2014

Speedemissions, Inc. Reports Third Quarter Net Income

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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http://www.speedemissions.com

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