Franchise Services of North America Inc. reported its financial results for the fiscal year ended Sept. 30, 2010 and the sale of new franchise locations in Canada and the United States.
Revenue for the year ended Sept, 30, 2010 was $16.2 million with a reported net loss of $732,595, as compared to revenue of $14.7 million and a net loss of $6.9 million for the year ended Sept. 30, 2009.
During the period, Franchise Services reported an insurance underwriting loss of $495,000 in its Canadian insurance program. This Canadian insurance program has now triggered the provision of the stop-loss coverage, eliminating the possibility of any future underwriting losses in this program.
Bob Barton, Franchise Services' president and chief operating officer, stated, "The company has now moved all of the association business to a dollar one coverage, eliminating any loss risk associated with the program for future claims. This is trending very well with positive variances reported in the fourth fiscal quarter. The Canadian Program is now also fully reserved and cannot experience further underwriting losses. We are optimistic as the performance of the insurance portfolio in the fourth quarter was positive.
"The company continues to sell franchises aggressively in an effort to grow the system. We are also pleased to announce the sale of three new PractiCar franchises in Red Deer and Grande Cache, Alberta and in the Greater Toronto Area at Bathurst & Steeles. Additionally, the company is pleased to announce the sale of U-Save franchises in Columbus, Miss., and Ruston, La. All five sales took place in December, thus the financial impact of these transactions will be reflected in the first quarter of fiscal year ending Sept. 30, 2011," Barton said.
FSNA is a publicly traded company listed on the TSX Venture Exchange. The company and its subsidiaries own the following brands: U-Save Car & Truck Rental, U-Save Car Sales, Rent-A-Wreck of Canada, PractiCar, Auto Rental Resource Center, Xpress Rent A Car and Peakstone Financial Services.