DoveCorp Enterprises Inc.

DoveCorp Enterprises Inc.

January 26, 2007 15:43 ET

DoveCorp Announces 2006 Year-End Results, Confirms 2006 Positive EBITDA for Q4; Revenue Up 82% Over 2005

TORONTO, ONTARIO--(CCNMatthews - Jan. 26, 2007) - DoveCorp Enterprises Inc. (the "Company") (TSX VENTURE:DOV), a leading provider of dry cleaning and linen services, today reported results for its full year and Q4 for the year ended September 30th, 2006.

Financial Highlights (in $millions)

Q4 2006 Q4 2005 Year End 2006 Year End 2005
Revenue $3.4 $1.9 $11.3 $6.2
Gross Profit 0.3 (0.3) (0.6) (0.7)
EBITDA 0.0 (1.2) (2.9) (3.1)
Net Loss (0.7) (1.8) (5.1) (4.8)
Net Loss per Share (0.01) (0.04) (0.06) (0.11)

Operational Highlights 2006

- Revenue for the fiscal year increased by 82% compared to 2005

- Positive EBITDA for the last quarter of the year

- Successful integration of Cadet Cleaners into the new processing facility

- New processing facility outfitted with state-of-the-art equipment

- Successful completion of $12 million in loan, equity and equipment lease financing

- Signed national agreements with Wal-Mart Canada, Moores The Suit People and International News for Canada-wide services

Sam Mizrahi, President and CEO said, "I am excited with our continuing momentum and strong performance. Looking ahead to 2007, we are pleased to have secured a number of relationships such as those with Wal-Mart Canada and Moores The Suit People to aid in our expansion plans by exposing the rest of the Country to our quality brand. Further, the new processing equipment is expected to expand the company's market opportunities into the hotel and healthcare industries."

About DoveCorp:

DoveCorp is a leader in Canada's dry-cleaning and laundry industry, with the only ISO 9001 dry cleaning registration in the world. For more than 10 years, its flagship Dove Cleaners division has been widely recognized by various fashion and industry magazines as among the best premium dry cleaning and laundry services in Canada. At the same time, its Dove Depot, Meena Cleaners, and Natural Cleaners divisions excel in the mass market. DoveCorp's acquisition of Cadet Cleaners, a leader in the Greater Toronto Area for 50 years, brought the number of DoveCorp's retail locations to over 90 early 2006, making it Canada's largest and fastest-growing company in the industry. In addition, Dove Cleaners Commercial is a full-service provider of linen, uniforms, and mat rentals. The company also provides out-sourced dry cleaning and laundry services.

Forward-looking statements

This document contains forward-looking statements relating to DoveCorp's financial performance, operations or to the environment in which it operates, which are based on DoveCorp's operations, estimates, forecasts, and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict, or are beyond the company's control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. These factors include those set forth in the company's corporate filings, (posted at Consequently, readers should not rely on such forward-looking statements. In addition, these forward-looking statements relate to the date on which they are made. Although the forward-looking statements contained herein are based upon what management believes to be reasonable assumptions, DoveCorp cannot be certain that actual results will be consistent with these forward-looking statements, and the company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

This press release shall not constitute an offer to sell of the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release and has neither approved nor disapproved of the contents of this release. The TSX Venture Exchange has in no way passed on the merits of the transaction described herein.

Contact Information

  • DoveCorp Enterprises Inc.
    Sam Mizrahi
    President and CEO
    (416) 782-8788 x 223