ATLANTA, Nov. 13 /PRNewswire-FirstCall/ -- Speedemissions, Inc. (OTC Bulletin Board: SPMI), a leading vehicle emissions testing and safety inspections test only company announced financial results for the quarter ended September 30, 2007. Speedemissions reported third quarter revenue of $2,524,988, up from $2,484,492 for the comparable period last year. Net income for the quarter was $16,817, or $0.00 per diluted common share compared to $101,542, or $0.01 per diluted common share in 2006. For the nine months ended September 30, 2007, total revenue rose to $7,406,415 up from $7,286,789 in the comparable period of 2006. Net income and diluted earnings per common share were $66,377 or $0.01 per diluted common share compared to $208,726 or $0.03 per diluted common share in 2006. Same store operating margins increased 21.3% and 19.7% during the three and nine months ended September 30, 2007 over the prior year comparable periods. Same store revenues increased 1.2% and 3.2% during the three and nine months ended September 30, 2007 over the prior year comparable periods. General and administrative expenses for the three and nine month periods ended September 30, 2007 were $482,121 and $1,210,034 respectively. General and administrative expenses for the three and nine month periods ended September 30, 2006 were $352,838 and $1,081,971, respectively. The increases in general and administrative expenses were primarily due to an increase in professional fees, Sarbanes Oxley compliance costs, and stock option compensation expenses that were not present in comparable periods of 2006. Rich Parlontieri, President and CEO said, "Our execution of previously implemented programs to streamline operational efficiency and improve the customer experience helped achieve the increases in same store operating margins during the three and nine months ended September 30, 2007. While our overall net income was not as high as prior year mainly due to an increase in general and administrative expenses associated with expanding our business into Dallas and St. Louis, compliance with Sarbanes Oxley and new store operating expenses, we are encouraged by the increase in sales and our ability to improve our efficiency at our existing stores." About Speedemissions Inc. http://www.speedemissions.com Speedemissions, Inc., based in Atlanta, Georgia, plans to become the leading vehicle emissions (and safety inspection where required) test only company in the United States in areas where emissions 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 Company's present locations are in the Atlanta, GA. Houston, TX. and Salt Lake City, UT. markets, and is in the process of expanding into Dallas, TX and St. Louis, MO. 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 2007 2006 (unaudited) Current assets: Cash $946,576 $320,231 Other current assets 219,985 224,930 Total current assets 1,166,561 545,161 Property and equipment, at cost less accumulated depreciation and amortization 909,838 1,229,329 Goodwill 7,100,572 7,100,572 Other assets 81,863 59,926 Total assets $9,258,834 $8,934,988 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $308,529 $318,297 Accrued liabilities 403,716 532,984 Debt payable - 111,747 Current portion of capitalized lease obligations 5,306 12,925 Total current liabilities 717,551 975,953 Other liabilities 108,250 113,848 Commitments and contingencies Shareholders' equity: Series A convertible preferred stock, $.001 par value, 5,000,000 shares authorized, 5,133 and 5,133 shares issued and outstanding in 2007 and 2006, respectively liquidation preference: $10,976,000 5 5 Series B convertible preferred stock, $.001 par value, 3,000,000 shares authorized, 2,481,482 and 2,481,482 shares issued and outstanding in 2007 and 2006, respectively liquidation preference: $5,906,000 2,481 2,481 Common stock, $.001 par value, 250,000,000 shares authorized, 5,162,108 and 2,963,528 shares issued and outstanding in 2007 and 2006, respectively 5,162 2,964 Additional paid-in capital 20,137,857 19,622,834 Deferred compensation (13,189) (17,437) Accumulated deficit (11,699,283) (11,765,660) Total shareholders' equity 8,433,033 7,845,187 Total liabilities and shareholders' equity $9,258,834 $8,934,988 Speedemissions, Inc. and Subsidiaries Consolidated Statements of Income (unaudited) Three Months Ended Nine Months Ended September 30 September 30 2007 2006 2007 2006 Revenue $2,524,988 $2,484,492 $7,406,415 $7,286,789 Costs and expenses: Cost of emission certificates 628,807 601,186 1,831,587 1,842,776 Store operating expenses 1,398,204 1,426,122 4,284,209 4,155,151 General and administrative expenses 482,121 352,838 1,210,034 1,081,971 Income from operations 15,856 104,346 80,585 206,891 (Gain) loss from disposal of non- strategic assets - 479 11,735 (9,993) Interest (income) expense, net (961) 2,325 2,473 8,158 Net income $16,817 $101,542 $66,377 $208,726 Net income per share (basic) $0.01 $0.03 $0.02 $0.07 Net income per share (diluted) $0.00 $0.01 $0.01 $0.03 Weighted average common shares outstanding, basic 3,173,685 2,903,744 3,051,881 2,852,140 Weighted average common shares outstanding, diluted 7,452,695 7,468,742 7,330,940 7,417,138 Speedemissions, Inc. and Subsidiaries Consolidated Statements of Cash Flows (Unaudited) Nine Months Ended September 30, 2007 2006 Operating activities: Net income $66,377 $208,726 Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 203,928 291,439 (Gain) loss from disposal of non- strategic assets 11,735 (9,993) Share based compensation expenses 98,149 65,078 Stock issued for services - 68,500 Changes in operating assets and liabilities, net of acquisitions: Other current assets 40,417 (27,915) Other assets (21,937) (11,525) Accounts payable and accrued liabilities (45,835) (168,345) Net cash provided by operating activities 352,834 415,965 Cash flows from investing activities: Acquisition of businesses - (100,000) Proceeds from asset sales 211,094 14,854 Purchases of property and equipment (138,491) (153,684) Net cash provided by (used in) investing activities 72,603 (238,830) Cash flows from financing activities: Proceeds from sale of common stock 319,072 - Payments on debt (111,747) - Payments on capitalized leases (6,417) (16,419) Net cash provided by (used in) financing activities 200,908 (16,419) Net increase in cash 626,345 160,716 Cash at beginning of period 320,231 250,227 Cash at end of period $946,576 $410,943 Supplemental Information: Cash paid during the year for interest $14,058 $4,277 Non-cash Investing and Financing activities: Equity securities issued in connection with acquisitions $100,000 $100,000
SOURCE Speedemissions, Inc.