GROUP, INC. ANNOUNCES FISCAL 2009 RESULTS.
in Troubled Times
Ariz., October 16, 2009. NowAuto Group, Inc. (NAUG:BB and NWAU.PK) today
announced results for its fiscal year ended June 30, 2009. The Company reported
revenue of $5.4 million and a net loss of $0.24 per diluted share versus revenue
of approximately $4.5 million and a net loss of $0.21 per diluted share in the
prior fiscal year. The increase in revenue in fiscal 2009 was due to improved
sales. Gross margin increased during fiscal 2008 to 45% up from 42% (restated)
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
receivables, including deferred revenue from lease contracts, increased 27% from
the prior year.
is the largest industry in the Phoenix area. The crisis in the financial and
mortgage industries has hit construction especially hard. As a result, the
Company’s Bad Debt expense increased 36% from fiscal 2008. Administrative costs
increased because of increase in staff, additional costs due to the new system,
and an increase in health care benefits.
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 and changes in marketing and advertising yielded
positive sales results this fiscal year. 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
previously announced, there have been unexpected changes in auditor. This has
posed some significant challenges for us”, said Faith Forbis,
CFO. “However, the filing of this report marks the successful end of
the audit. We look forward to working with the new audit firm of Semple,
Marchal, and Cooper.”
end of September, the Corporate office and Service Department relocated to the
same facility. This new location significantly expands the Service Department,
makes it more efficient, and gives Officers better oversight of operations” said
Chief Operating Officer Tino Valenzuela.
NowAuto Group, Inc.
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. Through its subsidiary, NavicomGPS, Inc.
the company markets GPS tracking devices, primarily to independent used vehicle