NowAuto Reports Record Third Quarter Revenue of $3.4 Million and Earnings Per Share of .05 Wednesday May 10, 12:54 pm ET
SCOTTSDALE, Ariz., May 10 /PRNewswire-FirstCall/ -- NowAuto (OTC Bulletin Board: NAUG - News; Pink Sheets: NWAU - News), which operates auto dealerships for the sub-prime credit market and parent company of Navicom GPS, reported today revenue for the third quarter of $3,482,649, a record for the quarter, net income of $446,668, and earnings per share of $0.05. The company expects to file its 10-QSB May 11, 2006.
Significant events in the third quarter of 2006 include:
1. Wholly owned subsidiary Sunburst Car Company had retail sales of over $1.1 million for the month of March with revenue for the quarter exceeding $2.3 million in retail sales.
2. Navicom GPS increased sales 600 percent with over 2,200 units sold.
3. Navicom GPS sold 1,000 units in the month of March.
4. Navicom GPS has 35 distributors covering 48 states and Mexico.
NowAuto, Inc. also announces it has reopened its Tempe dealership with an emphasis on high-end used vehicles.
"The improved results and the strong start to the year lead us to believe we can sustain profitability and begin to expand during the 2007 fiscal year. Sunburst Car Company had another $1 million in sales for April. Navicom, currently at the NABD show in Las Vegas, has been growing its core channels and seeks to add new and more profitable channels in coming months. We believe many of the challenges from last year are behind us and see the momentum coming back," said Scott Miller, CEO of NowAuto.
FORWARD-LOOKING STATEMENTS
Certain of the statements contained herein should be considered "forward- looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by words such as "may," "will," "expect," "intend," "anticipate," "believe," "estimate," "plan," "could," "should," and "continue" and similar terms used in connection with statements regarding the outlook of NowAuto Group. Such statements include, but are not limited to, statements about the benefits of the business combination transaction involving NowAuto Group and its subsidiaries, including future financial and operating results, the combined companies' plans, objectives, expectations and intentions and other statements that are not historical facts. Such statements are based upon the current beliefs and expectations of the Company's management and are subject to significant risks and uncertainties that could cause the Company's actual results and financial position to differ materially from these statements. Such risks and uncertainties include, but are not limited to, the following: the ability of the Company to obtain and maintain any necessary financing for operations and other purposes (including compliance with financial covenants); the ability of the Company to maintain adequate liquidity; the impact of economic conditions; changes in prevailing interest rates; the ability to attract and retain qualified personnel; the ability of the Company to attract and retain customers; the ability of the Company to obtain and maintain commercially reasonable terms with vendors and service providers; the cyclical nature of the automobile industry; competitive practices in the industry, labor costs, Insurance costs; weather conditions; government legislation and regulation; relations with unionized employees generally and the impact and outcome of the labor negotiations; the impact of global instability including the potential impact of current and future hostilities, terrorist attacks, infectious disease outbreaks or other global events; the ability of the Company to fund and execute its business plan; and other risks and uncertainties listed from time to time in the Company's reports. There may be other factors not identified above of which the Company is not currently aware that may affect matters discussed in the forward-looking statements, and may also cause actual results to differ materially from those discussed. The Company assumes no obligation to publicly update any forward-looking statement to reflect actual results, changes in assumptions or changes in other factors affecting such estimates other than as required by law.
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