ATLANTA, Nov. 11 /PRNewswire-FirstCall/ -- Speedemissions, Inc. (OTC Bulletin Board: SPMI), a leading vehicle emissions testing and safety inspections company with 43 testing stores in Atlanta, Dallas, Houston, Salt Lake City and St. Louis today announced its results for the third quarter ended September 30, 2008.
For the quarter ended September 30, 2008, the Company reported revenue of $2,586,000, up 2.4% from $2,525,000 in the same period last year. The Company generated net income of $25,000, or $0.00 per basic and diluted share compared to net income of $17,000, or $0.01 per basic and $0.00 per diluted share in the comparable period year in 2007. Net income was negatively affected by $128,000 in early operating losses experienced at the Company's new locations in Dallas, St. Louis and Houston during the three months ended September 30, 2008. Revenue from same stores sales decreased $173,000 or (6.9%) in the quarter ended September 30, 2008. Same store net operating income in the three month period ended September 30, 2008 decreased $9,000 or (1.7%) to $543,000 from $552,000 in the comparable period in 2007. The decrease in same store revenue and same store net operating income was partially due to the loss of revenue sustained by our Houston stores during and after Hurricane Ike and the general economic environment in the United States.
For the nine months ended September 30, 2008, the Company reported record revenue of $7,679,000, up 3.7% from $7,406,000 in the same period last year. The Company incurred a net loss of $325,000, or ($0.06) per basic and diluted share compared to net income of $66,000, or $0.02 per basic and $0.01 per diluted share in the comparable period year in 2007. Net loss was affected by $577,000 in early operating losses experienced at the Company's new locations in Dallas, St. Louis and Houston during the nine months ended September 30, 2008. Revenue from same stores sales decreased $308,000 or (4.2%) in the nine month period ended September 30, 2008. Same store net operating income in the nine month period ended September 30, 2008 increased $291,000 or 21.8% to $1,631,000 from $1,340,000 in the comparable period in 2007.
Richard A. Parlontieri, President/CEO of Speedemissions stated:
"We are pleased to show a profit in the third quarter given the expected early operating losses from new stores and the current economic conditions in the United States."
About Speedemissions Inc. http://www.speedemissions.com
Speedemissions, Inc., based in Atlanta, Georgia, is a leading vehicle emissions testing and safety inspections company in the United States. We provide services in certain areas where auto testing is mandated by the Environmental Protection Agency (EPA). Since the emissions testing market is highly fragmented, Speedemissions expects to be the first company to create a national brand offering their customers quick and efficient vehicle emissions testing service. The current focus of the company is in the Atlanta, Georgia; Dallas and Houston, Texas; Salt Lake City, Utah and St. Louis, Missouri markets.
Certain statements contained in this news release regarding matters that are not historical facts may be forward-looking statements. Because such forward-looking statements include risks and uncertainties, actual results may differ materially from those expressed in or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, uncertainties pertaining to continued market acceptance for Speedemissions' products and services, its ability to succeed in growing revenue, the effect of new competitors in its market, integration of acquired businesses, and other risk factors identified from time to time in its filings with the Securities and Exchange Commission.
Speedemissions, Inc. and Subsidiaries Consolidated Balance Sheets September 30, December 31, Assets 2008 2007 Current assets: Cash $606,709 $804,662 Other current assets 194,722 226,051 Total current assets 801,431 1,030,713 Property and equipment, at cost less accumulated depreciation and amortization 1,310,772 1,484,229 Goodwill 7,100,572 7,100,572 Other assets 107,537 103,787 Total assets $9,320,312 $9,719,301 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $392,417 $495,503 Accrued liabilities 422,772 522,385 Current portion of capitalized lease obligations 40,728 32,325 Current portion of equipment financing obligations 15,792 14,207 Current portion - deferred rent 13,628 13,628 Total current liabilities 885,337 1,078,048 Capitalized lease obligations, net of current portion 151,989 155,961 Equipment financing obligations, net of current portion 68,742 80,792 Deferred rent 236,779 243,948 Other long term liabilities 7,350 7,350 Total liabilities 1,350,197 1,566,099 Commitments and contingencies Series A convertible, redeemable preferred stock, $.001 par value, 5,000,000 shares authorized, 5,133 shares issued and outstanding, liquidation preference: $5,133,000 4,579,346 4,579,346 Shareholders' equity: Series B convertible preferred stock, $.001 par value, 3,000,000 shares authorized, 2,481,482 shares issued and outstanding; liquidation preference: $6,672,446 2,481 2,481 Common stock, $.001 par value, 250,000,000 shares authorized, 5,162,108 shares issued and outstanding 5,162 5,162 Additional paid-in capital 15,737,527 15,596,105 Accumulated deficit (12,354,401) (12,029,892) Total shareholders' equity 3,390,769 3,573,856 Total liabilities and shareholders' equity $9,320,312 $9,719,301 Speedemissions, Inc. and Subsidiaries Consolidated Statements of Operations (unaudited) Three Months Ended Nine Months Ended September 30 September 30 2008 2007 2008 2007 Revenue $2,586,258 $2,524,988 $7,679,119 $7,406,415 Costs of operations: Cost of emission certificates 534,494 628,807 1,649,562 1,831,587 Store operating expenses 1,630,224 1,398,204 4,951,355 4,284,209 General and administrative expenses 439,285 482,121 1,427,368 1,210,034 Loss from disposal of non-strategic assets (51,471) - (51,471) 11,735 Income (loss) from operations 33,726 15,856 (297,695) 68,850 Other income (expense) Other income 226 2,002 1,346 3,092 Interest expense (9,183) (1,041) (28,160) (5,565) Other income (expense), net (8,957) 961 (26,814) (2,473) Net income (loss) attributable to common shareholders $24,769 $16,817 $(324,509) $66,377 Basic net income (loss) per share $0.00 $0.01 $(0.06) $0.02 Diluted net income (loss) per share $0.00 $0.00 $(0.06) $0.01 Weighted average common shares outstanding, basic 5,162,108 3,173,685 5,162,108 3,051,881 Weighted average common shares outstanding, diluted 9,439,606 7,452,695 5,162,108 7,330,940 Speedemissions, Inc. and Subsidiaries Consolidated Statements of Cash Flows (unaudited) Nine Months Ended September 30 2008 2007 Operating activities: Net income (loss) $(324,509) $66,377 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 256,340 199,481 Loss from disposal of non-strategic assets (51,471) 11,735 Share based compensation expenses 141,422 98,149 Changes in operating assets and liabilities, net of acquisitions: Other current assets 31,329 40,417 Other assets (3,750) (21,937) Accounts payable and accrued liabilities (138,166) (35,698) Other liabilities (7,169) (5,690) Net cash (used in) provided by operating activities (95,974) 352,834 Cash flows from investing activities: Proceeds from asset sales 120,407 211,094 Purchases of property and equipment (184,927) (138,491) Net cash (used in) provided by investing activities (64,520) 72,603 Cash flows from financing activities: Proceeds from sale of common stock - 319,072 Payments on debt (10,465) (111,747) Payments on capitalized leases (26,994) (6,417) Net cash used in financing activities (37,459) (200,908) Net increase (decrease) in cash (197,953) 626,345 Cash at beginning of period 804,662 320,231 Cash at end of period $606,709 $946,576 Supplemental Information: Cash paid during the period for interest $28,161 $14,058 Non-cash Investing and Financing activities: Equity securities issued in connection with acquisitions $- $100,000 Non-cash asset additions for financed and capital leases $31,425 $-
During the nine months ended September 30, 2007, the Company issued 71,430 shares of common stock to the former owners of a subsidiary acquired in 2005, which was final payment of $100,000 withheld from the acquisition price for any potential unknown or undisclosed liabilities.
SOURCE Speedemissions, Inc.
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