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| FOR IMMEDIATE RELEASE | |||||||||
| Source: U.S. Dry Cleaning Corporation | |||||||||
U.S. Dry Cleaning Corporation Issues Company "Roadmap" Outlining Growth Strategy |
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PALM SPRINGS, CA--(MARKET WIRE)--Sep 25, 2007 -- |
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The letter has been mailed to all shareholders of record as of September 21, 2007. It is available on the U.S. Dry Cleaning's Web site www.USDRYCLEANING.com, under "Investor Relations" and is being filed with the U.S. Securities and Exchange Commission as a Current Report on Form 8-K. The document can also be accessed by going to www.CFSG1.com and clicking on the U.S. Dry Cleaning logo. U.S. DRY CLEANING ROADMAP: PERSPECTIVES FOR 2008 I also urge you to go to our Web site (www.usdrycleaning.com) to stay abreast of new developments. In the near future, we will post a chart to show you how our Company's financial status compares to the early stages of previous successful historic consolidations such as Blockbuster, Inc. (BBI), VCA Antech, Inc. (WOOF), and Waste Management, Inc. (WMI). I think you will be impressed.
Going forward, our plans are clear. Our business strategy is to rapidly acquire profitable companies that are Number 1 in their markets and generating more than $5 million in annual revenues. Our current acquisition, when finalized, will bring our annualized run rate to just under $17 million, nearly triple that of 2006. We have identified many more candidates in major markets across the continental U.S. and we are in advanced negotiations with them. Our short-term goal is to bring our annualized revenue run-rate to $50 million by mid 2008, subject to our obtaining new capital for expansion. Our management team is highly experienced in retail consolidation and we believe that the "first mover" consolidating any market is able to acquire market-leading businesses at the most favorable prices, ahead of potential competition. We believe it is the early stage of consolidation that reaps the greatest financial rewards for all parties. We think our recent achievements testify to that belief and our momentum will increase as planned in the coming year. While the dry cleaning industry has long been dominated by small, private, geographically diverse operations, it earns revenues estimated at over $9 billion annually. As second and third generation operators seek greater returns on their businesses, consolidation becomes a logical and timely strategy. Tom Jones (who operates our current acquisition candidate) stated when our agreement was announced: "My family and I are very pleased to join U.S. Dry Cleaning Corporation in creating the first national chain of premier dry cleaning businesses in the United States. We believe that, with the added corporate resources provided by U.S. Dry Cleaning, our company can take full advantage of the rapid residential and business expansion in this region and will continue to be number one in a large and growing market. In addition, U.S. Dry Cleaning's strategy will provide a new level of service and responsibility to our community and new opportunities for our employees." U.S. Dry Cleaning management has commenced dialogue with other market leaders who would seamlessly integrate into UDRY's business model. Together, these potential acquisition candidates have more than $200 million in profitable revenues. In addition, we have been steadily building relationships within the financial industry to help fuel that growth. Most importantly, we appreciate the support of all our shareholders as we begin to execute our strategy and reshape the landscape of an old line industry. What follows is a roadmap of our projected milestones for the coming year. Priorities:
As we advance our strategy to become the premier operator and consolidator of dry cleaning operations in the United States, we will enlist additional management expertise in operations, finance and acquisitions to support our growing size and scale. Further, we plan to implement an IT strategy and invest in the technology to increase our productivity and enhance UDRY's growth tomorrow and beyond. We would like to thank our customers, employees and shareholders for their patronage, support and belief in our Company. Sincerely yours, CAUTIONARY STATEMENT FOR FORWARD-LOOKING STATEMENTS We caution readers not to place undue reliance on forward-looking statements, which speak only as of the date of this document. Any one of these or other risks, uncertainties, other factors or any inaccurate judgments and assumptions could cause actual results to be materially different from those described herein or elsewhere by us. Certain of these risks, uncertainties and other factors are described in greater detail in our filings from time to time with the U.S. Securities and Exchange Commission, which we strongly urge you to read and consider, including the "Risk Factors" as set forth in our Final Prospectus dated May 14, 2007, and our Annual Report on Form 10-KSB for the fiscal year ended September 30, 2006, which may be accessed from our website at www.usdrycleaning.com. Subsequent written and oral forward-looking statements attributable to us or to persons acting on our behalf are expressly qualified in their entirety by the cautionary statements set forth above and elsewhere in our reports filed with the U.S. Securities and Exchange Commission. We expressly disclaim any intent or obligation to update any forward-looking statements. CONTACT: |
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About U.S. Dry Cleaning Corporation U.S. Dry Cleaning Corporation’s mission is to create the premier national chain in the dry cleaning industry. Over the last year and half, U.S. Dry Cleaning has completed acquisitions with combined annual revenues of over $9 million. U.S. Dry Cleaning combines a management team with extensive experience in retail consolidations and premier dry cleaning operations, with a proven operating model. U.S. Dry Cleaning intends to rapidly acquire profitable, positive cash flow operations at accretive valuations. Each acquisition target is expected to be self-sufficient and senior management is expected to remain in place to ease the assimilation. U.S. Dry Cleaning is focused on acquiring profitable businesses that hold a leading share in their individual markets. U.S. Dry Cleaning management believes that the current absence of extensive competition to acquire the larger dominant operators will change radically as the industry consolidates. Management believes that the greatest value achieved in any consolidation occurs during the earliest phases and intends to grow as rapidly as possible to deliver shareholder value. |
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| 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) U.S. Dry Cleaning’s ability to obtain sufficient capital or a strategic business arrangement to fund its expansion plans; (ii) U.S. Dry Cleaning’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 U.S. Dry Cleaning’s control; and (iv) other risk factors discussed in U.S. Dry Cleaning’s periodic filings with the Securities and Exchange Commission, which are available for review at http://www/sec/gov/ 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 www.cfsg1.com. |
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