Franchise Services of North America Inc. (FSNA) recently announced that it has filed its Q3 report, and the corresponding Management's Discussion and Analysis, for the period ending June 30, 2008.
For the three months ended June 30, 2008, the company reported a net loss of $15,567 as compared to net income of $235,011 for the period ending June 30, 2007.
Included in the quarterly loss was approximately $100,000 of one-time legal and accounting expenses associated with the Cease Trade Order.
Total revenue for the three-month period ending June 30, 2008 was $3,745,377 as compared to $4,110,665 for the period ended June 30, 2007. FSNA was unable to generate any franchise sales revenue during the period as a result of the Cease Trade Order, and the inability of the company to file a current Offering Circular until the issues regarding the Cease Trade Order were resolved.
For the nine-month period ended June 30, 2008, net income was $258,071 as compared to $165,173 for the ten month period ended June 30, 2007. Revenues were $11,850,078 for the nine months ended June 30, 2008, as compared to $14,508,585 for the ten month period ended June 30, 2007.
FSNA also announced the sale of its second operating rental location under its Canadian Master Franchise Agreement for the U-Save brand in South Etobicoke, Canada.
According to COO Bob Barton, overall, excluding the incremental legal and accounting costs, the company performed well during the quarter in what can be described as challenging economic conditions for the car rental industry.