Rent-A-Wreck Continues Record Breaking Trend
17 August 1998
Rent-A-Wreck Continues Record Breaking Trend
OWINGS MILLS, Md.--Aug. 17, 1998--Rent-A-Wreck of America Inc., (NASDAQ-RAWA) announced record earnings for its first fiscal quarter ended June 30, 1998.Driven primarily by a 15% increase in initial license fees and a 6% increase in continuing license fees, operating income grew by approximately 26%. The increase stemmed from the opening and growth of new franchise locations sold last year, as well as increases in fleet size and revenues from existing locations. The number of franchises increased to 568 from 468.
Net income applicable to common shares increased by 34% to $139,344, or $.03 per common share (Basic), while net income of $166,664 ($.03 per common share, diluted) was 26% higher than net income in the same period last year.
Quarters Ended June 30,
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1997 1998
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(in thousands except per share
amounts and number of franchises)
(Unaudited)
Franchisees' Results
Franchisees' revenue(1) $9,145 $9,710
Number of franchises 468 568
Results of Operations
Total revenue $1,127 $1,286
Total expense 960 1,076
Income before income taxes 185 226
Net income 133 167
Earnings per common share
Basic $ .02 $ .03
Weighted average common shares 4,244 4,163
Diluted $ .02 $ .03
Weighted average common shares
plus options and warrants 6,390 5,632
(1) the franchisees' revenue data have been derived from
unaudited reports provided by franchisees in paying license fees.