Speedemissions, Inc. Reports Third Quarter Results
Q3 2007 Same Store Operating Margins Increase 21.3% Over Comparable Period
ATLANTA, Nov. 13 -- Speedemissions, Inc. (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