U.S. Drycleaning reports ’07 loss
U.S. Dry Cleaning reported a net loss of $9.8 million in fiscal 2007 on revenues
of approximately $8.4 million. The 2007 revenues represented a 38 percent
increase from $6.1 million in the prior fiscal year.
In its annual report filed with the Securities and Exchange Commission for the
fiscal year that ended September 30, 2007, U.S. Dry Cleaning said it had an
unusually high number of non-cash charges against the balance sheet — primarily goodwill related to acquisitions — as well as administrative costs in connection with the company’s initial public offering.
These non-cash charges totaled approximately $4.95 million, while non-recurring
cash charges for the year represented an additional $3.73 million of the $9.8
million net loss.
“I am confident that as we move forward in 2008 we will see continued strength in
our revenue and a significant reduction in our loss,” said Robert Y. Lee, Chief Executive Officer of U.S. Dry Cleaning. “We are seeing an increase in same-store sales in stores we have owned for 12
months or more — a key measure of growth for any retail business.”
Same-store revenue rose 3.4 percent in calendar year 2007 over the same period
in 2006, Lee said.
“We believe that the very nature of the drycleaning business protects us from
economic fluctuations better than other industries,” he noted.
The company also reported that Lee purchased 188,510 shares of common stock in
privately negotiated transactions with two early investors at a price exceeding
the per-share average market price of the stock on the dates of purchase.
Lee said the purchases indicated his confidence in U.S. Dry Cleaning’s business plan and future growth. “I believe our record of achievement this past year and going forward into 2008
warrants this confidence,” he said.
Since June 2007, U.S. Dry Cleaning has:
• Raised $6.1 million in an Initial Public Offering, completed June 19, 2007.
• Signed purchase agreements and memorandums of understanding to acquire five
additional drycleaning chains, which are expected to add $27 million to the
company’s annualized revenue.
• Began trading on the OTCBB under the symbol “UDRY” on August 30, 2007. The stock closed at 80 cents a share on March 17.
• Appointed an experienced chief financial officer.
• Closed on initial convertible debt financing of approximately $3.5 million.
Bidding to become a national chain in the drycleaning industry, U.S. Dry
Cleaning wants to acquire profitable businesses that hold leading shares in
their markets. Each acquisition is expected to be self-sufficient and field
management is expected to remain in place to ease the assimilation.
U.S. Dry Cleaning's management believes that the current absence of extensive
competition to acquire the larger dominant operators will change as the
industry consolidates. Management believes that the greatest value achieved in
any consolidation occurs during the earliest phases and, as a result, U.S. Dry
Cleaning plans to grow as rapidly as possible to deliver shareholder value.
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Richard Meyer has taken over the Midwest territory for B&G Lieberman which had been covered for more than 20 years by Erich Weidner.
Meyer lives near Madison, WI, and will serve the states of Wisconsin, Minnesota
and Iowa along with northern Illinois, eastern Nebraska and the eastern
Dakotas.
He has 20 years of experience covering these areas while serving garment makers
with sewing equipment and supplies.
He can be reached through B&G Lieberman’s toll-free number, (800) 438-0346.
DCCS users meet in Reno
DCCS Windows Users came away winners after a rewarding three days at the Peppermill
Resort and Casino in Reno NV, in February.
The event started off with a tour of Bobby Page’s award-winning plant where attendees got to see the latest in technology,
equipment and design.
From there the group moved to the Peppermill for an open exchange of ideas with
the primary focus on database management, tracking customer retention,
identifying new customers, customer profiling, management tools, credit card
processing, delivery routes and future DCCS product development.
“The groups are regionally held and meet three times per year. These consistent
and regular meetings are invaluable to our customers and our company,” said Jeff Markman, president of DCCS.
“The interaction between store managers and owners and the management of our
company has helped all involved. Our customers are able to understand the tools
DCCS provides and we are able to understand what software enhancements will
provide the best return for our customers. Regular meetings are much more
timely and effective than once-a year-meetings,” he added.
Keh and Gary McCracken of Clothesline Cleaners in Boise, ID, said they were
impressed that DCCS sent the owner and a programmer to spend three days with
users to work on individual company issues, showing that DCCS cares about them
as customers and is interested in maintaining the relationship.
DCCS has been holding regular User Group meetings since 1999. The next
opportunity to learn about DCCS User Groups and how to get the most out of a
DCCS system will be June 18-20 at the DCCS corporate facilities in Norristown,
PA.
For more information or to make reservations, call Brooksher Banks, (501)
758-8467 or Lenny Gershater, (800) 451-8431.
NIE returns profit to policyholders
Policyholders of National Fire and Indemnity Exchange (NIE) are receiving NIE
2007 profit distributions in two forms: dividends and subscriber savings
account (SSA) credits.
Most 2007 policyholders are receiving total returns equal to 6 percent of their
2007 premium. Policyholders who have been with NIE less than two years receive
lower percentages.
NIE’s 2007 profit before dividends was $452,207. NIE’s Advisory Committee voted to split 2007 profit into three equal pieces:
one-third policyholder dividends, one-third SSA credits, and one-third retained
in the Exchange to keep it strong.
“Since 1915, NIE has returned profit to its policyholders in all but two years,” said NIE President Bob Aikin.
“For the eight years ending with 2007, NIE generated profit before dividends of
almost $5.8 million. The Advisory Committee has voted to return over 93 percent
of that profit — $5.4 million — as policyholder dividends and SSA credits,” he expalined.
NIE insures only fabric care businesses and all members of NIE’s workforce are devoted full-time to fabric care insurance.
NIE insures thousands of drycleaners and coin laundries in 32 states. As a
reciprocal exchange, it has no stockholders and it issues only non-assessable
policies.
