PHOENIX, Oct. 6 /PRNewswire-FirstCall/ -- NowAuto Group,
Inc. (Pink Sheets: NAUG; NWAU) today announced results for its
fiscal year ended June 30, 2010. The
Company reported revenue of $5.1
million and a net loss of $0.20 per diluted share versus revenue of
approximately $5.4 million and a net
loss of $0.24 per diluted share in
the prior fiscal year. The decrease in revenue in fiscal 2010 was
due to lower sales. Gross margin increased during fiscal 2010 to
58% up from 45% in the prior year as a result of the new enterprise
system that is more efficient at capturing cost and incorporating
them in the sales price.
Contract receivables, including deferred revenue from lease
contracts, increased 2.1% from the prior year. There was a one-time
write off that took place during the year. Exclusive of that event,
contract receivables increased by 9.7%.
The markets served by the Company continue to experience high
unemployment and a severely depressed real estate market. Customers
in the Company's primary markets, construction and retail continue
to experience a challenging environment.
"The present condition of the sub-prime and below sub-prime
market has continued to impact our industry and our company," said
CEO Scott Miller. "While our
emphasis is always on collections, our challenge in the current
environment is to maximize sales while aggressively work with our
customer to maintain active contracts. New finance programs, new
businesses and changes in marketing and advertising yielded
positive results. Nevertheless, 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 are seeking to broaden our customer base and increase repeat
business using new customer retention and reward programs," said
Chief Financial Officer Faith
Forbis. "We believe programs, combined with an improved
interest rate environment, will boost fiscal 2011 sales."
"During the second quarter of fiscal 2010 we will be launching
new business lines complementary to our existing operations. We
expect minimal start-up and operating expenses for these new lines
of business," said Chief Operating Officer Theodore Valenzuela. "While we do not expect
substantial contribution to our top line in the first year, we
believe these new lines of business will improve the bottom line in
fiscal 2012," Valenzuela said.
About NowAuto Group, Inc.
NowAuto Group, Inc. operates two 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-QSBs 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.
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