Reynolds Says It Will Meet Consensus Earnings Estimates
Press release from the issuing company
DAYTON, Ohio, May 2, 2001 The Reynolds and Reynolds Company (NYSE: REY) today confirmed that it expects earnings per share will be in line with consensus estimates of $1.31 for the fiscal year ending September 30, 2001. The confirmation was made following an announcement by Consumer Car Club Inc. that its carclub.com service has been closed.
Earlier in the year, Reynolds acquired a small equity position in Consumer Car Club and agreed to provide technology, development, support and retailer training for carclub.com. Due to carclub.com's inability to secure financing, and its resulting shutdown, Reynolds will write off $3.2 million in its third quarter ending June 30, 2001, creating a negative $0.026 (2.6 cents) per share impact in that quarter.
"We're disappointed that carclub.com has ceased operations. Their unique model showed great promise, as the traditional third-party online buying services faltered," Lloyd ÔBuzz' Waterhouse, president and CEO, said. "The failure by carclub.com is indicative of the difficult time dot.coms generally are having securing financing. Notwithstanding carclub.com's challenges, we remain totally focused on capturing the many opportunities in the automotive retailing value net as part of our company's transformation. The disappointment of failed initiatives like carclub.com is softened by the success of our other initiatives as we aggressively strengthen our broad suite of solutions and build on our market-leading ERA3 retail management system."
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