CALGARY, Aug. 27 /PRNewswire-FirstCall/ - Franchise Services of North
America Inc. ("FSNA" or the "Company") announced today its third quarter
results for the period ending June 30, 2007. Revenue for the nine months
ending June 30, 2007 was USD $9.8 Million and net income was USD $307,821,
after consideration of approximately USD $200,000 of one-time expenses
related to the acquisition and development of revenue from the newly
acquired insurance agency. Both were in line with management's
expectations, and compare to revenue of CDN $473,029 and a net loss of CDN
($90,717) for the comparable period in the prior year.
These numbers include only seven months of U-Save's results due to the
November 2006 Reverse Take-Over (RTO) 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 RTO and the related
financial information. The Company also announced that unique visitors to
the company's website (www.usave.com) continued to experience exponential
growth in the quarter, resulting in triple-digit booking growth.
"The newly acquired insurance agency, and the insurance platform in
general, incurred a non-recurring investment of approximately USD $200,000
to build the infrastructure for its anticipated MGA designation and the
expansion of its menu of insurance products. The insurance division
currently represents a significant percentage of the companies' revenue,
and with this investment we anticipate realization of the revenue stream to
begin its increase in the fourth quarter and into the 2008 fiscal year. The
addition of this revenue stream will enable us to continue our efforts to
expand our franchise network in North America for the U-Save brand and in
Canada for the Rent-A-Wreck brand. In addition, we continue to identify
strong interest in new franchises and currently have several quality
candidates under consideration," said Robert M. Barton, Chief Operating
Officer of the Company.
In November 2006, U-Save Auto Rental of America, Inc. and Rent-A-Wreck
Capital Inc. completed a reverse takeover transaction. The resulting
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, current expansion plans call 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 25 airport markets in 13 different
states. U-Save Car Sales is a recent expansion of the U-Save brand into the
car sales market.
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 August 27, 2007 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 in no way passed upon the merits of this
transaction and has neither approved or disapproved the contents of this
SOURCE Franchise Services of North America Inc.