WASH Multifamily Acquisition Inc.

Overview Key strengths Key risks Second largest provider of outsourced laundry equipment services in North America. Large fixed-asset base and high capital expenditures (capex) although the company can delay growth spending to preserve liquidity. Nondiscretionary nature of services and sticky customer relationships. Relatively narrow business focus and participation in a mature and highly fragmented market. Large scale provides efficiency in equipment procurement and healthy operating margins. History of aggressive growth strategy and financial policy. We expect WASH to end 2022 with a free cash flow deficit of about $29 million, significantly lower than the previous year. Last year, capex increased to about $120 million-$125 million, higher than previous averages of about $90 million, largely due to increasing units in the

...Delayed growth oriented capex is a main driver for moderately positive free cash flow in 2023. We expect WASH to end 2022 with a free cash flow deficit of about $29 million, significantly lower than the previous year. Last year, capex increased to about $120 million-$125 million, higher than previous averages of about $90 million, largely due to increasing units in the fleet. Additionally, moderate investment in digital capabilities continue through deal flow and include not only mobile- and card acceptance, but also remote diagnostics, which we expect will contribute to reduced operating costs over time. Operating efficiency opportunities include less service calls, lower number of required technicians, and faster payment collections. As the company expects to uphold relatively...

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