Press Release

Source: Speedemissions Inc.

        

 

               

Speedemissions Reports Results for the First Quarter 2009 

 

ATLANTA, GA. May 12, 2009 /Business Wire/ -- Speedemissions, Inc. (OTC Bulletin Board: SPMI - News ), a leading vehicle emissions and safety inspection company today announced its financial results for its first quarter ended March 31, 2009.  Highlights for the first quarter 2009 compared with first quarter 2008:

 

·         Total revenue increased 1.7% to $2,471,942

·         Same store sales increased 2.2%

·         General and administrative expenses decreased 37.9%

·         Income from continuing operations was $42,152, or $0.00 per diluted share in the first quarter 2009 compared to a loss from continuing operations of ($76,219), or ($0.01) per diluted share in the same period a year ago

 

Richard Parlontieri, President and CEO, commented “We are very pleased to report revenue growth and profits in the first quarter of 2009.  It is a positive start to the year despite the challenges of this difficult economy.  We are excited to see the customer growth in stores opened within the last fifteen months at our Mr. Sticker stores in Houston and at our Speedemissions stores in St. Louis.  We also continue to focus our efforts on reducing expenses, both at the stores and at our corporate offices.”

 

Revenue for the first quarter of 2009 was $2,471,942, an increase of $42,188 or 1.7% from $2,429,754 in the same period of 2008. The increase in revenue was mainly attributable to revenue generated from new stores that were not open during the entire prior comparable period and an increase in same store sales of 2.2%, partially offset by a reduction in revenue from the closure of a store in September 2008.

 

General and administrative expenses for the first quarter of 2009 decreased $184,080, or (37.9%) from the same quarter last year due primarily to a decrease in professional fees and personnel costs.

 

Income from continuing operations for the first quarter of 2009 was $42,152 or $0.00 per diluted share compared to a loss from continuing operations of ($76,219), or ($0.01) per diluted share in the same quarter last year.

 

Income (loss) from discontinued operations for the first quarter of 2009 was $0 or $0.00 per diluted share compared to a loss from discontinued operations of ($99,413), or ($0.01) per diluted share in the same quarter last year.  The loss from discontinued operations consisted of the operating results for all 12 stores in the DallasFt. Worth area that the Company closed in 2008.  

 

Net income for the first quarter of 2009 was $42,152, or $0.01 per basic and $0.00 per diluted share compared to a net loss of ($175,632), or ($0.03) per basic and diluted share in the same period a year ago.

 

About Speedemissions, Inc.  http://www.speedemissions.com  Speedemissions, Inc., based in Atlanta, Georgia, is a leading vehicle emissions testing and safety inspections company with 39 stores in Atlanta, Houston, Salt Lake City and St. Louis.

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.

For Further Information: Contact Michael Shanahan, Chief Financial Officer, 770-306-7667.

 

 

 

Speedemissions, Inc. and Subsidiaries

 

 

 

Consolidated Balance Sheets

 

 

 

 

 

 

 

 

March 31,

 

December 31,

 

2009

 

2008

Assets

(unaudited)

 

 

Current assets:

 

 

 

Cash

$542,769

 

$512,492

Other current assets

145,528

 

137,691

Total current assets

688,297

 

650,183

Property and equipment, at cost less accumulated depreciation and amortization

1,141,465

 

1,214,737

Goodwill

7,100,572

 

7,100,572

Other assets

97,937

 

100,937

Total assets

$9,028,271

 

$9,066,429

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$382,817

 

$498,554

Accrued liabilities

275,756

 

237,127

Current portion of capitalized lease obligations

43,234

 

41,962

Current portion of equipment financing obligations

16,953

 

16,362

Current portion - deferred rent

17,949

 

17,949

Total current liabilities

736,709

 

811,954

 

 

 

 

Capitalized lease obligations, net of current portion

129,600

 

140,897

Equipment financing obligations, net of current portion

59,964

 

64,431

Deferred rent

229,383

 

230,521

Other long term liabilities

7,350

 

7,350

Total liabilities

1,163,006

 

1,255,153

 

 

 

 

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: $6,372,446

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

15,761,792

 

15,749,955

Accumulated deficit

(12,483,516)

 

(12,525,668)

Total shareholders' equity

3,285,919

 

3,231,930

Total liabilities and shareholders' equity

$9,028,271

 

$9,066,429

 

 

 

 

 

 

 

 Speedemissions, Inc. and Subsidiaries

 

 

 

 

 

Consolidated Statements of Operations 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

 

2009

 

 

2008

Revenue

$

  2,471,942

 

$

2,429,754

Costs of operations:

 

 

 

 

 

Cost of emission certificates

 

548,577

 

 

524,789

Store operating expenses

 

1,572,829

 

 

1,487,068

            General and administrative expenses

 

301,366

 

 

 485,446

Operating income (loss)

 

49,170

 

 

(67,549)

Interest income (expense)

 

 

 

 

 

Interest income

 

             25

 

 

864

Interest expense

 

(7,043)

 

 

      (9,534)

Interest, net

 

      (7,018)

 

 

         (8,670)

Income (loss) from continuing operations

 

42,152

 

 

(76,219)

Income (loss) from discontinued operations, net of income taxes

 

-

 

 

(99,413)

Net income (loss) 

$

42,152

 

$

(175,632)

 

 

 

 

 

 

Basic net income (loss) per common share from continuing operations

$

$0.01

 

$

(0.01)

Diluted net income (loss) per common share from continuing operations

$

-

 

$

(0.01)

Basic net income (loss) per share from discontinued operations

$

-

 

$

(0.02)

Diluted net income (loss) per share from discontinued operations

$

-

 

$

(0.02)

Basic net income (loss) per share

$

$0.01

 

$

(0.03)

Diluted net income (loss) per share

$

-

 

$

(0.03)

Weighted average common shares outstanding, basic

 

5,162,108

 

 

5,162,108

Weighted average common shares outstanding, diluted

 

9,439,606

 

 

5,162,108