Precision Auto Care, Inc. Announces Second Quarter FY1998 Results
30 January 1998
Precision Auto Care, Inc. Announces Second Quarter FY1998 Record Results
LEESBURG, Va., Jan. 30 -- Precision Auto Care, Inc.
today reported results for the second quarter ended December
31, 1997. On a pro forma basis, revenues for the quarter were $11.6 million
producing operating income of $1.9 million, net income of $966,000, or $.18
per share (vs. $.11 a year ago), and EBITDA of $.45 per share. Operating and
net income were up 66% and 59%, respectively, over the same period last year.
Pro forma revenues for the six months ended December 31, 1997 were
$23.3 million with operating income of $3.5 million, net income of
$1.8 million, or $.33 per share (vs. $.25 a year ago), and EBITDA of $.87 per
share. Operating and net income were up 29% and 34%, respectively, over the
same period last year.
The core business, Precision Tune Auto Care, continues to perform well
with same store sales up 3% for both the three and six month periods ended
December 31, 1997. System-wide retail sales established a new record for the
first half of fiscal 1998, amounting to $52.7 million in the second quarter
and $109.2 million for the six month period.
Jay Ripley, President and CEO of Precision Auto Care, said he "is quite
pleased with these results in light of the fact that the quarter ended only
six weeks after we completed our initial public offering." Mr. Ripley also
said he is "very pleased with the speed with which the merged companies have
been integrated and the very enthusiastic response which Precision Auto Care
has received in the marketplace since rolling out its two new brands and going
public. This response has validated our vision and buoyed our bullish
enthusiasm concerning our prospects for becoming a major player in the global
automotive services after market."
On November 6, 1997, Precision Auto Care successfully executed an initial
public offering. Concurrently, nine companies merged to own, operate,
franchise, and provide supplies and services for three business concepts:
Precision Tune Auto Care, Precision Auto Wash, and Precision Lube Express. At
December 31, 1997, Precision Auto Care had a total of 616 franchised and
company owned units system-wide. The core business, Precision Tune Auto Care,
Inc., is a franchise system of auto care centers providing high frequency
automotive maintenance and repair services. Precision Auto Wash franchises
and operates touch-less automatic and self-serve car washes. Precision Lube
Express franchises and operates modular building quick lube centers. The
company supports all of the above activities with vertically integrated
manufacturing and distribution capabilities combined with 22 years of
franchising expertise to provide "one-stop" automotive care.
Precision Auto Care, Inc. is headquartered in Leesburg, Va. For more
information on PACI, please visit them on the internet at http://www.PrecisionAC.com.
This press release contains certain forward-looking statements which
involve known and unknown risks, uncertainties or other factors not under the
Company's control which may cause actual results, performance or achievements
of the company to be materially different from the result, performance, or
other expectations implied by these forward-looking statements. For further
information about the company, investors are encouraged to review the
Company's most recent SEC filings.
Precision Auto Care, Inc.
Statement of Operations
(In Thousands, Except Share Data)
Pro Forma Combined Pro Forma Combined
Adjusted for Offering Adjusted for Offering
and Acquisition and Acquisition
Three Months Ended Six Months Ended
December 31, December 31,
1997 1996 1997 1996
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Sales
Franchising
Development 434 730 533 1,056
Royalty 3,521 3,129 7,316 6,737
Manufacturing &
Distribution 6,500 6,360 13,319 13,023
Company Center
Operations 1,110 912 2,062 1,794
Other 60 83 116 143
Total Sales 11,625 11,214 23,344 22,753
Direct Cost 8,036 8,506 16,435 16,992
Contribution 3,590 2,709 6,910 5,761
General & Administrative 1,064 942 2,164 1,825
Depreciation 212 207 458 418
Amortization 378 398 756 781
Operating Income 1,936 1,162 3,531 2,738
Other Income (Expense)
Other Income (Expense) (63) 55 29 (10)
Interest Income 26 65 81 65
Interest Expense (122) (110) (245) (221)
Total Other Income (Expense) (159) 10 (134) (166)
Earnings Before Taxes 1,776 1,172 3,397 2,572
Income Taxes 810 560 1,578 1,210
Net Income $966 $612 $1,819 $1,362
Net income per share $0.18 $0.11 $0.33 $0.25
Shares used in computing
net income per share 5,496,880 5,496,880 5,496,880 5,496,880
EBITDA $2,462 $1,822 $4,774 $3,926
EBITDA per share $0.45 $0.33 $0.87 $0.71
SOURCE Precision Auto Care, Inc.