PHOENIX, May 17 /PRNewswire-FirstCall/ -- NowAuto Group,
Inc. (Pink Sheets: NAUG and NWAU) today announced results for its
fiscal 2010 third quarter ended March 31,
2010. The Company reported revenue of $1.26 million and a net loss of $0.04 per diluted share versus revenue of
approximately $1.34 million and a net
loss of $0.05 per diluted share in
the prior year. During the quarter ended March 31, 2010 gross margin improved to 62.1% due
to sales of higher margin vehicles and increased interest
General economic conditions had an increased impact on auto
purchasing during the March quarter. While Charge-offs and defaults
increased over the prior quarter, year-to-date is still less than
the prior year as a result of increased credit criteria, improved
contract management and system upgrades. The Company began
implementing a new financing program during the quarter that is
expected to result in even stronger contracts, however it will take
some time before the impact is realized. Net investment increased
24% over the past nine months
"The present condition of the sub-prime and below sub-prime auto
market has continued to impact our industry and our company," said
CEO Scott Miller. "Our challenge has
been, and will continue to be on, collections. Our challenge in the
current environment is to aggressively work with our customers to
maintain active contracts. We expect a difficult environment for
the foreseeable future. Our commitment to customers and
shareholders alike remains; NowAuto will do whatever it can to
maintain productive contracts without placing imprudent demands on
our customers," Miller said.
"We continue to seek new ways to meet these challenging times,"
said Chief Financial Officer Faith
Forbis. "Progress has been made in many areas as we strive
for a better performance," said Forbis.
About NowAuto Group, Inc.
NowAuto Group, Inc. operates three buy-here-pay-here used
vehicle dealerships in Arizona.
The Company manages all of its installment finance contracts and
purchases installment finance contracts from a select number of
other independent used vehicle dealerships.
Note to Investors
This press release contains forward-looking information within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Act of 1934, and is subject to the
safe harbor created by those sections. The forward-looking
information is based upon current information and expectations
regarding NowAuto Group, Inc. These estimates and statements speak
only as of the date on which they are made, are not guarantees of
future performance and involve certain risks, uncertainties and
assumptions that are difficult to predict. Therefore, actual
outcomes and results could materially differ from what is
expressed, implied or forecasted in such forward-looking
NowAuto Group, Inc. assumes no obligation to update the
information contained in this press release. NowAuto Group, Inc.'s
forward-looking statements in this press release and future results
may be materially impacted by any number of factors, any or all of
which could have a negative impact on sales, operating results,
financial and budgetary constraints. NowAuto Group, Inc.'s future
results may also be impacted by other risk factors listed from time
to time in its SEC filings, including, but not limited to, the
Company's Form-Qs and its Annual Report on Form 10-K. The
statements made herein are independent statements of NowAuto Group,
Inc. The inclusion, if any, of any third parties does not represent
an endorsement of any NowAuto Group, Inc. products or services by
any such third party.
For further information contact NowAuto Group, Inc. or visit the
Company's Web site at www.nowauto.com.
SOURCE NowAuto Group, Inc.