Speedemissions, Inc. Reports First Quarter Results
ATLANTA, May 15 /PRNewswire-FirstCall/ -- Speedemissions, Inc. (OTC Bulletin Board: SPMI), a leading vehicle emissions testing and safety inspections company with 50 testing stores in Atlanta, Dallas, Houston, Salt Lake City and St. Louis today announced its results for the first quarter ended March 31, 2008. For the quarter ended March 31, 2008, the Company reported revenue of $2,483,000, up 2.9% from $2,413,000 in the same period last year. Revenue from same stores sales decreased $36,000 or 1.5%. The Company incurred net loss of $176,000, or ($0.03) per basic and diluted share compared to a net loss of $52,000, or ($0.2) per basic and diluted share in the comparable period year in 2007. Net loss was negatively affected by $198,000 in pre-opening and early operating losses experienced at the Company's new locations in Dallas (12 stores), St. Louis (3 stores) and Houston (3 stores). Cost of emissions certificates totaled $544,000 in the three-month period ended March 31, 2008 compared to $600,000 in the comparable period in 2007. Store operating expenses totaled $1,621,000 in the three-month period ended March 31, 2008 compared to $1,500,000 in the comparable period in 2007. Same store operating expenses decreased $153,000 in the three month period ended March 31, 2008 over the prior comparable period in 2007 as a result of cost saving initiatives. For the quarter ended March 31, 2008, general and administrative expenses were $486,000 compared to $358,000 in the comparable period in 2007. General and administrative expenses increased mainly as a result of legal and accounting fees associated with additional SEC filings. Richard A. Parlontieri, President/CEO of Speedemissions stated: "We have grown from 35 stores at March 31, 2007 to 50 stores as of March 31, 2008. Our investment in the new locations in Houston, Dallas and St. Louis show our commitment to expand our presence in new and existing markets where vehicle emissions testing and safety inspections are mandated. As expected, the investment in new stores added additional revenue and operating expenses to our results. We may operate at a loss and our cash on hand may decrease as a result of the early operating losses at the new stores until they achieve the test volume necessary to break even. We are pleased that have made progress in increasing the net operating profit in our same stores improved compared to the comparable three month period in 2007." 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 March 31, December 31, 2008 2007 Assets (unaudited) Current assets: Cash $563,214 $804,662 Other current assets 225,183 226,051 Total current assets 788,397 1,030,713 Property and equipment, at cost less accumulated depreciation and amortization 1,485,712 1,484,229 Goodwill 7,100,572 7,100,572 Other assets 104,537 103,787 Total assets $9,479,218 $9,719,301 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $672,158 $495,503 Accrued liabilities 237,190 522,385 Debt payable - - Current portion of capitalized lease obligations 38,314 32,325 Current portion of equipment financing obligations 14,716 14,207 Current portion - deferred rent 13,628 13,628 Total current liabilities 976,006 1,078,048 Capitalized lease obligations 172,888 155,961 Equipment financing obligations 76,931 80,792 Deferred rent 241,367 243,948 Other long term liabilities 7,350 7,350 Total liabilities 1,474,542 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: $6,372,446 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 15,623,211 15,596,105 Accumulated deficit (12,205,524) (12,029,892) Total shareholders' equity 3,425,330 3,573,856 Total liabilities and shareholders' equity $9,479,218 $9,719,301 Speedemissions, Inc. and Subsidiaries Consolidated Statements of Operations (unaudited) Three Months Ended March 31, 2008 2007 Revenue $2,483,419 $2,412,538 Costs of operations: Cost of emission certificates 543,704 599,690 Store operating expenses 1,621,231 1,499,965 General and administrative expenses 485,446 357,835 Loss from disposal of non-strategic assets - 3,849 Loss from operations (166,962) (48,801) Other income (expense) Other income 864 - Interest expense (9,534) (3,327) Other income (expense), net (8,670) (3,327) Net loss attributable to common shareholders ($175,632) ($52,128) Basic and diluted net loss per share ($0.03) ($0.02) Weighted average common shares outstanding, basic and diluted 5,162,108 2,963,528 Speedemissions, Inc. and Subsidiaries Consolidated Statements of Cash Flows (unaudited) Three Months Ended March 31 2008 2007 Operating activities: Net loss Adjustments to reconcile net loss to net cash provided by operating activities: $(175,632) $(52,128) Depreciation and amortization 85,478 87,136 Loss from disposal of non-strategic assets - 3,849 Share based compensation expenses 27,106 32,716 Changes in operating assets and liabilities, net of acquisitions: Other current assets 868 61,260 Other assets (750) - Accounts payable and accrued liabilities (108,390) (84,816) Other liabilities (2,581) 9,106 Net cash (used in) provided by operating activities (173,901) 57,123 Cash flows from investing activities: Proceeds from asset sales - 400 Purchases of property and equipment (55,686) (49,509) Net cash used in investing activities (55,686) (49,109) Cash flows from financing activities: Payments on capitalized leases (11,861) (3,037) Net cash used in financing activities (11,861) (3,037) Net increase (decrease) in cash (241,448) 4,977 Cash at beginning of period 804,662 320,231 Cash at end of period $563,214 $325,208 Supplemental Information: Cash paid during the period for interest $9,534 $2,514 Non-cash Investing and Financing activities: Non-cash asset additions for financed and capital leases $31,425 $-
SOURCE Speedemissions, Inc.
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