GROUP, INC. ANNOUNCES FISCAL 2010 RESULTS.
Margins and New Business Lines
Ariz., October 6, 2010. NowAuto Group, Inc. (NAUG:BB and NWAU.PK) 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.
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
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
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
“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
the second quarter of fiscal 2010 we will be launching new business lines
complimentary 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.
NowAuto Group, Inc.
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
The following information was filed by Nowauto Group, Inc. (NAUG) on Thursday, October 7, 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-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.