NEW YORK, May 20, 2013 (GLOBE NEWSWIRE) -- Moab Capital Partners, LLC is pleased to announce that Institutional Shareholder Services Inc. ("ISS"), an influential and leading proxy advisory firm, has chosen to support both Mr. Hyman and Mr. Rothenberg for election to the Board of Directors of Mac-Gray Corporation (NYSE:TUC).
In its report published on May 17, 2013, ISS states that its decision to support both Moab nominees is attributable to the merits of many of Moab's arguments. First, on the subject of shareholder rights, ISS comments "...the fact pattern and governance track record of the company clearly supports the dissidents' position – that the board that has a very long history of exhibiting almost complete disregard for shareholder rights by its policies and through its actions and that has only reluctantly – and grudgingly slowly - acquiesced to shareholders stated positions on this issues."
Furthermore, ISS adds "The fact pattern seems to support the dissidents' assertion that the incumbent board has steadfastly refused to make positive changes to shareholders rights, even in the face of strong support from a majority of shares, and has only reluctantly done so after repeated proxy contests and threats thereof."
Concerning Management and the Board's capital allocation strategy, ISS argues that "the dissidents' assertion that capital allocation decisions have largely failed equity holders also appears to have merit."
ISS then goes on to state that Mac-Gray's "underperformance appears to have resulted from failures of the M&A strategy, capital allocation and managerial decision-making to produce sustainable operating improvements and create shareholder value." This observation validates Moab's assertion that Mac-Gray's management needs to be thoroughly evaluated.
Lastly, regarding Moab's nominees Mr. Hyman and Mr. Rothenberg, ISS concludes "The complimentary skills and experience of the dissident nominees appear suited to address the company's lagging performance which we believe is the fundamental issue facing the board at this time. Hyman's knowledge, executive leadership, directorship and service industry operational experience may prove valuable in the board's decision making process. Rothenberg's M&A and investment analyst experience including his understanding of the drivers of shareholder value and how to best leverage them may assist the board in its efforts [to] maximize shareholder value going forward. Together, the two nominees are likely to provide complementary positive change in the board."
Shareholders should wonder why the incumbent directors, who have served nine and six year terms, have neglected to hold management accountable for its failed M&A strategy, as well as for the Company's disappointing and industry-lagging financial performance. It is clearly time for new talent on Mac-Gray's board that will prioritize shareholder value creation.
Please discard your white proxy card and vote for Mr. Hyman and Mr. Rothenberg on your BLUE proxy card today. If you have already submitted your white proxy card, it is not too late to change your mind. Simply vote for Mr. Hyman and Mr. Rothenberg on the BLUE proxy card today by following the instructions on your BLUE proxy card to vote by Internet, telephone or mail.
YOUR VOTE IS IMPORTANT. No matter how many shares you own, we encourage you to make them count by making an informed vote. If you have any questions or need any assistance voting your shares, please contact Alliance Advisors, which is assisting Moab in this matter, toll-free at (888) 991-1298.