TSX-V Trading Symbol: FSN
CALGARY, Jan. 28 /CNW/ - Franchise Services of North America Inc. ("FSNA"
or the "Company") announced today its financial results for the year ended
September 30, 2008. Revenue and Net Income for the year ended September 30,
2008 were $16,019,600 and $110,806, respectively, as compared to Revenue of
$18,951,544 and Net Income of $489,738 for the 13-month period ending
September 30, 2007. The 2007 results included 13 months of U-Save results and
10 months of Practicar Systems Inc. results due to the November 2006 Business
Combination Transaction ("BCT") between U-Save Auto Rental of America, Inc.
and the predecessor company, Rent-A-Wreck Capital Inc. Reference is hereby
made to the company's filings on Sedar at www.sedar.com for a detailed
description of the BCT and the related financial information.
The Company reported Initial Franchise Fees of $516,662, compared to the
$650,045 in the 13-month period ending September 30, 2007.
Bob Barton, the Company's Chief Operating Officer, stated, "Overall, we
are pleased with the results of the Company considering the difficult economic
operating environment. Franchise sales performed well, noting that in addition
to the comparison to the 13-month period of the previous year, the Company was
not able to sell franchises for a period of time during the recently completed
fiscal year. The Company's Offering Circular for Franchise Sales was not
current in the beginning of the period as a result of the Cease Trade Order
that was in effect as a result of the delay in filing the September 30, 2007
Also affecting this years results were write downs of receivables from
franchisees that are no longer active in the system, in part due to the
difficult economic climate. The current downturn in travel, in addition to the
current pricing environment, has had a negative impact on our franchisees.
Overall, the system performed well, and franchise sales activity remains good
as represented by the recent announcement of our new Orange County (John
Wayne) airport location."
FSNA is a publicly traded company listed on the TSX Venture Exchange. The
Company and its subsidiaries own the following brands: U-Save Car & Truck
Rental, U-Save Car Sales, Rent-A-Wreck of Canada, Auto Rental Resource Center
("ARRC"), Xpress Rent A Car and Peakstone Financial Services.
U-Save, together with its subsidiary ARRC, has over 1,100 locations
throughout the United States and is one of North America's largest franchise
car rental companies. Having primarily serviced the local market for the past
25 years, the Company is expanding into the airport market with plans for the
opening of airport locations in the top 30 markets in the United States and
the major airports in Canada. U-Save currently services 28 airport markets in
14 different states. U-Save Car Sales is an expansion of the U-Save brand into
the car sales market, and provides goods and services to car sales operators
looking to affiliate with a national brand.
Practicar Systems Inc. (a wholly owned subsidiary of FSNA) owns the
rights to the Rent-A-Wreck(R) trademark for all of Canada. The Rent-A-Wreck(R)
system operates a network of 53 franchises from coast-to-coast in Canada,
providing a range of vehicle rental, leasing and sales options to its
customers. The Rent-A-Wreck(R) system has been in continuous operation in
Canada since 1976.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information:
For further information: on FSNA or any of its operating subsidiaries
please contact: Alison Tullis, CHF Investor Relations, (416) 868-1079 x 233,
Alison@chfir.com; Robert M. Barton, Chief Operating Officer, FSNA, (601)
713-4333 x 116, firstname.lastname@example.org