LEESBURG, Va. (Nov. 19, 2008) — Precision Auto Care Inc., the franchisor of Precision Tune Auto Care Centers, reported a net loss of $6,000 in its fiscal 2009 first quarter on slightly higher sales of $3.21 million.
Despite the loss — which contrasted with a profit of $191,000 in the year-ago period — Precision Auto President and CEO Robert Falconi declared himself pleased with the firm's performance, attributing the loss to an “unusual out-of-period expense,” described in the consolidated earnings statement as expenses incurred by the company to repurchase and terminate the area developer agreement for the Austin, Texas, area.
Precision Auto Chairman Lou Brown said the board of directors is pleased with the firm's “prospects for continued growth.”
Franchising revenue accounted for $2.4 million of the firm's sales during the quarter ended Sept. 30, with the firm's seven company-owned stores accounting for $715,000.
During the quarter Precision Auto acquired franchised centers in Hayes, Va., and Hanover, Pa., and will operate them as company-owned stores.
Precision Auto, through its Precision Franchising L.L.C. affiliate, has 379 locations operating Precision Tune centers as of Nov. 13.