Speedemissions, Inc. Reports Second Quarter Results
ATLANTA, Aug. 12 /PRNewswire-FirstCall/ -- Speedemissions, Inc. (OTC Bulletin Board: SPMI), a leading vehicle emissions testing and safety inspections company with 44 testing stores in Atlanta, Dallas, Houston, Salt Lake City and St. Louis today announced its results for the second quarter ended June 30, 2008. For the quarter ended June 30, 2008, the Company reported record revenue of $2,609,000, up 5.7% from $2,469,000 in the same period last year. The Company incurred net loss of $174,000, or ($0.03) per basic and diluted share compared to net income of $102,000, or $0.03 per basic and $0.01 per diluted share in the comparable period year in 2007. Net loss was negatively affected by $225,000 in early operating losses experienced at the Company's new locations in Dallas, St. Louis and Houston during the three months ended June 30, 2008. Revenue from same stores sales decreased $98,000 or 4.0% in the quarter ended June 30, 2008. Same store net operating income in the three- month period ended June 30, 2008 increased $66,000 or 13.4% to $554,000 from $489,000 in the comparable period in 2007. For the six months ended June 30, 2008, the Company reported record revenue of $5,093,000, up 4.3% from $4,881,000 in the same period last year. The Company incurred net loss of $349,000, or ($0.07) per basic and diluted share compared to net income of $50,000, or $0.02 per basic and $0.01 per diluted share in the comparable period year in 2007. Net loss was affected by $449,000 in early operating losses experienced at the Company's new locations in Dallas, St. Louis and Houston during the six months ended June 30, 2008. Revenue from same stores sales decreased $134,000 or 2.8% in the six months ended June 30, 2008. Same store net operating income in the six-month period ended June 30, 2008 increased $275,000 or 33.9% to $1,086,000 from $811,000 in the comparable period in 2007. Richard A. Parlontieri, President/CEO of Speedemissions stated: "We are encouraged by the increase in our same store net operating income despite lower same store sales. As expected, our investment in new stores in Houston, Dallas and St. Louis added additional revenue and operating expenses which contributed to the loss in the quarter and six months. We may continue to 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 working extremely hard with our new store projects and look to improve on our results going forward." 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 June 30, December 31, Assets 2008 2007 (unaudited) Current assets: Cash $439,252 $804,662 Other current assets 251,640 226,051 Total current assets 690,892 1,030,713 Property and equipment, at cost less accumulated depreciation and amortization 1,510,384 1,484,229 Goodwill 7,100,572 7,100,572 Other assets 107,537 103,787 Total assets $9,409,385 $9,719,301 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $586,789 $495,503 Accrued liabilities 364,099 522,385 Current portion of capitalized lease obligations 39,530 32,325 Current portion of equipment financing obligations 15,244 14,207 Current portion - deferred rent 13,628 13,628 Total current liabilities 1,019,290 1,078,048 Capitalized lease obligations, net of current portion 162,504 155,961 Equipment financing obligations, net of current portion 72,902 80,792 Deferred rent 239,705 243,948 Other long term liabilities 7,350 7,350 Total liabilities 1,501,751 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 15,699,815 15,596,105 Accumulated deficit (12,379,170) (12,029,892) Total shareholders' equity 3,328,288 3,573,856 Total liabilities and shareholders' equity $9,409,385 $9,719,301 Speedemissions, Inc. and Subsidiaries Consolidated Statements of Operations (unaudited) Three Months Ended Six Months Ended June 30 June 30 2008 2007 2008 2007 Revenue $2,609,441 $2,468,889 $5,092,861 $4,881,426 Costs of operations: Cost of emission certificates 571,364 603,090 1,115,068 1,202,780 Store operating expenses 1,699,899 1,384,241 3,321,131 2,886,005 General and administrative expenses 502,637 371,878 988,083 727,913 Loss from disposal of non-strategic assets - 7,886 - 11,735 Income (loss) from operations (164,459) 101,794 (331,421) 52,993 Other income (expense) Other income 256 - 1,120 - Interest expense (9,443) (107) (18,977) (3,434) Other income (expense), net (9,187) (107) (17,857) (3,434) Net income (loss) attributable to common shareholders $(173,646) $101,687 $(349,278) $49,559 Basic net income (loss) per share $(0.03) $0.03 $(0.07) $0.02 Diluted net income (loss) per share $(0.03) $0.01 $(0.07) $0.01 Weighted average common shares outstanding, basic 5,162,108 3,016,119 5,162,108 2,989,969 Weighted average common shares outstanding, diluted 5,162,108 7,296,117 5,162,108 7,269,967 Speedemissions, Inc. and Subsidiaries Consolidated Statements of Cash Flows (unaudited) Six Months Ended June 30 2008 2007 Operating activities: Net income (loss) $(349,278) $49,559 Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 173,123 132,496 Loss from disposal of non-strategic assets - 11,735 Share based compensation expenses 103,710 65,432 Changes in operating assets and liabilities, net of acquisitions: Other current assets (25,589) 50,590 Other assets (3,750) (1,800) Accounts payable and accrued liabilities (66,849) (145,049) Other liabilities (4,243) (12,484) Net cash (used in) provided by operating activities (172,876) 150,479 Cash flows from investing activities: Proceeds from asset sales - 211,094 Purchases of property and equipment (168,003) (102,681) Net cash (used in) provided by investing activities (168,003) 108,413 Cash flows from financing activities: Payments on debt (6,854) (111,747) Payments on capitalized leases (17,677) (5,160) Net cash used in financing activities (24,531) (116,907) Net increase (decrease) in cash (365,410) 141,985 Cash at beginning of period 804,662 320,231 Cash at end of period $439,252 $462,216 Supplemental Information: Cash paid during the period for interest $18,992 $13,017 Non-cash Investing and Financing activities: Non-cash asset additions for financed and capital leases $31,425 $- During the quarter ended June 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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