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US Dry Cleaning Corporation (OTCBB:UDRY), the nation’s first consolidator of dry cleaning stores, today reported its results for the fiscal third quarter and nine month period of 2008, ending June 30. For the quarter, net sales increased 112% from the same a year ago. For the quarter ending June 30 2008, the company reported sales of approximately $5,132,000 compared to approximately $2,427,000 for the comparable period last year. Furthermore, the company showed a quarter to quarter increase in sales of 78%. For the March 31, 2008 quarter the company reported $2,875,509 in sales. For the quarter ending June 30, 2008 the company reported a net loss of approximately $2,029,000 or $0.11 per share, compared to a net loss of approximately $1,815 or $0.10 per share for the similar period one year ago. This net loss is attributed to legal, accounting, financing and merger and acquisition costs required for achieving rapid growth.
The company reported a more than 70% increase in net sales for the nine months ending June 30, 2008. Net sales were approximately $10,378,000, compared to $6,055,000 reported for the same period one year-ago. The net loss for the nine-month period was approximately $6,568,000 or $0.33 per share as compared to $5,604,000 or $0.31 per share for the same period a year ago.
Gross profit as a percentage of revenue increased by 15% from 48% for the three months in 2007 to 63% for the three months in 2008. This increase in gross profit during the quarter resulted from increased efficiencies and economies of scale.
The company significantly improved its balance sheet with cash on hand at the end of the quarter of more than $4 million as compared to cash on hand at the end of the March quarter of less than $500,000.
Robbie Lee, CEO of US Dry Cleaning, said “we are committed to bringing value to our shareholders through aggressive growth, securing our first mover to market advantage by continuing to focus only on the best and most accretive dry cleaning companies in the nation. Our pipeline of acquisition candidates is solid and growing. We have reached an annualized revenue run rate of $25 million, which we believe is significant. We remain committed to continuing our rapid and accretive growth, substantially increasing this annualized revenue run rate.”
The full 10Q report is available at http://www.sec.gov.
About U.S. Dry Cleaning Corporation
U.S. Dry Cleaning’s mission is to create the premier national chain in the dry cleaning industry. The Company’s management team has extensive experience in retail consolidations and premier dry cleaning operations with a proven operating model. Management intends to rapidly acquire profitable, market-leading operations at accretive valuations. Each acquisition target is expected to be self-sufficient, and field management remains in place to ease the assimilation.
U.S. Dry Cleaning management believes the greatest value achieved in any consolidation is during the earliest phases. As a result, the company intends to grow as rapidly as possible to maximize shareholder value.
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