Precision Loses $18.4 mil.

LEESBURG, Va.-- Precision Auto Care Inc. suffered losses of $18.4 million this fiscal year, or $2.96 per share, compared with a loss of $21 million, or $3.43 per share, for last year.

For the quarter ending June 30, the company had losses of $14.2 million, or $2.26 per share, compared to a loss of $10.1 million, or $1.64 per share for the comparable quarter in 1999. Included in this loss are special charges of $7 million for “impairment of goodwill and $4. million related to the sale of certain assets.”

“The prior fiscal year was significantly impacted by write-offs associated with the company’s sales of businesses,” said CEO Louis M. Brown Jr. “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.”

Precision “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,” according to Brown

“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,” he warned. “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. It franchises and operates Precision Tune Auto Care, Precision Auto Wash, and Precision Lube Express centers.