TSX-V Trading Symbol: FSN
CALGARY, Feb. 26 /CNW/ - Franchise Services of North America Inc. ("FSNA"
or the "Company") announced today its first quarter results for the period
ended December 31, 2008. Revenue and Net Income for the three months ended
December 31, 2008 were $3.4 million and $8,763, respectively, as compared to
Revenue of $4.2 million and Net Income of $279,353 for the first quarter ended
December 31, 2007. Included in the comparative 2007 results was the sale of a
Master Franchise for Mexico.
The Company also announced that its Master Franchisee in Mexico opened
four additional local market stores, bringing the total number of locations
operating in Mexico to six. The Company has also sold an airport franchise
servicing Midland, Texas, under the U-Save brand. Additionally, the Company
was featured in the Dun & Bradstreet first annual AllBusiness AllStar
Franchises list for 2009, ranking 73rd out of the top 300.
Bob Barton, the Company's Chief Operating Officer, stated,
"Notwithstanding the tight credit markets being experienced globally, the
Company performed well in what is traditionally one of the weakest quarters of
the year for us. As a franchisor, as opposed to operating company stores, we
are fortunately not impacted as severely by the credit markets. Although
Franchise Sales remain challenging and while the Company has taken deposits
for certain markets, the transactions did not close in the quarter. Also worth
mentioning is that the first quarter results of fiscal 2008 included several
international franchise sales that the Company did not experience in this
year's reporting period.
We are very pleased with the continued growth of our Mexico Master
Franchisee, and pleased to announce the sale of the Midland, Texas franchise,
our 31st airport location. The Company was also honored to be ranked number 73
on the AllBusiness AllStar Franchises list, which uses web visibility and
financial strength scores from Dun & Bradstreet as part of their selection
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 leisure markets in the United
States and the major airports in Canada. U-Save currently services 31 airport
markets in 16 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.
Certain statements made in this news release are forward looking
including in the paragraph wherein the Company has provided an update on
certain regulatory matters. The words "may," "could," "should," "would,"
"expect," "intend," "estimate," "anticipate," "believe," or "outlook" and
similar expressions often identify forward-looking information. By their
nature, forward-looking statements require FSNA to make assumptions and are
subject to inherent risks and uncertainties. There is significant risk that
predictions, forecasts, conclusions and projections will not prove to be
accurate, that FSNA's assumptions may not be correct and that actual results
may differ materially from such predictions, forecasts, conclusions or
projections. FSNA's forward-looking statements are qualified in their entirety
by these cautionary statements. In addition, the forward-looking statements
are made only as of the date of this news release, and except as required by
applicable law, FSNA undertakes no obligation to publicly update these
forward-looking statements to reflect new information, subsequent events or
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts
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, email@example.com