DoveCorp Enterprises Inc.

DoveCorp Enterprises Inc.

August 17, 2006 11:42 ET

DoveCorp Announces 2006 Q3 Results

TORONTO, ONTARIO--(CCNMatthews - Aug. 17, 2006) - Further to its press release of August 15th, 2006 - DoveCorp Enterprises Inc. (the "Company")(TSX VENTURE:DOV) today announced additional information regarding its financial results for the quarter ended June 30th, 2006.

Financial Highlights (in $millions)

Q3 June 30 Nine Months

2006 2005 2006 2005
Revenue $ 2.8 $ 1.5 $ 7.8 $ 4.2
Gross Loss $ 0.0 $ 0.1 $ 0.8 $ 0.5
Net Loss $ 1.0 $ 1.3 $ 4.1 $ 2.9
Net Loss per Share $ 0.01 $ 0.03 $ 0.05 $ 0.07

The Company achieved $2.8 million in revenue for the quarter ended June 30, 2006, a $1.3 million increase from the comparable quarter last year and a $0.5 million increase from the previous quarter ending March 31, 2006. Gross profit increased $0.6 million from the quarter ended June 30, 2006 as compared to the previous quarter ended March 31, 2006.

A net loss of $4.1 million, or 5 cents per common share was recorded for the first nine months of fiscal 2006, as compared to a net loss of 7 cents per common share or $2.9 million for the same period in fiscal 2005. As well, sales for the first nine months of fiscal 2006 totaled $7.8 million, an 80% increase over the same period in 2005. Net loss decreased by $0.8 million or 45% for the quarter ended June 30, 2006 as compared to the previous quarter ended March 31, 2006.

During the quarter ended June 30, 2006, major developments include:

- Signing a five-year national licensing agreement with Wal-Mart Canada. This agreement is expected to create a number of new retail locations for the Company

- Completed installation of two new ironing systems.

- Raised $3.7 million in equity, debt and equipment lease financing.

Subsequent to June 30, 2006 the company successfully:

- Signed a number of high-end commercial clients, including two prominent Toronto hotels, being the Best Western Primrose Hotel on Carleton Street and the Crowne Plaza Hotel on Eglinton Avenue.

- Raised $300,000 in equity financing.

- Ordered a new tunnel washing system, expected to be installed in the early fall of 2006.

- Granted an aggregate of 2,000,000 incentive stock options to officers of the company.

Full financial results are available on both Sedar ( and on the company's website at

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 recent acquisition of Cadet Cleaners, a leader in the Greater Toronto Area for 50 years, has brought the number of DoveCorp's retail locations to 98. 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.

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.

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.

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