Speedemissions Reports Year End 2007 Results
ATLANTA, April 3, 2008 /PRNewswire-FirstCall/ -- Speedemissions, Inc. (OTC Bulletin Board: SPMI), a leading vehicle emissions testing and safety inspections company with 49 testing stores in Atlanta, Houston, Salt Lake City and St. Louis today announced its results for the year ended December 31, 2007. For the year ended December 31, 2007, the Company reported revenue of $9.7 million up from $9.5 million in the prior year. Revenue from same stores sales increased 3%. The Company incurred net loss of $264,232, or ($0.07) per basic and diluted share compared to a net loss of $1.3 million, or ($0.46) per basic and diluted share in the year ended December 31, 2006. Cost of emissions certificates totaled $2.3 million compared to $2.4 million in 2006. Store operating expenses totaled $5.8 million compared to $5.8 million in 2006. For the year ended December 31, 2007, general and administrative expenses were $1.8 million compared to $1.6 million in 2006. General and administrative expenses increased mainly as a result of Sarbanes-Oxley compliance costs and additional SEC filings. Richard A. Parlontieri, President/CEO of Speedemissions stated: "I am pleased to report we have generated our second consecutive year of positive operating cash flows with our cash provided operations growing to $562,000, up from $324,000 in the prior year. We also experienced a 3% increase in same store sales while reducing our same store operating expenses by 4%." Parlontieri concluded: "During the fourth quarter of 2007, we began our expansion into the Dallas and St. Louis emissions testing and safety inspection markets. We have added a total 14 new locations in Houston, Dallas and St. Louis since September 30, 2007 and we are excited about the opportunity these markets present for us. The investment in new stores is expected to add additional revenue to the company. However, until the new stores achieve the test volume necessary to cover the initial capital expenditures and expenses of operating these stores, we may operate at a loss and our cash on hand may decrease." 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, Dallas, Houston, Salt Lake City and St. Louis 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 as of December 31, 2007 2006 Assets Current assets: Cash $804,662 $320,231 Other current assets 226,051 224,930 Total current assets 1,030,713 545,161 Property and equipment, at cost less accumulated depreciation and amortization 1,484,229 1,229,329 Goodwill 7,100,572 7,100,572 Other assets 103,787 59,926 Total assets $9,719,301 $8,934,988 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $495,503 $318,297 Accrued liabilities 522,385 341,621 Debt payable - 111,747 Current portion of capitalized lease obligations 32,325 12,925 Current portion of equipment financing obligations 14,207 - Current portion - deferred rent 13,628 23,956 Total current liabilities 1,078,048 808,546 Capitalized lease obligations 155,961 22,199 Equipment financing obligations 80,792 - Deferred rent 243,948 235,519 Other long term liabilities 7,350 6,100 Total liabilities 1,566,099 1,072,364 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 and 2,963,528 shares issued and outstanding in 2007 and 2006, respectively 5,162 2,964 Additional paid-in capital 15,596,105 15,043,493 Accumulated deficit (12,029,892) (11,765,660) Total shareholders' equity 3,573,856 3,283,278 Total liabilities and shareholders' equity $9,719,301 $8,934,988 Speedemissions, Inc. and Subsidiaries Consolidated Statements of Operations for the Years Ended December 31, 2007 2006 Revenue $9,662,245 $9,480,097 Costs of operations: Cost of emission certificates 2,314,621 2,401,461 Store operating expenses 5,762,290 5,788,657 General and administrative expenses 1,832,008 1,601,505 (Gain) loss from disposal of non-strategic assets 11,735 -61,449 Goodwill and related asset impairment expense - 1,071,007 Loss from operations (258,409) (1,321,084) Other income (expense) Other income 5,994 - Interest expense (11,817) (11,122) Other income (expense), net (5,823) (11,122) Net loss attributable to common shareholders ($264,232) ($1,332,206) Basic and diluted net loss per share ($0.07) ($0.46) Weighted average common shares outstanding, basic and diluted 3,583,774 2,880,216 Speedemissions, Inc. and Subsidiaries Consolidated Statements of Shareholders' Equity (Deficiency) For the Years Ended December 31, 2007 and 2006 Preferred Stock - Series B Common Stock Shares Amount Shares Amount Balance at January 1, 2006 2,500,000 $2,500 2,683,581 $2,684 Common stock issued for services - - 68,517 68 Conversion of Series B Preferred Stock (18,518) (19) 140,000 140 Compensation due to stock option grants - - - - Compensation due to stock warrants issued - - - - Common stock issued for business acquisition - - 71,430 72 Net loss - - - - Balance at December 31, 2006 2,481,482 2,481 2,963,528 2,964 Compensation due to stock option grants - - - - Common stock issued for private placement - - 2,127,150 2,127 Common stock issued for business acquisition - - 71,430 71 Net loss - - - - Balance at December 31, 2007 2,481,482 $2,481 5,162,108 $5,162 Additional Accumulated Paid-In-Capital Deficit Total Balance at January 1, 2006 $14,658,175 $(10,433,454) $4,229,905 Common stock issued for services 68,432 - 68,500 Conversion of Series B Preferred Stock (121) - - Compensation due to stock option grants 156,927 - 156,927 Compensation due to stock warrants issued 60,152 - 60,152 Common stock issued for business acquisition 99,928 - 100,000 Net loss - (1,332,206) (1,332,206) Balance at December 31, 2006 15,043,493 (11,765,660) 3,283,278 Compensation due to stock option grants 135,738 - 135,738 Common stock issued for private placement 316,945 - 319,072 Common stock issued for business acquisition 99,929 - 100,000 Net loss - (264,232) (264,232) Balance at December 31, 2007 $15,596,105 $(12,029,892) $3,573,856 Speedemissions, Inc. and Subsidiaries Consolidated Statements of Cash Flows For the Years Ended December 31, 2007 2006 Operating activities: Net loss $(264,232) $(1,332,206) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 263,603 388,799 Goodwill and related asset impairment expense - 1,071,007 (Gain) loss from disposal of non-strategic assets 11,735 (61,449) Share based compensation expenses 135,738 217,079 Stock issued for services - 68,500 Changes in operating assets and liabilities, net of acquisitions: Other current assets (1,121) (25,084) Other assets (43,861) (18,725) Accounts payable and accrued liabilities 460,753 (122,925) Other liabilities (649) 138,823 Net cash provided by operating activities 561,966 323,819 Cash flows from investing activities: Acquisition of businesses - (100,000) Proceeds from asset sales 211,094 14,854 Purchases of property and equipment (479,284) (196,343) Net cash (used in) investing activities (268,190) (281,489) Cash flows from financing activities: Proceeds from sale of common stock 319,072 - Proceeds from bank loan 60,000 Payments on debt (111,747) - Payments on capitalized leases (16,670) (32,326) Net cash provided by financing activities 190,655 27,674 Net increase in cash 484,431 70,004 Cash at beginning of period 320,231 250,227 Cash at end of period $804,662 $320,231 Supplemental Information: Cash paid during the year for interest $10,732 $5,949 Non-cash Investing and Financing activities: Equity securities issued in connection with acquisition of Just, Inc. $100,000 $100,000 Non-cash asset additions for financed and capital leases $264,831 $44,148
SOURCE Speedemissions, Inc.
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