CALGARY, ALBERTA--(Marketwire -03/28/12)- FRANCHISE SERVICES OF NORTH AMERICA INC. (TSX-V: FSN.V - News) ("FSNA" or the "Company") held its annual meeting of shareholders (the "Meeting") earlier today. At the Meeting, management's nominees, being Mr. Tom McDonnell, Mr. Sandy Miller, Mr. David Forseth, Mr. Tom McNeely and Mr. Michael Linn were all re-elected to the Company's Board of Directors for the ensuing year. Also at the meeting, Ernst & Young LLP was re-appointed as the Company's auditors.
The Company also announced its financial results for the first quarter ended December 31, 2011 and new franchise locations. Revenue and the net loss for the quarter ended December 31, 2011 were $3,771,093 and $340,305 respectively, as compared to revenue of $3,968,885 and a net loss of $150,860 for the quarter ended December 31, 2010.
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 first quarter of 2012 we experienced a decrease in incremental run-off claims from the insurance portfolios that were moved to a first dollar 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 U-Save franchise in Bridgeport, Ohio and a Practicar franchise in Kanata, Ontario. The sale of Bridgeport, Ohio was completed and the revenue was reflected in our fiscal first quarter ended December 31, 2011, and the sale of Kanata, Ontario was completed and the revenue will be reflected in our fiscal second quarter ending March 31, 2012."
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 61 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.
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.