RIDGELAND, MISSISSIPPI--(Marketwired - Aug 28, 2013) - FRANCHISE SERVICES OF NORTH AMERICA INC. ("FSNA" or the "Company") (TSX VENTURE:FSN) announced its financial results for the third quarter ended June 30, 2013. Revenue and net loss for the quarter ended June 30, 2013 were $50,690,948 and $5,893,823 respectively, as compared to revenue of $2,535,523 and net loss of $348,097 for the quarter ended June 30, 2012.
FSNA's previously announced acquisition of the Advantage Rent A Car ("Advantage") brand by way of merger (the "Merger") between a wholly-owned subsidiary of FSNA and Adreca Holdings Corp. ("Adreca"), a subsidiary of Macquarie Capital, was completed May 3, 2013. The operating results of Advantage are included in the consolidated results of the Company from the date of acquisition which contributed revenue and operating loss to the Company of $47,947,084 and $3,649,481 respectively.
Net loss of the Company includes non-recurring expenses related to the acquisition of the Advantage of $3,245,253 for the quarter ended June 30, 2013 and $176,206 for the quarter ended June 30, 2012.
Tom McDonnell, the Company's Chairman and Chief Executive Officer, stated: "At the close of the third quarter, I am pleased to share that FSNA has reached two very important milestones with the completion of the acquisition of Advantage Rent A Car and the launch of the partnership between Europcar and Advantage. We continue to focus on providing a superior customer experience coupled with great value for our customers."
FSNA is a publicly traded company listed on the TSX Venture Exchange. The Company and its subsidiaries own the following brands: Advantage Rent A Car, 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.
The Company operates the Advantage Rent A Car car rental brand at 72 corporate locations in 33 states. Advantage has airport locations servicing 60 of the top 70 airports across the United States and those airports account for more than $10 billion in annual car rental revenue. Advantage is the fourth largest independent rental car company in the United States.
U-Save, together with its subsidiary ARRC, has over 900 locations throughout the United States and is one of North America's largest franchise car rental companies. U-Save currently services 19 airport markets in 13 different states. Although primarily based in the United States, U-Save has 18 international locations in Mexico, Greece, the Middle East, Latin America, and the Caribbean.
Practicar Systems Inc. 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 franchise locations 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, including statements concerning the completion and timing of the Private Placement, the anticipated use of the net proceeds of the Private Placement and statements made with respect to Advantage's operations, including expectations as to the number of locations and size of fleet. The closing of the Private Placement could be delayed if FSNA is not able to obtain the necessary regulatory and stock exchange approvals on the timelines it has planned. The Private Placement will not be completed at all if these approvals are not obtained or if some other condition to the closing is not satisfied. Accordingly, there is a risk that the Private Placement will not be completed within the anticipated time or at all. 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. The forward-looking statements contained in this news release are based on certain key expectations and assumptions made by FSNA. Although FSNA believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because FSNA can give no assurance that they will prove to be correct. 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 securities 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.