2014

Speedemissions, Inc. Reports Third Quarter Results Q3 2007 Same Store Operating Margins Increase 21.3% Over Comparable Period



    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.

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