COINMACH SERVICE CORP.

COINMACH SERVICE CORP.

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Company Overview
Coinmach Service Corp. is the leading provider of laundry equipment services in North America. The company was incorporated in December 2003. Its headquarters is located in Plainview, New York in the USA.
The company operates three separate divisions, including the Route Business (Coinmach), which accounts for 88% of the company’s total revenue; rental business (Appliance Warehouse of America); and distribution business (Super Laundry).
The company’s core business, refer to as the Coinmach “route” business, involves leasing laundry rooms from building owners and property management companies, installing and servicing laundry equipment, and collecting revenues generated from laundry machines. In the past decade, the company has grown its route business from approximately 55,000 machines to approximately 660,000 machines. Its route customer base is comprised of owners of rental apartment buildings, property management companies, condominiums and cooperatives, universities and other multi-family housing properties. The company also operates 164 retail Laundromats in Texas and Arizona under the Kwik Wash brand.
In addition to its route business, the company leases laundry machines and other household appliances to property owners, managers of multi-family housing properties, individuals and corporate entities through Appliance Warehouse of America, Inc. (AWA). As of December 31, 2003, approximately 200,000 washers and dryers were installed with its rental customers through AWA.
Super Laundry (distribution business) is the nation’s largest provider of commercial and industrial laundry equipment to coin laundry storeowners and on-premise laundry facilities in the United States. It constructs complete turnkey retail Laundromats, including location identification, construction, plumbing, electrical wiring and all required permits. Super Laundry also retrofits existing retail Laundromats, distributes exclusive and non-exclusive lines of commercial coin and non-coin operated machines and parts and service contracts.
Business Summary
Coinmach Service Corp. (CSC) is a provider of outsourced laundry equipment services for multi-family housing properties in North America. The Company’s core business (route business) involves leasing laundry rooms from building owners and property management companies, installing and servicing laundry equipment, and collecting revenues generated from laundry machines. During the fiscal year ended March 31, 2007 (fiscal 2007), CSC’s route business represented approximately 89% of the Company’s total revenue. The existing customer base for the route business comprises owners of rental apartment buildings, property management companies, condominiums and cooperatives, universities and other multi-family housing properties. On April 3, 2006, CSC completed the acquisition of American Sales, Inc. During fiscal 2007, the Company completed other acquisitions included in the route and rental businesses. In November 2007, Babcock & Brown Limited completed the acquisition of CSC.
Description and history
Coinmach Service Corp. (CSC), incorporated on December 23, 2003, is a provider of outsourced laundry equipment services for multi-family housing properties in North America. The Company’s core business (route business) involves leasing laundry rooms from building owners and property management companies, installing and servicing laundry equipment, and collecting revenues generated from laundry machines. During the fiscal year ended March 31, 2007 (fiscal 2007), CSC’s route business represented approximately 89% of the Company’s total revenue. The existing customer base for the route business comprises owners of rental apartment buildings, property management companies, condominiums and cooperatives, universities and other multi-family housing properties. On April 3, 2006, CSC completed the acquisition of American Sales, Inc. During fiscal 2007, the Company completed other acquisitions included in the route and rental businesses. In November 2007, Babcock & Brown Limited completed the acquisition of CSC.

The Company rents laundry machines and other household appliances and electronic items to corporate relocation entities, property owners, managers of multi-family housing properties and individuals through its subsidiary, Appliance Warehouse of America, Inc. (AWA). AWA is jointly owned by CSC and Coinmach Corporation (Coinmach). Coinmach is in turn a wholly owned subsidiary of CSC’s direct wholly owned subsidiary Coinmach Laundry Corporation (CLC). The Company also operates a laundry equipment distribution business through Super Laundry Equipment Corp. (Super Laundry), an indirect wholly owned subsidiary.

Location Leasing

CSC’s leases provide the Company the right to operate and service the installed laundry machines, including repairs, revenue collection and maintenance. The Company typically sets pricing for the use of the machines on location, and the property owner or property manager maintains the premises and provides utilities, such as gas, electricity and water.

Service

The Company’s integrated computer systems allow for the dispatch of service technicians in response to both computer-generated (for preventive maintenance) and customer-generated service calls. On a daily basis, it receives and responds to approximately 2,500 service calls.

Information Management

The Company’s integrated computer systems serve three major functions: tracking the service cycle of equipment; monitoring revenues and costs by location, customer and salesperson, and providing information on competitors’ and the Company’s lease renewal schedules. Data on machine performance is used by CSC’s sales staff to forecast revenue by location.

Rental Operations

AWA is involved in the business of leasing laundry equipment and other household appliances and electronic items to corporate relocation entities, property owners, managers of multi-family housing properties and individuals. As of March 31, 2007, the Company had organically grown AWA’s operations across 28 states. During fiscal 2007, revenue generated by AWA represented approximately 7% of CSC’s total revenue.

Distribution Operations

Super Laundry, an indirect wholly owned subsidiary, is a laundromat equipment distribution company. Super Laundry’s business consists of constructing complete turnkey retail laundromats, retrofitting existing retail laundromats, distributing exclusive and non-exclusive lines of commercial coin and non-coin operated machines and parts, and selling service contracts. Super Laundry’s customers generally enter into sales contracts pursuant to which Super Laundry constructs and equips a complete laundromat operation, including location identification, construction, plumbing, electrical wiring and all required permits. During fiscal 2007, revenue generated by Super Laundry represented approximately 4% of the Company’s total revenue.

The Company competes with Web Service Company, Inc. and Mac-Gray Corp.

Business Line
Provider of laundry equipment services in North America
Subsidiary
AMERICAN LAUNDRY FRANCHISING CORP
Advisor
ERNST & YOUNG LLP
IPO date
11/24/2004
US SIC Code
7215
Company Address
Suite 70
303, Sunnyside Boulevard
City province or state postal code
11803, PLAINVIEW, NY
Phone: +1 516 349 8555
Fax: +1 516 349 9125
Country address: UNITED STATES OF AMERICA
Website url: www.coinmachservicecorp.com