NWAU upping guidance.
NowAuto, Inc. Raises Revenue and EPS Guidance for 2005 and Provides Corporate Updates
PR Newswire - January 20, 2005 10:17
SCOTTSDALE, Ariz., Jan 20, 2005 /PRNewswire-FirstCall via COMTEX/ -- NowAuto, Inc. (OTC: NWAU) is raising guidance for 2005 and providing corporate updates. NowAuto expects to earn net income between $5 and $6 million or between 31 and 38 cents per share in 2005. The Company is projecting revenue for fiscal 2005 of between $25 and $30 million. The Company currently has 16 million shares outstanding and is currently debt-free. The Company recently completed an equity financing which it used for recent acquisitions and working capital purposes. Currently, NowAuto has ample working capital resources for the dealerships as well as the growth of Navicom. The Company does not expect to issue additional shares in the foreseeable future.
NowAuto announces it will not make any additional acquisitions until it completes its filings to become a fully reporting company. The Company expects to become fully reporting as soon as the most recent acquisition closes, which is expected to be within 60 days. Additionally, the Company announces its intention to ultimately be listed on the American Stock Exchange and believes the recent acquisitions will allow NowAuto to meet many of the exchange's listing requirements. The Company's goal is to grow the business to over $100 million in revenue within three years.
Scott Miller, CEO of NowAuto, Inc. stated, "We are committed to building shareholder value and believe the recent developments in our business to be extremely positive. We understand that until we are fully reporting there is a lack of information for our shareholders. We are devoted to keeping our shareholders as fully informed as possible to relieve concerns until we are fully reporting. We truly want our shareholders to feel like owners of our business and share in the success we are experiencing at NowAuto."
Miller also stated, "The accretive acquisitions of the dealerships allow for considerable synergies with our previously owned dealerships, financing business and Navicom. On the Navicom front, we are experiencing record sales each month and our list of qualified distributors is growing weekly. Many of our distributors have now had a chance to see Navicom in action and are even more excited about the product than they were previously. Many of these distributors have high-level connections into businesses that could benefit tremendously from the Navicom technology. We are educating our distributors on ways to present the advantages of Navicom to these contacts. Based on the interest Navicom has already experienced this year we are expecting explosive growth in that division of the NowAuto business in 2005."
NowAuto has three unique and complementary sources of revenue broken down as follows:
1. Navicom, a subsidiary of NowAuto, has cutting-edge GPS technology that covers 98% of the United States, Mexico, and Canada. The unique Navicom technology assists in vehicle location and control. Navicom allows the subscriber to access the vehicle location via the Internet and monitor location, speed, and maintenance requirements. The technology also has disabling capabilities, which stop a Navicom-equipped vehicle from starting. There are numerous applications of the Navicom technology including personal security on vehicles and motorcycles as well as homeland security. The number of units ordered and in use is growing rapidly. LoJack, a well-known company and competitor of Navicom, is only offered in 23 states and retails for much higher prices than Navicom. Navicom has received hundreds of distribution/reseller applications from around the US with more applications coming in daily.
2. NowAuto owns two used vehicle dealerships in the Phoenix area, one in Tucson and currently has signed an executed purchase agreement to acquire an additional dealership. These dealerships are targeted at buyers with sub prime credit to finance a vehicle with no credit check. Using Navicom's technology the Company can disable the car if payments are not received and then the finance company repossesses the car. NowAuto sells its automobiles for an average of $7,000 and has healthy profit margins on all the cars it sells.
3. NowAuto also finances the vehicles it sells. Automobiles will be financed to sub prime credit borrowers a
