MotorVac Technologies Announces Third-Quarter Results; Sales for Nine Months up 24 Percent.SANTA ANA Santa Ana, city, El Salvador Santa Ana (sän'tä ä`nä), city (1993 pop. 129,873), W El Salvador. It is the second largest city in the country and the commercial and processing center for a sugarcane, coffee, and cattle region. , Calif.--(BUSINESS WIRE)--Nov. 10, 1997--MotorVac Technologies Inc. (Nasdaq:MVAC MVAC Mississippi Valley Archaeology Center MVAC Motor Vehicle Air Conditioning MVAC Malawi Vulnerability Assessment Committee MVAC Michigan Virtual Automotive College MVAC Milizia Volontaria Anticomunista (WWII) ) Monday announced results for the third quarter and nine months ended Sept. 30, 1997. 58,436, or 1 cent per share, compared with a netonths ended Sept. 30, 1997, the company reported net income of $281,606, or 6 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , compared with a net loss of $936,306, or 23 cents per share, for the same period in the prior year. Sales for the nine-month period ended Sept. 30, 1997, increased 24 percent to $7,206,952 from $5,821,421 for the same period in the prior year. Lee Melody melody, succession of single tones of varying pitch. Melody is the linear aspect of music, in contrast to harmony, the chordal aspect, which results from the simultaneous sounding of tones. , president and chief executive officer, stated: ``Results for the quarter were impacted by slower-than-expected sales of the company's new diesel cleaning technology, which was introduced last year. ``Moving forward, however, we anticipate stronger contributions from Motorforts for this system -- an area focused on road trucking fleets, city fleets, city transit fleets, public work, state transit authorities, private fleets and the militatorVac CarbonClean system, continues to benefit from consumer demand for ``new-car'' performance, restored fuel economy and reduced smog problems. He highlighted the company's commitment to expanding its customer base with the introduction of new products and services. Earlier this week, at the automotive-industry show in Las Vegas Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. , MotorVac introduced its new TRANSTECH Transmission Service S automatic transmission-fluid replacement fast, simple and safe. The new design allows the vehicle's transmission pump to flush out the old fluid while the TRANSTECH system pumps in new fluid, allowing for essentially all of the old fluid to be replaced. ``The new TRANSTECH system reduces the service time to approximately 10 minutes. The turnkey See turnkey system. transmission service system is easy to use and is compatible with most foreign and domestic vehicles, making it a `must-have' for any shop that offers transmission service -- representing approximately 300,000 shops in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Canada alone,'' Melody said. The company also announced the creation of a new Automotive Solutions division to expand its automotive-aftermarket business. The first product to be introduced under the new division is the Carbon Tune Premium Engine Decarbonizing and Fuel System Cleaning Kit, a three-step chemical cleaning kit offered to shops specializing in quick-service oil changes. ``The Carbon Tune service takes only 10 minutes and includes an air-intake aerosol aerosol (âr`əsōl,–sŏl): see colloid. aerosol System of tiny liquid or solid particles evenly distributed in a finely divided state through a gas, usually air. , an engine decarbonizer de·car·bon·ize tr.v. de·car·bon·ized, de·car·bon·iz·ing, de·car·bon·iz·es To remove carbon from; decarburize. de·car Diesel Tune Systems for the diagnosis, maintenance and repair of internal-combustion-engine fuel systems, primarily for the automotive and truck aftermarket Aftermarket See: Secondary market. aftermarket See secondary market. repair and service industry. The MotorVac System is composed of a fuel system, a cleaning machine and proprietary cleaning detergent detergent (dētûr`jənt, dĭ–), substance that aids in the removal of dirt. Detergents act mainly on the oily films that trap dirt particles. , and is proved in independent studies to reduce emissions, improve fuel economy and enhance vehicle performance. MotorVac distributors are located in more than 60 other countries worldwide. For further information, visit MotorVac 's home page at www.motorvac.com . This news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended. The company intends that such statements shall be protected by the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provided for in such sections. In particular, statements regarding future results are subject to the risks and uncertainties that could cause actual results to vary materially from those projected in the forward-looking statements. The company may experience significant fluctuations in future operating results due to a number of economic, competitive, governmental and technological factors, including, among other things, changes in laws, the size and timing of customer orders, new or increased competition, unexpected increases in expenses, delays in acceptance of new products, product returns, seasonality in product purchases by distributors and end users, and pricing trends in the automotive-aftermarket industry in general and in specific markets in which the company is active. Any of these factors, or others, could cause operating results to vary significantly from prior periods and those projected in the forward-looking statements. Additional information with respect to these and other factors that could materially affect the company and its operations is included in the company's filings with the Securities and Exchange Commission, including its annual report on Form 10K for the year ended Dec. 31, 1996, and any subsequent filings. -0-
MOTORVAC TECHNOLOGIES INC.
Statement of Operations
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30,
1997 1996 1997 1996
Net sales $2,489,045 $2,650,581 $7,206,952 $5,821,421
Cost of sales 1,517,457 1,607,794 4,087,145 3,432,220
Gross profit 971,588 1,042,787 3,119,807 2,389,201
Operation expenses 1,040,308 1,186,220 2,859,624 3,160,273
Income (loss) from
operations (68,720) (143,433) 260,183 (771,072)
Interest, net (10,284) (16,531) (21,818) 165,234
Income (loss) before
provision for income
taxes (58,436) (126,902) 282,001 (936,306)
Provision for income
taxes 0 0 395 0
Net income (loss) $ (58,436) $ (126,902) $ 281,606 $ (936,306)
Net income (loss)
per share and common-
share equivalent $ (0.01) $ (0.03) $ 0.06 $ (0.23)
Weighted average
outstanding common
and common-equivalent
shares 4,514,918 4,514,918 4,514,918 3,986,195
CONTACT: MotorVac Technologies Inc., Santa Ana Lee W. Melody, 714/558-4822 or Pondel Parsons Parsons, city (1990 pop. 11,924), Labette co., SE Kans.; inc. 1871. It is a shipping point for dairy products, grain, and livestock. Manufactures include ammunition, wire and paper products, plastics, and appliances. & Wilkinson, Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. Gary S. Maier or E.E. Wang, 310/207-9300 |
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