Precision Auto Care Announces 1st Quarter Results And Continues Restructuring
17 November 1999
Precision Auto Care Announces 1st Quarter Results And Continues Restructuring
LEESBURG, Va., Nov. 17 -- Precision Auto Care, Inc.
today announced for the fiscal quarter ending September 30,
1999, a loss of $1.6 million or ($0.27) per share, compared with a loss of
$717,450 or ($0.12) per share for the prior year and a loss of $10,103 million
or ($1.64) per share for the previous quarter ending June 30, 1999. Charles
L. Dunlap, President and CEO, stated "the Company's restructuring efforts are
on track as evidenced by the recent sale of its car wash chemical subsidiary
and the recent joint venture of its automotive parts distribution business.
With these recently completed transactions and the twelve month extension of
the Company's bank loan, the focus will be on reducing debt, improving
profitability, disposing of non-strategic assets and seeking additional joint
venture partners."
The Company has received a request for additional information from the
Nasdaq SmallCap exchange regarding its continued listing on the exchange.
Precision Auto Care, Inc. is the world's largest franchisor of auto care
centers, with 653 operating centers as of November 17, 1999. The Company
franchises and operates Precision Tune Auto Care, Precision Auto Wash, and
Precision Lube Express centers around the world, and offers a vertically
integrated organization with manufacturing and distribution subsidiaries.
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 Inc.'s actual results, performance or achievements to
differ materially from any future results, performance or achievements
expressed or implied by such forward-looking statements. For example, there
can be no assurance that the Company will be able to modify the terms of its
outstanding debt, obtain additional capital, or complete any divestiture,
partnership or other restructuring transactions in a timely fashion or on
terms and conditions that are acceptable to the Company. Other risks and
uncertainties include, but are not limited to, (i) the risks and uncertainties
reflected and set forth 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. operations, (v) difficulties in integrating all of the businesses
Precision Auto Care Inc. has acquired, (vi) risks associated with Precision
Auto Care Inc.'s ability to continue its strategy of growth through
acquisitions and (vii) risks associated with Company's ability to make or
effect acquisitions in the future and to successfully integrate newly-acquired
businesses into existing operations and the risks associated with such newly-
acquired businesses. For a discussion of such other risks and uncertainties
which could cause actual results, performance or achievements to differ from
those contained in the forward-looking statements, see "Risk Factors" in the
Company's most recently filed Annual Report on Form 10-K.
Three Months Ending September 30, 1999
000s except per share amounts
1999 1998
Revenue $10,100 $11,790
Net income (loss) ($1,650) ($717)
Diluted earnings (loss) per share ($0.27) ($0.12)
Shares outstanding - diluted 6,159 6,120