DRYCLEAN USA Announces Increased Third Quarter Results; Net Earnings increase 25% For The Third Quarter.Business Editors MIAMI--(BUSINESS WIRE)--May 11, 2000 DRYCLEAN USA Inc. (AMEX AMEX See: American Stock Exchange :DCU DCU Dublin City University DCU DC Universe (comics) DCU Digital Federal Credit Union DCU Danmarks Cykle Union DCU D.C. United (soccer) DCU Display Control Unit DCU Device Configuration Utility ) today reported operating results for the third quarter ended March 31, 2000. Revenues for the third quarter of fiscal 2000 increased to $5,269,964 and resulted in net earnings of $278,892 or $.04 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share compared to revenues of $4,947,888 and net earnings of $222,926 or $.03 per diluted share for the same period of fiscal 1999. Revenues for the nine months increased to $14,310,386 compared to revenues of $13,838,085 for the nine months of fiscal 1999. Pre-tax earnings for the nine months ended March 31, 2000 were $1,043,432 which resulted in net earnings of $626,059 or $.09 per diluted share after a $417,373 provision for income taxes. This compares to pre-tax earnings of $916,116 and after a $253,017 provision for income taxes resulted in net earnings for the nine months ended March 31, 1999 of $663,099 or $.10 per diluted share. The nine months of fiscal 1999 was a period when the Company was subject to a reduced tax rate. Michael Steiner, president of DRYCLEAN USA, stated, "I am happy to report that our subsidiaries are performing well. Management fees, royalties, and commissions, which represent revenues of our Steiner-Atlantic Brokerage and Dryclean USA License Corp., increased by 49.5% and 82.3% for the nine month and three month periods ended March 31, 2000, respectively. In addition the telecommunication telecommunication Communication between parties at a distance from one another. Modern telecommunication systems—capable of transmitting telephone, fax, data, radio, or television signals—can transmit large volumes of information over long distances. division has increased its revenues by 43.5% for the third quarter of fiscal 2000 over the same period of last year and has significantly contributed to earnings." As already reported Dryclean USA License Corp. has awarded an exclusive area license to Southeastern Cleaners LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control to develop and operate drycleaning and laundry businesses under the DRYCLEAN USA name in the greater Charlotte, NC area. Recently the Company granted an area license to M & J Cupey Cleaners, Inc. to develop Puerto Rico Puerto Rico (pwār`tō rē`kō), island (2005 est. pop. 3,917,000), 3,508 sq mi (9,086 sq km), West Indies, c.1,000 mi (1,610 km) SE of Miami, Fla. . Negotiations are pending in other areas. Dryclean USA is one of the largest franchise and license operations in the drycleaning industry and currently consists of nearly 400 franchised and licensed stores in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , the Caribbean and Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. . Founded in 1960, Steiner-Atlantic division is one of the nation's leading distributors of industrial laundry Large institutions that require a constant flow of clean linen will often employ the services of an industrial laundry. Hospitals, prisons and hotels, for instance, will usually have their own laundry departments. , drycleaning and steam boilers. Aside from its wholesale and retail drycleaning and laundry operations, DRYCLEAN USA, through its Metro Tel division, also manufactures telecom test equipment and peripheral telephone products. The Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 provides a "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " for forward looking statements. Certain of the statements contained herein, which are not historical facts, are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. with respect to events, the occurrence of which involve risks and uncertainties. These forward-looking statements may be impacted, either positively or negatively, by various factors. Information concerning potential factors that could affect the Company is detailed from time to time in the Company's reports filed with the Securities and Exchange Commission.
DRYCLEAN USA, INC
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Nine Months Nine Months Three Months Three Months
Ended Ended Ended Ended
March 31, March 31, March 31, March 31,
2000 1999 2000 1999
Total revenues $14,310,386 $13,838,085 $5,269,964 $4,947,888
Earnings before
taxes 1,043,432 916,116 464,820 371,544
Provision for
income tax 417,373 253,017 185,928 148,618
-------- ------- ------- ---------
Net earnings $626,059 $663,099 $278,892 $222,926
-------- -------- ------- ---------
Basic earnings
per share $.09 $.11 $.04 $.03
Diluted earnings
per share $.09 $.10 $.04 $.03
Weighted average number
of shares outstanding
Basic 6,940,556 5,917,646 6,958,333 6,875,000
Diluted 7,338,037 6,414,632 7,431,297 7,371,986
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