Discontinued Operations

9 Months Ended

Sep. 30, 2011

Discontinued Operations

Discontinued Operations

7.  Discontinued Operations

On February 5, 2010, the Company sold its MicroFridge® (Intirion Corporation) business to Danby Products. The transaction has been valued at approximately $11,500.  Danby Products paid Mac-Gray $8,500 in cash and assumed existing liabilities and financial obligations of MicroFridge totaling approximately $3,000.  Since the Company will not have any significant continuing involvement in the operations of this business, the Company has accounted for this business as a discontinued operation.  Prior period financial information has been restated to reflect Intirion Corporation as a discontinued operation.  The Company recorded a loss, net of taxes, as a result of this transaction, in the amount of $294.  Concurrent with this transaction, the Company paid $8,000 on its Term Loan.

Included in the table below are the key financial items related to the discontinued operation:

	Three months		Nine months
	ended		ended
	September 30, 2010		September 30, 2010
Revenue	$	—	$	2,200
Interest expense, net (1)	$	—	$	20
Income before provision for income taxes	$	—	$	83
Income taxes on income from discontinued operations	—		39
Loss from disposal of discontinued operations, net of tax of $384	—		294
Loss from discontinued operations, including loss on disposal of discontinued operations, net	$	—	$	(250	)

(1)  Includes interest expense allocated to the discontinued operation as a result of a requirement to pay $8,000 on the Company’s Term Loan.  The average interest rate used to calculate this allocation was 2.5% for the nine months ended September 30, 2010.