U.S. Securities and Exchange Commission
Washington, D.C. 20549
FORM 10-QSB
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended June 30, 1999
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
For the transition period from ____________ to ____________
Commission File Number 0-14819
RENT-A-WRECK OF AMERICA, INC.
-----------------------------------------------------------------
(Exact name of small business issuer as specified in its Charter)
Delaware 95-3926056
- --------------------------------- -------------------
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
11460 Cronridge Drive, Suite 120, Owings Mills, MD 21117
- -------------------------------------------------- ----------
(Address of Principal Executive Offices) (Zip Code)
Issuer's telephone number: (410) 581-5755
----------------------------------------------------
(Former name, former address and former fiscal year,
if changed since last report)
Check whether the issuer (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such
shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.
Yes [X] No [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date: 3,943,217 shares as of July
23, 1999.
Transitional Small Business Disclosure Format (Check One): Yes [ ] No [X]
RENT-A-WRECK OF AMERICA, INC. AND SUBSIDIARIES
FORM 10-QSB - JUNE 30, 1999
INDEX
Part I. Financial Information Page
----
Item 1. Financial Statements
Consolidated Balance Sheets as of
March 31, 1999 and June 30, 1999 (Unaudited) 2-3
Consolidated Statements of Earnings for
the Three Months ended June 30, 1998 and 1999 (Unaudited) 4
Consolidated Statements of Cash Flows for
the Three Months ended June 30, 1998 and 1999 (Unaudited) 5
Notes to Consolidated Financial Statements (Unaudited) 6-8
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations 8-10
Part II. Other Information
Item 2. Changes in Securities and Use of Proceeds 14
Item 3. Defaults Upon Senior Securities 14
Item 4. Submission of Matters to a Vote of Security Holders 14
Item 5. Other Information 14
Item 6. Exhibits and Reports on Form 8-K 14
Signatures 15
PART I - FINANCIAL INFORMATION
Item 1 - Financial Statements
RENT-A-WRECK OF AMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
March 31, June 30,
1999 1999
----------- -----------
(Unaudited)
CURRENT ASSETS:
Cash and Cash Equivalents $ 861,794 $ 1,152,602
Restricted Cash 718,543 720,565
Accounts Receivable, net of allowance
for doubtful accounts of $655,418 and $733,547 at
March 31, 1999 and June 30, 1999, respectively:
Continuing License Fees and Advertising Fees 336,242 350,511
Current Portion of Notes Receivable 388,812 393,689
Current Portion of Direct Financing Leases 7,850 3,408
Insurance Premiums Receivable 635,532 721
Other 61,081 80,107
Prepaid Expenses 166,421 160,293
Deferred Taxes 199,028 227,690
----------- -----------
TOTAL CURRENT ASSETS 3,375,303 3,089,586
----------- -----------
PROPERTY AND EQUIPMENT:
Furniture 93,505 93,505
Computer Hardware and Software 370,012 373,243
Machinery and Equipment 82,650 82,650
Leasehold Improvements 37,896 37,896
Vehicles 90,507 92,310
----------- -----------
674,570 679,604
Less: Accumulated Depreciation and Amortization (388,887) (415,705)
----------- -----------
NET PROPERTY AND EQUIPMENT 285,683 263,899
----------- -----------
OTHER ASSETS:
Intangible Assets, net of accumulated
amortization of $126,192 and $131,510 at
March 31, 1999 and June 30, 1999, respectively 192,872 203,413
Long-term Portion of Notes and Direct Financing
Lease Receivables 32,088 59,581
----------- -----------
224,960 262,994
TOTAL ASSETS $ 3,885,946 $ 3,616,479
=========== ===========
The accompanying notes are an integral part of these financial statements.
2
RENT-A-WRECK OF AMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND SHAREHOLDERS' EQUITY
March 31, June 30,
1999 1999
----------- -----------
(Unaudited)
CURRENT LIABILITIES:
Accounts Payable and Accrued Expenses $ 709,506 $ 588,055
Dividends Payable 22,782 22,600
Insurance Financing Payable 564,684 472,581
Insurance Loss Reserves 366,022 418,453
Income Taxes Payable 181,662 9,984
----------- -----------
TOTAL CURRENT LIABILITIES 1,844,656 1,511,673
----------- -----------
TOTAL LIABILITIES 1,844,656 1,511,673
----------- -----------
COMMITMENTS AND CONTINGENCIES -- --
SHAREHOLDERS' EQUITY:
Convertible Cumulative Series A Preferred Stock,
$.01 par value; authorized 10,000,000 shares;
issued and outstanding 1,139,125 and 1,130,000
shares at March 31, 1999 and at June 30, 1999
(aggregate liquidation preference $911,300
and $904,000 at March 31, 1999 and June 30, 1999) 11,391 11,300
Common Stock, $.01 par value; authorized
25,000,000 shares; issued and outstanding
3,934,092 shares at March 31, 1999 and
3,943,217 shares at June 30, 1999 39,340 39,432
Additional Paid-In Capital 2,209,182 2,209,182
Accumulated Deficit (218,623) (155,108)
----------- -----------
TOTAL SHAREHOLDERS' EQUITY 2,041,290 2,104,806
----------- -----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 3,885,946 $ 3,616,479
=========== ===========
The accompanying notes are an integral part of these financial statements.
3
RENT-A-WRECK OF AMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(UNAUDITED)
Three Months Ended June 30,
----------------------------
1998 1999
---------- -----------
REVENUES:
Initial License Fees $ 312,000 $ 362,001
Continuing License Fees 582,578 679,305
Advertising Fees 191,455 220,784
Insurance Premiums 162,043 175,849
Other 37,533 41,222
---------- ----------
1,285,609 1,479,161
EXPENSES:
Salaries, Consulting Fees and
Employee Benefits 204,187 246,437
Advertising and Promotion 285,171 322,019
Insurance Underwriting Expenses 137,060 144,954
Sales and Marketing 169,830 178,364
General and Administrative 245,456 234,361
Depreciation and Amortization 34,019 32,135
---------- ----------
1,075,723 1,158,270
OPERATING INCOME 209,886 320,891
OTHER INCOME (EXPENSE)
Interest Income 21,286 24,393
Interest Expense (5,166) (6,614)
---------- ----------
16,120 17,779
---------- ----------
INCOME BEFORE INCOME TAX EXPENSE 226,006 338,670
INCOME TAX EXPENSE 59,342 105,639
---------- ----------
NET INCOME $ 166,664 $ 233,031
DIVIDENDS ON CONVERTIBLE CUMULATIVE
PREFERRED STOCK 27,320 22,600
---------- ----------
NET INCOME AFTER DIVIDENDS ON CONVERTIBLE
CUMULATIVE PREFERRED STOCK $ 139,344 $ 210,431
---------- ----------
EARNINGS PER COMMON SHARE
Basic $ .03 $ .05
---------- ----------
Weighted average common shares 4,162,888 3,940,409
========== ==========
Diluted $ .03 $ .04
---------- ----------
Weighted average common shares plus
options and warrants 5,631,968 5,893,288
========== ==========
The accompanying notes are an integral part of these financial statements.
4
RENT-A-WRECK OF AMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Three Months Ended June 30,
--------------------------
1998 1999
----------- -----------
Increase (decrease) in cash and cash equivalents
Cash flows from operating activities:
Net income $ 166,664 $ 233,031
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 34,019 32,135
Deferred income taxes -- (28,665)
Provision for doubtful accounts 44,091 78,129
Changes in assets and liabilities:
Accounts and notes receivable 428,332 495,459
Prepaid expenses (4,753) 6,128
Accounts payable and accrued
expenses (100,786) (121,633)
Income taxes payable (251,864) (171,678)
Insurance loss reserves (56,404) 52,431
---------- ----------
Net cash provided by operating activities 259,299 575,337
---------- ----------
Cash flows from investing activities:
(Increase) decrease in restricted cash (354,949) (2,022)
Acquisition of property and equipment (55,771) (5,892)
Additions to intangible assets (2,005) (14,815)
---------- ----------
Net cash used in investing activities (412,725) (22,729)
---------- ----------
Cash flow from financing activities:
Decrease in insurance financing payable (23,256) (92,103)
Issuance of common stock 16,000 --
Retirement of common stock (84,543) --
Preferred dividends paid (71,622) (169,697)
---------- ----------
Net cash used in financing activities (163,421) (261,800)
---------- ----------
Net increase (decrease) in cash and cash
equivalents (316,847) 290,808
Cash and cash equivalents at beginning of period 1,215,615 861,794
---------- ----------
Cash and cash equivalents at end of period $ 898,768 $1,152,602
---------- ----------
Supplemental disclosure of cash flow information:
Interest paid $ 5,166 6,614
Taxes paid $ 307,100 $ 301,700
The accompanying notes are an integral part of these financial statements.
5
RENT-A-WRECK OF AMERICA, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1999
1. CONSOLIDATED FINANCIAL STATEMENTS
The consolidated financial statements presented herein include the accounts
of Rent-A-Wreck of America, Inc. ("RAWA, Inc.") and its wholly owned
subsidiaries, Rent-A-Wreck Operations, Inc. ("RAW OPS"), Rent-A-Wreck One Way,
Inc. ("RAW One Way"), Consolidated American Rental Insurance Company, LTD ("CAR
Insurance") and Bundy American Corporation ("Bundy"), and Bundy's subsidiaries,
Rent-A-Wreck Leasing, Inc. ("RAW Leasing").
All of the above entities are collectively referred to as the "Company"
unless the context provides or requires otherwise. All material intercompany
balances and transactions have been eliminated in the consolidated financial
statements.
The consolidated balance sheet as of June 30, 1999, and the consolidated
statements of earnings and cash flows for the three-month periods ended June 30,
1998 and 1999 have been prepared by the Company without audit. In the opinion of
management, all adjustments which are necessary to present a fair statement of
the results of operations for the interim periods have been made, and all such
adjustments are of a normal recurring nature. Certain information and footnote
disclosures normally included in financial statements prepared in accordance
with generally accepted accounting principles have been condensed or omitted.
These financial statements should be read in conjunction with the financial
statements and notes thereto included in the Company's March 31, 1999 audited
financial statements. The results of operations for the interim periods are not
necessarily indicative of the results for a full year.
2. PREFERRED STOCK
On May 7, 1999, the Company paid 100% of remaining dividend arrearages
($146,915) on the Company's Convertible Cumulative Series A Preferred Stock. For
the quarter ended June 30, 1999, the Company declared dividends on the Preferred
Stock totaling $22,600 which are expected to be paid during the second quarter
of the Company's fiscal year.
6
3. EARNINGS PER SHARE
A reconciliation of the numerators and denominators utilized in the
computation of basic and diluted earnings per share for the three-month periods
ended June 30, 1998 and 1999 is as follows:
1998 1999
---------- ----------
BASIC EPS COMPUTATION
Numerator:
Net income applicable to common shares $ 139,344 $ 210,431
Denominator:
Weighted average common shares 4,162,888 3,940,409
---------- ----------
Basic EPS $ .03 $ .05
========== ==========
DILUTED EPS COMPUTATION
Numerator:
Net income applicable to common shares $ 139,344 $ 210,431
Dividends on convertible preferred stock 27,320 22,600
---------- ----------
166,664 233,031
---------- ----------
Denominator
Weighted average common shares 4,162,888 3,940,409
Weighted average convertible preferred stock 1,366,000 1,132,808
Weighted average options and warrants 103,080 820,071
---------- ----------
5,631,968 5,893,288
---------- ----------
Diluted EPS $ .03 $ .04
========== ==========
4. LITIGATION
The Company is party to legal proceedings incidental to its business from
time to time. Certain claims, suits and complaints arise in the ordinary course
of business and may be filed against the Company. Based on facts now known to
the Company, management believes all such matters are adequately provided for,
covered by insurance or, if not so covered or provided for, are without merit,
or involve such amounts that would not materially adversely affect the
consolidated results of operations or financial position of the Company.
7
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULT
OF OPERATIONS
RESULTS OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 1999 COMPARED TO JUNE 30, 1998
Revenue from franchising operations, which includes initial license fees,
continuing license fees and advertising fees, increased by $176,057 (16%) over
the 1998 three months results ended June 30, 1998. Initial license fees
increased by $50,001 (16%) due to the addition of new franchises. Continuing
license fees increased by $96,727 (17%), and advertising fees increased by
$29,329 (15%). These increases resulted primarily from fleet growth at existing
franchises.
Revenues from insurance premiums increased by $13,806 (9%) due to higher
participation by the Company's franchisees in the Company's CAR Insurance
program offered by a subsidiary that commenced operations in March 1997.
Other revenue increased by $3,689 (10%) due primarily to an increase in
promotional material purchased by the Company's franchisees.
Total operating expenses increased by $82,547 (8%) in this period compared
to the same period in the prior year. Salary expense increased by $42,250 (21%)
primarily as a result of hiring additional employees in response to the growth
of the Company. Advertising and promotion expenses increased by $36,848 (13%),
which resulted primarily from an increase in national advertising expense to
promote the Company. Insurance underwriting expenses increased by $7,894 (6%)
due to an increase in paid losses and loss reserves for future claims in
connection with higher participation of the Company's franchisees in its CAR
Insurance program. Sales and marketing expenses increased by $8,534 (5%), which
resulted primarily from a larger amount of franchise sales made in this period
compared to the same period in the prior year. General and administrative
expenses decreased by $11,095 (5%), which resulted primarily from a reduction in
legal and other professional fees.
Depreciation and amortization expense decreased by $1,884 (6%) in this
period compared to the same period in the prior year. This decrease was
primarily due to disposal of assets offset by additional investment in computer
software and hardware.
The Company realized operating income of $320,891, before taxes and
interest, for the three-month period ended June 30, 1999 compared to operating
income of $209,886 for the same period in the prior year, reflecting an increase
of $111,005 (53%). This increase resulted primarily from the increase in initial
license fees and continuing license fees due to the addition of new franchises
and fleet growth at existing franchises.
8
Net interest income increased $1,659 (10%). This increase was primarily due
to interest earned on the increased cash deposits which are held in interest
bearing accounts.
Income tax expense for the three-month period ended June 30, 1999 increased
by $46,297 (78%) compared to the three-month period ended June 30, 1998 due to
higher pre-tax earnings, partially offset by a reduction in the deferred tax
asset valuation allowance. The valuation allowance has been reduced in light of
favorable earnings and expected future earnings and is re-assessed quarterly.
LIQUIDITY AND CAPITAL RESOURCES
At June 30, 1999, the Company had working capital of $1,577,913 compared to
$1,530,647 at March 31, 1999. This increase of $47,266 resulted primarily from
the net profit earned during the three-month period ended June 30, 1999, reduced
by the payoff of all dividend arrearages on the Company's Preferred Stock.
The Company has finalized a $1,000,000 letter of credit with The Chase
Manhattan Bank ("Chase") in connection with the Company's CAR Insurance
subsidiary. This letter of credit is part of the reinsurance agreement with
American International Group ("AIG") to secure payment of claims. Funds drawn
against the letter of credit bear interest at 3% plus Chase's prime commercial
lending rate (which prime rate was 8% on July 23, 1999). For the quarter ended
June 30, 1999, AIG has not drawn any funds from the letter of credit. This
letter of credit is secured by a pledge of all of the Company's assets.
The Company rents its office facilities under the terms of an operating
lease. The monthly office facilities lease commitments were $5,449 and $5,670 at
June 30, 1998 and 1999, respectively.
Property and equipment increased by $5,034 (.8%) from March 31, 1999 to
June 30, 1999. This increase occurred primarily due to additional investment in
computer software and hardware.
Cash provided by operations was $575,337, resulting primarily from net
income before depreciation plus the decrease in accounts and notes receivable
and prepaid expenses and the increase in insurance loss reserves, offset by the
decrease in the Company's accounts payable and accrued expenses and income taxes
payable. Accounts and notes receivable decreased primarily due to funds received
from AIG in connection with the reinsurance program. Accounts payable and
accrued expenses decreased primarily due to the payment of professional fees in
connection with the reinsurance program. Income taxes payable decreased
primarily due to estimated income taxes paid for the year ended March 31, 1999.
9
Cash used in investing activities of $22,729 related primarily to the
acquisition of computer software, hardware, annual costs associated with
renewing trademarks and an increase in restricted cash due to the Company's
additional liability to the national advertising fund.
Cash used in financing activities during the same period was $261,800,
resulting from a decrease in insurance financing payable and the payment of
preferred dividends.
The Company believes it has sufficient working capital to support its
business plan through fiscal 2000.
IMPACT OF INFLATION
Inflation has had no material impact on the operations and financial
condition of the Company.
The statements regarding anticipated future performance of the Company
contained in this report are forward-looking statements which are made pursuant
to the safe harbor provisions of the Private Securities Litigation Reform Act of
1995. These forward-looking statements involve risks and uncertainties that
could cause the Company's actual results to differ materially from the
forward-looking statements. Factors which could cause or contribute to such
differences include, but are not limited to, the Company's limited experience in
the reinsurance business and the potential for negative claims experience, the
effects of government regulation of the Company's franchise and insurance
programs including maintaining properly registered franchise documents and
making any required alterations in the Company's franchise program to comply
with changes in the laws, competitive pressures from other motor vehicle rental
companies which have greater marketing and financial resources than the Company,
protection of the Company's trademarks, and the dependence on the Company's
relationships with its franchisees. These risks and uncertainties are more fully
described under the caption, "Item 6 - Management's Discussion and Analysis of
Financial Condition and Results of Operations - Important Factors" in the
Company's Annual Report on Form 10-KSB for the fiscal year ended March 31, 1999.
All forward-looking statements should be considered in light of these risks and
uncertainties.
YEAR 2000 ISSUE
The Year 2000 issue is a result of computer programs being written using
two digits rather than four to define the applicable year. The Company's
computer equipment, software and devices with embedded technology that are time
sensitive may recognize the date using "00" as the year 1900 rather than the
year 2000. This could result in a system failure or miscalculations causing
disruption of operations, including, among other things, a temporary inability
to process transactions or engage in ordinary business activities.
The Company has undertaken various initiatives intended to ensure that its
computer equipment and software will function properly with respect to the year
2000 and thereafter. For this purpose, the term "computer equipment and
software" includes systems that are commonly thought of as information
technology systems, including accounting, data processing, telephone and PBX
systems as well as alarm systems, fax machines and other miscellaneous systems.
Both information technology and non-information technology systems may contain
embedded technology which complicates the year 2000 identification, assessment,
remediation and testing efforts.
10
Using both internal and external resources to identify the needed Year 2000
remediation, the Company currently believes that its Year 2000 identification,
assessment, remediation and testing efforts which began in 1998 are completed
and any additional equipment purchased hereafter will be Year 2000 compliant.
Consequently, and based upon independent experts' review, the Company believes
that it is Year 2000 compliant.
Most of the information the Company receives in the ordinary course is in
written form and entered by the Company into its computer records. For example,
reports from franchisees and others are prepared in written form and not
received electronically. The Company has orally confirmed with key vendors that
they either have addressed or expect to address all significant Year 2000 issues
on a timely basis.
The Company believes that the cost of its Year 2000 identification,
assessment, remediation and testing efforts as well as those current and
anticipated costs to be incurred by the Company with respect to Year 2000 issues
of third parties will not exceed $5,000, which expenditures will be funded from
operating cash flows. As of June 30, 1999, the Company had incurred costs of
approximately $1,000. The Company presently believes that the Year 2000 issue
will not pose significant operational problems for the Company; however, if all
Year 2000 issues are not properly identified or if assessment, remediation and
testing are not effected timely, there can be no assurances that the Year 2000
issue will not materially adversely affect the Company's results of operations
or adversely affect the Company's relationship with customers, vendors or
others. Additionally, there can be no assurances that the Year 2000 issues of
other entities will not have a material adverse effect on the Company's systems
or results of operations.
Because the Company believes that all items have been resolved, the Company
has not begun or completed an analysis of the operational problems and costs
(including lost revenues) that would be reasonably likely to result from a
failure of the Company and certain third parties to complete efforts to achieve
Year 2000 compliance on a timely basis, nor has a contingency plan been
developed for dealing with the most reasonably likely worst-case scenario, and
such scenario has not been clearly identified. The Company does not plan to
complete analysis and contingency plans because it believes it is Year 2000
compliant.
During early 1998, the Company engaged an independent expert to evaluate
its Year 2000 identification, assessment, remediation and testing efforts, and
such fees have been included in the amount spent to date.
The above information is based upon management's best estimates and was
derived using numerous assumptions regarding future events, including the
continued availability of third party remediation plans and other factors. There
can be no assurances that these estimates will prove to be accurate, and actual
results could differ materially from those currently anticipated. Specific
factors that could cause such material differences include, but are not limited
to, availability and cost of personnel trained in Year 2000 issues, the ability
to identify, assess and remediate and test all relevant computer codes and
imbedded technology and similar uncertainties.
11
SELECTED FINANCIAL DATA
Set forth below are selected financial data with respect to the
consolidated statements of earnings of the Company and its subsidiaries for the
fiscal quarters ended June 30, 1998 and 1999 and with respect to the balance
sheets thereof at June 30 in each of those years.
The selected financial data have been derived from the Company's unaudited
consolidated financial statements and should be read in conjunction with the
financial statements and related notes thereto and other financial information
appearing elsewhere herein.
Three Months ended June 30,
---------------------------
1998 1999
-------- --------
(in thousands except per share
amounts and number of franchises)
(Unaudited)
FRANCHISEES' RESULTS
Franchisees' revenue (1) $9,710 $11,322
Number of franchised locations 568 655
RESULTS OF OPERATIONS
Total revenue $1,286 $ 1,479
Total expense 1,076 1,158
Income before income taxes 226 339
Net income 167 233
Earnings per common share
Basic $ .03 $ .05
Weighted average common shares 4,163 3,940
Diluted $ .03 $ .04
Weighted average common shares plus
convertible preferred stock, and options
and warrants 5,632 5,893
BALANCE SHEET DATA
Working capital $1,532 $ 1,578
Total assets $3,258 $ 3,616
Shareholders' Equity $2,055 $ 2,105
(1) The franchisees' revenue data have been derived from unaudited reports
provided by franchisees in paying license fees.
13
PART II. OTHER INFORMATION
ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS
On April 29, 1999, a shareholder converted 9,125 shares of preferred stock
to common stock. See also Item 5 below.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
ITEM 5. OTHER INFORMATION
During the quarter ended June 30, 1999, a shareholder converted 9,125
shares of preferred stock to common stock reducing total outstanding preferred
shares from 1,139,125 to 1,130,000 and increasing total outstanding common
shares from 3,934,092 to 3,943,217.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) See Exhibit Index following the Signatures page, which is incorporated
herein by reference.
(b) No reports on Form 8-K were filed during the quarter for which this
report is filed.
14
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
Rent-A-Wreck of America, Inc.
(Registrant)
By: Date:
/s/ Mitra Ghahramanlou August 11, 1999
- -------------------------- ----------------------
Mitra Ghahramanlou
Chief Accounting Officer
/s/ Kenneth L. Blum, Sr. August 11, 1999
- -------------------------- ----------------------
Kenneth L. Blum, Sr.
CEO and Chairman of
the Board
15
EXHIBIT INDEX
TO
RENT-A-WRECK of AMERICA, INC.
FORM 10-QSB FOR THE QUARTER ENDED JUNE 30, 1999
Exhibit No. Description
----------- -----------
10.12 Franchise Agreement - Rent-A-Wreck Standard Filed herewith.
form as of June 30, 1999.
10.13 Franchise Agreement - Priceless Auto Rental Filed herewith.
Standard form as of June 30, 1999.
27 Financial Data Schedule Filed herewith.