Precision Auto Care Announces 3rd Quarter Results
LEESBURG, Va., May 16 Precision Auto Care, Inc. today announced a loss of $2.4 million or $(0.23) per share for the fiscal quarter ending March 31, 2002, compared with a loss of $865,000 or $(0.11) per share for the comparable prior year quarter. The company also announced the sale of the rights to its San Diego and Portland areas to one of the company's Area Developers for an undisclosed amount of cash in the month of May.
Lou Brown, President and CEO, stated, "Although the results are still not where we want them to be, I continue to believe that both the manufacturing and franchise operations are headed in the right direction. I am also very pleased over the sale of the rights to the San Diego and Portland, Oregon markets to one of our top Area Developers, a move which I believe will energize both those areas." Robert Falconi, Executive Vice President and COO, stated, "The cash from the sale will help as we continue to resolve issues with creditors. Furthermore, I believe that as we resolve some of these issues from the past that the Company will begin to grow for the first time in years."
Precision Auto Care, Inc.'s affiliate, Precision Franchising LLC, is one of the world's leading franchisor of auto care centers, with over 500 operating centers as of May 16, 2002. The Company franchises Precision Tune Auto Care centers around the world.
Cautionary Statement: The statements in this press release contain
forward-looking statements within the meaning of the Securities Act of 1933 or
the Securities Exchange Act of 1934. These statements are based on the
Company's current expectations, estimates and projections. Statements that
are not historical facts are forward-looking statements and typically are
identified by words like "believe," "anticipate," "could," "estimate,"
"expect," "intend," "plan," "project," "will" and similar terms. These
statements are not guarantees of future performance, events or results and
involve potential risks and uncertainties. Accordingly, actual results may
differ from current expectations, estimates and projections. The Company
undertakes no obligation to update publicly any forward-looking statements,
whether as a result of new information, future events or otherwise. Important
factors that may impact the Company's actual results include: (i) business
conditions and the general economy; (ii) the federal, state and local
regulatory environment; (iii) increased competitive pressure in the automotive
after-market services business; (iv) significant automotive technology
advances; (v) management's ability to execute the Company's business plan;
and (vi) the Company's ability to sell franchises in each. Additional
information concerning risks and uncertainties that could cause actual results
to differ materially from those projected or suggested in the forward-looking
statements in the Company's filings with the Securities and Exchange
Commission and in its Annual Report on Form 10-K for the year ended June 30,
2001. The forward-looking statements contained in this prospectus represent
the Company's judgment as of the date of this prospectus, and you should not
unduly rely on these statements.
Three Months Ending March 31, 2002
000s except per share amounts
2002 2001
Revenue $4,614 $5,785
Net income (loss) $(2,422) $(865)
Diluted earnings (loss) per share $(0.23) $(0.11)
Shares outstanding - diluted 10,724 8,082
Nine Months Ending March 31, 2002
000s except per share amounts
2002 2001
Revenue $15,364 $17,512
Net income (loss) $(7,572) $(5,636)
Diluted earnings (loss) per share $(0.72) $(0.70)
Shares outstanding - diluted 10,487 8,082