Precision Auto Care Announces 3rd Quarter Results
17 May 2000
Precision Auto Care Announces 3rd Quarter Results
LEESBURG, Va., May 16 Precision Auto Care, Inc.
today announced a loss of $1.3 million or $(0.21) per share for
the fiscal quarter ending March 31, 2000, compared with a loss of $5.6 million
or $(0.92) per share for the comparable prior year quarter. For the nine
month period ending March 31, 2000, the Company reported a loss of $4.2
million or $(0.69) per share, compared with a loss of $10.9 million or $(1.79)
per share for the prior year period.
Charles L. Dunlap, President and CEO, stated "the improvement in the net
loss versus the prior year period is due to a decrease in operating expenses
and the sale of non-performing assets. The Company is continuing its efforts
to improve operating margins and to dispose of non-strategic assets."
The Company also reported that it is not currently in compliance with
certain financial covenants with regard to its bank credit agreement. The
bank has agreed to provide the Company with a waiver concerning such non-
compliance in return for certain changes to the bank credit agreement. While
documentation has not yet been finalized, the changes agreed to include
reducing the line of credit by $30,000 per week for eight weeks and increasing
the interest rate for all existing and future advances by 1%.
The Company is seeking new sources of financing, including financing for
the purpose of refinancing the bank debt and providing the Company with
working capital. There can be no assurance such financing can be arranged in
a timely fashion. The Company will be required to obtain financing to
refinance the bank debt by its October 5, 2000 maturity date, unless the bank
agrees to extend this date. The Company's failure to obtain new sources of
financing, including financing to refinance the bank debt, will have a
material adverse affect on the Company's business and could ultimately cause
the Company to no longer continue as a going concern.
Three Months Ending March 31, 2000
000s except per share amounts
2000 1999
Revenue $7,387 $10,747
Net income (loss) $(1,298) $(5,604)
Diluted earnings (loss) per share $(0.21) $(0.92)
Shares outstanding - diluted 6,258 6,120
Nine Months Ending March 31, 2000
000s except per share amounts
2000 1999
Revenue $26,260 $33,446
Net income (loss) $(4,226) $(10,916)
Diluted earnings (loss) per share $(0.69) $(1.79)
Shares outstanding - diluted 6,193 6,121