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Send me any links you think may be good to read :)
If you need any help finding anything just let me know. I've read all their filings, Pr's, articles, and a lot into the managements old video city business.
I will be do soe moree DD......I really like the biz model.........the margins are huge
The management has shown in the past that they can roll up pretty fast.
I know the business well. I used to be in the business in Toronto. Good biz for a roll up.
Its new and its undervalued right now, buying should come in soon. I am pretty sure I read in the IPO that the book value was around $1.58 per share.
19.2% of the stock owned by management (a little more than 4 million shares, 4,124,160 shares)
benificial ownership- 5.1% (1,095,480 shares)
the IPO dealt out 2.5 million shares (about 11 percent of the o/s)
The management is experienced with rapid retail acquisitions. Just look up video city and how fast they snatched up small video store chains. The management also gets some pretty good bonuses based on revenue amounts.
The business plan is simple, hub and spoke, basically theres a bunch of small outlets for pick-up drop off, the clothes are brought to a central plant and cleaned and brought back. The company also has a decent percentage of its income coming from hotels.
Stock needs a bit of volume
They are very quick on the roll up
U.S. Dry Cleaning Corporation Agrees to Acquire Honolulu Dry Cleaning Company, Adding an Expected $2,256,000 to Overall Revenue Run Rate and Increasing Hawaiian Revenue by an Expected 40%
Thursday October 25, 7:00 am ET
PALM SPRINGS, CA--(MARKET WIRE)--Oct 25, 2007 -- U.S. Dry Cleaning Corporation (OTC BB:UDRY.OB - News) ("U.S. Dry Cleaning"), the first mover in consolidating the nation's dry cleaning industry, announced today that it has signed an agreement and plan of merger with Robinson Corp. (doing business as Caesars Cleaners), a prominent dry cleaning business based in Honolulu comprising four stores and a central operating plant.
When concluded, the acquisition would add more than $2,256,000 to U.S. Dry Cleaning's existing $10 million annualized run rate and increase the expected revenue for the company's Hawaiian operations by 40%. Together with the pending acquisition of Central California's leading dry cleaning business, with revenues of $6.5 million (announced on September 11, 2007), this transaction is expected to bring U.S. Dry Cleaning's annualized revenue run rate to more than $18.7 million. Under the agreement and plan of merger, U.S. Dry Cleaning would acquire Robinson Corp. for $2,153,000, which is to be paid in cash, convertible and assumed debt, and shares of common stock of U.S. Dry Cleaning.
Caesars Cleaners, the brand name of Robinson Corp., has been owned and operated by Thurston John ("Jack") Robinson since 1972. Mr. Robinson followed in the footsteps of his father and grandfather, who had worked in the laundry and dry cleaning industry since 1930. He is retiring after 35 years of building his business. Theresa Paulette, who has been general manager for 18 years, will stay on to manage and expand the operation.
Michael E. Drace, COO and President of U.S. Dry Cleaning, Inc. and head of operations in Hawaii, said, "U.S. Dry Cleaning is extremely pleased to acquire Caesars Cleaners, a premier profitable company with a reputation for excellence throughout the Honolulu area for 35 years. The acquisition will expand our market share in Hawaii, and is expected to increase revenues to more than $7.6 million. The dry cleaning industry has been a stable market since its inception, and it is poised for growth in an era where personal service is valued at a premium."
Mr. Drace added, "Mr. Robinson has built a highly successful business over 35 years, and U.S. Dry Cleaning offers the next step for growth through the opportunities provided by a public company. We are delighted that Theresa Paulette has agreed to stay on to help expand the business and integrate the company into our strategy to become the first national chain of premier dry cleaning businesses."
Mr. Robinson said, "I'm proud to have grown my company to the $2 million business it is today. I am confident I am leaving it in good hands and that my employees will be well cared for. I will remain invested in the company and I look forward to its future success."
It is expected that the transaction will be completed before the end of 2007, following customary closing conditions.
U.S. Dry Cleaning Corporation Signs MOUs With Four Additional Chains to Add Over $20 Million in Annual Revenue
Wednesday October 17, 8:00 am ET
Acquisitions to Be Financed in Part With Proceeds From Private Placement Debt Offering
PALM SPRINGS, CA--(MARKET WIRE)--Oct 17, 2007
U.S. Dry Cleaning Corporation (OTC BB:UDRY.OB - News), the nation's first consolidator of dry cleaning stores, today announced that it has signed Memorandums of Understanding with four dry cleaning chains that can add $20.57 million in revenue to the company's growing revenue base.
These acquisitions are in addition to the company's already announced Central California acquisition of $6.45 million in revenue. When completed, the five acquisitions will bring the company's annualized revenue to a total of over $37 million. The company expects to complete these acquisitions by the end of calendar year 2007.
The aggregate purchase price for the four companies, combined with the previously announced purchase of Team Enterprises of Fresno, Calif., totals $11,556,000 in cash, $3,658,000 in assumption of debt, and $11,343,000 in common stock.
The company intends to finance the cash portion of these, and future planned acquisitions, with the proceeds of its $20-million private placement of Senior Secured Convertible Notes. The notes are convertible into common stock at a fixed price of $2.50 per share. The securities offered will not be or have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
U.S. Dry Cleaning does not disclose where acquisition candidates are located. However, management indicated that these will expand U.S. Dry Cleaning beyond the current markets of Hawaii and Southern California, marking a significant step toward the company's goal of being the first nationwide premier dry cleaning chain.
U.S. Dry Cleaning is the first publicly-traded company in the country to consolidate the highly fragmented dry cleaning industry. The company to date has acquired three chains in Hawaii and Southern California with consolidated revenues of $10 million per year.
About U.S. Dry Cleaning Corporation
U.S. Dry Cleaning Corporation’s mission is to create the premier national chain in the dry cleaning industry. Over the last year and half, U.S. Dry Cleaning has completed acquisitions with combined annual revenues of over $9 million. U.S. Dry Cleaning combines a management team with extensive experience in retail consolidations and premier dry cleaning operations, with a proven operating model.
U.S. Dry Cleaning intends to rapidly acquire profitable, positive cash flow operations at accretive valuations. Each acquisition target is expected to be self-sufficient and senior management is expected to remain in place to ease the assimilation. U.S. Dry Cleaning is focused on acquiring profitable businesses that hold a leading share in their individual markets.
U.S. Dry Cleaning management believes that the current absence of extensive competition to acquire the larger dominant operators will change radically as the industry consolidates. Management believes that the greatest value achieved in any consolidation occurs during the earliest phases and intends to grow as rapidly as possible to deliver shareholder value.
U.S. Dry Cleaning Corporation Receives Updated Research Coverage and "Buy" Rating From Pro-Active Research Group
Thursday September 27, 8:00 am ET
PALM SPRINGS, CA--(MARKET WIRE)--Sep 27, 2007 --
U.S. Dry Cleaning Corporation (OTC BB:UDRY.OB - News) ("U.S. Dry Cleaning"), the first mover in consolidating the nation's dry cleaning industry, has received an updated research report and a reiterated "Buy" rating from Pro-Active Research Group, which initiated coverage of U.S. Dry Cleaning in April 2007
The report focuses on three important recent developments:
* U.S. Dry Cleaning's IPO completed on July 19, 2007, which raised approximately $6.1 million;
* U.S. Dry Cleaning's third quarter results reported on August 14, 2007 showing revenues up 50% year over year;
* U.S. Dry Cleaning's pending acquisition of the largest dry cleaning business in the Central California Valley, announced on September 6, 2007.
Based on the successful completion of these milestones, which advance U.S. Dry Cleaning's growth-through-acquisition strategy, the report projects a share price of $4.00 in the intermediate term and $5.00 in the long term.
Robert Y. Lee, CEO of U.S. Dry Cleaning, said, "We are pleased to make this report readily available for all our current shareholders as well as potential investors. We believe the report presents balanced and detailed insight that will enhance understanding of our business strategy, our achievements and our potential."
Mr. Lee added, "Our management team is highly experienced in retail consolidation, and we believe that the 'first mover' consolidating any market is able to acquire market-leading businesses at the most favorable prices, ahead of potential competition. We believe it is the early stage of consolidation that reaps the greatest financial rewards for all parties. We think our recent achievements testify to that belief and our momentum will increase as planned in the coming year."
U.S. Dry Cleaning's strategy is to be the first business to consolidate a premier national dry cleaning chain that will provide high quality and service to its customers, good wages and working conditions for its employees, and increased equity value for its shareholders. U.S. Dry Cleaning is acquiring profitable dry cleaning companies that are Number 1 in their markets and generate more than $5 million in annual revenues. Upon the closing of its recently announced fourth acquisition, U.S. Dry Cleaning's retail outlets will increase from 32 to 52 and the annualized run rate will rise to just under $17 million, nearly triple that of 2006.
The research report offers a full description of U.S. Dry Cleaning's business model, and states, "Very importantly, besides using acquisitions to build the company and their revenues, the co. is also targeting increased bottom line profitability from a variety of sources including economies of scale, branding, hub & spoke systems, etc."
The report, which was commissioned by Consulting for Strategic Growth 1 on behalf of U.S. Dry Cleaning, also examines the company's financial strength and discusses industry trends and the competitive environment in which there are few if any comparable companies.
To view and download the Pro-Active Research Report, please visit www.cfsg1.com and click on U.S. Dry Cleaning logo; or go to www.usdrycleaning.com and click on Investor Relations.
U.S. Dry Cleaning Corporation Issues Company "Roadmap" Outlining Growth Strategy
Tuesday September 25, 8:00 am ET
PALM SPRINGS, CA--(MARKET WIRE)--Sep 25, 2007 --
U.S. Dry Cleaning Corporation (OTC BB:UDRY.OB - News) ("U.S. Dry Cleaning"), the first mover in consolidating the nation's dry cleaning industry, has issued the following "roadmap" summing up the achievements of the last three months and outlining the U.S. Dry Cleaning's strategy for growth and development for the coming year.
The letter has been mailed to all shareholders of record as of September 21, 2007. It is available on the U.S. Dry Cleaning's Web site www.USDRYCLEANING.com, under "Investor Relations" and is being filed with the U.S. Securities and Exchange Commission as a Current Report on Form 8-K. The document can also be accessed by going to www.CFSG1.com and clicking on the U.S. Dry Cleaning logo.
U.S. DRY CLEANING ROADMAP: PERSPECTIVES FOR 2008
PALM SPRINGS, Calif., September 21, 2007
Dear Shareholders;
U.S. Dry Cleaning Corporation (UDRY) has made great progress in our plans to become the "first mover" in consolidating the dry cleaning industry. This letter sums up the strides we've made in the last three months and offers you a view of our plans going forward for 2007 and 2008.
I also urge you to go to our Web site (www.usdrycleaning.com) to stay abreast of new developments. In the near future, we will post a chart to show you how our Company's financial status compares to the early stages of previous successful historic consolidations such as Blockbuster, Inc. (BBI), VCA Antech, Inc. (WOOF), and Waste Management, Inc. (WMI). I think you will be impressed.
Achievements since June 2007:
* Initial Public Offering, which raised $6.1 million, completed June 19, 2007.
* Trading on the OTCBB under the symbol UDRY began August 30, 2007.
* Highly experienced Chief Financial Officer appointed. Announced on September 4, 2007.
* Record Revenue for Quarter ended June 30, 2007 reported on September 6, 2007.
* Definitive purchase agreement signed for UDRY's fourth acquisition - the Number 1 dry cleaning business in California's Central Valley adding $6.5 million to our existing $10 million annualized run rate. Announced September 11, 2007.
Going forward, our plans are clear. Our business strategy is to rapidly acquire profitable companies that are Number 1 in their markets and generating more than $5 million in annual revenues. Our current acquisition, when finalized, will bring our annualized run rate to just under $17 million, nearly triple that of 2006. We have identified many more candidates in major markets across the continental U.S. and we are in advanced negotiations with them. Our short-term goal is to bring our annualized revenue run-rate to $50 million by mid 2008, subject to our obtaining new capital for expansion.
Our management team is highly experienced in retail consolidation and we believe that the "first mover" consolidating any market is able to acquire market-leading businesses at the most favorable prices, ahead of potential competition. We believe it is the early stage of consolidation that reaps the greatest financial rewards for all parties. We think our recent achievements testify to that belief and our momentum will increase as planned in the coming year.
While the dry cleaning industry has long been dominated by small, private, geographically diverse operations, it earns revenues estimated at over $9 billion annually. As second and third generation operators seek greater returns on their businesses, consolidation becomes a logical and timely strategy. Tom Jones (who operates our current acquisition candidate) stated when our agreement was announced: "My family and I are very pleased to join U.S. Dry Cleaning Corporation in creating the first national chain of premier dry cleaning businesses in the United States. We believe that, with the added corporate resources provided by U.S. Dry Cleaning, our company can take full advantage of the rapid residential and business expansion in this region and will continue to be number one in a large and growing market. In addition, U.S. Dry Cleaning's strategy will provide a new level of service and responsibility to our community and new opportunities for our employees."
U.S. Dry Cleaning management has commenced dialogue with other market leaders who would seamlessly integrate into UDRY's business model. Together, these potential acquisition candidates have more than $200 million in profitable revenues. In addition, we have been steadily building relationships within the financial industry to help fuel that growth. Most importantly, we appreciate the support of all our shareholders as we begin to execute our strategy and reshape the landscape of an old line industry.
What follows is a roadmap of our projected milestones for the coming year.
Priorities:
1. Substantially increase revenues
As stated earlier, we plan to expand exponentially over the next year. This will be accomplished by executing acquisitions that have already been identified by management, as discussed above, subject to our obtaining new capital for expansion.
2. Materially increase 4-wall (single-store) EBITDA
For retailers, the purest measure of operating performance is "4-wall (or single-store) EBITDA" (Earnings Before Interest, Taxes, Depreciation, and Amortization). The companies that we plan to acquire will agree to create meaningful increases to their 4-wall EBITDA, thus enhancing the overall profitability of each operation.
3. Increase same-store sales by 5%.
In the retail industry, there is one widely followed metric that demonstrates whether existing operations are growing or contracting: Same Store Sales. UDRY's aim is to ensure that each acquired company produces same-store sales growth in excess of 5%.The cornerstone of a solid operator is the ability to consistently increase the revenues of an existing operation over time. UDRY commits to accomplish this through excellent customer service, strategic marketing, and expansion of revenue streams.
4. Efficiently assimilate acquisitions
The speed and ease with which acquisitions are folded into UDRY's existing platform is crucial to our growth trajectory and foothold as the first industry consolidator. Management intends to assimilate its acquisitions into the existing infrastructure within the relatively short timeframe of 3 quarters. We willaccomplish this by paying strict attention to developing common procedures and having a scalable information technology and reporting platform. Quick assimilation of acquisitions will allow management to focus on additional acquisitions as well as enhancing the performance of the operations acquired.
5. Provide Superior Customer Service
In a consumer services business, our employees are the critical interface with our customers. To assure the best customer experience, UDRY intends to increase the quality, productivity, benefits and pay of our labor force, yet achieve a lower percentage cost of labor. We are focused on providing the best possible customer service.
6. Increase Shareholder Value
This is our commitment to you -- the Shareholder. Our vision for the company is aggressive but not without precedent. In the near future we will post information in the Investor Relations section of our Web site (http://www.usdrycleaning.com) comparing our current overall enterprise value to the values that were obtained by such prominent companies as Blockbuster, VCA Antech and Waste Management, Inc. when they were initiating their consolidations as we are today. I believe you will see that our stock value is consistent with theirs in the early stages of their development.Our vision is to become the newest retail consolidator in America to create greater financial opportunity for hard working business people and the shareholders who support the company.To achieve this we are continually communicating with the financial community and brokerage firms whose knowledge and support of our company can help accelerate the value for shareholders. For up-to-date alerts on our news and progress, please go to our Web site, http://www.usdrycleaning.com, and sign up for our Newsletter.
As we advance our strategy to become the premier operator and consolidator of dry cleaning operations in the United States, we will enlist additional management expertise in operations, finance and acquisitions to support our growing size and scale. Further, we plan to implement an IT strategy and invest in the technology to increase our productivity and enhance UDRY's growth tomorrow and beyond. We would like to thank our customers, employees and shareholders for their patronage, support and belief in our Company.
Sincerely yours,
Robbie Lee
Robbie Lee
Chief Executive Officer
U.S. Dry Cleaning Corporation
CAUTIONARY STATEMENT FOR FORWARD-LOOKING STATEMENTS
Statements in this document contain information that includes or is based upon certain "forward-looking statements" relating to our business. These forward-looking statements represent management's current judgments and assumptions as of the date of this document. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts, and are frequently accompanied by the use of such words as "may," "will," "anticipates," "plans," "believes," "expects," "hopes," "strives," "feels," "projects," "intends," "seeks" and similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, including without limitation, our ability to implement our growth strategy may be limited and, even if implemented, there can be no assurance that future acquisitions will not have a material adverse effect on our company's operating results; our anticipated continued growth will depend in part on our ability to open and operate new stores on a profitable basis; we have a limited operating history and if we are not successful in continuing to grow our business, then we may have to scale back or even cease our ongoing business operations; we have a history of net operating losses; there can be no assurance that we will be able to generate or secure sufficient funding to support our growth strategy; our success depends on our management team; competition for acquisitions could adversely affect our ability to continue our growth; and the expenses we incur to comply with environmental regulations, including costs associated with potential environmental remediation, may prove to be significant and could have a material adverse effect on our results of operations and financial condition.
We caution readers not to place undue reliance on forward-looking statements, which speak only as of the date of this document. Any one of these or other risks, uncertainties, other factors or any inaccurate judgments and assumptions could cause actual results to be materially different from those described herein or elsewhere by us. Certain of these risks, uncertainties and other factors are described in greater detail in our filings from time to time with the U.S. Securities and Exchange Commission, which we strongly urge you to read and consider, including the "Risk Factors" as set forth in our Final Prospectus dated May 14, 2007, and our Annual Report on Form 10-KSB for the fiscal year ended September 30, 2006, which may be accessed from our website at www.usdrycleaning.com. Subsequent written and oral forward-looking statements attributable to us or to persons acting on our behalf are expressly qualified in their entirety by the cautionary statements set forth above and elsewhere in our reports filed with the U.S. Securities and Exchange Commission. We expressly disclaim any intent or obligation to update any forward-looking statements.
CONTACT:
Rick Johnston,
Director of Shareholder Communications
Tel: 760-668-1274
Email: rick@usdrycleaning.com
U.S. Dry Cleaning Corporation's Aggressive Acquisition Strategy and Recent Successes Highlight New Investor Fact Sheet
Monday September 17, 7:00 am ET
PALM SPRINGS, CA--(MARKET WIRE)--Sep 17, 2007 --
U.S. Dry Cleaning Corporation (OTC BB:UDRY.OB - News) ("U.S. Dry Cleaning"), the first mover in consolidating the nation's dry cleaning industry, highlights its aggressive acquisition strategy and its recent successes in a new company Fact Sheet for potential investors.
The Fact Sheet describes the Company's strategy to acquire profitable dry cleaning companies that are Number 1 in their markets and generating more than $5 million in annual revenues. Earlier this week, U.S. Dry Cleaning announced a purchase agreement to acquire the market-leading dry cleaning business in California's Central Valley, comprising 18 stores in and around Fresno and 2 stores in Arizona. This will be the fourth strategic acquisition the Company has made and would increase the Company's existing $10 million annualized run rate by an approximately $6.5 million.
"This Investor Fact Sheet places that acquisition agreement in the context of our full strategic business plan," said Robert Y. Lee, CEO of U.S. Dry Cleaning. "Our management team is highly experienced in retail consolidation, and we believe that the 'first mover' consolidating any market is able to acquire market-leading businesses at the most favorable prices, ahead of potential competition. We believe it is the early stage of consolidation that reaps the greatest financial rewards for all parties."
Revenues for the dry cleaning market in the United States are estimated at $9 billion annually. The industry is very stable but highly fragmented. About 85 percent of the businesses are small "mom and pop" operations or larger family-owned chains, typically operating for at least two generations.
"For the most successful of these businesses, joining a national consolidation effort provides the next step for their growth," Mr. Lee noted. "It adds economies of scale by reducing back-office and administrative duplication, gives them access to Best Practices in the industry and provides financing that is not easily available to smaller companies. All our candidates for acquisition have committed to increasing same store sales by 5 percent each year. They believe this is possible because of the increased level of quality and expanded services they will be able to provide."
Mr. Lee added, "Through this Fact Sheet, potential investors can quickly grasp our business and acquisitions strategies, the scope of the market and industry trends, and the opportunity for financial reward. Of course, potential investors are urged to carefully review U.S. Dry Cleaning's public SEC filings and other information before making an investment decision."
To view and download the U.S. Dry Cleaning Fact Sheet, please visit www.cfsg1.com and click on the Company logo. Or go to www.usdrycleaning.com and click on Investor Relations.
U.S. DRY CLEANING CORPORATION AGREES TO ACQUIRE #1 DRY CLEANING BUSINESS IN CALIFORNIA’S CENTRAL VALLEY, ADDING OVER $6.5 MILLION TO THE COMPANY’S ANNUALIZED RUN RATE
PALM SPRINGS, Calif., September 11, 2007 – U.S. Dry Cleaning Corporation (OTCBB:UDRY) (“U.S. Dry Cleaning”), the first mover in consolidating the nation’s dry cleaning industry, announced today that it has signed a purchase agreement to acquire the market-leading dry cleaning business based in Fresno, California, comprising 18 stores in and around Fresno and 2 stores in Arizona.
The acquisition would add more than $6.5 million to U.S. Dry Cleaning’s existing $10 million annualized run rate. Under the purchase agreement, U.S. Dry Cleaning would acquire the business for $6,134,000, half of which would be paid in the form of shares of U.S. Dry Cleaning common stock.
The transaction includes four affiliated companies owned and operated for two generations by Fred Jones and his son Tom, with daughter Melinda Brooke operating the stores in Phoenix and Tempe, Arizona. The businesses are Team Enterprises, Inc., Bell Hop Cleaners of California, Inc., Team Equipment, Inc. and Fabricare Services, Inc.
Operating under the trade names One Hour Martinizing and Regency Cleaners, the chain has created a large base of loyal customers served by an efficient infrastructure of office, management, training and operations staffs. In addition, the business has proactively embraced the environmentally friendly Green Earth cleaning process.
Robert Y. Lee, CEO of U.S. Dry Cleaning, said, “We are extremely pleased and proud to join forces with this strong profitable company. This is a significant financial and strategic addition to our corporation, bringing our annualized run rate to just under $17 million, nearly triple that of 2006. The Jones family has been a very astute and responsible steward of their business. We are delighted that Tom Jones has agreed to stay on for three years to help build the market, increase revenue and profitability, and integrate the company into U.S. Dry Cleaning’s national strategy. We intend to rapidly become the country’s premier dry cleaning chain, benefiting our employees and communities through outstanding service and providing the opportunity to participate in the growth of a public company.”
Tom Jones stated, “My family and I are very pleased to join U.S. Dry Cleaning in creating the first national chain of premier dry cleaning businesses in the United States. We believe that, with the added corporate resources provided by U.S. Dry Cleaning Corporation, our company can take full advantage of the rapid residential and business expansion in this region and will continue to be number one in a large and growing market. In addition, U.S. Dry Cleaning’s strategy will provide a new level of service and responsibility to our community and new opportunities for our employees.”
It is expected that the acquisition will be completed before the end of October 2007, following customary closing conditions.
U.S. DRY CLEANING REPORTS RECORD REVENUE FOR THE QUARTER ENDING JUNE 30, 2007
PALM SPRINGS, Calif., September 6, 2007 – U.S. Dry Cleaning Corporation (OTCBB:UDRY) (“U.S. Dry Cleaning”), a first mover in consolidating the nation’s dry cleaning industry, announced today its financial results for the quarter ended June 30, 2007. Revenue for the quarter was over $2.4 million, a 50% (YOY) increase over the same period in the previous fiscal year when the company had $1.6 million in revenue.
Contributing to the revenue increase was the company’s acquisition in February 2007 of Cleaners Club Inc. (doing business as “Boston Cleaners”) in Riverside, California. This was U.S. Dry Cleaning’s latest acquisition in its move to create the first national premier chain in the dry cleaning industry. Boston Cleaners added 12 retail outlets to the business and increased the company’s annualized run rate to nearly $10 million. In July 2007, U.S. Dry Cleaning completed an initial public offering of $6.1 million to advance its strategy of consolidating market-leading businesses at accretive valuations.
Robert Y. Lee, CEO, Director and co-founder of U.S. Dry Cleaning, said, “We have entered a very exciting time at U.S. Dry Cleaning. We have completed our IPO. We have money in the bank to be used to acquire some of the leading dry cleaning companies in America. Our revenue increase of 50% from a year ago is just what we expected. It signals the beginning of the rapid growth through acquisition that we have planned. We also exceeded our other major goal: same store sales were up 6% over a year ago, which was higher that our 5% goal.”
U.S. DRY CLEANING CORPORATION APPOINTS NEW CHIEF FINANCIAL OFFICER
PALM SPRINGS, Calif., September 4, 2007 – U.S. Dry Cleaning Corporation (OTCBB:UDRY) (“U.S. Dry Cleaning”), a first mover in consolidating the nation’s dry cleaning industry, announced today that the company’s Board of Directors has appointed F. Kim Cox as Chief Financial Officer and Treasurer.
Mr. Cox is replacing Haddon Libby, who resigned to take a senior management position with Zurich Capital, LLC.
Mr. Cox has more than 20 years of broad management experience in public and private companies, including acquisitions, strategic planning, contract negotiations, investor relations, finance, operations, IPOs and divestitures. Most recently, he served as CFO and then President of Rentrak Corporation, Portland, Oregon, a $100-million public company providing information management services to clients in the media, entertainment, retail, advertising and manufacturing industries. As President, he was responsible for all operational functions and implemented a company-wide action plan that increased the company’s P/E ratio by three times. Previously serving as CFO, he reorganized Rentrak’s financial reporting system and managed financings and acquisitions of over $100 million, among other accomplishments.
Mr. Cox said, “I’m delighted to join the innovative management team of U.S. Dry Cleaning as the company accelerates its dynamic growth strategy. Management’s vision of creating the first national chain of premier dry cleaning businesses in the United States offers outstanding opportunities for shareholders and new investors. I look forward to helping realize the extraordinary potential the company presents.”
Anthony J.A. Bryan, Chairman of the U.S. Dry Cleaning Board, stated, “As U.S. Dry Cleaning completes its successful initial public offering – which is a first for the dry cleaning industry – we are very fortunate to have someone with Kim Cox’s talent and background as part of our management team at this critical period in the company’s development. Kim will be responsible for planning and executing U.S. Dry Cleaning’s financial strategy in support of its very ambitious acquisition program.”
Mr. Bryan added, “Haddon Libby’s contributions to the company have been numerous and valuable, and we all wish him well in his new responsibilities.”
U.S. DRY CLEANING COMPLETES INITIAL PUBLIC OFFERING OF APPROXIMATELY $6 MILLION TO CREATE THE FIRST NATIONAL PREMIER DRY CLEANING CHAIN
PALM SPRINGS, Calif., July 19, 2007 – U.S. Dry Cleaning Corporation (“U.S. Dry Cleaning”), a first mover in consolidating the U.S. dry cleaning industry, announced today that it has completed an initial public offering of approximately $6 million. The money will be used to advance U.S. Dry Cleaning’s plan to be the industry’s first major consolidator creating a premier national chain.
Robert Y. Lee, CEO, Director and co-founder of U.S. Dry Cleaning, said, “We are very excited to complete the first IPO in the dry cleaning industry. Several outstanding financial companies have supported our vision to become the industry’s first national premier chain. The dry cleaning business is extremely stable, surviving economic downturns, fads, wars, depressions and natural disasters. With this successful public offering, we are poised to advance our strategy to become a dominant force in a previously fragmented sector and provide the industry’s highest quality service.”
U.S. Dry Cleaning’s total public offering comprised 2,400,000 units. Each unit was priced at $2.50 and consists of one share of common stock and one redeemable warrant to purchase one share of common stock. The units were issued pursuant to a registration statement on Form SB-2 which was filed with and declared effective on May 14, 2007 by the U.S. Securities and Exchange Commission. US EURO Securities, Inc., a private global investment bank headquartered in Florida, acted as the managing underwriter for this offering. A copy of the final prospectus may be obtained from US EURO Securities, Inc.
Michael Roy Fugler, Chairman of US EURO Securities, stated, “We are pleased to complete this IPO and help U.S. Dry Cleaning expand its dominance of the U.S. dry cleaning industry. With this financing, U.S. Dry Cleaning is now positioned to obtain a trading symbol and launch its plan to acquire high quality operations in strategic geographic regions of the U.S.”
U.S. Dry Cleaning expects Form 15c2-11 to be filed this week by vFinance, Inc., on behalf of U.S. Dry Cleaning, requesting the assignment of a trading symbol on the Over-the-Counter Bulletin Board.
U.S. DRY CLEANING BEGINS TRADING ON THE OTCBB UNDER THE SYMBOL “UDRY,” AS THE NATION’S FIRST PUBLICLY TRADED DRY CLEANING COMPANY
PALM SPRINGS, Calif., August 30, 2007 – U.S. Dry Cleaning Corporation (OTCBB:UDRY) (“U.S. Dry Cleaning”), a first mover in consolidating the nation’s dry cleaning industry, announced today that it has begun trading on the Over-the-Counter Bulletin Board under the symbol UDRY.
U.S. Dry Cleaning is the first dry cleaning retail chain to be publicly traded in the United States. On July 19, 2007, the company completed an initial public offering of $6.1 million. The money will be used to advance U.S. Dry Cleaning’s plan to be the industry’s first major consolidator creating a premier national chain.
Robert Y. Lee, CEO, Director and co-founder of U.S. Dry Cleaning, said, “We are very proud to announce that our stock is now available to the public. We have a strong business plan to grow rapidly by acquiring profitable dry cleaning businesses that are number one in their markets throughout the United States. Consolidation will create accretive value through economies of scale, operational synergies, best practices and professional management of the highest quality.”
About U.S. Dry Cleaning Corporation
U.S. Dry Cleaning Corporation’s mission is to create the premier national chain in the dry cleaning industry. Over the last year and a half, U.S. Dry Cleaning has completed acquisitions with combined annual revenues of over $9 million. U.S. Dry Cleaning combines a management team with extensive experience in retail consolidations and premier dry cleaning operations, with a proven operating model.
U.S. Dry Cleaning intends to rapidly acquire profitable, positive cash flow operations at accretive valuations. Each acquisition target is expected to be self-sufficient and senior management is expected to remain in place to ease the assimilation. U.S. Dry Cleaning is focused on acquiring profitable businesses that hold a leading share in their individual markets.
U.S. Dry Cleaning 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 intends to grow as rapidly as possible to deliver shareholder value.
Welcome to the US dry cleaning Inc. board
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US DRY CLEANING INC
http://www.usdrycleaning.com/homepage.htm
Corporate Headquarters:
US Drycleaning Corporation
125 E. Tahquitz Canyon, Ste. 203
Palm Springs, CA 92262
Email: info@usdrycleaning.com
Administrative Offices:
US Dry Cleaning Corporation
1930 Auiki Street
Honolulu, HI 96819
(808) 843-3700
Email: info@usdrycleaning.com
FACT SHEET: http://www.usdrycleaning.com/pdf/USDC_FactSheet_09-04-07.pdf
Our Mission
For Our Shareholders
First and foremost we are a fundamental consolidator. We are 100% committed to make only accretive acquisitions and are driven to increase value to our shareholders. US Dry Cleaning Corporation's mission is to make smart acquisitions that make our company stronger and more profitable. We want to rapidly acquire more stores and top quality chains across America at a price that will achieve the goal of adding to the earning's per share and the increase in shareholder value.
For Our Customers
US Dry Cleaning Corporation is committed to deliver superior dry cleaning and top quality customer service to our customers .We want customers to be happy with the service and the quality from the moment they walk in the door. We strive to be environmentally friendly without sacrificing quality.
For Our Employees
Our philosophy is simple. If you treat people fairly and pay them well, they will be great long term employees. Good employees do a better job, are more dependable, and improve the overall operation. By paying employees more, they will cost the company less in the long run. Our goal is to improve the quality of life of every employee and keep that employee with us for the long term.
Dry Cleaning Industry
Dry cleaning is one of the most stable of all retail industries.
There are an estimated 27,000 dry cleaners in the U.S.
The market is estimated to be $8-$10 billion per year.
Nearly 70% of all dry cleaners have been in business over 5 yrs.
Nearly 50% have been in business over 10 years.
Many dry cleaning operations were founded by parents and even grandparents.
Many second and third generation owners would like an exit strategy.
US Dry Cleaning Corporation is a “first mover” into dry cleaning consolidation.
The dry cleaning industry is very similar to the video industry of 1986- prior to the consolidation by Blockbuster Entertainment.
-The Management-
The management and the board of directors bring many years of retail and corporate experience. Our experienced team has proven capable of managing aggressive retail consolidations. Some of the key personnel include the following:
• Robert Y. Lee CEO
• Michael E. Drace COO
• F. Kim Cox CFO
• Riaz Chauthani Director of Mergers & Acquisitions
• Deborah Rechnitz Exclusive Business Development Consultant
• Anthony John Bryan Sr. Chairman of the Board
• Earl Greenburg Director
• Martin Brill Director
Robert Y. Lee - CFO
“Robbie” Lee is the Founder Chief Executive Officer of the Company. He also serves as a Director. Mr. Lee has gained operational expertise through comprehensive private and public company CEO experience. During Mr. Lee’s 23-year retail store career, he has opened, acquired and operated over 500 video retail stores as either CEO or owner-operator. Prior to US Dry Cleaning Corporation, Mr. Lee lead the growth of Video City, a retail video store consolidation from an 18 store regional chain with $10 million in revenues to a top 10 nationally ranked Video Retail Company in 24 months.
Michael E. Drace - COO
Mr. Drace has served as President and principal shareholder of Young Laundry and Dry Cleaners since 1995. Mr. Drace has been in the industry since 1969. He has successfully overseen all phases of operations in an executive capacity for some of the nation’s largest laundry and dry cleaning companies. Mr. Drace has meaningful experience in corporate consolidation and integration of purchased companies subsequent to consolidation.
F. Kim Cox - CFO
Mr. Cox has more than 25 years of experience in executive management, public company accounting and finance, corporate governance, and mergers and acquisitions. Mr. Cox served in multiple executive leadership positions at Rentrak Corporation, a publicly-held information management company, from 1985 to March 2005, during which he acted as President and Secretary from June 2000 to March 2005, Executive Vice President, Secretary and Treasurer from 1999 to June 2000, and Executive Vice President, Chief Financial Officer, Secretary and Treasurer from 1995 to 1999. Prior to joining Rentrak Corporation in 1985, Mr. Cox was an attorney in private practice in Oregon. Mr. Cox received J.D. and M.B.A. degrees from Williamette University’s College of Law and Atkinson Graduate School of Management, respectively, and is a C.P.A. licensed in the State of Washington.
Riaz Chauthani - Director of Mergers & Acquisitions
Mr. Chauthani has bought, sold, or opened over 50 dry cleaning operations in the Southwestern United States. Previously , he was Director of Leasing for LaMancha Development, overseeing 250 shopping centers. In addition, Mr. Chauthani has also served as Director of Leasing at Western Royal Development in San Diego. Mr. Chauthani has a Bachelors degree in Real Estate Finance from the University of Southern California.
Deborah Rechnitz-Exclusive Business Development Consultant
Ms. Rechnitz has been an independent management consultant specializing in the Dry-Cleaning industry since 1980. As Managing Director of Methods For Management, Inc, a well known and highly respecting consulting company in the dry cleaning industry, she has represented dozens of the top regional dry-cleaning operations across the United States. Ms. Rechnitz is an internationally known speaker and the author of numerous management publications, including the best selling booklet "60 Ways to Maximize the Value of Your Business." Ms. Rechnitz has two Bachelor degrees from the University of Colorado as well as a MBA in Operations Management from Case Western University.
Anthony John Bryan Sr.-Chairman of the Board
Anthony “Tony” Bryan still serves as the non-executive Chairman of the Board of 360 Global Wine Company. He was previously a Vice-President and member of the Board of Directors of the International Division of Monsanto Corporation. Following his career at Monsanto, Mr. Bryan served as the President and CEO of Cameron Iron Works, as well as the Chairman and CEO of Copperweld Corporation. In additon, he has also served on the Board of Directors of several major companies including Federal Express, Chrysler, ITT, Koppers, Hamilton City Oil, PNC Corporation and Imetal (Paris, France). Mr. Bryan holds an MBA from Harvard Business School.
Earl Greenburg - Director
Mr. Greenburg is a former Deputy Attorney General for the state of Pennsylvania, and is a founding partner and current Chairman of Transactional Marketing Partners (TMP). Mr. Greenburg was the only 3-term chairman of ERA, the Electronic Retailer Association, and also served as the President of the Home Shopping Network (HSN). Previously, Mr. Greenburg was selected by Brandon Tartikoff to in the position of Vice President of Daytime Programming for NBC TV.
Martin Brill - Director
Mr. Brill is a senior partner at Levene, Neale, Bender, Rankin & Brill LLP . Mr. Brill has special expertise in complex reorganizations of publicly held companies influenced by securities law. Mr. Brill graduated from the University of California, Los Angeles and the UCLA School of Law. He is a member of the State Bar Association of California, as well as the American, Los Angeles County, Beverly Hills, and Century City Bar Associations.
At the end of August, US Dry Cleaning Corporation (UDRY.OB) began trading on the over-the-counter bulletin board under the symbol UDRY as the first dry cleaning retail chain to be publicly traded in the United States. On July 19, 2007, the company completed an initial public offering of $6.1 million, which will be used to advance the Company’s plan to be the industry's first major consolidator in order to create a premier national chain.
Director and CEO Robert Y. Lee stated:
We are very proud to announce that our stock is now available to the public. We have a strong business plan to grow rapidly by acquiring profitable dry cleaning businesses that are number one in their markets throughout the US. Consolidation will create accretive value through economies of scale, operational synergies, best practices and professional management of the highest quality.
US Dry Cleaning has a significant first-mover advantage to consolidate the fragmented, $9 billion US dry cleaning market as the first public company with access to the capital markets following its recent IPO. The company anticipates an AMEX or Nasdaq listing for its shares by the end of this year, further increasing its visibility among investors. The management team is experienced with a strong business background in both dry cleaning operations and acquisitions. Ample opportunities exist for consolidation among the estimated 27,000 dry cleaning operations in the US, and the company offers investors an easy to understand, pure-play business model that is economically insensitive. The company expects to be EBIDTA positive by mid-2008 with a revenue target of $50 million at that time by executing on a focused strategy to only acquire leading dry cleaning operations with at least $5 million in annual sales. Beyond mid-2008, the Company expects to report meaningful net income at revenues of $100 million.
The dry cleaning industry in 2007 is very similar to the retail video industry in 1987 with fragmented "mom and pop" type operations with no large national company dominating the scene. US Dry Cleaning's business model is very similar to the model created by Wayne Huizenga at Blockbuster Video (NYSE: BBI) in 1986. This consolidation model consists of buying successful chains that have a dominant market share, and then use the resources and economies of scale of a public company to improve the profits of the chain by reducing existing operational costs.
The Company’s mission is to be a fundamental consolidator that is totally committed to making only accretive acquisitions and all decisions are driven to increase value to shareholders. US Dry Cleaning's mission is to make smart acquisitions that make the company stronger and more profitable. The Company will take advantage of a skilled management team, corporate organizational experience, as well as having the ability to access capital associated with a large public company. Other efficiencies of their business model include: centralized management that eliminates unnecessary personnel, the use of modern equipment as large operators can afford the newest technology to greatly reduce the cost per garment, volume buying power that also applies to marketing & advertising initiatives, minimized cost of opening a new storefront, and brand name recognition for customers and investors as the company grows to be a successful regional to national expansion play.
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