NowAuto Group, Inc. Announces Fiscal First Quarter 2010 Results
November 16 2009 - 3:27PM
PR Newswire (US)
Navigating Challenging Times PHOENIX, Nov. 16
/PRNewswire-FirstCall/ -- NowAuto Group, Inc. (OTC Bulletin Board:
NAUG; Other OTC: NWAU) today announced results for its fiscal 2010
first quarter ended September 30, 2009. The Company reported
revenue of $1.4 million and a net loss of $0.05 per diluted share
versus revenue of approximately $1.1 million and a net loss of $0.6
per diluted share in the prior year. During the quarter ended
September 30, 2009 gross margin improved to 51.5% due to higher
sales volume of higher margin vehicles. In spite of general
economic conditions and the significant impact on auto purchasing,
charge-offs and defaults improved significantly over the prior
quarter and prior year as a result of increased credit criteria,
improved contract management and system upgrades. Net investment
increased 11% year-over-year in spite of a 13% increase in
Allowance for Doubtful Accounts. "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. "While we
have managed to increase year-over-year sales revenue 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. Tighter underwriting criteria yielded
positive results in the September 2010 quarter. 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
converted into the new system a year ago and we are seeing real
results," said Chief Financial Officer Faith Forbis. "It has
allowed us to better capture costs and recover them in the sales
price of the vehicle. The result has been a significant improvement
in gross margin." "Programs initiated in fiscal 2009 have resulted
in solid year-over-year volume and lease revenue," said Chief
Operating Officer Tino Valenzuela. "We successfully consolidated
our Corporate and Reconditioning operations during the September
2010 quarter, resulting in a significantly faster and more
efficient turn over of inventory," said Valenzuela. 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
statements. 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
http://www.nowauto.com/. DATASOURCE: NowAuto Group, Inc. CONTACT:
NowAuto Group, Inc., +1-602-431-0015, Web Site:
http://www.nowauto.com/
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