CALGARY, Feb. 25 /PRNewswire-FirstCall/ - FRANCHISE SERVICES OF NORTH
AMERICA INC. ("FSNA" or the "Company") announced today that it has filed
audited annual consolidated financial statements for the fiscal year ended
September 30, 2007 ("the 2007 Annual Financial Statements"). Revenue for
the combined period was US $18,180,802, and Net Income was US $489,738.
These 2007 Annual Financial Statements include thirteen months of U-Save's
results and ten months of Practicar Systems, Inc. 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 made to the Company's public filings which are available on
line at www.sedar.com, which contain a detailed description of the BCT and
related financial information.
On January 28, 2008, FSNA announced that it had delayed the filing of
its 2007 Annual Financial Statements, which were, pursuant to applicable
Canadian securities laws, required to be filed no later than January 28,
2008. As a result, cease trade orders were issued by the Alberta Securities
Commission, the British Columbia Securities Commission and the Ontario
Securities Commission. The Toronto Venture Exchange ("TSX-V") also
suspended trading in the Company's common shares. Application is being made
to each of the above-noted securities commissions and to the TSX-V to have
the cease trade orders rescinded.
"The 2007 Annual Financial Statements are the first set of annual
financial statements to be prepared following the completion by the Company
of a cross-border reverse take-over transaction in late 2006. The delay in
filing the statements related in part to the challenge of combining FSNA's
United States and Canadian operations, as well as conforming financial
periods and accounting standards" 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 26 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 25, 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 of the
contents of this press release.
SOURCE Franchise Services of North America Inc.