Revenue was $13.2 million and loss was $90,000, or $(0.00) per share, compared with a profit of $600,000, or $0.02 per share, on revenue of $12.7 million for the prior year. For the quarter ending June 30, 2009, the Company incurred a loss of $217,000, or $(0.01) per share on revenue of $3.5 million, compared to a profit of $162,000, or $0.01 per share on revenue of $3.4 million for the comparable quarter in 2008.
The Company's President and CEO, Robert Falconi, stated,“I am pleased with the Company’s performance this past year. Although the bottom line is negative for the first time in seven years, the reason for the loss is not because the company’s Company’s day-to-day franchise operations were not profitable. It is due to the fact that the Company spent approximately $813,000 to purchase back the rights to the Austin, Las Vegas and Baltimore markets from Area Developers within the PTAC system who were ready to relinquish their role as Area Developers.
Although this buy back is expensed in the year that the buy back is executed, the fact is that the Company should recoup its investment in 2 ½ -3 ½ years and will continue earning money on the investment for many years beyond that. The bottom line is that those purchases make enormous long-term sense for the Company.”
“Further, the Company now owns and operates eight Precision Tune Auto Care centers, and we intend to look for more stores to own and operate in FY10. These company centers will increase top line growth and if managed well, will also increase bottom line growth,” says Falconi.
“Finally, we think the long term outlook for our industry is very positive. Consumers are holding on to their vehicles longer and have to keep those older vehicles maintained and in good working order.”
Lou Brown, Chairman of PACI, said “The Board of Directors is pleased with the Company’s operating results and the prospects for FY 2010. Given the recent moves the Company has made to buy back areas and open more stores, the Board of Directors feels the Company will grow profitably in the upcoming year.”
Precision Auto Care, Inc.’s affiliate, Precision Franchising, LLC (precisionac.com), is one of the world’s leading franchisors of auto care centers, with 337 operating centers as of September 18, 2009. Precision Franchising LLC franchises Precision Tune Auto Care (precisiontune.com) centers around the world.
Cautionary Statement: The statements in this press release contain forward-looking statements within the meaning of the Securities Act of 1933 or the Securities Exchange Act of 1934. These statements are based on the Company’s current expectations, estimates and projections. Statements that are not historical facts are forward-looking statements and typically are identified by words like “believe,” “anticipate,” “could,” “estimate,” “expect,” “intend,” “plan,” “project,” “will” and similar terms. These statements are not guarantees of future performance, events or results and involve potential risks and uncertainties. Accordingly, actual results may differ from current expectations, estimates and projections. The Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Important factors that may impact the Company’s actual results include: (i) business conditions and the general economy; (ii) the federal, state and local regulatory environment; (iii) increased competitive pressure in the automotive after-market services business; (iv) significant automotive technology advances; (v) management’s ability to execute the Company’s business plan; and (vi) the Company’s ability to sell franchises in each state. Additional information concerning risks and uncertainties that could cause actual results to differ materially from those projected or suggested in the forward-looking statements is in the Company’s postings to the Pink Sheets website for the year ended June 30, 2009. The forward-looking statements contained in this prospectus represent the Company’s judgment as of the date of this prospectus, and you should not unduly rely on these statements.
Three Months Ending June 30
000s except per share amounts 2009 2008
Revenue $ 3,475 $ 3,369
Net (loss) income $ (217) $ 162
Diluted (loss) earnings per share $ (0.01)$ 0.01
Shares outstanding - diluted 28,994 29,006
Twelve Months Ending June 30
000s except per share amounts 2009 2008
Revenue $ 13,201$ 12,716
Net (loss) income $ (90) $ 600
Diluted (loss) earnings per share $ (0.00)$ 0.02
Shares outstanding - diluted 28,994 29,056