Franchise Services of North America (FSNA) announced its financial results for the first quarter, which ended Dec. 31, 2012.
Revenue and the net loss for the 2012-2013 financial year first quarter were $2,586,248 and $1,151,696 respectively, as compared to revenue of $2,622,397 and a net loss of $340,305 for the same quarter for 2011-2012. Net loss includes non-recurring expenses related to the proposed acquisition of the Advantage Rent-A-Car brand of approximately $918,000 for the 2012-2013 first quarter and $288,000 for the 2011-2012 first quarter.
FSNA’s previously announced acquisition of the Advantage brand will proceed by way of merger between a wholly-owned subsidiary of FSNA and Adreca Holdings Corp., a subsidiary of Macquarie Capital. Although FSNA’s financial result report for the 2011-2012 fiscal year, which ended Sept. 30, 2012, expected the merger to close in this quarter, FSNA now expects it to close by the second quarter.
The merger cannot be completed until it obtains approval from TSX Venture Exchange and company shareholders.
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 ("ARRC"), Xpress Rent A Car and Peakstone Financial Services.
This story was updated on March 20, 2013 at 9:06 a.m. to correctly identify the financial year of the reported quarter.