be paid within nine months if certain conditions are met. The acquisitions have been reflected in the accompanying condensed consolidated financial statements from the dates of the acquisitions and have been accounted for as business combinations. The preliminary allocations of the total purchase price of the acquisitions are as follows: contract rights $3,397, equipment $1,375, non-compete agreement $220 and goodwill $855. The ultimate purchase price allocations are subject to the finalization of the asset values as of the date of the acquisitions. The operating results of the businesses are included in the accompanying unaudited condensed consolidated statements of income and comprehensive income from the dates of acquisitions. Pro forma results of the acquired companies are not included as they have been deemed immaterial to the Company. | |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Goodwill and Intangible Assets | ' | ||||||||||
Goodwill and Intangible Assets | ' | ||||||||||
5. Goodwill and Intangible Assets | |||||||||||
Goodwill and intangible assets consist of the following: | |||||||||||
As of December 31, 2012 | |||||||||||
Cost | Accumulated | Net Book Value | |||||||||
Amortization | |||||||||||
Goodwill | $ | 57,737 | $ | 57,737 | |||||||
$ | 57,737 | $ | 57,737 | ||||||||
Intangible assets: | |||||||||||
Trade name | $ | 14,050 | $ | — | $ | 14,050 | |||||
Non-compete agreements | 2,277 | 2,272 | 5 | ||||||||
Contract rights | 228,783 | 75,372 | 153,411 | ||||||||
Distribution rights | 1,623 | 946 | 677 | ||||||||
Deferred financing costs | 1,796 | 299 | 1,497 | ||||||||
$ | 248,529 | $ | 78,889 | $ | 169,640 | ||||||
As of September 30, 2013 | |||||||||||
Cost | Accumulated | Net Book Value | |||||||||
Amortization | |||||||||||
Goodwill | $ | 58,185 | $ | 58,185 | |||||||
$ | 58,185 | $ | 58,185 | ||||||||
Intangible assets: | |||||||||||
Trade Name | $ | 14,050 | $ | — | $ | 14,050 | |||||
Non-compete agreements | 2,137 | 1,932 | 205 | ||||||||
Contract rights | 232,090 | 84,066 | 148,024 | ||||||||
Distribution rights | 1,623 | 1,068 | 555 | ||||||||
Deferred financing costs | 1,672 | 111 | 1,561 | ||||||||
$ | 251,572 | $ | 87,177 | $ | 164,395 | ||||||
Estimated future amortization expense of intangible assets consists of the following: | |||||||||||
2013 (three months) | $ | 3,051 | |||||||||
2014 | 12,202 | ||||||||||
2015 | 12,193 | ||||||||||
2016 | 12,193 | ||||||||||
2017 | 12,058 | ||||||||||
Thereafter | 97,934 | ||||||||||
$ | 149,631 | ||||||||||
Amortization expense of intangible assets for the nine months ended September 30, 2012 and 2013 was $9,121 and $9,095, respectively. | |||||||||||
Intangible assets primarily consist of various non-compete agreements, and contract rights recorded in connection with acquisitions. The deferred financing costs were incurred in connection with our senior secured credit facility and our senior notes and are amortized from five to ten years. The non-compete agreements are amortized using the straight-line method over the life of the agreements, which range from five to fifteen years. Contract rights are amortized using the straight-line method over fifteen to twenty years. The life assigned to acquired contracts is based on several factors, including: (i) the historical renewal rate of the contract portfolio for the most recent years prior to the acquisition, (ii) the number of years the average contract has been in the contract portfolio, (iii) the overall level of client satisfaction within the contract portfolio, and (iv) our ability to maintain comparable renewal rates in the future. The contract rights acquired are aggregated for purposes of calculating their fair value upon acquisition due to the fact that there are thousands of individual contracts in each market. No single contract accounts for more than 2% of the revenue of any acquired portfolio and the contracts are homogeneous. The fair values of acquired portfolios are established based upon discounted cash flows generated by the acquired contracts. The fair values of the contracts are allocated to asset groups, comprised of the Company’s geographic markets, based on an estimate of relative fair value. | |||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies | ' |
Commitments and Contingencies | ' |
6. Commitments and Contingencies | |
The Company is involved in various litigation proceedings arising in the normal course of business. In the opinion of management, the Company’s ultimate liability, if any, under pending litigation would not materially affect its financial condition or the results of its operations or cash flows. | |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Earnings Per Share | ' | |||||||||||||
Earnings Per Share | ' | |||||||||||||
7. Earnings Per Share | ||||||||||||||
Three months ended | Nine months ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2012 | 2013 | 2012 | 2013 | |||||||||||
Net income | $ | 1,471 | $ | 1,457 | $ | 1,756 | $ | 5,587 | ||||||
Weighted average number of common shares outstanding - basic | 14,447 | 14,715 | 14,396 | 14,634 | ||||||||||
Effect of dilutive securities: | ||||||||||||||
Stock options and restricted stock units | 687 | 690 | 682 | 572 | ||||||||||
Weighted average number of common shares outstanding - diluted | 15,134 | 15,405 | 15,078 | 15,206 | ||||||||||
Earnings per share - basic | $ | 0.1 | $ | 0.1 | $ | 0.12 | $ | 0.38 | ||||||
Earnings per share - diluted | $ | 0.1 | $ | 0.09 | $ | 0.12 | $ | 0.37 | ||||||
There were 921,000 and 587,000 shares under option plans that were excluded from the computation of diluted earnings per share for the three months ended September 30, 2013 and 2012, and 882,000 and 548,000 shares under option plans that were excluded from the computation of diluted earnings per share for the nine months ended September 30, 2013 and 2012, respectively due to their anti-dilutive effects. | ||||||||||||||
Stock_Compensation
Stock Compensation | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Stock Compensation | ' | ||||
Stock Compensation | ' | ||||
8. Stock Compensation | |||||
For the three and nine months ended September 30, 2013, the Company incurred stock compensation expense of $809 and $2,579, respectively. The allocation of stock compensation expense is consistent with the allocation of the participants’ salaries and other compensation expenses. | |||||
At September 30, 2013, options for 626,000 shares and 164,000 restricted shares have been granted but have not yet vested. | |||||
Compensation expense related to unvested options and restricted shares will be recognized in the following years: | |||||
2013 (three months) | $ | 778 | |||
2014 | 1,191 | ||||
2015 | 661 | ||||
2016 | 84 | ||||
$ | 2,714 | ||||
Income_Taxes
Income Taxes | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Income Taxes | ' | |||||||||||||
Income Taxes | ' | |||||||||||||
9. Income Taxes | ||||||||||||||
The following table presents the income tax expense and the effective income tax rates for the three and nine months ended September 30, 2012 and 2013: | ||||||||||||||
Three months ended | Nine months ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2012 | 2013 | 2012 | 2013 | |||||||||||
Income tax expense | $ | 1,104 | $ | 961 | $ | 1,285 | $ | 3,714 | ||||||
Effective tax rate | 43 | % | 40 | % | 42 | % | 40 | % | ||||||
The effective income tax rate on operations is based upon the estimated income for the year and adjustments, if any, resulting from tax audits or other tax contingencies. | ||||||||||||||
The changes in the effective tax rates for the three and nine months ended September 30, 2012 and 2013 are the result of the relative impact of permanent differences due to changes in estimated pretax annual profits. | ||||||||||||||
At September 30, 2013, the uncertain tax positions recognized by the Company in the consolidated financial statements were not material. | ||||||||||||||
New_Accounting_Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2013 | |
New Accounting Pronouncements | ' |
New Accounting Pronouncements | ' |
10. New Accounting Pronouncements | |
In February 2013, the FASB issued new guidance which requires disclosure of information about significant reclassification adjustments from accumulated other comprehensive income in a single note or on the face of the financial statements. This guidance became effective for the company in 2013. Adoption of this standard, which is related to disclosure only, did not have an impact on the company’s consolidated financial position, results of operations or cash flows. | |
No other new accounting pronouncement issued or effective during the fiscal year has had or is expected to have a material impact on the Consolidated Financial Statements. | |
Payment_of_dividends
Payment of dividends | 9 Months Ended |
Sep. 30, 2013 | |
Payment of dividends | ' |
Payment of dividends | ' |
11. Payment of dividends | |
The Company’s Board of Directors declared quarterly dividends of $0.0875 per share payable on April 1, 2013, July 1, 2013, and October 1, 2013 to stockholders of record at the close of business on March 15, 2013, June 17, 2013, and September 16, 2013, respectively. All dividends were paid prior to September 30, 2013 and have been reflected in the current financial statements. | |
Repurchase_of_Common_Stock
Repurchase of Common Stock | 9 Months Ended |
Sep. 30, 2013 | |
Repurchase of Common Stock | ' |
Repurchase of Common Stock | ' |
12. Repurchase of Common Stock | |
On December 21, 2011, the Company’s Board of Directors authorized a share repurchase program under which the Company is authorized to purchase up to an aggregate of $2,000 of its common stock. The Company repurchased 133,333 shares during the first quarter of 2012 under the plan for a total cash outlay of $2,000, thereby completing the repurchase program. | |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events | ' |
Subsequent Events | ' |
13. Subsequent Events | |
On October 14, 2013, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with CSC ServiceWorks Holdings, Inc., CSC ServiceWorks, Inc. (“CSC”), Spin Holdco Inc. (“Spin”) and CSC Fenway, Inc. (“Merger Sub”) that provides for the merger of Mac-Gray with Merger Sub, a wholly-owned subsidiary of Spin, which is a wholly-owned subsidiary of CSC. Pursuant to and upon the closing of the transaction, CSC will acquire all of the outstanding common stock of Mac-Gray for $21.25 per share, payable in cash and the Company will become a wholly-owned subsidiary of Spin. Completion of the transaction is subject to certain closing conditions including the adoption and approval of the merger agreement by Mac-Gray’s stockholders, regulatory approval, and other customary closing conditions. Mac-Gray expects the transaction to be completed in the first half of 2014. Following completion of the transaction, Mac-Gray’s common stock will be delisted from the New York Stock Exchange and will no longer trade publicly. A description of the Merger Agreement is contained in the Company’s current report on Form 8-K filed with the SEC on October 15, 2013, and a copy of the Merger Agreement is filed as Exhibit 2.1 to such report. | |
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Long-Term Debt | ' | |||||||||||||
Schedule of interest expense associated with long term debt | ' | |||||||||||||
Three months ended | Nine months ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2012 | 2013 | 2012 | 2013 | |||||||||||
Interest expense | $ | 1,966 | $ | 1,063 | $ | 7,239 | $ | 4,034 | ||||||
Change in the fair value of non-hedged interest rate derivative instruments | (125 | ) | — | (360 | ) | (196 | ) | |||||||
Amortization of deferred financing costs | 90 | 84 | 356 | 262 | ||||||||||
Interest expense, including change in fair value of non-hedged interest rate derivative instruments and amortization of deferred financing costs | $ | 1,931 | $ | 1,147 | $ | 7,235 | $ | 4,100 | ||||||
Schedule of required payments under Company's debt and capital lease obligations | ' | |||||||||||||
Amount | ||||||||||||||
2013 (three months) | $ | 255 | ||||||||||||
2014 | 1,021 | |||||||||||||
2015 | 969 | |||||||||||||
2016 | 956 | |||||||||||||
2017 | 847 | |||||||||||||
Thereafter | 193,680 | |||||||||||||
$ | 197,728 |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||||||||||||
Summary of the basis used to measure certain financial assets and financial liabilities at fair value on a recurring basis | ' | |||||||||||||||||||||||||
Basis of Fair Value Measurments | ||||||||||||||||||||||||||
Balance at | Quoted | Significant | Significant | |||||||||||||||||||||||
September 30, | Prices In | Other | Unobservable | |||||||||||||||||||||||
2013 | Active | Observable | Inputs | |||||||||||||||||||||||
Markets | Inputs | (Level 3) | ||||||||||||||||||||||||
for | (Level 2) | |||||||||||||||||||||||||
Identical | ||||||||||||||||||||||||||
Items | ||||||||||||||||||||||||||
(Level 1) | ||||||||||||||||||||||||||
Fuel commodity derivatives (included in current liabilities) | $ | 17 | $ | — | $ | — | $ | 17 | ||||||||||||||||||
Schedule of fuel commodity derivative activity | ' | |||||||||||||||||||||||||
Balance, December 31, 2012 | $ | (37 | ) | |||||||||||||||||||||||
Realized gains | — | |||||||||||||||||||||||||
Unrealized gains | 20 | |||||||||||||||||||||||||
Settlements | — | |||||||||||||||||||||||||
Balance, September 30, 2013 | $ | (17 | ) | |||||||||||||||||||||||
Schedule of impact of the derivative instruments on the Condensed Consolidated Balance Sheets | ' | |||||||||||||||||||||||||
Fair Values of Derivative Instruments | ||||||||||||||||||||||||||
Liability Derivatives | ||||||||||||||||||||||||||
December 31, 2012 | September 30, 2013 | |||||||||||||||||||||||||
Balance Sheet | Fair Value | Balance Sheet | Fair Value | |||||||||||||||||||||||
Location | Location | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||||
Fuel commodity derivatives | Accrued expenses | $ | 37 | Accrued expenses | $ | 17 | ||||||||||||||||||||
Schedule of Effect of Derivative Instruments on the Consolidated Statements of Income and Comprehensive Income | ' | |||||||||||||||||||||||||
The Effect of Derivative Instruments on the Consolidated Statements of Income and Comprehensive Income | ||||||||||||||||||||||||||
for the three months ended September 30, 2012 and 2013 | ||||||||||||||||||||||||||
Derivatives in | Amount of Loss | Location of Loss | Amount of Loss | Derivatives Not | Location of | Amount of Gain or (Loss) | ||||||||||||||||||||
Net Investment | Recognized in OCI on | Reclassified from | Reclassified from | Designated as | Gain or (Loss) | Recognized in Income on | ||||||||||||||||||||
Derivative (Effective | Accumulated | Accumulated OCI into | Recognized in | Derivative | ||||||||||||||||||||||
Portion) | OCI into Income | Income (Effective | ||||||||||||||||||||||||
Portion) | ||||||||||||||||||||||||||
Hedging | September 30, | (Effective | September 30, | Hedging | Income on | September 30, | ||||||||||||||||||||
Relationships | 2012 | 2013 | Portion) | 2012 | 2013 | Instruments | Derivative | 2012 | 2013 | |||||||||||||||||
Interest rate contracts: | Interest expense, including the change in the fair value of non-hedged derivative instruments: | Interest rate contracts: | Interest expense, including the change in the fair value of non-hedged derivative instruments: | |||||||||||||||||||||||
Unrealized | $ | — | $ | — | Unrealized | $ | (280 | ) | $ | — | Unrealized | $ | 405 | $ | — | |||||||||||
Realized | — | — | Realized | — | — | Realized | (444 | ) | — | |||||||||||||||||
Total | $ | — | $ | — | Total | $ | (280 | ) | $ | — | Total | $ | (39 | ) | $ | — | ||||||||||
Fuel commodity derivatives: | Cost of revenue: | Fuel commodity derivatives: | Cost of revenue: | |||||||||||||||||||||||
Unrealized | $ | — | $ | — | Unrealized | $ | — | $ | — | Unrealized | $ | 67 | $ | 29 | ||||||||||||
Realized | — | — | Realized | — | — | Realized | 14 | — | ||||||||||||||||||
Total | $ | — | $ | — | Total | $ | — | $ | — | Total | $ | 81 | $ | 29 | ||||||||||||
The Effect of Derivative Instruments on the Consolidated Statements of Income and Comprehensive Income | ||||||||||||||||||||||||||
for the nine months ended September 30, 2012 and 2013 | ||||||||||||||||||||||||||
Derivatives in | Amount of Loss Recognized | Location of Loss | Amount of Loss | Derivatives Not | Location of | Amount of Gain or (Loss) | ||||||||||||||||||||
Net Investment | in OCI on Derivative | Reclassified from | Reclassified from | Designated as | Gain or (Loss) | Recognized in Income on | ||||||||||||||||||||
(Effective Portion) | Accumulated | Accumulated OCI into | Recognized in | Derivative | ||||||||||||||||||||||
OCI into Income | Income (Effective | |||||||||||||||||||||||||
Portion) | ||||||||||||||||||||||||||
Hedging | September 30, | (Effective | September 30, | Hedging | Income on | September 30, | ||||||||||||||||||||
Relationships | 2012 | 2013 | Portion) | 2012 | 2013 | Instruments | Derivative | 2012 | 2013 | |||||||||||||||||
Interest rate contracts: | Interest expense, including the change in the fair value of non-hedged derivative instruments: | Interest rate contracts: | Interest expense, including the change in the fair value of non-hedged derivative instruments: | |||||||||||||||||||||||
Unrealized | $ | (67 | ) | $ | — | Unrealized | $ | (875 | ) | $ | (210 | ) | Unrealized | $ | 1,235 | $ | 406 | |||||||||
Realized | (162 | ) | — | Realized | (162 | ) | — | Realized | (1,178 | ) | (398 | ) | ||||||||||||||
Total | $ | (229 | ) | $ | — | Total | $ | (1,037 | ) | $ | (210 | ) | Total | $ | 57 | $ | 8 | |||||||||
Fuel commodity derivatives: | Cost of revenue: | Fuel commodity derivatives: | Cost of revenue: | |||||||||||||||||||||||
Unrealized | $ | — | $ | — | Unrealized | $ | — | $ | — | Unrealized | $ | 43 | $ | 20 | ||||||||||||
Realized | — | — | Realized | — | — | Realized | 47 | — | ||||||||||||||||||
Total | $ | — | $ | — | Total | $ | — | $ | — | Total | $ | 90 | $ | 20 |
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Goodwill and Intangible Assets | ' | ||||||||||
Schedule of goodwill and intangible assets | ' | ||||||||||
As of December 31, 2012 | |||||||||||
Cost | Accumulated | Net Book Value | |||||||||
Amortization | |||||||||||
Goodwill | $ | 57,737 | $ | 57,737 | |||||||
$ | 57,737 | $ | 57,737 | ||||||||
Intangible assets: | |||||||||||
Trade name | $ | 14,050 | $ | — | $ | 14,050 | |||||
Non-compete agreements | 2,277 | 2,272 | 5 | ||||||||
Contract rights | 228,783 | 75,372 | 153,411 | ||||||||
Distribution rights | 1,623 | 946 | 677 | ||||||||
Deferred financing costs | 1,796 | 299 | 1,497 | ||||||||
$ | 248,529 | $ | 78,889 | $ | 169,640 | ||||||
As of September 30, 2013 | |||||||||||
Cost | Accumulated | Net Book Value | |||||||||
Amortization | |||||||||||
Goodwill | $ | 58,185 | $ | 58,185 | |||||||
$ | 58,185 | $ | 58,185 | ||||||||
Intangible assets: | |||||||||||
Trade Name | $ | 14,050 | $ | — | $ | 14,050 | |||||
Non-compete agreements | 2,137 | 1,932 | 205 | ||||||||
Contract rights | 232,090 | 84,066 | 148,024 | ||||||||
Distribution rights | 1,623 | 1,068 | 555 | ||||||||
Deferred financing costs | 1,672 | 111 | 1,561 | ||||||||
$ | 251,572 | $ | 87,177 | $ | 164,395 | ||||||
Schedule of estimated future amortization expense of intangible assets | ' | ||||||||||
2013 (three months) | $ | 3,051 | |||||||||
2014 | 12,202 | ||||||||||
2015 | 12,193 | ||||||||||
2016 | 12,193 | ||||||||||
2017 | 12,058 | ||||||||||
Thereafter | 97,934 | ||||||||||
$ | 149,631 |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Earnings Per Share | ' | |||||||||||||
Schedule of earnings per share | ' | |||||||||||||
Three months ended | Nine months ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2012 | 2013 | 2012 | 2013 | |||||||||||
Net income | $ | 1,471 | $ | 1,457 | $ | 1,756 | $ | 5,587 | ||||||
Weighted average number of common shares outstanding - basic | 14,447 | 14,715 | 14,396 | 14,634 | ||||||||||
Effect of dilutive securities: | ||||||||||||||
Stock options and restricted stock units | 687 | 690 | 682 | 572 | ||||||||||
Weighted average number of common shares outstanding - diluted | 15,134 | 15,405 | 15,078 | 15,206 | ||||||||||
Earnings per share - basic | $ | 0.1 | $ | 0.1 | $ | 0.12 | $ | 0.38 | ||||||
Earnings per share - diluted | $ | 0.1 | $ | 0.09 | $ | 0.12 | $ | 0.37 |
Stock_Compensation_Tables
Stock Compensation (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Stock Compensation | ' | ||||
Schedule of compensation expense related to unvested options and restricted shares | ' | ||||
2013 (three months) | $ | 778 | |||
2014 | 1,191 | ||||
2015 | 661 | ||||
2016 | 84 | ||||
$ | 2,714 |
Income_Taxes_Tables
Income Taxes (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Income Taxes | ' | |||||||||||||
Schedule of income tax expense and the effective income tax rates | ' | |||||||||||||
Three months ended | Nine months ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2012 | 2013 | 2012 | 2013 | |||||||||||
Income tax expense | $ | 1,104 | $ | 961 | $ | 1,285 | $ | 3,714 | ||||||
Effective tax rate | 43 | % | 40 | % | 42 | % | 40 | % | ||||||
Basis_of_Presentation_Details
Basis of Presentation (Details) | Sep. 30, 2013 |
item | |
Basis of Presentation | ' |
Number of states from which entity generates its revenue | 44 |
Number of major suppliers | 1 |
LongTerm_Debt_Details
Long-Term Debt (Details) (USD $) | 9 Months Ended | 0 Months Ended | 6 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | 17-May-13 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2012 | Sep. 30, 2013 | 17-May-13 | 17-May-13 | 17-May-13 | Sep. 30, 2013 | 17-May-13 | 17-May-13 | 17-May-13 | Sep. 30, 2013 | 17-May-13 | 17-May-13 | 17-May-13 | Mar. 31, 2012 |
2012 Credit Agreement | 2012 Credit Agreement | 2012 Credit Agreement | 2012 Credit Agreement | 2012 Credit Agreement | Revolver | Revolver | Revolver | Revolver | Eurodollar rate loans | Eurodollar rate loans | Eurodollar rate loans | Base rate loans and swingline notes | Base rate loans and swingline notes | Base rate loans and swingline notes | Base rate loans and swingline notes | Swingline Loans | 2008 Credit Facility | |||
Minimum | Maximum | LIBOR | LIBOR | LIBOR | Federal funds rate | Base Rate | Base Rate | Base Rate | ||||||||||||
Minimum | Maximum | Minimum | Maximum | |||||||||||||||||
Long-term debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | $250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10,000 | ' |
Maximum borrowing capacity | ' | ' | 350,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Available balance | ' | ' | ' | ' | ' | ' | ' | 54,940 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Description of variable rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'LIBOR | 'LIBOR | 'LIBOR | 'Federal funds rate | 'Base rate | 'Base rate | 'Base rate | ' | ' |
Interest rate added to base rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.00% | 1.25% | 2.00% | 0.50% | 1.00% | 0.25% | 1.00% | ' | ' |
Percentage of commitment fee on unused credit facility | ' | ' | ' | ' | ' | ' | ' | 0.40% | ' | 0.25% | 0.40% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current leverage ratio | ' | ' | 3.75 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future leverage ratio | ' | ' | 3.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consolidated cash flow coverage ratio | ' | ' | 1.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred financing costs | ' | ' | ' | 379 | ' | ' | 1,497 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unamortized deferred financing costs written off | 54 | 1,220 | ' | 54 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 133 |
Outstanding credit facility | ' | ' | ' | ' | ' | ' | ' | 193,680 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding letters of credit | ' | ' | ' | ' | $1,380 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average effective interest rate on borrowing including the effects of swaps (as a percent) | ' | ' | ' | ' | 2.00% | 3.65% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
LongTerm_Debt_Details_2
Long-Term Debt (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 0 Months Ended | 6 Months Ended | 0 Months Ended | 3 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 30, 2012 | Oct. 21, 2011 | Aug. 16, 2005 | Sep. 30, 2013 | Dec. 31, 2012 | Mar. 30, 2012 | Jun. 30, 2013 | Oct. 21, 2011 | Mar. 31, 2012 |
Senior unsecured notes | Senior unsecured notes | Senior unsecured notes | Capital lease obligations | Capital lease obligations | 2012 Credit Agreement | 2012 Credit Agreement | 2008 Credit Facility | 2008 Credit Facility | |||||
Long-term debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior unsecured notes issued | ' | ' | ' | ' | ' | ' | $150,000 | ' | ' | ' | ' | ' | ' |
Interest rate on senior unsecured notes (as a percent) | ' | ' | ' | ' | ' | ' | 7.63% | ' | ' | ' | ' | ' | ' |
Value of senior notes redeemed | ' | ' | ' | 100,000 | 100,000 | 50,000 | ' | ' | ' | ' | ' | ' | ' |
Proceeds used to redeem senior notes | ' | ' | 79,911 | 289,978 | ' | ' | ' | ' | ' | 103,495 | ' | 51,271 | ' |
Premium paid | ' | ' | ' | ' | 2,542 | 1,271 | ' | ' | ' | ' | ' | ' | ' |
Unamortized deferred financing costs written off | ' | ' | 54 | 1,220 | 1,087 | 623 | ' | ' | ' | ' | 54 | ' | 133 |
Long term debt interest expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense | 1,063 | 1,966 | 4,034 | 7,239 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Change in the fair value of non-hedged interest rate derivative instruments | ' | -125 | -196 | -360 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of deferred financing costs | 84 | 90 | 262 | 356 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense, including change in fair value of non-hedged interest rate derivative instruments and amortization of deferred financing costs | 1,147 | 1,931 | 4,100 | 7,235 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Company's debt and capital lease obligations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital lease obligations | ' | ' | ' | ' | ' | ' | ' | 4,048 | 2,425 | ' | ' | ' | ' |
2013 (three months) | 255 | ' | 255 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2014 | 1,021 | ' | 1,021 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | 969 | ' | 969 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2016 | 956 | ' | 956 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2017 | 847 | ' | 847 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Thereafter | 193,680 | ' | 193,680 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Company's debt and capital lease obligations, Total | $197,728 | ' | $197,728 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 19, 2012 |
Fair value measurements | ' | ' | ' | ' | ' |
Non-cash unrealized gain (loss) recognized | ' | ' | $20 | $43 | ' |
Non-cash unrealized gain on derivative | ' | 125 | 196 | 360 | ' |
Interest rate swap derivative financial instruments | ' | ' | ' | ' | ' |
Fair value measurements | ' | ' | ' | ' | ' |
Variable rate paid on interest rate swap agreement | ' | ' | 'LIBOR | ' | ' |
Non-cash unrealized gain on derivative | ' | 405 | 406 | 1,235 | ' |
Fuel commodity derivatives | ' | ' | ' | ' | ' |
Fair value measurements | ' | ' | ' | ' | ' |
Non-cash unrealized gain (loss) recognized | 29 | 67 | 20 | 43 | ' |
Notional amount of derivatives (in gallons) | ' | ' | ' | ' | 80,000 |
Put price of derivatives (in dollars per gallon) | ' | ' | ' | ' | 3.26 |
Strike price of derivatives (in dollars per gallon) | ' | ' | ' | ' | 3.9 |
Recurring basis | Balance at end of the period | Fuel commodity derivatives | ' | ' | ' | ' | ' |
Fair value measurements | ' | ' | ' | ' | ' |
Derivative financial instruments included in current liabilities | 17 | ' | 17 | ' | ' |
Recurring basis | Significant Unobservable Inputs (Level 3) | Fuel commodity derivatives | ' | ' | ' | ' | ' |
Fair value measurements | ' | ' | ' | ' | ' |
Derivative financial instruments included in current liabilities | $17 | ' | $17 | ' | ' |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Fair value of fuel commodity derivatives measured on recurring basis, unobservable input reconciliation | ' | ' | ' | ' |
Unrealized gains | ' | ' | $20 | $43 |
Fuel commodity derivatives | ' | ' | ' | ' |
Fair value of fuel commodity derivatives measured on recurring basis, unobservable input reconciliation | ' | ' | ' | ' |
Balance at beginning of the period | ' | ' | -37 | ' |
Unrealized gains | 29 | 67 | 20 | 43 |
Balance at end of the period | ($17) | ' | ($17) | ' |
Fair_Value_Measurements_Detail2
Fair Value Measurements (Details 3) (Interest rate contracts, No longer qualified for hedge accounting treatment, USD $) | 3 Months Ended | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Interest rate contracts | No longer qualified for hedge accounting treatment | ' | ' | ' |
Details of each remaining interest rate Swap Agreement | ' | ' | ' |
Amount of Loss Reclassified from Accumulated OCI into Income | $280 | $210 | $875 |
Fair_Value_Measurements_Detail3
Fair Value Measurements (Details 4) (Fuel commodity derivatives, Accrued expenses, Derivatives not designated as hedging instruments, USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fuel commodity derivatives | Accrued expenses | Derivatives not designated as hedging instruments | ' | ' |
Fair value of Derivative Instruments | ' | ' |
Fair value of derivatives | $17 | $37 |
Fair_Value_Measurements_Detail4
Fair Value Measurements (Details 5) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Effect of Derivative Instruments on the Consolidated Statements of Income and Comprehensive Income | ' | ' | ' | ' |
Unrealized amount of (Loss) Gain Recognized in Income on Derivative | ' | $125 | $196 | $360 |
Interest rate contracts | ' | ' | ' | ' |
Effect of Derivative Instruments on the Consolidated Statements of Income and Comprehensive Income | ' | ' | ' | ' |
Unrealized amount of (Loss) Gain Recognized in Income on Derivative | ' | 405 | 406 | 1,235 |
Interest expense, including the change in the fair value of non-hedged derivative instruments | Interest rate contracts | Derivatives Not Designated as Hedging Instruments | ' | ' | ' | ' |
Effect of Derivative Instruments on the Consolidated Statements of Income and Comprehensive Income | ' | ' | ' | ' |
Unrealized amount of (Loss) Gain Recognized in Income on Derivative | ' | 405 | 406 | 1,235 |
Realized amount of (Loss) Gain Recognized in Income on Derivative | ' | -444 | -398 | -1,178 |
Amount of (Loss) Gain Recognized in Income on Derivative | ' | -39 | 8 | 57 |
Cost of revenue | Fuel commodity derivatives | Derivatives Not Designated as Hedging Instruments | ' | ' | ' | ' |
Effect of Derivative Instruments on the Consolidated Statements of Income and Comprehensive Income | ' | ' | ' | ' |
Unrealized amount of (Loss) Gain Recognized in Income on Derivative | 29 | 67 | 20 | 43 |
Realized amount of (Loss) Gain Recognized in Income on Derivative | ' | 14 | ' | 47 |
Amount of (Loss) Gain Recognized in Income on Derivative | 29 | 81 | 20 | 90 |
Derivatives in Net Investment Hedging Relationships | Interest rate contracts | ' | ' | ' | ' |
Effect of Derivative Instruments on the Consolidated Statements of Income and Comprehensive Income | ' | ' | ' | ' |
Unrealized amount of Loss Recognized in OCI on Derivative (Effective Portion) | ' | ' | ' | -67 |
Realized amount of Loss Recognized in OCI on Derivative (Effective Portion) | ' | ' | ' | -162 |
Amount of Loss Recognized in OCI on Derivative (Effective Portion) | ' | ' | ' | -229 |
Derivatives in Net Investment Hedging Relationships | Interest expense, including the change in the fair value of non-hedged derivative instruments | Interest rate contracts | ' | ' | ' | ' |
Effect of Derivative Instruments on the Consolidated Statements of Income and Comprehensive Income | ' | ' | ' | ' |
Unrealized amount of Loss Reclassified from Accumulated OCI into Income | ' | -280 | -210 | -875 |
Realized amount of Loss Reclassified from Accumulated OCI into Income | ' | ' | ' | -162 |
Amount of Loss Reclassified from Accumulated OCI into Income | ' | ($280) | ($210) | ($1,037) |
Acquisitions_Details
Acquisitions (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Acquisition | ' | ' |
Total consideration | $5,847 | ' |
Consideration payments made at closing | 5,128 | ' |
Preliminary allocation of purchase price | ' | ' |
Goodwill | 58,185 | 57,737 |
Laundry facilities management business | ' | ' |
Acquisition | ' | ' |
Total consideration | 5,847 | ' |
Consideration payments made at closing | 5,128 | ' |
Period within which balance payment is payable, if certain conditions are met | '9 months | ' |
Preliminary allocation of purchase price | ' | ' |
Equipment | 1,375 | ' |
Goodwill | 855 | ' |
Laundry facilities management business | Contract rights | ' | ' |
Preliminary allocation of purchase price | ' | ' |
Intangible assets | 3,397 | ' |
Laundry facilities management business | Non-compete agreements | ' | ' |
Preliminary allocation of purchase price | ' | ' |
Intangible assets | $220 | ' |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Goodwill and Intangible Assets | ' | ' |
Goodwill | $58,185 | $57,737 |
Intangible assets | ' | ' |
Total Cost | 251,572 | 248,529 |
Accumulated Amortization | 87,177 | 78,889 |
Finite-lived intangible assets, Net Book Value | 149,631 | ' |
Total Net Book Value | 164,395 | 169,640 |
Non-compete agreements | ' | ' |
Intangible assets | ' | ' |
Finite-lived intangible assets, Cost | 2,137 | 2,277 |
Accumulated Amortization | 1,932 | 2,272 |
Finite-lived intangible assets, Net Book Value | 205 | 5 |
Contract rights | ' | ' |
Intangible assets | ' | ' |
Finite-lived intangible assets, Cost | 232,090 | 228,783 |
Accumulated Amortization | 84,066 | 75,372 |
Finite-lived intangible assets, Net Book Value | 148,024 | 153,411 |
Distribution rights | ' | ' |
Intangible assets | ' | ' |
Finite-lived intangible assets, Cost | 1,623 | 1,623 |
Accumulated Amortization | 1,068 | 946 |
Finite-lived intangible assets, Net Book Value | 555 | 677 |
Deferred financing costs | ' | ' |
Intangible assets | ' | ' |
Finite-lived intangible assets, Cost | 1,672 | 1,796 |
Accumulated Amortization | 111 | 299 |
Finite-lived intangible assets, Net Book Value | 1,561 | 1,497 |
Trade Name | ' | ' |
Intangible assets | ' | ' |
Indefinite-lived intangible assets | $14,050 | $14,050 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets (Details 2) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Estimated future amortization expense of intangible assets | ' | ' |
2013 (three months) | $3,051 | ' |
2014 | 12,202 | ' |
2015 | 12,193 | ' |
2016 | 12,193 | ' |
2017 | 12,058 | ' |
Thereafter | 97,934 | ' |
Total | 149,631 | ' |
Amortization expense of intangible assets | $9,095 | $9,121 |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets (Details 3) | 9 Months Ended |
Sep. 30, 2013 | |
Deferred financing costs | Minimum | ' |
Amortization period of intangible assets | ' |
Useful life | '5 years |
Deferred financing costs | Maximum | ' |
Amortization period of intangible assets | ' |
Useful life | '10 years |
Non-compete agreements | Minimum | ' |
Amortization period of intangible assets | ' |
Useful life | '5 years |
Non-compete agreements | Maximum | ' |
Amortization period of intangible assets | ' |
Useful life | '15 years |
Contract rights | Revenue of acquired portfolio | Contract revenue | ' |
Amortization period of intangible assets | ' |
Threshold for further disclosure regarding contracts (as a percent) | 2.00% |
Contract rights | Minimum | ' |
Amortization period of intangible assets | ' |
Useful life | '15 years |
Contract rights | Maximum | ' |
Amortization period of intangible assets | ' |
Useful life | '20 years |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Earnings Per Share | ' | ' | ' | ' |
Net income | $1,457 | $1,471 | $5,587 | $1,756 |
Weighted average number of common shares outstanding - basic | 14,715,000 | 14,447,000 | 14,634,000 | 14,396,000 |
Effect of dilutive securities: | ' | ' | ' | ' |
Stock options and restricted stock units (in shares) | 690,000 | 687,000 | 572,000 | 682,000 |
Weighted average number of common shares outstanding - diluted | 15,405,000 | 15,134,000 | 15,206,000 | 15,078,000 |
Earnings per share - basic (in dollars per share) | $0.10 | $0.10 | $0.38 | $0.12 |
Earnings per share - diluted (in dollars per share) | $0.09 | $0.10 | $0.37 | $0.12 |
Shares under option plans that were excluded from the computation of diluted earnings per share due to their anti-dilutive effects | 921,000 | 587,000 | 882,000 | 548,000 |
Stock_Compensation_Details
Stock Compensation (Details) (USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
Stock Compensation | ' | ' |
Stock compensation expense | $809 | $2,579 |
Compensation expense related to unvested options and restricted shares | ' | ' |
2013 (three months) | 778 | 778 |
2014 | 1,191 | 1,191 |
2015 | 661 | 661 |
2016 | 84 | 84 |
Total | $2,714 | $2,714 |
Options | ' | ' |
Stock Compensation | ' | ' |
Stock options granted but not yet vested (in shares) | 626,000 | 626,000 |
Restricted stock award | ' | ' |
Stock Compensation | ' | ' |
Restricted shares granted but not yet vested (in shares) | 164,000 | 164,000 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Taxes | ' | ' | ' | ' |
Income tax expense | $961 | $1,104 | $3,714 | $1,285 |
Effective tax rate (as a percent) | 40.00% | 43.00% | 40.00% | 42.00% |
Payment_of_dividends_Details
Payment of dividends (Details) (USD $) | 0 Months Ended | 9 Months Ended | ||
Oct. 02, 2013 | Jul. 02, 2013 | Apr. 02, 2013 | Sep. 30, 2013 | |
Payment of dividends | ' | ' | ' | ' |
Dividends declared, per share (in dollars per share) | $0.09 | $0.09 | $0.09 | $0.26 |
Repurchase_of_Common_Stock_Det
Repurchase of Common Stock (Details) (USD $) | 0 Months Ended | 3 Months Ended |
In Thousands, except Share data, unless otherwise specified | Dec. 21, 2011 | Mar. 31, 2012 |
Repurchase of Common Stock | ' | ' |
Authorized amount of shares repurchased | $2,000 | ' |
Repurchase of common stock (in shares) | ' | 133,333 |
Repurchase of common stock | ' | $2,000 |
Subsequent_Events_Details
Subsequent Events (Details) (Subsequent event, CSC, USD $) | Oct. 14, 2013 |
Subsequent event | CSC | ' |
Subsequent events | ' |
Outstanding common stock to be acquired (in dollars per share) | $21.25 |