Press release dated as of November 10, 2009
| Press Release | Source: Speedemissions Inc. |
Speedemissions, Inc Reports Third Quarter 2009 Results
Company reports 144% increase in third quarter net income
ATLANTA, GA. November 10, 2009 /Business Wire/ — Speedemissions, Inc. (OTC Bulletin Board: SPMI—News), a leading vehicle emissions testing and safety inspections company with testing stores in Atlanta, Houston, St. Louis and Salt Lake City today announced its financial results for the third quarter ended September 30, 2009.
Third Quarter Highlights:
| • | Revenue increased 2.6% to $2,599,350 for the third quarter of 2009 compared to revenue of $2,532,993 for the third quarter of 2008. The increase in revenue was led by a 4.6% increase in same store sales over the comparable period of 2008. |
| • | General and administrative expenses decreased 13.8% to $378,880 during the third quarter of 2009 compared to $439,285 in the same period of the prior year. |
| • | Net income for the third quarter of 2009 increased 144.4% to $60,531 or $0.01 per diluted share from net income of $24,769, or $0.00 per diluted share in the comparable period of 2008. |
Year-to-Date Results:
| • | Revenue increased 2.4% to $7,657,600 for the nine month period ended September 30, 2009 compared to revenue of $7,481,467 in the nine month period ended September 30, 2008. Same store sales increased 4.1% in the nine month period ended September 30, 2009 over the comparable period of 2008. |
| • | General and administrative expenses decreased 27.0% to $1,041,299 during the nine month period ended September 30, 2009 compared to $1,427,368 in the nine-month period ended September 30, 2008. |
| • | Net income for the nine-month period ended September 30, 2009 increased to $205,599 or $0.02 per diluted share from a net loss of $324,509 or ($0.06) per diluted share. |
| • | Since December 31, 2008, the Company has increased its cash balances by 31.0% and decreased its total liabilities by 20.0%. |
Richard A. Parlontieri, President and Chief Executive Officer of Speedemissions commented:
“We’re pleased that we were able to increase revenue, increase same store sales and generate net income for the third consecutive quarter. We have increased our cash balance and reduced our liabilities during the quarter and first nine months of 2009. We were able to do all of this with our existing capital resources.”
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; Houston, Texas; St. Louis, Missouri and Salt Lake City, Utah 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.
For Further Information: Contact Michael Shanahan, Chief Financial Officer, 770-306-7667.
Speedemissions, Inc. and Subsidiaries
Consolidated Balance Sheets
| September 30, 2009 |
December 31, 2008 |
|||||||
| (unaudited) | ||||||||
| Assets |
||||||||
| Current assets: |
||||||||
| Cash |
$ | 671,604 | $ | 512,492 | ||||
| Other current assets |
144,038 | 137,691 | ||||||
| Total current assets |
815,642 | 650,183 | ||||||
| Property and equipment, at cost less accumulated depreciation and amortization |
1,038,627 | 1,214,737 | ||||||
| Goodwill |
7,100,572 | 7,100,572 | ||||||
| Other assets |
101,787 | 100,937 | ||||||
| Total assets |
$ | 9,056,628 | $ | 9,066,429 | ||||
| Liabilities and Shareholders’ Equity |
||||||||
| Current liabilities: |
||||||||
| Accounts payable |
$ | 227,850 | $ | 498,554 | ||||
| Accrued liabilities |
302,536 | 237,127 | ||||||
| Current portion of capitalized lease obligations |
45,896 | 41,962 | ||||||
| Current portion of equipment financing obligations |
18,204 | 16,362 | ||||||
| Current portion - deferred rent |
17,949 | 17,949 | ||||||
| Total current liabilities |
612,435 | 811,954 | ||||||
| Capitalized lease obligations, net of current portion |
105,966 | 140,897 | ||||||
| Equipment financing obligations, net of current portion |
50,538 | 64,431 | ||||||
| Deferred rent |
227,953 | 230,521 | ||||||
| Other long term liabilities |
7,350 | 7,350 | ||||||
| Total liabilities |
1,004,242 | 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 |
15,785,466 | 15,749,955 | ||||||
| Accumulated deficit |
(12,320,069 | ) | (12,525,668 | ) | ||||
| Total shareholders’ equity |
3,473,040 | 3,231,930 | ||||||
| Total liabilities and shareholders’ equity |
$ | 9,056,628 | $ | 9,066,429 | ||||
Speedemissions, Inc. and Subsidiaries
Consolidated Statements of Operations
(unaudited)
| Three Months Ended September 30 |
Nine Months Ended September 30 |
|||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
| Revenue |
$ | 2,599,350 | $ | 2,532,993 | $ | 7,657,600 | $ | 7,481,467 | ||||||||
| Costs of operations: |
||||||||||||||||
| Cost of emission certificates |
560,042 | 515,882 | 1,673,285 | 1,579,729 | ||||||||||||
| Store operating expenses |
1,595,521 | 1,541,643 | 4,743,112 | 4,551,415 | ||||||||||||
| General and administrative expenses |
378,880 | 439,285 | 1,041,299 | 1,427,368 | ||||||||||||
| Gain on disposal of non-strategic assets |
(5,500 | ) | (51,471 | ) | (30,330 | ) | (51,471 | ) | ||||||||
| Operating income (loss) |
70,407 | 87,654 | 230,234 | (25,574 | ) | |||||||||||
| Interest income (expense) |
||||||||||||||||
| Interest income |
34 | 226 | 85 | 1,346 | ||||||||||||
| Interest expense |
(9,910 | ) | (9,183 | ) | (24,720 | ) | (28,160 | ) | ||||||||
| Interest expense, net |
(9,876 | ) | (8,957 | ) | (24,635 | ) | (26,814 | ) | ||||||||
| Income (loss) from continuing operations |
60,531 | 78,697 | 205,599 | (52,388 | ) | |||||||||||
| Loss from discontinued operations |
— | (53,928 | ) | — | (272,121 | ) | ||||||||||
| Net income (loss) |
$ | 60,531 | $ | 24,769 | $ | 205,599 | $ | (324,509 | ) | |||||||
| Basic net income (loss) per share from continuing operations |
$ | 0.01 | $ | 0.02 | $ | 0.04 | $ | (0.01 | ) | |||||||
| Diluted net income (loss) per share from continuing operations |
$ | 0.01 | $ | 0.01 | $ | 0.02 | $ | (0.01 | ) | |||||||
| Basic net income (loss) per share from discontinued operations |
$ | — | $ | (0.01 | ) | $ | — | $ | (0.05 | ) | ||||||
| Diluted net income (loss) per share from discontinued operations |
$ | — | $ | (0.01 | ) | $ | — | $ | (0.05 | ) | ||||||
| Basic net income (loss) per share |
$ | 0.01 | $ | 0.00 | $ | 0.04 | $ | (0.06 | ) | |||||||
| Diluted net income (loss) per share |
$ | 0.01 | $ | 0.00 | $ | 0.02 | $ | (0.06 | ) | |||||||
| Weighted average common shares outstanding, basic |
5,162,108 | 5,162,108 | 5,162,108 | 5,162,108 | ||||||||||||
| Weighted average common shares outstanding, diluted |
9,439,606 | 9,439,606 | 9,439,606 | 5,162,108 | ||||||||||||
Speedemissions, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(unaudited)
| Nine Months Ended September 30, |
||||||||
| 2009 | 2008 | |||||||
| Operating activities: |
||||||||
| Net income (loss) |
$ | 205,599 | $ | (324,509 | ) | |||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
||||||||
| Depreciation and amortization |
240,546 | 256,340 | ||||||
| Gain on disposal of assets |
(30,330 | ) | (51,471 | ) | ||||
| Share based compensation expenses |
35,511 | 141,422 | ||||||
| Changes in operating assets and liabilities: |
||||||||
| Other current assets |
(6,347 | ) | 31,329 | |||||
| Other assets |
(850 | ) | (3,750 | ) | ||||
| Accounts payable and accrued liabilities |
(205,296 | ) | (138,166 | ) | ||||
| Other liabilities |
(2,568 | ) | (7,169 | ) | ||||
| Net cash provided by (used in) operating activities |
236,265 | (95,974 | ) | |||||
| Cash flows from investing activities: |
||||||||
| Proceeds from disposal of assets |
30,330 | 120,407 | ||||||
| Purchases of property and equipment |
(64,435 | ) | (184,927 | ) | ||||
| Net cash used in investing activities |
(34,105 | ) | (64,520 | ) | ||||
| Cash flows from financing activities: |
||||||||
| Payments on financing obligations |
(12,051 | ) | (10,465 | ) | ||||
| Payments on capitalized leases |
(30,997 | ) | (26,994 | ) | ||||
| Net cash used in financing activities |
(43,048 | ) | (37,459 | ) | ||||
| Net increase (decrease) in cash |
159,112 | (197,953 | ) | |||||
| Cash at beginning of period |
512,492 | 804,662 | ||||||
| Cash at end of period |
$ | 671,604 | $ | 606,709 | ||||
| Supplemental Information: |
||||||||
| Cash paid during the period for interest |
$ | 23,288 | $ | 28,161 | ||||
| Non-cash Investing and Financing activities: |
||||||||
| Non-cash asset additions for financed and capital leases |
$ | — | $ | 31,425 | ||||