CALGARY, March 5 /PRNewswire-FirstCall/ -- Franchise Services of North America Inc. ("FSNA" or the "Company") announced today its first quarter results for the period ending December 31, 2006. As the reverse takeover transaction between U-Save Auto Rental of America, Inc. ("U-Save") and Rent-A-Wreck Capital Inc. was not completed until November 30, 2006, these results reflect three months' activity for the Practicar Systems Inc. ("Practicar") subsidiary and only one month's operation for U-Save. The Company reported Net Income from Operations of $243,407 USD, compared to a Loss of $(19,485) USD in the prior year.
"We are very pleased to report these results. Practicar reported a profit for the quarter, compared to a loss in the comparable quarter of the previous year. The results for U-Save were on target with anticipated results, and this is a strong start for the newly combined entity," said Robert M. Barton, Chief Operating Officer of the Company.
About FSNA ----------
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, Xpress Rent A Car and Peakstone Insurance.
U-Save Auto Rental of America, Inc., with its subsidiary Auto Rental Resource Center, 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 24 airport markets in twelve 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.
Forward-Looking Information
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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 http://www.sedar.com/. Information in this document is presented as of March 5, 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
press release.
