Charles Dunlap Named New President and CEO of Precision Auto Care
22 October 1998
Charles Dunlap Named New President and CEO of Precision Auto Care
LEESBURG, Va., Oct. 22 -- Precision Auto Care, Inc.
today announced that John F. Ripley had resigned as a director
and as the Company's president and chief executive officer in order to pursue
other interests. Mr. Ripley joined Precision Auto Care, Inc. in June of 1995.
Ripley will be succeeded by Charles L. Dunlap, 55, who has had substantial
executive and operating experience. He most recently served as the president,
chief operating officer and director of Crown Central Petroleum Corporation, a
petroleum refiner and retail marketer with approximately $1.8 billion in
annual revenues. Dunlap also acted as a director and advisor to the Clipper
Group, a wholly-owned subsidiary of Credit Suisse-First Boston. In that
capacity, he was instrumental in developing and implementing the merger of
Truck Stops of America and National Auto/Truck Stops which created one of the
country's largest network of truck stops with combined revenues of
approximately $967 million.
The Company also announced that substantially all of the Company's
directors had participated in a $2 million dollar subordinated debt financing
which was completed on Oct. 15, 1998 in accordance with the terms of the
Company's amended credit facility. The subordinated debt bears interest at
14%, which will increase if the Company defaults on the subordinated debt or
any of the Company's senior indebtedness.
The Company also stated that it was continuing to make progress in lining
up an estimated $15 million in real estate financing. Proceeds from this
financing will be used to repay a portion of the Company's bank debt. As
previously announced, if the Company is able to raise $15 million in net cash
proceeds from this financing, this would restore $5 million in availability
under the Company's working capital facility.
Precision Auto Care, Inc. is the world's largest franchisor of auto care
centers, with 652 operating centers as of Oct. 15, 1998. The Company
franchises and operates Precision Tune Auto Care, Precision Auto Wash, and
Precision Lube Express centers around the world.
Cautionary Statement: The statements in this press release constitute
"forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
These statements are subject to risks and uncertainties that could cause
Precision Auto Care's actual results, performance or achievements to differ
materially from any future results, performance or achievements expressed or
implied by such forward-looking statements. Such risks and uncertainties
include, but are not limited to, (i) the risks and uncertainties reflected in
the text of this press release, (ii) the fact that Precision Auto Care, Inc.
and the companies it acquired on and subsequent to the date of its initial
public offering have only recently conducted operations as a combined company,
(iii) the seasonal nature of portions of the business, (iv) the highly
competitive markets in which Precision Auto Care, Inc. operates, (v)
difficulties in integrating all of the businesses Precision Auto Care, Inc.
has acquired, and (vi) the risks identified in the Company's filings with the
Securities and Exchange Commission, including the Annual Report on Form 10-K
for the year ended June 30, 1998 as filed with the Commission on Sept. 28,
1998 and as amended on Oct. 13, 1998.