Precision Auto Care Completes Refinancing
15 October 2000
Announces Year End Results LEESBURG, Va. - Precision Auto Care, Inc. today announced for the fiscal
year ending June 30, 2000, a loss of $18.4 million, or $2.96 per share, compared
with a loss of $21.0 million, or $3.43 per share, for the prior year. For the
quarter ending June 30, 2000, the Company incurred a loss of $14.2 million, or
$2.26 per share, compared to a loss of $10.1 million, or $1.64 per share for
comparable quarter in 1999. Included in this loss are special charges of $7.0
million for impairment of goodwill and $4.0 million related to the sale of
certain assets.
The Company's CEO, Louis M. Brown Jr. stated "the prior fiscal year was
significantly impacted by write-offs associated with the Company's sales of
businesses. These actions coupled with the restructuring efforts currently
underway are designed to position the Company to focus on its core auto care
and franchising businesses and improve operating results."
Brown also stated "the Company has been successful in completing a refinancing
of its Senior Debt and negotiated extensions of its board debt totaling $5.5
million for 12 months. The refinancing and extensions will enable the Company
to pursue its restructuring and profit improvement objectives."
Although the Company has refinanced its Senior Debt and negotiated
extensions of other debt, in the event that the Company is unable to
accomplish its strategic objectives or is otherwise unable to generate
revenues sufficient to cover operating expenses, the Company would not be able
to sustain operations at the current level. This would require the Company to
further reduce expenses and liquidate certain assets.
Precision Auto Care, Inc. is the world's largest franchisor of auto care
centers, with 564 operating centers as of October 12, 1999. The Company
franchises and operates Precision Tune Auto Care, Precision Auto Wash, and
Precision Lube Express centers around the world, and offers a vertically
integrated organization with manufacturing and distribution subsidiaries.
Three Months Ending June 30, 2000
000s except per share amounts
2000 1999
Revenue $7,515 $ 11,322
Net (loss) $(14,156) $(10,103)
Diluted (loss) per share $(2.26) $(1.64)
Shares outstanding - diluted 6,272 6,126
Twelve Months Ending June 30, 2000
000s except per share amounts
2000 1999
Revenue $ 33,776 $ 44,769
Net (loss) $(18,382) $(21,019)
Diluted (loss) per share $(2.96) $(3.43)
Shares outstanding - diluted 6,220 6,126
