Speedemissions, Inc Reports Second Quarter 2009 Results
ATLANTA--Speedemissions, Inc. (OTC Bulletin Board: SPMI - News), a leading vehicle emissions testing and safety inspections company with testing stores in Atlanta, Houston, St. Louis and Salt Lake City today announced its financial results for the second quarter ended June 30, 2009.
Second Quarter Highlights:
- Revenue increased 2.7% to $2,586,308 for the second quarter of 2009 compared to revenue of $2,518,719 for the second quarter of 2008. The increase in revenue was led by a 5.5% increase in same store sales over the comparable period of 2008.
- General and administrative expenses decreased 28.2% to $361,063 during the second quarter of 2009 compared to $502,637 in the same period of the prior year.
- Net income for the second quarter of 2009 increased to $102,916 or $0.01 per diluted share from a net loss of $173,646, or ($0.03) per diluted share in the comparable period of 2008.
- The company opened its 4th store in St. Louis increasing its total number of stores to 40.
Year-to-Date Results:
- Revenue increased 2.2% to $5,058,250 for the six-month period ended June 30, 2009 compared to revenue of $4,948,474 in the six-month period ended June 30, 2008. Same store sales increased 2.2% in the six-month period ended June 30, 2009 over the comparable period of 2008.
- General and administrative expenses decreased 33.0% to $662,419 during the six-month period ended June 30, 2009 compared to $988,083 in the six-month period ended June 30, 2008.
- Net income for the six-month period ended June 30, 2009 increased to $145,068 or $0.02 per diluted share from a net loss of $349,278 or ($0.07) per diluted share.
- Since December 31, 2008, the Company has increased its cash balances by 17.9% and decreased its total liabilities by 15.2%.
Richard A. Parlontieri, President and Chief Executive Officer of Speedemissions commented:
“We’re encouraged that despite the most severe recession in recent history, we were able to increase revenue, increase same store sales, generate net income for the second consecutive quarter, increase our cash balance and reduce our liabilities during the quarter and first six months of 2009. While we’ve made great progress over the past 12 months in our store operations, we need to find more ways of doing business which means driving more revenue and income to our stores.”
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; Houston, Texas; St. Louis, Missouri and Salt Lake City, Utah 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.
| Item 1. Consolidated Financial Statements | ||||||||||
| Speedemissions, Inc. and Subsidiaries | ||||||||||
| Consolidated Balance Sheets | ||||||||||
|
June 30, |
December 31, |
|||||||||
| Assets | 2009 | 2008 | ||||||||
| Current assets: | ||||||||||
| Cash |
$ |
604,332 |
$ |
512,492 |
||||||
| Other current assets | 138,583 | 137,691 | ||||||||
| Total current assets | 742,915 | 650,183 | ||||||||
|
Property and equipment, at cost less accumulated depreciation and amortization |
1,098,889 | 1,214,737 | ||||||||
| Goodwill | 7,100,572 | 7,100,572 | ||||||||
| Other assets | 101,687 | 100,937 | ||||||||
| Total assets |
$ |
9,044,063 |
$ |
9,066,429 |
||||||
| Liabilities and Shareholders' Equity | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable |
$ |
274,001 |
$ |
498,554 |
||||||
| Accrued liabilities | 300,366 | 237,127 | ||||||||
| Current portion of capitalized lease obligations | 44,545 | 41,962 | ||||||||
| Current portion of equipment financing obligations | 17,567 | 16,362 | ||||||||
| Current portion - deferred rent | 17,949 | 17,949 | ||||||||
| Total current liabilities | 654,428 | 811,954 | ||||||||
| Capitalized lease obligations, net of current portion | 117,959 | 140,897 | ||||||||
| Equipment financing obligations, net of current portion | 55,335 | 64,431 | ||||||||
| Deferred rent | 228,973 | 230,521 | ||||||||
| Other long term liabilities | 7,350 | 7,350 | ||||||||
| Total liabilities | 1,064,045 | 1,255,153 | ||||||||
| 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 shares issued and outstanding |
5,162 | 5,162 | ||||||||
| Additional paid-in capital | 15,773,629 | 15,749,955 | ||||||||
| Accumulated deficit | (12,380,600 | ) | (12,525,668 | ) | ||||||
| Total shareholders' equity | 3,400,672 | 3,231,930 | ||||||||
| Total liabilities and shareholders' equity |
$ |
9,044,063 |
$ |
9,066,429 |
||||||
|
See accompanying notes to consolidated financial statements. |
||||||||||
| Speedemissions, Inc. and Subsidiaries | ||||||||||||||||
| Consolidated Statements of Operations | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30 | June 30 | |||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
| Revenue |
$ |
2,586,308 |
$ |
2,518,719 |
$ |
5,058,250 |
$ |
4,948,474 |
||||||||
| Costs of operations: | ||||||||||||||||
| Cost of emission certificates | 564,666 | 539,058 | 1,113,243 | 1,063,847 | ||||||||||||
| Store operating expenses | 1,574,762 | 1,522,703 | 3,147,591 | 3,009,772 | ||||||||||||
| General and administrative expenses | 361,053 | 502,637 | 662,419 | 988,083 | ||||||||||||
| (Gain) loss on disposal of non-strategic assets | (24,830 | ) | - | (24,830 | ) | - | ||||||||||
| Operating income (loss) | 110,657 | (45,679 | ) | 159,827 | (113,228 | ) | ||||||||||
| Interest income (expense) | ||||||||||||||||
| Interest income | 26 | 256 | 51 | 1,120 | ||||||||||||
| Interest expense | (7,767 | ) | (9,443 | ) | (14,810 | ) | (18,977 | ) | ||||||||
|
Interest expense, net |
(7,741 | ) | (9,187 | ) | (14,759 | ) | (17,857 | ) | ||||||||
| Income (loss) from continuing operations | 102,916 | (54,866 | ) | 145,068 | (131,085 | ) | ||||||||||
| Income (loss) from discontinued operations | - | (118,780 | ) | - | (218,193 | ) | ||||||||||
| Net income (loss) |
$ |
102,916 |
$ |
(173,646 |
) |
$ |
145,068 |
$ |
(349,278 |
) |
||||||
| Basic net income (loss) per share from continuing operations |
$ |
0.02 |
$ |
(0.01 |
) |
$ |
0.03 |
$ |
(0.03 |
) |
||||||
| Diluted net income (loss) per share from continuing operations |
$ |
0.01 |
$ |
(0.01 |
) |
$ |
0.02 |
$ |
(0.03 |
) |
||||||
| Basic net income (loss) per share from discontinued operations |
$ |
- |
$ |
(0.02 |
) |
$ |
- |
$ |
(0.04 |
) |
||||||
| Diluted net income (loss) per share from discontinued operations |
$ |
- |
(0.02 | ) |
$ |
- |
(0.04 |
) |
||||||||
| Basic net income (loss) per share |
$ |
0.02 |
$ |
(0.03 |
) |
$ |
0.03 |
$ |
(0.07 |
) |
||||||
| Diluted net income (loss) per share |
$ |
0.01 |
$ |
(0.03 |
) |
$ |
0.02 |
$ |
(0.07 |
) |
||||||
| Weighted average common shares outstanding, basic | 5,162,108 | 5,162,108 | 5,162,108 | 5,162,108 | ||||||||||||
| Weighted average common shares outstanding, diluted | 9,439,606 | 5,162,108 | 9,439,606 | 5,162,108 | ||||||||||||
| See accompanying notes to consolidated financial statements. | ||||||||||||||||
| Speedemissions, Inc. and Subsidiaries | ||||||
| Consolidated Statements of Cash Flows | ||||||
| Six Months Ended | ||||||
| June 30, | ||||||
| 2009 | 2008 | |||||
| Operating activities: | ||||||
| Net income (loss) | $ | 145,068 | $ | (349,278) | ||
|
Adjustments to reconcile net loss to net cash provided by operating activities: |
||||||
| Depreciation and amortization | 159,841 | 173,123 | ||||
| Gain on disposal of assets | (24,830) | - | ||||
| Share based compensation expenses | 23,674 | 103,710 | ||||
| Changes in operating assets and liabilities: | ||||||
| Other current assets | (892) | (25,589) | ||||
| Other assets | (750) | (3,750) | ||||
| Accounts payable and accrued liabilities | (161,314) | (66,849) | ||||
| Other liabilities | (1,548) | (4,243) | ||||
| Net cash (used in) provided by operating activities | 139,249 | (172,876) | ||||
| Cash flows from investing activities: | ||||||
| Proceeds from disposal of assets | 24,830 | - | ||||
| Purchases of property and equipment | (43,992) | (168,003) | ||||
| Net cash used in investing activities | (19,162) | (168,003) | ||||
| Cash flows from financing activities: | ||||||
| Payments on financing obligations | (7,892) | (6,854) | ||||
| Payments on capitalized leases | (20,355) | (17,677) | ||||
| Net cash used in financing activities | (28,247) | (24,531) | ||||
| Net increase (decrease) in cash | 91,840 | (365,410) | ||||
| Cash at beginning of period | 512,492 | 804,662 | ||||
| Cash at end of period | $ | 604,332 | $ | 439,252 | ||
| Supplemental Information: | ||||||
| Cash paid during the period for interest | $ | 10,385 | $ | 18,922 | ||
| Non-cash Investing and Financing activities: | ||||||
| Non-cash asset additions for financed and capital leases | $ | - | $ | 31,425 | ||
| See accompanying notes to consolidated financial statements. | ||||||