DoveCorp Enterprises Inc.
TSX VENTURE : DOV

DoveCorp Enterprises Inc.

November 01, 2006 17:14 ET

DoveCorp Announces Q4 Progress Report

TORONTO, ONTARIO--(CCNMatthews - Nov. 1, 2006) - DoveCorp Enterprises Inc. (the "Company") (TSX VENTURE:DOV) today announced its unaudited, expected financial results for the fourth quarter ending September 30, 2006.

Financial Highlights (in $millions)



Q4 2006 Q4 2005

Revenue $ 3.3 $ 1.9
Gross Profit $ 0.2 $ (0.4)
EBITDA $ 0.0 $ (1.4)
Net Loss $ 0.8 $ 1.8
Net Loss per Share $ 0.01 $ 0.04


Operational Highlights

- 75% increase in revenue as compared to the previous year

- 11% organic growth in commercial sales as compared to the previous year

- EBITDA was positive for the first period in the Company's public history

- Milnor 76039 CBW Tunnel Washer was delivered in October and will be operational by mid-November 2006

- The Bond Place Hotel Toronto, and Four Seasons Centre for Performing Arts are the most recent commercial clients

The Company increased revenue for the fourth quarter ending September 30, 2006 to $3,345,000 as compared to $1,906,174 during the comparable quarter last year. Gross profit earned was $0.2 million versus a loss of $0.4 million for the fourth quarter in fiscal 2005. EBITDA was positive for the first quarter in the company's public history. Net loss was significantly reduced to $756,000 as compared to a loss of $1,829,000 in the fourth quarter of fiscal 2005.

"We have made great strides in executing our business plan and have turned a major corner by becoming EBITDA positive" Said Sam Mizrahi, President and CEO. "The addition of the Tunnel Washer will assist us in handling the increased commercial laundry volume that is the result of our most recent sales efforts, while further driving operational efficiencies."

Mr. Mizrahi also noted that: "We are expecting to triple our commercial business revenues by opening up previously untapped markets, particularly in the health care industry, with the installation of the new tunnel washer. Installation is almost complete, and this new equipment will increase our commercial laundry processing capacity considerably while decreasing our utility and labour expenses by as much as 50% and 15% respectively. The washer has a minimum yearly production capacity of 10,000,000 pounds - a significant increase as compared to our current capacity of only 3,500,000 pounds. It will also allow us to reduce the time to clean our current volume from 20 hours to less than 10."

The Company has also signed a number of large commercial clients, including the Bond Place Hotel in Toronto, and the new Four Seasons Centre for the Performing Arts. As well, recent marketing efforts are aimed at obtaining larger and more profitable clients in the commercial health care industry.

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, 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 www.sedar.com). 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.

DOVECORP ENTERPRISES INC. 35 SUNTRACT ROAD TORONTO, ON M9N 2V8

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.

Contact Information

  • DoveCorp Enterprises Inc.
    Sam Mizrahi
    President and CEO
    (416) 782-8788 x 223
    Email: sam@dovecorp.com