Franchise Services of North America Inc.

Franchise Services of North America Inc.

August 29, 2012 19:11 ET

Franchise Services of North America Inc. Announces Sale of Practicar Franchise and Financial Results for the Third Quarter Ended June 30, 2012

CALGARY, ALBERTA--(Marketwire - Aug. 29, 2012) - FRANCHISE SERVICES OF NORTH AMERICA INC. ("FSNA" or the "Company") (TSX VENTURE:FSN) announced its financial results for the third quarter ended June 30, 2012 and new franchise locations. Revenue and the net loss for the quarter ended June 30, 2012 were $3,647,521 and $348,097 respectively, as compared to revenue of $3,858,095 and a net loss of $20,131 for the quarter ended June 30, 2011. Net loss includes non-recurring expenses related to proposed acquisition of the Advantage Rent-A-Car brand of $176,206 for the quarter ended June 30, 2012 and $26,348 for the quarter ended June 30, 2011.

Tom McDonnell, the Company's Co-Chairman and Co-Chief Executive Officer, stated, "While we are disappointed with the increase in net loss as compared to the prior year, during our fiscal third quarter of 2012 we continued to experience a decrease in incremental run-off claims from the insurance portfolios that were moved to a first dollar program as well as a reduction in losses in our Canadian insurance program."

Sandy Miller, the Company's Co-Chairman and Co-Chief Executive Officer, added, "Though franchise sales activity continues to be challenging, we are pleased to announce the sale of a new Practicar franchise in Red Lake, Ontario. The sale of Red Lake was completed and the revenue will be reflected in our fiscal fourth quarter ending September 30, 2012."

About FSNA

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, Practicar, 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 30 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 31 airport markets in 12 different states and 7 countries. 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® and the PractiCar® trademarks for all of Canada. The Rent-A-Wreck® system operates a network of 58 franchises from coast-to-coast in Canada, providing a range of vehicle rental, leasing and sales options to its customers. The Rent-A-Wreck® system has been in continuous operation in Canada since 1976.

Forward-Looking Information

Certain statements made in this news release are forward looking in nature. 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 otherwise.

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.

Contact Information

  • Franchise Services of North America Inc.
    Tom McDonnell
    (601) 713-4333