Precision Auto Care Announces Improved 2nd Quarter Results
15 February 2000
Precision Auto Care Announces Improved 2nd Quarter Results
LEESBURG, Va., Feb. 14 -- Precision Auto Care, Inc.
today announced a loss of $1.278 million or ($0.21) per share
for the fiscal quarter ending December 31, 1999, compared with a loss of
$4.595 million or ($0.75) per share for the comparable prior year quarter. For
the six month period ending December 31, 1999, the Company reported a loss of
$2.9 million or ($0.48) per share, compared with a loss of $5.3 million or
($0.87) per share for the prior year period.
Charles L. Dunlap, President and CEO, stated "for the first time since
September of 1998, the Company achieved positive EBITDA, reporting $243,833
for the quarter. While the absolute result was unsatisfactory, the smaller
loss and improved cash flow reflect the results of the Company's continuing
restructuring efforts. The Company's management is moving to dispose of its
car wash operations and other non-strategic assets to significantly reduce
debt and generate working captial. As a result of streamlining its
operations, the Company is in a better position to focus on its auto care
franchising and car wash manufacturing businesses."
Precision Auto Care, Inc. is the world's largest franchisor of auto care
centers, with 630 operating centers as of February 14, 2000. 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 December 31, 1999
000s except per share amounts 1999 1998
Revenue $8,773 $10,910
Net income (loss) ($1,278) ($4,595)
Diluted earnings (loss)
per share ($0.21) ($0.75)
Shares outstanding - diluted 6,164 6,120
Six Months Ending December 31, 1999
000s except per share amounts 1999 1998
Revenue $18,873 $22,700
Net income (loss) ($ 2,928) ($5,312)
Diluted earnings (loss)
per share ($0.48) ($0.87)
Shares outstanding - diluted 6,162 6,121