Precision Auto Care Releases Third Quarter Report

November 14, 2011

Operator and franchiser of auto care centers, Precision Auto Care, Inc. (OTCPink: PACI.PK), released its third quarter results for the period ended September 30, 2011.  Revenues for the quarter jumped 34% to 6.7 million as a result of a 65% increase in company-operated store retail revenue.  The increase in company-operated store retail revenue was due to a 61% increase in the number service centers in operation.  Revenue was also aided by a 10.3% increase in same store sales at existing service centers.

Net income for the third quarter fell 28% to $162 thousand or $0.01 per diluted share.  The drop in net income was primarily the result of a 71% increase in direct costs associated with running 29 company-operated retail stores compared to only 18 for the same period in 2010.

At the end of the quarter the company’s balance sheet showed current assets of $3.4 million, total assets of $21.5 million and total liabilities of only $3.2 million.  The company also bought back 6,449,757 shares of its common stock from Desarrollo Integrado, S.A. de C.V., one of the company’s largest shareholders in January of this year.  This significantly reduced the number of outstanding shares to 22,723,995.  The purchase price was $0.40 per common share.  The company also redeemed 4,507 Series A Cumulative Redeemable Preferred stock held by Desarrollo for $10.36 per preferred share or $46,692.52.

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