SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-QSB [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2004 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 0-9040 DRYCLEAN USA, Inc. (Exact name of small business issuer as specified in its charter) DELAWARE 11-2014231 (State of other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 290 N.E. 68 Street, Miami, Florida 33138 (Address of principal executive offices) (305) 754-4551 (Issuer's telephone number) Not Applicable (Former name) Check whether the issuer: (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No_____ State the number of shares outstanding of each of the issuer's classes of common equity as of the latest practicable date: Common Stock, $.025 par value per share - 7,014,450 shares outstanding as of May 7, 2004. Transitional Small Business Disclosure Format: Yes No X -------- ------
DRYCLEAN USA, Inc. CONDENSED CONSOLIDATED STATEMENTS OF INCOME - ---------------------------------------------------------------------------------------------------------------------- For the nine months For the three months ended March 31, ended March 31, 2004 2003 2004 2003 (Unaudited) (Unaudited) - ---------------------------------------------------------------------------------------------------------------------- Sales $10,500,193 $10,024,123 $3,391,164 $3,098,134 Development fees, franchise and license fees, commissions and other income 502,682 450,672 170,539 95,023 Total revenues 11,002,875 10,474,795 3,561,703 3,193,157 Cost of goods sold 7,608,745 7,245,990 2,459,083 2,179,540 Selling, general and administrative expenses 2,766,009 2,749,578 946,247 871,743 Research and development 32,934 34,009 14,059 13,565 Total operating expenses 10,407,688 10,029,577 3,419,389 3,064,848 Operating income 595,187 445,218 142,314 128,309 Other income (expenses) Interest income 19,436 20,046 6,897 7,174 Interest expense - (22,295) - (6,104) Total 19,436 (2,249) 6,897 1,070 Earnings from continuing operations before taxes 614,623 442,969 149,211 129,379 Provision for income taxes 245,845 177,188 59,680 51,752 Net earnings from continuing operations 368,778 265,781 89,531 77,627 Net reduction in reserve associated with sale of discontinued operations - 39,976 - - - ---------------------------------------------------------------------------------------------------------------------- Net earnings $368,778 $305,757 $89,531 $77,627 - ---------------------------------------------------------------------------------------------------------------------- Basic and diluted earnings per share from continuing operations $ .05 $ .04 $ .01 $ .01 Basic and diluted earnings per share from discontinued operations $ - $ .00 $ - $ - -------- ------- ------- ------- Basic and diluted earnings per share $ .05 $ .04 $ .01 $ .01 - ---------------------------------------------------------------------------------------------------------------------- Weighted average number of shares outstanding Basic 7,007,446 6,996,450 7,014,450 6,996,450 Diluted 7,033,314 6,996,450 7,028,696 6,996,450 ======================================================================================================================
See Notes to Condensed Consolidated Financial Statements 2 DRYCLEAN USA, Inc. CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, 2004 June 30, 2003 -------------- ------------- (Unaudited) ASSETS CURRENT ASSETS Cash and cash equivalents $1,313,761 $1,614,141 Accounts and trade notes receivable, net 1,245,796 1,382,386 Inventories 2,901,752 2,576,938 Note receivable - current portion 157,143 157,143 Lease receivables 23,832 53,894 Refundable income taxes 2,226 - Deferred income taxes 118,525 118,525 Other assets, net 151,461 169,094 - ----------------------------------------------------------------------------------------------------------- Total current assets 5,914,496 6,072,121 Lease receivables - due after one year 17,574 - Note receivable, less current portion 107,143 211,905 Equipment and improvements- net of accumulated depreciation and amortization 203,176 233,767 Franchise, trademarks and other intangible assets, net 399,452 409,308 Deferred tax asset 28,541 28,541 - ----------------------------------------------------------------------------------------------------------- $6,670,382 $6,955,642 ===========================================================================================================
See Notes to Condensed Consolidated Financial Statements 3 DRYCLEAN USA, Inc. CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, 2004 June 30, 2003 -------------- ------------- (Unaudited) LIABILITIES AND - --------------- SHAREHOLDERS' EQUITY - -------------------- CURRENT LIABILITIES Accounts payable and accrued expenses $798,242 $1,066,860 Customer deposits 395,434 335,206 Income taxes payable - 112,925 - ----------------------------------------------------------------------------------------------------------- Total current liabilities 1,193,676 1,514,991 - ----------------------------------------------------------------------------------------------------------- Total liabilities 1,193,676 1,514,991 SHAREHOLDERS' EQUITY Common stock, $.025 par value; 15,000,000 shares authorized; 7,045,500 and 7,027,500 shares issued and outstanding at March 31, 2004 and June 30, 2003, respectively, including shares held in treasury 176,138 175,688 Additional paid-in capital 2,066,121 2,048,570 Retained earnings 3,237,467 3,219,413 Treasury stock, 31,050 shares at cost (3,020) (3,020) - ----------------------------------------------------------------------------------------------------------- Total shareholders' equity 5,476,706 5,440,651 - ----------------------------------------------------------------------------------------------------------- $6,670,382 $6,955,642 ===========================================================================================================
See Notes to Condensed Consolidated Financial Statements 4 DRYCLEAN USA, Inc. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine months ended Nine months ended March 31, March 31, 2004 2003 (Unaudited) (Unaudited) ------------------------ ------------------------ Operating activities: Net earnings from continuing operations $368,778 $265,781 Adjustments to reconcile net earnings from continuing operations to net cash used by operating activities: Bad debt expense 10,296 75,673 Depreciation and amortization 86,811 92,519 (Increase) decrease in operating assets: Accounts, trade notes and lease receivables 138,782 (18,034) Inventories (324,814) 148,832 Other current assets 17,633 252 Refundable income taxes (2,226) 179,838 Increase (decrease) in: Accounts payable and accrued expenses (268,618) (651,346) Customer deposits 60,228 (166,631) Income taxes payable (112,925) - - ----------------------------------------------------------------------------------------------------------------- Net cash used by operating activities (26,055) (73,116) - ----------------------------------------------------------------------------------------------------------------- Discontinued operations: Net reduction in reserve associated with sale of discontinued operations - 39,976 - ----------------------------------------------------------------------------------------------------------------- Cash provided by discontinued operations - 39,976 - ----------------------------------------------------------------------------------------------------------------- Investing activities: - 210,000 Net proceeds from disposal of business Capital expenditures (13,115) - Proceeds from note receivable 104,761 128,571 Patent and trademark expenditures (33,248) (18,651) - ----------------------------------------------------------------------------------------------------------------- Net cash provided by investing activities 58,398 319,920 - ----------------------------------------------------------------------------------------------------------------- Financing activities Payments on term loan - (240,000) Proceeds from exercise of stock options 18,000 - Dividend paid (350,723) - - ----------------------------------------------------------------------------------------------------------------- Net cash used by financing activities (332,723) (240,000) - ----------------------------------------------------------------------------------------------------------------- Net (decrease) increase in cash and cash equivalents (300,380) 46,780 Cash and cash equivalents at beginning of period 1,614,141 1,264,357 - ----------------------------------------------------------------------------------------------------------------- Cash and cash equivalents at end of period $1,313,761 $1,311,137 ================================================================================================================= Supplemental information Cash paid for interest $ $22,295 Cash paid for income taxes $361,000 $24,000
See Notes to Condensed Consolidated Financial Statements 5 DRYCLEAN USA Inc. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Note (1) General: The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial statements and the instructions to Form 10-QSB related to interim period financial statements. Accordingly, these condensed consolidated financial statements do not include certain information and footnotes required by generally accepted accounting principles for complete financial statements. However, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting only of normal recurring accruals) which, in the opinion of management, are necessary in order to make the financial statements not misleading. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. For further information, refer to the Company's financial statements and footnotes thereto included in the Company's Annual Report on Form 10-KSB for the year ended June 30, 2003. The June 30, 2003 balance sheet information contained herein was derived from the audited consolidated financial statements included in the Company's Annual Report on Form 10-KSB as of that date. Note (2) - Earnings Per Share: Basic and diluted earnings per share for the three and nine months ended March 31, 2004 and 2003 are computed as follows:
For the nine months ended For the three months ended March March 31, 31, 2004 2003 2004 2003 Basic - ----- Net earnings $368,778 $305,757 $89,531 $77,627 Weighted average shares outstanding 7,007,446 6,996,450 7,014,450 6,996,450 - ------------------------------------------------------------------------------------------------------------- Basic earnings per share $ .05 $ .04 $ .01 $ .01 - ------------------------------------------------------------------------------------------------------------- Diluted - ------- Net earnings $368,778 $305,757 $89,531 $77,627 Weighted average shares outstanding 7,007,446 6,996,450 7,014,450 6,996,450 Plus incremental shares from assumed exercise of stock options 25,868 - 14,246 - - ------------------------------------------------------------------------------------------------------------- Diluted weighted average 7,033,314 6,996,450 7,028,696 6,996,450 common shares - ------------------------------------------------------------------------------------------------------------- Diluted earnings per $ .05 $ .04 $ .01 $ .01 share =============================================================================================================
There were 20,000 and 439,000 stock options outstanding at March 31, 2004 and 2003, respectively, that were excluded in the computations of earnings per share for such 6 periods because the exercise prices of the options were at least the average market prices of the Company's common stock during these periods. Note (3) - Revolving Credit Line: On October 22, 2003, the Company received an extension, until October 30, 2004, of its existing $2,250,000 revolving line of credit facility. Revolving credit borrowings are limited by a borrowing base of 60% of eligible accounts receivable and 60% of certain, and 50 of other, eligible inventories. As of March 31, 2004 the Company had no outstanding borrowings under the line of credit. Note (4) - Stock Options: The Company accounts for its stock-based compensation plans under Accounting Principles Board ("APB") Opinion No. 25, Accounting for Stock Issued to Employees. The pro forma information below is based on provisions of Statement of Financial Accounting Standard ("FAS") No. 123, Accounting for Stock-Based Compensation, as amended by FAS 148, Accounting for Stock-Based Compensation-Transition and Disclosure, issued in December 2002:
For the nine months For the three months ended March 31, ended March 31, 2004 2003 2004 2003 - ---------------------------------------------------------------------------------------------------------- Net earnings, as reported $368,778 $305,757 $89,531 $77,627 Less: Fair value of employee stock compensation (4,500) (10,783) (1,500) (3,594) - ----------------------------------------------------------------------------------------------------------- Pro forma net earnings $364,278 $294,974 $88,031 $74,033 Earnings per common share: Net earnings as reported - Basic and diluted $.05 $.04 $.01 $.01 Net earnings, pro forma - Basic and diluted $.05 $.04 $.01 $.01
There were no options granted during the nine months ended March 31, 2004 and 2003. In October 2003, two employees exercised options to purchase 18,000 shares of the Company's common stock for $1.00 per share. In November 2003, 389,000 stock options expired unexercised. Note (5) - Cash Dividends: On September 26, 2003, the Company's Board of Directors declared a $.05 per share cash dividend ( an aggregate of approximately $350,000) which was paid on October 31, 2003 to shareholders of record on October 17, 2003. Note (6) - Segment Information: The Company's reportable segments are strategic businesses that offer different products and services. They are managed separately because each business requires different technology and marketing strategies. The Company primarily evaluates the operating performance of its segments based on the categories noted in the table below. The Company has no sales between segments. 7 Financial information for the Company's business segments is as follows:
For the nine months For the three months ended March 31, ended March 31, 2004 2003 2004 2003 (Unaudited) (Unaudited) - ----------------------------------------------------------------------------------------------------------------- Revenues: $10,776,790 $10,308,675 $3,512,029 $3,147,270 Commercial and industrial laundry and dry cleaning equipment License and franchise operations 226,085 162,655 49,674 42,451 Corporate - 3,465 - 3,436 - ----------------------------------------------------------------------------------------------------------------- Total revenues $11,002,875 $10,474,795 $3,561,703 $3,193,157 ================================================================================================================= Operating Income (loss): $643,505 $613,291 $181,876 $181,025 Commercial and industrial laundry and dry cleaning equipment License and franchise operations 146,808 28,255 29,242 10,775 Corporate (195,126) (196,328) (68,804) (63,491) - ----------------------------------------------------------------------------------------------------------------- Total operating income $595,187 $445,218 $142,314 $128,309 ==================================================================================================================
March 31, 2004 June 30, 2003 (Unaudited) Identifiable assets: Commercial and industrial laundry $5,547,471 $5,458,438 and dry cleaning equipment License and franchise operations 631,197 759,750 Corporate 491,714 737,454 - --------------------------------------------------------------------------------------------------------------- Total assets $6,670,382 $6,955,642 ===============================================================================================================
Item 2: Management's Discussion and Analysis or Plan of Operations GENERAL - ------- Effective July 31, 2002, the Company sold substantially all of the operating assets (principally inventory, equipment and intangible assets, including tradenames) of its Metro-Tel telecommunications segment to an unaffiliated third party. The Company retained all of the cash, accounts receivable and liabilities of the segment. The sales price was $800,000, of which $250,000 was paid in cash on August 2, 2002 and the remaining $550,000 is evidenced by the purchaser's promissory note that bears interest at the prevailing prime rate plus 1% per annum and is payable in 42 equal monthly installments commencing October 1, 2002. In March 2003, the purchaser prepaid $50,000 of the outstanding promissory note, which was applied to the last installments to become due. Payment and performance of the promissory note is guaranteed by two companies affiliated with the purchaser and the three principal shareholders of the purchaser and the affiliated companies, and is collateralized by substantially all of the operating assets of the purchaser and the affiliated companies. The Company has agreed to subordinate 8 payment of the promissory note, the obligations of the affiliated companies under their guarantees and the collateral granted by the purchaser and the affiliated companies to the obligations of the purchaser and the affiliated companies to two bank lenders, subject to the Company's right to receive installment payments under the promissory note as long as the purchaser and the affiliated companies are not in default of their obligations to the applicable lender. The Company agreed to a three-year covenant not to compete with the purchaser. The following discussion relates to the Company's continuing operations. LIQUIDITY AND CAPITAL RESOURCES - ------------------------------- For the nine months ended March 31, 2004, cash decreased by $300,380, compared to an increase of $46,780 for the nine month period ended March 31, 2003. The primary reason for the change was a cash dividend of $.05 per share, or an aggregate of $350,723, paid in the fiscal 2004 period. For the first nine months of fiscal 2004, operating activities used cash of $26,055 primarily to support an increase in inventories of $324,814 and a reduction in accounts payable and accrued expenses of $268,618 and in income taxes of $112,925, offsetting, in large part, these expenditures was the Company's net profit of $368,778 and its non-cash expenses for depreciation and amortization of $86,811. Additional cash was provided by a reduction in accounts, trade notes and lease receivables of $138,782 and an increase in customer deposits of $60, 228. These changes in operating assets and liabilities are the result of normal operations and do not indicate any future trends. However, the reduction in the provision for bad debts when compared to the same period of last year ($10,296 compared to $75,673), indicate both an improving economy and tighter controls over our accounts receivable. Operating activities for the nine months ended March 31, 2003 used cash of $73,116. Net earnings from continuing operations provided cash of $265,781 and cash of $92,519 and $75,673 was provided by non-cash expenses for depreciation and amortization and a provision for bad debts, respectively. Additional cash was provided principally by decreases in inventories ($148,832) and refundable income taxes ($179,838), which was partially off-set by an increase in accounts, trade notes and lease receivables ($18,034). The cash provided was used to decrease accounts payable and accrued expenses ($651,346) and customer deposits ($166,631). Discontinued operations for the nine month period ended March 31, 2003, provided a non-cash gain of $39,976, net after taxes, on the settlement of liabilities associated with accruals of transaction costs connected with the sale of the Company's telecommunications segment. These estimated expenses were accrued for in fiscal 2002. Savings were realized principally in rent expenses and professional fees and other transaction costs. 9 Investing activities for the nine months ended March 31, 2004 provided cash of $58,398, principally as a result of payments received on a note from the sale of the telecommunications segment ($104,761), offset, in part, by $13,115 spent on capital equipment and $33,248 for patent and trademark legal fees. Investing activities for the nine months ended March 31, 2003 provided cash of $319,920, principally as a result of $210,000 provided by the net proceeds from the sale of the Company's telecommunications segment and $128,571 from payments on a note received in conjunction with that sale. Patent work used cash of $18,651. Financing activities during the first nine months of fiscal 2004 used cash of $332,723, principally to pay a $.05 per share cash dividend ($350,723) on October 31, 2003 to shareholders of record on October 17, 2003. This was offset partially by the receipt of $18,000 from the exercise of employee stock options in October 2003. During the first nine months of fiscal 2003, the Company used $240,000 to pay monthly installments on its term loan. The Company prepaid the remaining balance of its term loan in the fourth quarter of fiscal 2003. On October 22, 2003, the Company received an extension, until October 30, 2004, of its existing $2,250,000 revolving line of credit facility. Revolving credit borrowings are limited by a borrowing base of 60% of eligible accounts receivable and 60% of certain, and 50% of other, eligible inventories. As of March 31, 2004, the Company had no outstanding borrowings under the line of credit. The Company believes that its present cash position and the cash it expects to generate from operations and cash borrowings available under its line of credit will be sufficient to meet its presently contemplated operational needs. OFF-BALANCE SHEET FINANCING - --------------------------- The Company has no off-balance sheet financing arrangements within the meaning of Item 303(c) of Regulation S-B RESULTS OF OPERATIONS - --------------------- Total revenues for the nine and three month periods ended March 31, 2004 increased by $528,080 (5.0%) and $368,546 (11.5%), respectively, from the same periods of fiscal 2003. For the nine month and three month periods of fiscal 2004, revenues of the commercial laundry and dry cleaning segment increased by $468,115 (4.5%) and $364,759 (11.6%), respectively, from the comparable periods of fiscal 2003. The increased revenues were due primarily to increases in sales of dry cleaning equipment, laundry equipment, boilers and spare parts, as a result of the improved economy in the United States. However, foreign sales, although improving, still remain sluggish. Revenues of the licensing and franchise segment increased by $63,430 (39.0%) and $7,223 (17.0%), respectively, for the nine and three month periods of fiscal 2004 when compared to the same periods of fiscal 2003. The increases for both periods were mainly 10 due to increased royalty fees, although for the nine month period the Company had increased commissions as consultants. Costs of goods sold, expressed as a percentage of sales, increased to 72.5% for the first nine months of fiscal 2004, from 72.3% from the comparable period of a year ago. For the third quarter of fiscal 2004, costs of goods sold increased to 72.5% from 70.4%. Material costs decreased for both periods due to the relative mix of products sold; however, the third quarter was impacted by increased freight costs and reduced volume discounts, which reduced overall margins. Selling general and administrative expenses increased by $16,431 (.6%) and $74,504 (8.5%) for the nine and three month periods ended March 31, 2004, respectively, compared to the same periods of fiscal 2003. The increases in both periods were mainly due to increased sales commission expenses as a result of an increase in sales staff paid on a commission basis. All other changes in various expense accounts were minimal and due to ordinary course of business changes, except the provision for bad debts for the nine month period of fiscal 2004, which was reduced by $65,377 due to the improving economy and tighter accounts receivable controls. Research and development expenses and interest income were insignificant for the periods presented. There was no interest expense during the nine and three month periods of fiscal 2004, as the Company's term loan was prepaid in full in May 2003 and there were no amounts outstanding on the Company's line of credit during these periods, making the Company debt free. Interest expense of $22,295 and $6,104 for the nine and three month periods, respectively, of fiscal 2003 relate to the Company's then outstanding term loan. The effective tax rate used in each of the periods was 40%. INFLATION - --------- Inflation has not had a significant effect on the Company's operations during any of the reported periods. TRANSACTIONS WITH RELATED PARTIES - --------------------------------- The Company leases 27,000 square feet of warehouse and office space from William K. Steiner, a principal stockholder, Chairman of the Board of Directors and a director of the Company, under a lease, which expires in October 2004. Annual rental under this lease is approximately $83,200. The Company believes that the terms of the lease are comparable to terms that would be obtained from an unaffiliated third party for similar property in a similar locale. 11 CRITICAL ACCOUNTING POLICIES - ---------------------------- The accounting policies that the Company has identified as critical to its business operations and to an understanding of the Company's results of operations are described in detail in the Company's Annual Report on Form 10-KSB for the fiscal year ended June 30, 2003. In many cases, the accounting treatment of a particular transaction is specifically dictated by accounting principles generally accepted in the United States of America, with no need for management's judgment in their application. In other cases, preparation of the Company's unaudited condensed consolidated financial statements for interim periods requires us to make estimates and assumptions that effect the reported amount of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reported period. There can be no assurance that the actual results will not differ from those estimates. FORWARD LOOKING STATEMENTS - -------------------------- Certain statements in this Report are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this Report, words such as "may," "should," "seek," "believe," "expect," anticipate," "estimate," "project," "intend," "strategy" and similar expressions are intended to identify forward-looking statements regarding events, conditions and financial trends that may affect the Company's future plans, operations, business strategies, operating results and financial position. Forward-looking statements are subject to a number of known and unknown risks and uncertainties that may cause actual results, trends, performance or achievements of the Company, or industry trends and results, to differ materially from the future results, trends, performance or achievements expressed or implied by such forward-looking statements. Such risks and uncertainties include, among others: general economic and business conditions in the United States and other countries in which the Company's customers are located; industry conditions and trends, including supply and demand; changes in business strategies or development plans; the availability, terms and deployment of debt and equity capital; technology changes; competition and other factors which may affect prices which the Company may charge for its products and its profit margins; the availability and cost of the equipment purchased by the Company; relative values of the United States currency to currencies in the countries in which the Company's customers, suppliers and competitors are located; changes in, or the failure to comply with, government regulation, principally environmental regulations; and the Company's ability to successfully introduce, market and sell at acceptable profit margins its new Green Jet(R) dry-wetcleaning(TM) machine and Multi-Jet(TM) dry cleaning machine. These and certain other factors are discussed in this Report and from time to time in other Company reports filed with the Securities and Exchange Commission. The Company does not assume an obligation to update the factors discussed in this Report or such other reports. 12 ITEM 3. CONTROLS AND PROCEDURES As of the end of the period covered by this report, management of the Company, with the participation of the Company's President and principal executive officer and the Company's principal financial officer, evaluated the effectiveness of the Company's "disclosure controls and procedures," as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934. Based on that evaluation, these officers concluded that, as of the date of their evaluation, the Company's disclosure controls and procedures were effective to provide reasonable assurance that information required to be disclosed in the Company's periodic filings under the Securities Exchange Act of 1934 is accumulated and communicated to our management, including those officers, to allow timely decisions regarding required disclosure. During the period covered by this Report, there were no changes in the Company's internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting. 13 PART II. OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits: 31.01 Certification of principal executive officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 promulgated under the Securities Exchange Act of 1934. 31.02 Certification of principal financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 promulgated under the Securities Exchange Act of 1934. 32.01 Certification of Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. 32.02 Certification of Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (b) Reports on Form 8-K: During the quarter ended March 31, 2004, the Company furnished one report on Form 8-K, dated February 13, 2004 (date of earliest event reported), reporting under Item 12, Results of Operations and Financial Condition. No financial statements were filed with that Report. SIGNATURES In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Date: May 14, 2004 DRYCLEAN USA, Inc. By: /s/ Venerando J. Indelicato -------------------------------------- Venerando J. Indelicato, Treasurer and Chief Financial Officer 14 EXHIBIT INDEX 31.01 Certification of principal executive officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 promulgated under the Securities Exchange Act of 1934. 31.02 Certification of principal financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 promulgated under the Securities Exchange Act of 1934. 32.01 Certification of Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. 32.02 Certification of Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. 15