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GASCARD INC. ANNOUNCES FISCAL 1991 AND FIRST QUARTER FISCAL 1992 RESULTS

 GASCARD INC. ANNOUNCES FISCAL 1991 AND
 FIRST QUARTER FISCAL 1992 RESULTS
 CARLSBAD, Calif., Jan. 3 /PRNewswire/ -- GASCARD Inc. ("GASCARD" or the "Company") of Carlsbad today announced earnings for its fiscal year ended Aug. 31, 1991 and the first quarter ended Nov. 30, 1991.
 The company reported a net loss of $3,529, or $.00005 per share, on $5,568,579 in revenues for the fiscal year ended Aug. 31, 1991, compared to a gain of $155,635, or $.002 per share, on $5,065,569 in revenues for the prior fiscal year.
 The company also reported an after-tax profit of $35,039 or $.0005 per share, on revenues of $1,403,494 for the three months ended Nov. 30, 1991, compared with an after-tax profit of $149,927, or $.002 per share, on revenues of $1,419,565 for the same period last year. The larger revenue and profit numbers for the first quarter of fiscal 1991 reflect the much higher pump prices prevailing then as a result of Iraq's invasion of Kuwait. Year-to-year unit volume of gallons processed is up 14 percent.
 Chairman and Chief Executive Officer, Lindsay B. Holland, explained that "the fiscal year loss is primarily the result of an extraordinary bad debt write-off of approximately $207,000 associated with the termination of a franchisee. Although the company expects to make a full recovery over the next several years, it conservatively decided to write off this account receivable and has significantly tightened credit controls and terms since. GASCARD reported profits for seven straight quarters from August 1989 through February 1991 and has returned to profitability in the first quarter of 1992. The company believes that its business plan is on course and expects to be profitable for all of fiscal 1992 as major agreements negotiated in 1991 with the state of Utah and the Sinclair Oil Corp. start to produce meaningful revenues.
 "GASCARD's recent signing of seven new franchisees, including the largest U.S. Chevron fuel distributor, demonstrate the appeal of the GASCARD program to prospective franchisees. The company processed an average of 12 million gallons per month in fiscal 1991, up 15 percent from fiscal 1990, and franchisees added 277 fuel sites to the network, a 32 percent increase. In 1991 GASCARD also completed a major bankcard system enhancement that enabled one of its franchisees to sign a contract that added 180 fueling sites from New Hampshire to Virginia and tripled bankcard transaction volume. For fiscal 1992, the company has reorganized its marketing department to support expansion of existing franchisees, target superior franchisee prospects, pursue other state government fuel management service opportunities, and implement the Sinclair Fleetcard network and interchange."
 Background -- GASCARD Inc.
 GASCARD provides fuel management services to tens of thousands of commercial fleets that transact over 14,000,000 gallons of fuel per month through more than 2,400 locations in 38 states. Since 1981, GASCARD has transacted more than 1,150,000,000 gallons. The company has contracts to provide fuel management services for the California Energy Commission and the state of Utah and to process a proprietary fleetcard for Sinclair Oil Corp. The GASCARD network also has interchange agreements with ARCO's PayPoint and Sinclair's Fleetcard networks.
 GASCARD has developed and markets nationally a comprehensive card-activated fuel management system designed to reduce commercial and government fleet fueling costs. The GASCARD system can prevent unauthorized purchases; lower accounting, administrative, and other costs of fleet fueling; and eliminate or lessen the environmental risks of underground fuel storage tank ownership or operation. Each billing cycle the GASCARD system reports complete fleet fueling transaction data -- date, time, site, vehicle, driver, odometer, miles per gallon, cents per mile, product, volume, price, extension, and excise tax details -- which fleet managers can use to maximize fleet efficiency. Through GASCARD's 125 franchisees, which are typically independent petroleum marketers, more than 500 salespeople market the GASCARD system primarily to local and regional delivery, sales, and service fleets, such as fuel and beverage distributors, overnight package delivery services, taxis, public utilities, and governmental agencies.
 GASCARD was originally organized in May 1981, and went public through an offering of its common stock in March 1987. In January 1990 the U.S. Patent Office issued Patent No. 4,891,503 to GASCARD for its Distributed Authorization System. This sophisticated database management program automatically maintains individualized subsets of GASCARD's national database in local point-of-sales terminals which enables them to authorize and process transactions almost instantaneously without recourse to GASCARD's central computer and thus at a greatly reduced telecommunications cost. GASCARD's common stock is traded on the over-the-counter market.
 -0- 01/03/92
 /CONTACT: Lindsay B. Holland of GASCARD, 619-431-3200, ext. 120/ CO: GASCARD Inc. ST: California IN: SU: ERN


EH -- SD001 -- 6504 01/03/92 12:59 EST
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Publication:PR Newswire
Date:Jan 3, 1992
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