SOURCE: U.S. Dry Cleaning Corporation

January 23, 2008 11:38 ET

U.S. Dry Cleaning Reports 38% Revenue Growth in Fiscal Year 2007; CEO Purchases Additional Company Stock

PALM SPRINGS, CA--(Marketwire - January 23, 2008) - U.S. Dry Cleaning Corporation (OTCBB: UDRY) ("U.S. Dry Cleaning") announced today it has reported results for the Fiscal Year ("FY") that ended September 30, 2007. For the year, U.S. Dry Cleaning reported a 38% increase in revenue over the same period in FY 2006.

At the same time, U.S. Dry Cleaning announced that Robert Y. Lee, the company's Chief Executive Officer, has purchased 188,510 shares of common stock in privately negotiated transactions with two early investors in U.S. Dry Cleaning, at a price exceeding the per-share average market price of the stock on the dates of purchase.

In its Annual Report for FY 2007, filed with the Securities and Exchange Commission, U.S. Dry Cleaning reported revenues of approximately $8.4 million compared to revenues of approximately $6.1 million in the prior fiscal year. U.S. Dry Cleaning also reported 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, adding, "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% in calendar year 2007 over the same period in 2006. We believe that the very nature of the dry cleaning business protects us from economic fluctuations better than other industries," Mr. Lee explained.

Mr. Lee added, "As a measure of my confidence in U.S. Dry Cleaning's business plan and future growth, I recently purchased common stock at a per-share price exceeding the closing price of the stock on the dates of my purchases. I believe our record of achievement this past year and going forward into 2008 warrants this confidence."

Since June 2007, U.S. Dry Cleaning has:

--  Raised $6.1 million in an Initial Public Offering, completed June 19,
--  Begun trading on the OTCBB under the symbol "UDRY" on August 30, 2007.
--  Appointed a highly experienced Chief Financial Officer.
--  Signed Purchase Agreements and Memorandums of Understanding to acquire
    five additional dry cleaning chains, which are expected to add $27 million
    to the company's annualized revenue run rate.
--  Closed on initial convertible debt financing of approximately $3.5

The full Annual Report on Form 10-KSB for FY 2007 has been filed and is available at

About U.S. Dry Cleaning

U.S. Dry Cleaning Corporation's mission is to create the premier national chain in the dry cleaning industry. U.S. Dry Cleaning's management team has extensive experience in retail consolidations and premier dry cleaning operations with a proven operating model. The company intends to rapidly acquire profitable, positive cash flow operations at accretive valuations. Each acquisition target is expected to be self-sufficient and field management is expected to remain in place to ease the assimilation. U.S. Dry Cleaning is focused on acquiring profitable businesses that hold leading share in their markets. 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 intends to grow as rapidly as possible to deliver shareholder value.

This release is provided for informational purposes only and should not be construed as a solicitation to invest. U.S. Dry Cleaning Corporation's future operation results are dependent upon many factors, including but not limited to (i) the company's ability to obtain sufficient capital or a strategic business arrangement to fund its expansion plans; (ii) the company's ability to build the management and human resources and infrastructure necessary to support the growth of its business; (iii) competitive factors and developments beyond the company's control; and (iv) other risk factors discussed in the company's periodic filings with the Securities and Exchange Commission, which are available for review at under "Search for Company Filings."

In accordance with a December 5, 2006 agreement, Consulting For Strategic Growth 1, Ltd. ("CFSG1") provides U.S. Dry Cleaning Corporation with consulting, business advisory, investor relations, public relations and corporate development services. CFSG1 receives only restricted stock as compensation from U.S. Dry Cleaning. CFSG1 may also choose to purchase U.S. Dry Cleaning's common stock and thereafter liquidate those securities at any time it deems appropriate to do so. For more information please visit

Contact Information

  • Company Contact
    Rick Johnston
    Director of Shareholder Communications
    Tel: 760-668-1274
    Email: Email Contact

    Investor Relations:
    Stanley Wunderlich
    Consulting For Strategic Growth 1
    Tel: 800-625-2236
    Fax: 646-205-7771
    Email: Email Contact
    Web site:

    Media Relations:
    Daniel Stepanek
    Consulting For Strategic Growth 1
    Tel: 646-205-7767
    Fax: 646-205-7771
    Email: Email Contact