-Expansion of network continues; strong results to start new fiscal year-
TSX-V Trading Symbol: FSN
CALGARY, Feb. 29 /CNW/ - Franchise Services of North America Inc. ("FSNA"
or the "Company") announced today its first quarter results for the period
ending December 31, 2007. Revenue for the three months ending December 31,
2007 was $4.2 Million USD and net income was $279,353 USD. Both were in line
with management's expectations, and compare to revenue of USD $5.3 Million and
a net loss of USD ($158,019) for the first quarter of last year as restated in
the Company's 2007 Annual Financial Statement, and Management's Discussion and
Analysis, available at www.sedar.com.
The prior year first quarter results (as restated) include four months of
U-Save's results and only one month of Practicar Systems Inc., the Canadian
subsidiary which operates the Rent-A-Wreck Brand in Canada, 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.
"We are very pleased to announce these results today. It was a strong
quarter for us financially, with the Master Franchise sale for the Country of
Mexico, which currently has two operating locations in Puerto Vallarta and
Guadalajara. We also previously announced, subsequent to the end of the
quarter, the opening of our two newest airport locations in San Diego,
California and Colorado Springs, Colorado, in addition to three new
Rent-A-Wreck franchises representing four rental locations. Franchise sales
have started off strong and we are excited about the pace at which the system
is expanding," said Robert M. Barton, Chief Operating Officer of the Company.
FSNA is a publicly traded company 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 Insurance.
U-Save, 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 27 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 50 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 information included in this press release is of a
forward-looking nature. Forward-looking information is subject to known and
unknown risks, as well as uncertainties and other factors. Accordingly, actual
results may differ materially from those expressed or implied in
forward-looking information. Some of the risks, uncertainties and other
factors affecting FSNA are discussed in our public filings with the securities
regulatory authorities in Canada. Copies of FSNA's Canadian filings, including
our most recent management information circular, annual information form,
interim financial statements, material change reports and news releases, are
available online at www.sedar.com. Information in this document is presented
as of February 29, 2008 and is subject to change after this date. However,
FSNA disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.
The TSX Venture Exchange has neither approved nor disapproved the
contents of this press release.
For further information:
For further information: on FSNA or any of its operating subsidiaries
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, www.fsna-inc.com