GROUP, INC. ANNOUNCES
THIRD QUARTER 2010 RESULTS.
Investment Increased 24% in last Nine Months
Ariz., May 17, 2010. NowAuto Group, Inc. (NAUG:BB and NWAU.PK) 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 sale of higher margin vehicles and increased
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
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.
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.
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.
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.
The following information was filed by Nowauto Group, Inc. (NAUG) on Monday, May 17, 2010 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.