linuspop, re DCU
You're doing better than I am. Bought most of mine over $3 even though I figured a pullback was likely. Think it will continue to drift a little lower with the overall market weakness. Hard to see it going all the way back to $2. You'd think downside would be limited with the new Whirlpool agreement that could provide "significant finacial returns" to DCU.
Not sure if the $350K will be recognized in fiscal Q2 or fiscal Q3. Guess we'll know in a few weeks when Q2 is reported. I'm actually hoping it's in Q3, as that should be a very favorable comp. The $350K license fee will add .05 in EPS alone. Hopefully royalties will exceed that in a few quarters. Based on the expansion announced last summer (PR below), we may get a greater contribution from operations as well.
Let us know about the royalties. If it's sooner rather than later, maybe they'll increase the annual dividend up to .08-.10/share.
Alan I. Greenstein Acquires Significant Stake in DRYCLEAN USA, Inc.; Company Also Announces Expansion of Marketing Territory
WEDNESDAY, JULY 28, 2004 2:12 PM
- BusinessWire
MIAMI, Jul 28, 2004 (BUSINESS WIRE) -- DRYCLEAN USA, Inc. (DCU) , announced that Alan I. Greenstein, who joined the Company recently as Executive Vice President and Chief Operating Officer, had acquired a 21.5% equity position in the Company from the Company's two principal stockholders. It is expected that Mr. Greenstein will also be elected a director of the Company. Mr. Greenstein's responsibilities cover all aspects of the Company's sales and marketing operations.
In announcing the transaction, Michael Steiner, President of DRYCLEAN USA, noted that: "Mr. Greenstein brings to the Company a wealth of experience in revenue growth strategies earned as an entrepreneur of a number of successful businesses, including a Thrifty Car Rental franchise and a chain of retail dry cleaning and laundry stores in Southeast Florida. Mr. Greenstein, with a partner, acquired a Thrifty Car Rental business in 2001 with an existing fleet of 1,800 vehicles. Within three years, the franchise grew to a fleet of 7,500 vehicles with revenues exceeding $82 million. The business was then acquired by Dollar Thrifty Automotive Group, Inc., the national franchisor. Previously, Mr. Greenstein developed a chain of retail dry cleaning and laundry stores and directed all aspects of their sales and marketing and operations."
Mr. Steiner added, "In addition to his sales responsibilities, Mr. Greenstein will also be charged with examining growth opportunities for our Company, including through acquisitions."
Separately, the Company announced the expansion of the distribution territory for its existing product lines. Venerando Indeliccto, Chief Financial Officer, stated: "The Company now has increased representation for its commercial laundry equipment in Tampa Bay, Orlando and Jacksonville in addition to its historical southeast Florida base." Several additional sales engineers, specializing in commercial laundry equipment were added to cover the new territory.
Mr. Greenstein, under whose auspices this expansion will take place, said: "I am very excited about the future prospects of the Company and am looking forward to helping the Company increase its revenues and achieve its goals."
DRYCLEAN USA, Inc. is one of the largest franchise and license operations in the dry cleaning industry, currently consisting of over 400 franchised and license stores in the United States, the Caribbean and Latin America. Founded in 1960, its dry cleaning and laundry machinery division is also one of the nation's leading distributors of industrial laundry equipment, dry cleaning machines and steam boilers.
This press release contains certain information that is subject to a number of known and unknown risks and uncertainties that may cause actual results and trends to differ materially from those expressed or implied by the forward-looking statements. Information concerning such factors are discussed in Company reports filed with the Securities and Exchange Commission.
SOURCE: DRYCLEAN USA, Inc.
DRYCLEAN USA, Inc., Miami
Michael Steiner, 305/754-4551
or
Venerando Indelicato, 813/814-0722
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